Comparative Pricing: Wire Harness Production Costs in China vs Vietnam

As supply chains shift post-pandemic, manufacturers are closely evaluating cost-effective regions for wire harness production. China and Vietnam remain dominant players, but their pricing models and operational conditions differ significantly. This article provides a detailed comparison.

Labor and Overhead

Porcelana: Average factory labor cost ranges from $4.5¨C$6.5/hour in developed regions like Guangdong, higher in major coastal cities. Automation levels are high.

Vietnam: Average labor is $2.5¨C$3.5/hour. Lower overhead, but less automation.

Material Sourcing

Porcelana: Extensive local supply chain ecosystem for copper, PVC, XLPE, connectors.

Vietnam: Often imports copper and components from China, which can raise material costs slightly.

Factory CapEx & Ongoing Costs

Porcelana: Higher startup costs, especially in Shenzhen/Shanghai; land and compliance fees.

Vietnam: Lower facility and tax costs, though infrastructure can be less reliable.

Export Taxation & Tariffs

Porcelana: Subject to U.S. Section 301 tariffs (up to 25% on some harness types).

Vietnam: No additional U.S. tariffs under current trade terms.

Workforce Skills and Lead Times

Porcelana: Skilled in automotive/military-grade harness production; shorter lead times due to experience and logistics.

Vietnam: Catching up rapidly; lead times longer but improving.

Conclusion

Vietnam offers lower labor costs and favorable export terms, but China remains superior in supply chain maturity, production volume capacity, and technology. A hybrid sourcing model may yield the best balance.