Understanding MOQ, Lead Time & Pricing

When sourcing products from Vietnam, three factors strongly affect purchasing decisions and negotiations: MOQ (Minimum Order Quantity), Lead Time, and Export Pricing. Understanding how these elements work together helps buyers plan orders more accurately and avoid common sourcing mistakes.

What Is MOQ (Minimum Order Quantity)?

MOQ refers to the minimum quantity a supplier is willing to produce or sell per order. It is determined by production costs, raw materials, labor efficiency, and factory capacity.

Why MOQ matters:

  • Ensures production efficiency for factories

  • Helps suppliers control costs and margins

  • Affects unit price and customization options

Typical MOQs in Vietnam:

  • Manufacturers: Medium to high MOQ

  • Exporters: Medium MOQ

  • Trading companies: Lower MOQ

Understanding Lead Time

Lead time is the period from order confirmation to shipment readiness. It includes production, quality control, packaging, and preparation for export.

Factors affecting lead time:

  • Order quantity

  • Product complexity and customization

  • Raw material availability

  • Factory production schedule

Common lead time ranges:

  • Ready stock: 3–7 business days

  • Standard production: 10–20 business days

  • OEM / customized orders: 20–45 business days

How Export Pricing Works

Export pricing is influenced by multiple cost components beyond basic production.

Key pricing factors include:

  • Raw materials and labor costs

  • Production volume (MOQ impact)

  • Customization and packaging

  • Shipping terms (EXW, FOB, CIF, DDP)

  • Payment terms and currency

Higher order quantities generally result in lower unit prices, while customization and flexible MOQs may increase costs.

The Relationship Between MOQ, Lead Time & Pricing

These three elements are closely connected:

  • Lower MOQ → higher unit price, shorter production runs

  • Shorter lead time → higher cost due to production priority

  • Larger orders → longer planning but better pricing

Successful buyers balance these factors based on market demand and inventory strategy.

Tips for Buyers Sourcing from Vietnam

  • Clearly communicate expected order volume and timeline

  • Ask for price breaks at different MOQ levels

  • Confirm lead time before finalizing contracts

  • Align Incoterms and payment terms early

Sourcing Smarter with VietnamExporter

VietnamExporter.com helps global buyers compare suppliers, understand MOQ and lead time requirements, and request quotations efficiently from export-ready Vietnamese companies.