Why due diligence looks different in Vietnam
Vietnam's fabrication base has matured fast since 2018, but capability varies widely between export-grade factories and domestic workshops. A US-style audit checklist, adapted for Vietnamese realities, protects you without slowing the project down.
The 12-point checklist
Certifications & systems (1–4): verify ISO 9001:2015 with the certification body, not a PDF; ask for the latest SMETA or equivalent ethical audit; confirm a documented incoming-material inspection procedure; and ask who signs off First Article Inspection.
Engineering capability (5–8): send one real drawing (DWG/DXF/STEP) and measure the DFM response — an export-grade supplier returns manufacturability feedback within 24–48 hours; check laser cutting, press brake and welding equipment lists with model years; ask whether welding is robotic or manual for your volumes; and confirm in-house powder coating or hot-dip galvanizing versus subcontracted finishing.
Commercial & export (9–12): require MTCs on every lot; confirm export packing standards (VCI, corner protection, container loading plans); check references from at least two current Western customers (redacted is fine); and confirm they quote FOB with a named port and realistic transit times — 18–22 days to the US West Coast, 28–35 days to the East Coast.
Red flags that end the conversation
A price more than 25% below the market median usually means missing processes, not efficiency. Other deal-breakers: refusal to do a paid prototype, no engineering staff who read your drawings in English, and 100% advance payment demands from a factory you have never audited.
Frequently Asked Questions
For programs above roughly $100,000/year, yes — or hire a third-party inspector (SGS, TUV, Bureau Veritas) for a one-day capability audit costing $300-600. For smaller pilot orders, a live video factory tour plus a paid prototype with FAI report is usually sufficient.
30% deposit with PO and 70% against copy of Bill of Lading is the standard starting point. After 3-4 successful orders, many suppliers extend to LC at sight or partial open-account terms.
Sign an NDA before sending drawings (enforceable suppliers will offer one proactively), send only the parts needed for quoting, and keep critical assembly know-how or tolerances in controlled documents released after the NDA and pilot order.