Sourcing from Vietnam: A short how-to guide
There’s a lot of things happening in our global economy. And things move fast. As a business owner, whether you’re involved in manufacturing, sourcing or dropshipping, you have to stay ahead of your competition and do your best to predict changes in the global economy. For many decades, China has been the world’s factory – a great source of cheap labor, raw material and finished goods.
Thanks to China’s role in global manufacturing, most of what you own has a tag that says “Made in China.” But this is changing. China’s development from a third-world economy to the second largest economy in the world has shifted its role from manufacturing to becoming a service economy. In addition, this has resulted in rising costs in labor – which has increased the costs for businesses around the world. It also hasn’t helped that the US-China Trade War has increased the cost of business because of rising tariffs.
Vietnam today is quickly becoming the new hub for global manufacturing, thanks to its low labor cost, strategic location with regard to seaports, and its stable political landscape and economy. Vietnam has a large potential labor force that is quickly moving from rural areas such as villages and towns, where work is scarce and typically involves farming, to big cities where wages are higher and work is more plentiful.
Vietnam’s strategic location is also important. It shares a direct land border with China, so for international and Chinese businesses and their factories, the move isn’t as costly as moving an entire continent away.
What are the top product categories in Vietnam?
There’s a lot of products that can be found in Vietnam, as it has become a global exporter of finished goods, if you’re looking to source products outside of China because of rising costs or because of tariffs. Here’s a list of some of the top product categories:
- Clothing & textiles
- Bags & luggage
- Electronics (PCB, 3D printing, CNC, etc.)
- Product packaging
As you can see, there’s a lot that can be sourced from Vietnam, and more product categories are quickly joining the list as Vietnam’s manufacturing and economy continues to grow. If you’re looking for something more specific, for example, handmade arts & crafts – contact us and we’ll use our experience in sourcing to get you the best products available, and even help you design, develop and create your concept from scratch.
What’s the best shipping companies / freight forwarders?
Most of Vietnam is linked to the sea, so Vietnam is in an excellent position to use ocean freight to ship products all over the world. This has created a thriving market for shipping companies and freight forwarders that regularly work with business owners like you! While you don’t always have to work with a forwarder that’s located in Vietnam to ship your goods, it makes it much easier if you do. They know the country and know their business – and ultimately, that helps you. We’ll list some of our top freight forwarders and what transportation methods they offer.
- Saigon Ocean: based in Ho Chi Minh (Saigon), the company offers sea and air freight, along with domestic transportation services. They’ll also help you with customs brokerage, consolidation solutions for multiple countries, and to facilitate exports and imports
- Royal Cargo Vietnam: a subsidiary of the larger company established in the Philippines, Royal Cargo has branches in HCM, Hanoi and Hai Phong. Their expertise provides sea and air freight, along with domestic warehousing, logistics, and transportation services for heavy equipment
- Tien Phong Trade and Transportation Services: based in Hanoi, Tien Phong offers sea, air, and land freight (between Vietnam and China), as well as warehousing and customs brokerage
- JAS Vietnam: their offices in Vietnam will help you with sea and air freight, land and intermodal transportation, customs brokerage, consolidation and logistics
- Head Way: with a head office in HCM, they provide services with sea and air freight, domestic shipping, and project cargo handling
Leading factories in Vietnam
While we covered a list of the top product categories in Vietnam, no how-to guide is complete without listing some of the best and well-known factories in each of those categories. Without going into too much detail and allowing you to do the due diligence, here’s a list of the top factories by product category. Of course, there’s many more factories in Vietnam with years of experience to be found!
- G&G II Garments Factory Vietnam
- Fashion Garment Ltd.
- Vert Company
- 9mode Clothing Manufacturer
- Senda Vietnam Co. Ltd.
- Domingo Bag Factory
- Kowide Outdoors
- Hop Phat Bag & Garment Co. Ltd.
- Fab 9
- East West Manufacturing
- TC Group
- Sunching Electronics Vietnam
- Than Long SJC
- Binh Minh Pa Packaging
- Direct Imex (offers eco-friendly packaging)
- Accredo Asia
- Hanh Packaging
- Cat Tuong Packaging
- Innolux Group
- Dong Hung Group
- Dong Luc
- Hanoi Rubber
- Kingmaker Group
- Minh Duong Furniture Corp.
- Thinh Phu Furniture
- Kaiser 1 Furniture Industry
- Bien Bac Jewellery
- Vietnam Horn Jewlery
- Quoc An V.N. Co. Ltd.
- Saigon Jewel and Accessories Co. Ltd.
- Phu Nhuan Jewelry
Upcoming Trade Shows in 2019-2020
Transparency is key, so let’s be honest for a second. While this short how-to guide is meant to provide you with information on sourcing from Vietnam, assuming you have zero knowledge and are looking to shift sourcing from China, it isn’t the all-knowing and end-all article. While we list some of our top choices for product categories, factories and shipping companies/freight forwarders, you will still have to find what works best for you. After all, in any business, a partnership that is right for your business will help your business grow!
So, how can you do your own research and find what works best for you and your business? Trade shows, of course! Trade shows are not only good for you to do your research and meet suppliers, factories, and even try our products first-hand, but they’re also good for making the connections and building the relationships you will need. Here’s a list of upcoming trade shows that will help you.
- METALEX Vietnam (October 10-12, 2019)
- PrintPack Vietnam (October 16-19, 2019)
- HanoiTex (October 23-25, 2019)
- Vietnam International Textile & Garment Industry Exhibition (November 20-23, 2019)
- VIFA-Expo (March 11-14, 2020)
- ProPak Vietnam (March 24-26, 2020)
- SaigonTex (April 8-11, 2020)
- LifeStyle Vietnam (April 17-20, 2020)
- Vietnam Plas (June 17-19, 2020)
- ETE Vietnam (July 2020 (TBA))
- Vietnam Manufacturing Expo (August 12-14, 2020)
- NEPCON Vietnam (September 9-11, 2020)