Why Vietnam – Vietnam Sourcing Team

Why Vietnam?

6 reasons Why You Should start to source from Vietnam

Vietnam is emerging as the clear leader in low-cost manufacturing.

Annual GPD growth of 7.1% in 2018, 7% in 2019 and even 2.8% in 2020 despite global economic melt-down is an indication economic strength and security.

Advantages in cheaper running costs and labour costs are attracting manufactures from all over the world to re-locate to Vietnam.

The population is young, increasingly highly skilled, salaries are upto 50% cheaper than china and comparatively low amongst neighbouring ASEAN countries.


The efficient control and containment response to the Covid -19 pandemic has further strengthened its global reputation and appeal. 

- 01 -

Strategic benefits for your business

There are many benefits to sourcing in Viet Nam and to highlight a few key strategic reasons we must compare with it’s larger manufacturing neighbour – China. They have a highly developed (online) supplier network and infrastructure, easily accessibility to everyone – large enterprises and small entrepreneurs. The down-side is this lowers the barriers to entry, dramatically increase competition and increases client risks to fraud, IP theft and un-ethical business practises.

After analysing some of the key issues our clients were experiencing when sourcing in China we noticed some reoccurring patterns:

  • when items become popular an explosion of supplier appear overnight advertising the same “hot item” on Alibaba, crushing the profit margins and quickly increasing competition.
  • competing with direct sales by the manufacturer often happens when orders start increasing.
  • Difficulty Identifying legitimate suppliers.  


Some of the benefits we provide our clients sourcing with us in Vietnam are:

  • High barriers to entry and harder to find suppliers in Vietnam mean our clients reduce competition, maintain healthy margins and protect their brands.  As many suppliers in Vietnam are not listed on Alibaba and have no intention of joining you don’t have to worry about your product being advertised and promoted to other businesses and entrepreneurs
  • In Vietnam we often find unique items in product categories that often look identical in China
  • Cheaper! We often deliver saving of around 20-30% for our clients. Particularly items that are labour intensive or that benefit from vietnams local resources.

*  disclaimer: not all items are cheaper  

- 02 -

Trade agreements

Vietnam has signed a lot of free trade agreements with countries and territories around the globe. They welcome foreign direct investment and make continues efforts to align with international standards; streamlining and harmonising exports and imports. Reduced or 0% tariffs introduced by free trade agreements can reduce your import costs considerably. 

Currently the US and Vietnam have a well designed BTA (bilateral trade agreement)  which is a comprehensive agreement inline with WTO standards. The new democratic administration in USA has expressed possibilities of re-joining the CPTPP*  which will bring with it a huge boost for US-Vietnam trade. 

* The CPTPP is a free-trade agreement (FTA) between 11 countries around the Pacific Rim: Canada, Mexico, Peru, Chile, New Zealand, Australia, Brunei, Singapore, Malaysia, Vietnam and Japan.

Vietnam is Canada’s largest trading partner amongst the ASEAN region since 2015 and entered into the CPTPP  agreement in December 2018. 

New Zealand is part of the CPTPP  trade has an average growth of 14.2% annually since the establishment of the comprehensive partnership in 2009, reaching US$1.1 billion last year (2019). Two-way trade totalled US$1.4 billion in the first half of this year, (2020)


Australia is also part of the CPTPP and have a strong relationships  with Vietnam with shared strategic interests. 


The United Kingdom and Vietnam have just formalised a FTA similar to that in-place with the EU. 99% of all tariffs will be eliminated. Furthermore ministers have called for the UK to Join the CPTPP, watch this space UK! 


EU FTA – 99% of all tariffs are to be abolished over the next 7 years. This will stimulate an additional 15 billion per year in exports to EU with the additional benefits of raising standards, trade protections and environmental protection standards.


Trade between Vietnam and UAE continues to rise, they have very good relations and are seeking preferential trade ties, possibly a free trade agreement in future. A newly established trade centre in Dubai is their first step in accelerating trade with the UAE.


- 03 -

Vietnam’s optimistic future

As indicated by the positive growth rate of its real GDP, Vietnam’s economy is expanding due to growth in exports, domestic demand, and the manufacturing sector. Sourcing in growing economic climate expands opportunities and develops markets and infrastructure. 

