Sourcing Products in Vietnam: The 4 Options

August 07, 2023
Table of Contents

In an era of trade tension, Vietnam is often seen as the land of salvation for importers seeking refuge from increased China-tariffs. Further, many non-US importers are also keen to explore suppliers in Southeast Asia.

That said, Vietnam is, contrary to what many believe, ‘not just like China but cheaper and better’.

While Vietnam is breaking export records every year, importers need to understand the limitations they face when sourcing products in a country that is still in its boom stage.

In this article, I explain what small to medium-sized importers must know before venturing into Vietnam.

This is covered:

  • Option A: Source Vietnamese factories online
  • Option B: Work with a sourcing company
  • Option C: Visit a trade show in HCMC or Hanoi
  • Option D: Set up your own factory
  • Summary: When does it make sense to source products in Vietnam?

 

Option A: Source Vietnamese factories online

Thanks to Alibaba.com and Globalsources.com, we take it for granted that thousands of manufacturers are only a few clicks away. However, the challenge you’ll face when sourcing products in Vietnam is how hard it can be to find suppliers making your product.

There are two explanations.

1. Vietnamese factories don’t always have an online presence

It’s almost taken for granted that Chinese suppliers are present on at least one B2B supplier directory, be in Alibaba.com, Globalsources.com or Madeinchina.com.

However, that’s not always the case among Vietnamese suppliers, many of which are more focused on working with large brands rather than dealing with small buyers sourcing online.

2. Factories for your product may not even exist yet

Jim Kennemer, founder of Cosmo Sourcing and based in Ho Chi Minh City, once summed it up well. It if can be made, it’s most likely already being made in China. That’s not to be taken for granted when it comes to Vietnam.

Yet, many importers assume that just because something is made in China, it’s certainly being made in Vietnam, with a lower price and better quality.

That’s not the case.

The main challenge for small businesses looking or existing products to buy, is that they may not even find them.

Bluetooth speakers, sportswear or watches - you name it - you’ll always find a willing factory in China.

In Vietnam, you may struggle to find a single one, depending on the product.

Vietnam supplier directories

However, if you’re sourcing textiles, bags, packaging materials, furniture, tarpaulins or woodcrafts, you are likely to find what you’re looking for. These are the supplier directories you should check out:

  • Alibaba.com/vn
  • Globalsources.com/manufacturers/Vietnam
  • Vietnam-manufacturing.com
  • Vietaz.com
  • Vietnamesemade.com

Note that I listed both Alibaba.com and Globalsources.com, both of which are mainly focused on Chinese factories. However, both platforms are open to Vietnamese suppliers and provide more supplier data than the local directories.

Contacting Vietnamese suppliers online

You should never leave a supplier guessing what you want. You must provide clear product specifications and ask straight forward questions:

1. What is your unit price?

2. What is your MOQ requirement?

3. What is the product sample cost?

4. What is your standard production time?

5. Where is your factory located?

6. Can we visit your factory?

7. Do you accept third party quality inspections?

Option B: Work with a sourcing company

Sourcing companies with local knowledge can add a lot of value in the sense that they can give you access to their extensive supplier networks. They can also match you with the right factory, depending on your order volumes and product requirements.

This goes a long way as the Vietnam supplier base is not as online-focused as in China.

Option C: Visit a trade show in HCMC or Hanoi

The best way to meet Vietnamese factories, if you ask me, is by attending a trade show in Ho Chi Minh City or Hanoi. While at a trade show, you can meet factory representatives face to face and get price quotations and ask questions.

Doing so by email can take ages, and many nationalities can get a visa on arrival.

Here are some trade shows you visit if you’re looking for products made in Vietnam:


Apparel & Textiles

VTG Textile & Garment
Saigontex
HanoiTex


Furniture, Homedecor & Handicrafts

VIFA Expo
VIFA Home
VIFA Woodmac
VietnamWood
LifeStyle Vietnam


Electronics

NEPCON Vietnam
ETE Vietnam


Food & Agriculture

Vietnam Farm & Food Expo
AGRI Ho Chi Minh


Packaging

Propak Vietnam
PrintPack


Construction & Industrial

Vietnam Manufacturing Expo (VME)
Metalex Vietnam
VietnamPlas

 

Hong Kong Trade Shows

Vietnamese factories also attend HKTDC trade shows in Wanchai and Globalsources trade shows at the Asia World-Expo, in Hong Kong. As such, you may not need to go to Vietnam to find factories there.

Option D: Set up your own factory

When you read about Vietnam’s export numbers reaching new heights, or factories shifting production to the country, this is not due to Amazon sellers buying from Vietnamese factories instead of their Chinese suppliers.

Instead, this trend is driven by manufacturing groups, often based in Korea, Hong Kong, and Taipei.

These companies have the resources to set up factories, train hundreds of workers and procure materials from China and other countries in the region.

That said, setting up a factory in Vietnam requires serious investments.

Summary: When does it make sense to source products in Vietnam?

This is what you must consider before you decide whether to source products in Vietnam:

1. Can I find factories for my product in Vietnam?

More likely, if you are buying the following products:

  • Garments
  • Footwear
  • Leathergoods
  • Furniture
  • Woodcraft
  • Packaging materials
  • Bags
  • Tarpaulins

2. If not, can I find a contract manufacturer and import the necessary materials from another country, but let the final assembly take place in Vietnam?

3. Does it make economic sense?

a. Are you selling in the United States? Yes, quite likely

b. Are you not selling the United States? Then it’s not that urgent

4. Can you accept the lead times?

5. Can you match the minimum order quantity requirements?

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