Every week, I get the same email from US and EU buyers: “I know Vietnam is cheaper than China, but by exactly how much? Is it 10% or 50%?”
The answer determines whether you should pack your bags for Hanoi or stay in Shenzhen.
As a Hanoi-based consultant and engineer, I don’t rely on rumors. I look at the hard data from industrial zones in Bac Ninh (Vietnam) and compare them directly to Dongguan/Shenzhen (China).
Here is the 2025 cost breakdown for the “China Plus One” strategy.
The Executive Summary (For Busy CTOs)
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Labor: Vietnam is ~55% cheaper than China.
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Rent: Vietnam Industrial Land is ~30-40% cheaper, but rising fast.
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Electricity: Vietnam is ~16% cheaper, but stability is a concern in summer.
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The Verdict: If your product is labor-intensive (sewing, assembly), move to Vietnam immediately. If you need complex automated robotics, China is still the king.
1. Labor Costs: The “Killer” Metric
This is the main reason companies like Apple and Samsung are here.
In Shenzhen, the days of “cheap labor” are over. The minimum wage is just the floor; to get a worker to actually show up, you have to pay nearly double that. In Vietnam, wages are rising but still significantly lower.
Comparison: Factory Worker (Monthly “All-In” Cost)
| Role | Shenzhen (China) | Hanoi / Bac Ninh (Vietnam) | Your Savings |
| Line Worker (Entry) | $950 – $1,100 USD | $320 – $450 USD | ~60% |
| Production Supervisor | $2,200+ USD | $900 – $1,200 USD | ~50% |
| QA Engineer | $2,500+ USD | $1,000 – $1,400 USD | ~50% |
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Data Source: 2025 Regional Minimum Wage Decrees & Recruitment Data.
Insider Insight:
Don’t just look at the salary. In Vietnam, you must pay 21.5% on top of the salary for mandatory social insurance. In China, this social tax can vary but is often higher and more strictly enforced in Tier 1 cities.
2. Industrial Rent: The “Land Rush”
Five years ago, renting a factory in Northern Vietnam was dirt cheap. Today, it’s a seller’s market.
Because big players (Foxconn, Goertek, Luxshare) are gobbling up land in Bac Giang and Bac Ninh (Bac Ninh province), prices have surged. However, compared to the Pearl River Delta, it is still a bargain.
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Shenzhen/Dongguan: Ready-built factories cost $6.00 – $9.00 USD per sqm/month.
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Northern Vietnam: Ready-built factories cost $4.50 – $5.50 USD per sqm/month.
The “Shell” Factory Warning:
Cheap land often means “remote.” If you rent a factory in a province like Phu Tho or Thai Nguyen to save $0.50/sqm, you might find that no engineers want to live there. Stick to the Hanoi radius (Bac Ninh, Hung Yen, Hai Duong).
3. Electricity: Price vs. Stability
As a developer, I care about “uptime.”
China’s grid is rock solid (99.9% uptime). Vietnam’s grid in the North struggled in 2023, though 2024/2025 has seen massive improvements with new transmission lines from the South.
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China (Industrial Rate): ~$0.10 USD / kWh.
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Vietnam (Industrial Rate): ~$0.084 USD / kWh.
My Advice:
The 1.6 cent savings isn’t worth a power outage. If you manufacture in the North, negotiate for a factory with a backup generator. It is non-negotiable for electronics manufacturing.
4. Logistics: The “China Connection” Cost
This is the hidden tax. Since Vietnam doesn’t produce enough raw materials (plastic pellets, specific screws, fabrics), you likely have to import them from China.
The good news? We share a border.
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Sea Freight (Shekou -> Haiphong): amazingly cheap at ~$160 – $200 USD for a 40ft container.
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Trucking (Shenzhen -> Hanoi): Takes only 1-2 days.
You are essentially running a “Just-In-Time” inventory system using China as your warehouse and Vietnam as your assembly floor.
Conclusion: Is the Move Worth It?
If you are moving 1,000 units a month, stay in China. The setup costs in Vietnam (Legal Entity, IRC, ERC) will eat your profits.
But if you are scaling to 10,000+ units, the math is undeniable.
You save $600 per worker per month.
For a factory of 100 workers, that is $720,000 USD in pure profit added to your bottom line every year.
Thinking of moving operations to the North? I track the availability of “Ready-Built Factories” in Bac Ninh weekly. Check out my [Logistics Guide] to see how to get your machines here.
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