Beyond Labor Costs: Why Vietnam Still Imports High-Quality Press Wood Pallets from China
Vietnam has lower labor and raw material costs than China, yet it struggles to produce high-quality press wood pallets and still relies heavily on imports. The article examines five key barriers: immature processing technology, reluctance to invest in advanced equipment, low automation that offsets labor cost advantages, use of substandard adhesives that compromise durability, and chronic electricity shortages that disrupt production. In contrast, China’s mature industry, heavy automation, stable infrastructure, and superior chemical supply chain enable consistent production of reliable nestable pallets, making Chinese suppliers the preferred choice for global buyers.
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