The new factory is currently being developed at the Vietnam Singapore Industrial Park III (VSIP III), a prominent industrial area located near Ho Chi Minh City. Construction work is already underway on the site, with the timeline for production scheduled to begin in 2027.
"Expanding into Vietnam is a huge milestone in our long-term growth strategy. By establishing our third global production base, we are actively diversifying our manufacturing footprint to ensure operational stability and supply chain resilience for our partners worldwide," says Otis Cheng, assistance group CEO & global team lead marketing at Tektro.
Responding to evolving global supply chains
The decision to establish a manufacturing presence in Vietnam reflects Tektro’s long-term strategy to strengthen its global network while improving supply chain resilience. As international trade patterns continue to shift and evolve, the company is proactively positioning itself to better support its customer base.
For the leadership team, geopolitical diversification was one of the primary drivers behind the project. They wanted to strengthen operational stability amid changing market conditions. At the same time, this major investment supports a broader effort to optimise modern supply chains. Vietnam has increasingly transformed into a vital hub for global bicycle manufacturing. The country is attracting a growing number of bicycle assembly plants alongside specialised component suppliers. Establishing production infrastructure close to these facilities allows Tektro to shorten supply routes and improve overall responsiveness.
Proximity supply
The upcoming facility is intended to support what Tektro describes as a ‘proximity supply’ strategy. This localised business model enables the company to serve its existing clients in Southeast Asia with greater efficiency while anchoring its position within the regional manufacturing ecosystem.
"By bringing the manufacturing of our core brake systems and drivetrain components physically closer to Southeast Asian assembly hubs, we can dramatically slash lead times. Besides that, we can offer our OEM partners the agility they need to respond to rapidly shifting market demands," says Cheng.
We can dramatically slash lead times and offer our OEM partners the agility they need to respond to rapidly shifting market demands”
Why Vietnam?
Vietnam has emerged as one of the premier centres for bicycle production on the global stage. The country offers favourable investment conditions, a rapidly developing industrial base, and a cooperative concentration of active bicycle manufacturers.
Meanwhile, as international brands continue to seek to diversify their baseline sourcing and final assembly operations, Vietnam has uniquely benefited from a steady influx of investment capital throughout the bicycle supply chain. The widespread presence of assembly plants has created valuable opportunities for component manufacturers to work more closely with customers and production partners. For Tektro, locating a factory in Vietnam provides access to one of the industry's fastest-growing production clusters and an expanding customer base.
Local partnerships
The recent groundbreaking ceremony of the new production unit highlighted the great importance of local partnerships. An array of suppliers and industry representatives attended. And Tektro’s close collaboration with Vietnamese partners will play an invaluable role in supporting future factory operations and strengthening regional supply networks.
Cheng adds: "Vietnam offers a vibrant, fast-growing industrial ecosystem. As we advance toward our 2027 production target, collaborating closely with local Vietnamese partners and suppliers will be vital to building a responsive, reliable regional network."
Vietnam offers a vibrant, fast-growing industrial ecosystem”
Large-scale manufacturing investment
The project represents a substantial allocation of capital toward manufacturing infrastructure. The overall site covers approximately 100,000 sqm, with around 33,000 sqm allocated for the initial factory construction phase.
When completed, the facility will specialise in manufacturing bicycle brake systems and drivetrain components – two categories that remain central to the company's core portfolio. The additional production capacity generated by the site is expected to meet growing global demand for bicycle components while supporting Tektro's long-term growth ambitions.
Benefits for bicycle brands and OEM customers
One of the definitive advantages of the new facility is its immediate proximity to bicycle assembly operations across Southeast Asia. Shorter physical distances between component manufacturing and final assembly lines drastically reduce transportation times and enhance overall supply chain responsiveness.
For original equipment manufacturers (OEMs) and international bicycle brands, this proximity translates into shorter lead times, greater delivery flexibility and improved supply reliability. Furthermore, it enables faster responses to changing customer requirements and market conditions.
In an industry where demand patterns can shift rapidly, the ability to adjust production and delivery schedules is highly valuable. The Vietnam facility will therefore play an important role in expanding Tektro's capacity and strengthening regional supply chain resilience.
This article is sponsored by Tektro.
