Geopolitics and growth put Vietnam at the centre of bicycle manufacturing
# Source from Bike Europe
On the ground at Taiwanese frame manufacturer Astro Tech’s 50,000-square-metre facility outside Bien Hua, Vietnam, the factory’s 1,500 employees are hard at work. Production spans from aluminium to high-end carbon fibre frames with an integrated painting lab. Earlier this year, the company broke ground on a new 68,000-square-metre factory dedicated to the production of aluminium bicycle frames, which has an estimated annual capacity of 800,000 units.
Following the European Union-Vietnam trade agreement in 2019, eliminating 99% of all tariffs, the country has enjoyed preferential EU access — which matters to buyers. – Photo Bike Europe
The groundbreaking happened on Vietnamese land purchased over 15 years ago by Astro Tech president Samuel Hu.
“At that moment, everyone was going to China,” said Andy Huang, sales manager for Astro Tech Vietnam. “Samuel Hu bought the land before anybody came to Vietnam. At the time, land wasn’t so expensive; now, it’s super expensive.”
Increased interest in Vietnam
As a company navigating today’s geopolitical climate, Vietnam is attractive for a few different reasons. Firstly, corporations are looking to diversify their production from just one country. Secondly, they need to mitigate the impact of United States tariffs, which have made China considerably less appealing as a place to do business. Thirdly, Vietnam’s free trade under the Regional Comprehensive Economic Partnership (RCEP) and trade agreement with the EU make it a strategic location for manufacturing.
“Many bicycle manufacturers and suppliers that were originally based in Taiwan or China have, over the past three to five years, gradually shifted to establishing factories in Vietnam — with their main production bases moving to Vietnam,” Huang observed.
With the establishment of Astro Tech’s third facility, the 34-year-old company is making its own strides to shift all major production to Vietnam.
“The main R&D and design team will continue to be based in Taiwan, but considering manufacturing costs and production efficiency, integrating production in Vietnam is the only choice,” Huang told Bike Europe during an on-site visit.
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Across its two existing factories, Astro Tech employs about 3,000 Vietnamese workers. -
Astro Tech's factories are currently running on 30% capacity, reflecting broader market trends. -
Earlier this year, the company broke ground on a new 68,000-square-metre factory dedicated to the production of aluminium bicycle frames, which has an estimated annual capacity of 800,000 units.
Astro Tech production spans from aluminium to high-end carbon fibre frames. – Photos Bike Europe