Tengda Technology Expands Overseas to Vietnam

Against the backdrop of shifting global trade patterns and rising green trade barriers, Chinese stainless steel fastener companies are accelerating global expansion. Shandong Tengda Fastening Technology Co., Ltd. has disclosed a major strategic move: a RMB 167 million overseas investment plan, marking a shift from "product exports" to full-chain出海 of "capacity + technology + standards."

On February 9, Tengda Technology's board approved reallocating approximately RMB 167 million in remaining raised funds from its terminated "Fastener Product Line Expansion and Supporting Production Facility" project to a new "Vietnam 18,000-ton Annual Stainless Steel Fastener Production Project." The project will be implemented by Tengda's wholly-owned subsidiary, Vietnam Yaopu New Materials Co., Ltd., located in Dong Nai Province.

Dong Nai Province, in southern Vietnam near Ho Chi Minh City, is a key industrial corridor within the southern key economic zone—30–50 km from Ho Chi Minh City. As one of the largest industrial bases in southern Vietnam, it has over 30 planned/operational industrial parks, forming an industrial belt around Ho Chi Minh City with mature supporting industries in electronics, machinery, and chemicals. The province has excellent transport infrastructure: National Highway 1A, north-south railway, multiple expressways, and is 30–60 km from deep-water ports like Cat Lai and Vung Tau. It also offers stable power, water systems, a workforce of over 4 million, and preferential tax policies.

This move addresses rising global trade protectionism and green barriers (e.g., EU CBAM), which have increased tariffs and compliance costs for Chinese stainless steel fastener exports. Vietnam, as an ASEAN core member, offers tariff advantages for exports to Europe and the US, making it a strategic gateway.

The Vietnam project has a planned construction period of 2 years. Upon completion, it will produce 18,000 tons of stainless steel fasteners annually—focused on high-value ASTM standard products (bolts, nuts, screws) for infrastructure, shipbuilding, new energy, and telecom base stations in Southeast Asia and Western markets.

According to Tengda Technology, the Vietnam base will: (1) reduce production costs via lower local electricity and labor costs; (2) avoid trade barriers and expand export channels using Vietnam's location and ASEAN tariff benefits; (3) serve as a bridgehead to Southeast Asia and Western markets, improving global competitiveness.

Industry analysts note this well-timed move is expected to deliver significant growth over 3–5 years. Notably, in February 2026, SpaceX Starlink received official operating approval in Vietnam, allowing gateway base stations and terminal equipment deployment—driving telecom infrastructure demand and boosting demand for high-quality stainless steel components. Tengda's early Vietnam entry positions it to capture this opportunity.

This overseas expansion sets a benchmark for China's stainless steel fastener industry, marking a solid step toward full-chain globalization—exporting not just products but also advanced production technology, quality standards, and management expertise. It shifts the industry from low-to-mid product exports toward higher value and global competitiveness.

Tengda Technology, a domestic industry leader with deep expertise in production technology, quality control, and market channels, aims to integrate domestic and international resources post-Vietnam operation, optimize product mix, and achieve a "domestic capacity + overseas base" dual-drive growth model.

As more Chinese fastener companies establish overseas capacity, the industry will gradually break international technical barriers and trade restrictions, enhancing global recognition of Chinese fastener products and driving transformation from "Made in China" to "Intelligent Manufacturing in China" and "Chinese Standards." Overseas capacity will also push domestic enterprises to increase R&D investment, improving product quality and value-added.

In the increasingly competitive global stainless steel fastener market, Tengda's Vietnam expansion is a proactive strategic move—creating new growth space and injecting momentum into the industry's globalization. Led by pioneers like Tengda, China's stainless steel fastener industry is expected to achieve a stronger position in the global value chain and high-quality full-chain expansion.