Important Considerations Prior To Sourcing In Vietnam

The manufacturing industries in VN are still dominated by high-volume manufacturing point with low-cost inputs such as: furniture, garments & textile, luggage & bags, footwear, wood and wood products, ceramic, construction material. We also see the percentage of Electronics & computers investment is getting larger year by year. But this is not all, there are many products that retailers or brands can manufacture here under their own brand name. Like in any country, choosing the right factories is one big and important step.

Take Personal care items as an example, like tooth brushes, shavers, shampoo, and shower gels, these are daily essential needs, easy to make, heavily depending on the right mold and machineries, and we can have them made in VN, just within 1-hour drive from Ho Chi Minh city center! These factories likely have foreign investment.

Now, Let’s talk about these foreign own factories, SME type. Taiwanese factories are tend to be operating for a longer history, covering various of categories, Wood products, Stainless Steel, Shoes, Chemical, Plastic items, good quality with compliance certificates. While Japan and Korean own factories are keeping their standard high as usual, however, prices are so hard to compromise. The best thing working with them would be low MOQ and strong product development skill. Now comes more and more Chinese Investment, pulling into the manufacturing field. I would like to talk about it more but will leave this topic to the next article. Back to the Chinese run factories, medium sizes, reasonable prices, their prices are likely cheaper than Koren/Japanese/Taiwanese, and even cheaper than Vietnamese own factories. You may find it interesting, how can a non-local manufacturers cost less? The key is supply chain is not complete in VN, therefore, many materials/components are coming from China. Then you can wonder, who can get a better price in China? Funny enough, even the shoe molds, shaver molds, basically any molds, they are imported from China, Taiwan, Korea, Japan, etc! Imagine again, who can get a better lead time and quote from China Molding Factory?!

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