1. The “hourly rate” scorecard (3-axis vertical, 2025)
| Region | RMB/h | USD/h | 5-axis premium | Foot-note |
|---|---|---|---|---|
| China (PRD/YRD) | 120–180 | 15–25 | + 10–20 USD | cutters/steel local |
| Vietnam (HCM/Hanoi) | 90–140 | 12–18 | + 8–14 USD | 80 % tools imported |
| India (Pune/Chennai) | 70–120 | 9–15 | + 6–12 USD | power cuts 4 h/week avg |
Labour is only 20-25 % of that rate—power, tooling and depreciation are global prices—so the gap is smaller than the wage gap suggests
.
2. Labour & electricity snapshot
| Item | China | Vietnam | India |
|---|---|---|---|
| CNC operator (month, inc. SI) | 950–1 050 USD | 480–560 USD | 380–460 USD |
| Industrial power (USD/kWh) | 0.09 | 0.06 | 0.08 (diesel back-up adds 0.02) |
| Skilled-tech availability | 95 % | 75 % | 60 % |
→ Vietnam’s labour advantage is erased by brown-outs and technician turnover; India is cheaper but output/hour is 20-30 % lower
.
3. Supply-chain depth – the hidden MOQ
- China: 50 km radius gives you pre-hardened steel, Sandvik tools, Schunk chucks, vacuum heat-treat same day.
- Vietnam: 80 % of end-mills, gauges and special alloys imported from China/Japan—add 5-7 days on any urgent change .
- India: alloy-steel shortage + port congestion; many shops keep 3-day diesel generator stock just to guarantee uptime .
4. Precision & automation
| Metric | China | Vietnam | India |
|---|---|---|---|
| 5-axis + probing share | ~35 % | ~10 % | ~8 % |
| CpK ≥ 1.33 on first sampling | 96–98 % | 88–92 % | 85–90 % |
| Lights-out 3rd shift | common | rare | rare |
Medical or aerospace work that demands ≥95 % first-pass yield still ships to China for final ops & inspection, wiping out the labour saving
.
5. Logistics & lead-time
- China → EU: rail 13–18 d / sea 18–25 d (USD 0.9–1.1 kg)
- Vietnam → EU: sea 22–25 d (USD 0.7 kg) +5 d in peak season
- India → EU: sea 28–32 d (USD 0.6 kg) + strikes/typhoon risk
For JIT lines the 3–7 d buffer advantage of China (via Chengdu or Xi’an rail) is often worth more than the 5 % price gap
.
6. Geo-politics & landed cost
- China: still faces US 301 and upcoming EU CBAM carbon surcharge → +15–25 % landed.
- Vietnam: zero tariff into EU (EVFTA) and exempt from most US 301 duties on machined parts → –8 % duty.
- India: MFN tariff 6–8 % into EU; US duties product-specific; no carbon surcharge yet.
→ Vietnam enjoys the sweetest tariff window, but capacity is <1/10 of China—large volumes overflow back to China for semi-finish
.
7. When to put the PO where – a quick guide
| Part profile | Annual vol | Sourcing sweet-spot | Reason |
|---|---|---|---|
| Tight tol. ≤ ±0.01 mm | any | China | 5-axis + metrology cluster |
| Medium tol. ±0.05 mm | 500–5 k | Vietnam | zero tariff, 2-week sea |
| Loose tol. ±0.1 mm | <500 | India | lowest labour, accept risk |
| Carbon-sensitive | any | EU local | CBAM levy > labour delta |
8. Looking ahead (2025-2030)
- Vietnam wages + electricity rising 6–8 %/yr → hourly gap vs China <10 % by 2030.
- India infra gap closing slowly – good for high-labour, low-precision housings & brackets.
- China’s “dark-factory” push – unattended 3rd shift + renewable PPAs → using efficiency to offset tariffs; will keep high-mix, high-precision work .
Bottom line
“Tight-tolerance + fast turn around + one-stop” → still China.
“Zero-tariff + mid-volume + a little patience” → Vietnam.
“Labour-heavy + loose tolerance + high risk appetite” → India.
Hourly rate is only the ticket to the game; supply-chain depth, first-pass yield and tariff treatment decide who actually wins the order.
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