Vietnam's rise in the "China+1" strategy is no accident: a young workforce, low wages, the EU–Vietnam Free Trade Agreement (EVFTA, 2020) and investments by electronics giants. But the advantages that apply in electronics assembly do not apply to the same degree in tight-tolerance metal parts. This article, a continuation of our Turkey–China and Turkey–India comparisons, looks at Vietnam through the same framework.
Summary Comparison
| Criterion | Turkey | Vietnam |
|---|---|---|
| CNC operator hourly cost | €8–14 | €3–5 |
| Machine hour rate (3-axis milling) | €30–45 | €18–28 |
| Door-to-door delivery (Germany) | 4–6 days by road | 5–7 weeks by sea; 5–8 days by air |
| Customs duty (EU) | 0% (A.TR, Customs Union) | 0–2.7%, phased to zero under EVFTA; rules of origin apply |
| Time difference (Berlin) | +1/+2 hours | +5/+6 hours |
| Depth of precision machining | High; automotive, defence, white-goods supply base | Developing; electronics and assembly focused |
| Raw material | Domestic steel, imported stainless/aluminium | Largely imported (China, Japan) |
| Prevalence of quality certificates | ISO 9001 widespread, IATF moderate | ISO 9001 spreading, IATF limited |
| Engineering communication | English/German, same working day | English, half-day delay |
1. Cost: Unit Price and Total Cost
Labour in Vietnam is roughly one third of Turkey's; for simple, high-volume, labour-intensive parts the unit price can be 15–30% lower. But in a CNC part most of the cost is machine hours, tooling, raw material and energy; here Vietnam's advantage is limited and the raw material is mostly imported. When sea freight (€2,000–4,000 per container, volatile), 5–7 weeks of inventory financing, insurance and quality risk are added to the total cost, the gap on medium-complexity parts usually closes or reverses. There is a calculation model in our nearshoring and TCO article.
2. Lead Time and Flexibility
This is the biggest difference between the two countries. Road transport from Turkey to Europe takes 4–6 days; in an emergency air freight takes 1–2 days. Sea freight from Vietnam to Hamburg or Rotterdam takes 5–7 weeks (longer during Red Sea disruptions); air freight is possible but the cost per kg can exceed the value of the part. The result: working with Vietnam requires 8–12 weeks of forward planning and high safety stock; design changes or urgent orders are practically impossible. With Turkey, weekly call-offs and a kanban arrangement can be set up.
3. Customs: EVFTA versus the Customs Union
In the Turkey–EU Customs Union industrial goods circulate duty-free with the A.TR document and no rule of origin is required; a part machined in Turkey receives an A.TR even if made from imported raw material. Under EVFTA, preferential duty requires meeting the Vietnamese rule of origin; a part machined from imported Chinese steel may not acquire origin in some tariff headings and the EU's third-country duty (0–2.7% on metal parts, higher on some machine parts) applies. In addition, the EU's Carbon Border Adjustment Mechanism (CBAM) covers certain steel and aluminium products; it applies to both countries, but Turkey's integration with the EU market simplifies the reporting process. For details see our A.TR article.
4. Quality Culture and Machine Park
Turkey's machining culture is built on 50 years of automotive, white-goods and defence supply; ISO 9001 is standard, there are IATF- and AS9100-certified shops, and the CMM and inspection-report culture is established. In Vietnam, precision machining capacity is developing rapidly through Japanese and Korean investment, but the domestic SME shop base does not yet have Turkey's depth; foreign-owned plants focus on their own key customers and their accessibility to small European customers is limited.
5. Communication, Audits and Intellectual Property
There is a 1–2-hour difference between Turkey and Europe; questions are answered the same day, video audits take place within working hours, and a visit is a day trip. The 5–6-hour difference with Vietnam stretches the response cycle to a day; a visit requires a 12+ hour flight. In IP protection, Turkey's EU-aligned legislation and the recognisability of European court judgments are an advantage; details in our intellectual property article.
When Does Vietnam Make Sense?
- Very high volume (500,000+), simple, labour-intensive parts or assembled products.
- Metal parts to be assembled in Vietnam together with an electronic product.
- Products with very predictable demand, frozen design and 3-month forward planning.
- Products to be sold in the Asian market (the logistics direction reverses).
When Does Turkey Make Sense?
- Medium-to-low volume, tight-tolerance, multi-operation parts.
- Projects requiring frequent design changes, prototype-to-series transition and engineering communication.
- Supply chains working with weekly call-offs, kanban or short safety stock.
- Sectors such as automotive, machinery and hydraulics that require documentation and traceability.
- Any situation where total cost and risk matter more than unit price.
Worked Example: 20,000 Aluminium Flanges
Ø80 mm, 6082-T6, 6 holes, ±0.05 mm; 20,000 pieces a year in four batches. Vietnam quote €6.90 EXW, Turkey quote €8.10 FCA. Additions for Vietnam: sea freight and insurance €0.45/piece, import handling and possible 2.7% duty €0.30, 8 weeks of additional inventory financing and warehousing €0.35, amortisation of sample and audit travel €0.20, quality risk provision €0.25: total €8.45. Additions for Turkey: road transport €0.20, duty 0%, 1 week of inventory €0.05, audit travel €0.05: total €8.40. Vietnam, which looks 15% cheaper on unit price, comes level with Turkey on total cost; when a demand fluctuation or a revision is added, Turkey moves ahead.
The Risk Dimension
The long sea route is vulnerable to geopolitical and port disruptions; during the Red Sea crisis Asia–Europe transit times lengthened by two weeks and freight rates tripled. The Turkey–Europe road route is largely independent of such shocks; alternative routes and air freight can always be kept in hand.
Frequently Asked Questions
How much cheaper is Vietnam than Turkey?
About one third on labour; but the difference in CNC part price stays between 10–30% and closes on most parts once transport, inventory and risk are added.
Is duty-free import from Vietnam possible under EVFTA?
Yes, if the rule of origin is met; some parts made from imported raw material cannot acquire origin. In Turkey there is no rule of origin for the A.TR.
How different is the lead time?
Turkey 4–6 days by road, Vietnam 5–7 weeks by sea. In an emergency Turkey 1–2 days, Vietnam 5–8 days by air freight.
Does it make sense to use both?
Yes; supply chains split into high-volume simple parts from Vietnam and complex, time-critical parts from Turkey are common.
Conclusion
Vietnam is a strong destination for low labour cost and electronics assembly; for precision CNC parts, Turkey's 4–6-day logistics, the Customs Union, its deep supply-industry culture and same-day engineering communication usually deliver a better result for the European buyer in total cost and risk. If you would like a real comparison for your parts, send your drawings via our quote form; you receive a euro-based quote within 24 hours.
