Made in China V.S Made in Vietnam

The Export of Pharmaceutical Packaging Materials

As early as before the COVID-19, after the trade war, production and the foundry of large factories began to move out of China, looking for new suppliers to produce large countries. Under such a premise, Vietnam's manufacturing industry has ushered in a new opportunity for development.

Historical reasons
Vietnam is an emerging industrial land in Asian countries. These new suppliers produce similar quality to China at low cost. And Vietnam is a big manufacturing country, and it has exported to South Korea, Japan, Singapore, Taiwan, European and Asian countries long ago. Vietnam has developed rapidly in recent years and the country is also a global leader in the packaging industry with low labor costs.

International supply market for the pharmaceutical industry
Vietnam does have a lot of export data on finished products such as electronic products and packaging materials, but the raw materials for all these finished products and semi-finished products mainly rely on imports. Among them, the pharmaceutical industry in Vietnam has to be mentioned.
The raw and auxiliary materials of the local pharmaceutical industry in Vietnam are highly dependent on imports, and its main partners are China and India. Vietnam consumes about 60,000 tons of pharmaceutical ingredients and related packaging materials every year. Most of the local packaging materials manufacturing in Vietnam also need to import aluminum foil, plastics and other raw materials, and then process them. On the one hand, due to the abundant resources of raw materials in China, the demand for orders in China's raw and auxiliary materials processing industry is still very stable. The surge in foreign orders in Vietnam has caused a second rise in domestic material prices in the short term. Therefore, Vietnam still has some time to go before it can replace China's dominance in the supply chain of raw and auxiliary materials in the pharmaceutical industry.

Made in China crisis
Although the supply chain status of MADE IN CHINA will not be shaken in the short term, the changes in the international situation and the impact of the epidemic have all felt the impact and potential risks as export trade manufacturers. The layoffs of large factories and the withdrawal of international companies from China are all negative judgments on the economic situation in the next few years. The traditional price advantage of Chinese manufacturing is no longer so obvious, and emerging industrial countries are also emerging. If you can refer to MADE IN GERMANY, from the price advantage made in China to the quality advantage or cost performance advantage made in China, there may be a new path for development.