How Does Würth Industry Drive Innovation & Efficiency in Vietnam’s Manufacturing Sector?

Christoph Dirr, Managing Director of Würth Industry Vietnam, brings years of experience within the Würth Group across Asia.

In this interview, we asked him to share his insights on the biggest challenges that global and local manufacturers in Vietnam are facing - and how the Würth Group is helping thousands of companies worldwide streamline their production and improve operational efficiency.

What is your role at Würth Industry Vietnam and how long have you been working for the Würth Group already?

I am currently serving the Würth Group as the Managing Director of Würth Industry Vietnam and I have been with the group a little over 10 years now. During my time with Würth I had the privilege to work across the Asia Pacific and Africa region in multiple roles. Before I came to Vietnam in 2022, I was the COO in China, overseeing our central distribution center, general operations, automation efforts and was spearheading Sales Operations in the region.

What is the biggest challenge or need of manufacturing companies in Vietnam?

I believe that Vietnam is on the verge of becoming one of the global manufacturing hubs of the future. Due to its political climate, geographical location and the availability of skilled and cost competitive labor it is a targeted investment location for many OEM’s who intend to not only manufacture low value add items but complex products with a critical purpose in the global manufacturing and value chain. As a result many factories and supporting organizations are already pushing boundaries in regards to automation and digitalization. At the same time, Vietnam is still building up its substance when it comes to infrastructure and prefabricated goods and production material. A lot of OEM’s rely on the import of components. This goes for B-Parts but especially for C-Part components such as fasteners for direct application and consumables with high complexity in the purchasing process. This is where we come in.

Are there any differences between the challenges for manufacturers in Vietnam vs. other Asian countries?

I believe OEMs face similar pain points across countries, regions, and industries. Serving our global Top 50 OEMs in an average of nine countries, we see consistent needs - at least when it comes to C-Parts: the right product, at the right time, in the right quality and quantity. 

While this sounds basic, delivering around 1,000 components daily to each customer's location in a just-in-time setup is anything but simple. Fasteners may have low purchasing value, but their quality and documentation requirements are high, and they’re critical for production continuity. Few suppliers can manage this complexity while also offering safety and cost-efficiency from a total cost of ownership perspective.

Vietnam is still early in its industrial journey. Countries like China, India, Japan, Korea, and Malaysia have decades of manufacturing experience and broader capabilities. Most C-Parts used by OEMs in Vietnam are currently imported due to the limited local manufacturing base.

This amplifies challenges such as large MOQs, delays, shifting purchasing conditions, and high supplier development costs relative to the commodity value. That’s where we aim to add value: to Vietnam’s manufacturing hub and to our customers directly.

How can you as a supplier support customers to overcome those challenges?

As a supplier of hardware and a C-Part Management service provider, we’re currently focusing on three key areas in order to mitigate and eliminate pain points in the C-Part procurement process of our customers in Vietnam.

• We leverage our global quality management system and supplier management capability to develop local manufacturers for relevant commodities. This helps reduce costs, minimize disruption risks, shorten transport times, and increase flexibility for customer-specific hardware needs.

• Our local logistics hub enables us to stock both standard and custom parts, ensuring just-in-time delivery with optimized MOQs. We hold the stock so our customers can focus on production - with short lead times and reliable supply.

• We offer RFID-supported systems like CPS®Kanban and CPS®Orsy, along with on-site support from our CPS team. These solutions streamline material flow, improve transparency, and optimize stock levels. Integration with customer ERP systems further simplifies procurement.

Additionally, we’re driving the digitalization of both backend and customer-facing services. Our strategic goal is to evolve from a hardware provider to a platform partner for procurement and material flow optimization.

How would you describe the benefit(s) of Vendor Managed Inventory (VMI) compared to a “standard” purchasing process?

Vendor Managed Inventory (VMI) is a comprehensive approach where we handle inventory management for our clients, using systems like Kanban 2-bin setups CPS®Kanban, vending machines ORSY®mat, and automated data collection to ensure seamless supply. At Würth, our VMI programs are data-driven, providing real-time tracking, reporting, and replenishment to minimize stockouts and excess inventory. Key values for the manufacturing sector include maximized efficiency in purchasing, production, and material flow; significant cost savings through supplier consolidation; and enhanced flexibility to shorten time-to-market. By automating processes and leveraging deep data insights, we help manufacturers focus on innovation while reducing operational risks in today's volatile supply chains.

How do you think about the future of manufacturing in Vietnam?

We believe that Vietnam’s Industrial Manufacturing Sector has a very bright future. Compared to India and China, Vietnam has been very fast in catching up to global averages when it comes to the efficiency in the value chain. Since it does not have an abundance of available work force it has placed an emphasis on productivity and efficiency. If Vietnam continues on that road, we are certain it will leapfrog its way to becoming one of the world’s leading manufacturing hubs, not just in output but also in terms of leading standards in manufacturing itself. We are proud that we are able to contribute to this development and hope to be an integral part of the journey.

info@wuerth-industry.vn

Source: Vietnam Business Forum