- 04 -

Political stability

In todays erratic political climate, stable leadership and governance has an increasing impact on even small business owners decisions on where to import from and do business. Our observations are that Vietnam doesn’t get involved in international conflicts and its government has strong leadership over the population creating a very stable atmosphere.

- 05 -

Logistics and shipping

Vietnam has 44 seaports with a total capacity of 470-500 million tons per year. The major ports in Vietnam include Hai Phong, Da Nang, Qui Nhon, and Ho Chi Minh City. The government are rapidly expanding infrastructure to meet the increasing demand for exports and imports.

- 06 -

Manufacturing scale

Although unable to compete with the sheer size and number of factories in China, Vietnam’s list of quality factories is growing day by day. They are rapidly expanding in electronics, key consumer goods, furniture, plastics, packaging and more with keen entrepreneurial spirit and ingenuity they are able to supply a huge demand. 

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Tell us what product you are looking for:

  1. Product name
  2. Description (include web links to existing products)
  3. Order size
  4. Destination country


and Vietnam Sourcing Team will find for you the best possible deal.

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Shipping & logistics​​

Air/sea/train, FOB/CIF/DDP our logistics team will find you the best rates, coordinate loading schedules with freight forwarder (ours or yours) draft, verify and collect all shipping documents/certificates and necessary paperwork and deliver the goods as and how you require with clear cost breakdown including customs and clearance. 

Quality Control & QA​​

Our team are here to manage full Product Quality Plan on the factory floor. We monitor the complete purchase order from sampling – production – packaging – shipping and keep you posted every step of the way.

Taking responsibility for the quality of your orders requires us to take a very pro-active approach to identify any potential issues

5 key elements;

1) Pre Production Check (PPC): Before mass production we check; material components, accessories, prototype samples, etc.,

2) Initial Production Check (IPC): First finished products are checked against buyer’s specification and prototype sample, any issues will be corrected immediately.

3) During Production Inspections (DUPRO): Quality of production runs are carried out to verify if there are any discrepancies.

4) Final Random Inspection (FRI): carried out when the total consignment is packed and ready for shipment. 

Random samples inspected in accordance with international inspection standards.

design / style, 












5) Container Loading Supervision: 

Our team will check;

Only inspected goods get loaded

Product quantity 

Proper handling and stuffing 

Container seal

Ensuring that suppliers, sub-suppliers and production workers understand the urgency and timelines associated with Buyer’s production schedule is essential. We work closely with factory management to ensure that proper priority is placed on Buyer’s products.

Our experience at foreseeing and dealing with issues during production in a timely manner is key for ensuring correct actions can be undertaking to avoid interruptions in supply chain and additional costs.

We will be your boots on the ground for the complete process to ensure there are no nasty surprises.


Products that are inspected at the end of production process have a very, very high possibility of failure. We provide a solid QA (quality assurance – defect prevention) and QC (quality control – defect identification) process for FREE!

Our solid quality planing & control processes avoid potential additional costs of;

  • Unforeseen increase in production time
  • Remanufacturing
  • Rejection after goods received overseas
  • Loss of end customer loyalty due to product defect 


Requesting samples can be difficult at times especially when chasing multiple suppliers, we push for quick local delivery, organise all necessary payments and consolidate 1 shipment from our office.

Sampling that may require – die casting, metal stamping, plastic injection, etc need a high degree of accuracy, our team will assist with the entire process.

We will asses all samples before shipping, checking key areas – appearance, dimensions & performance. As part of our service we will verify with supplier that all aspects will be the same for mass production and confirm the processes they will use. 

Factory verification

There is no substitution for visiting factories and checking them out in person. 

Our team have been trained to look for key indicators of the advantages and potential issues with a supplier. 

What do we look for?   

Production Capacity

We will evaluate the number of staff they have, machinery output, get confirmed daily output figures and speak to production managers for scheduling.

supply chain

We will find out if the provider has a good supply of raw material, if he has a backup and how confident they are to remain consistent.

Technology and equipment

Have they invested in up-to-date Machinery? Are they optimising their output and increasing standards.



How many employees? Are they skilled? What training do they get? What is their managerial efficiency and general quality policy?

Due diligence 

We perform credit and business license checks to avoid fraud as well as confirming any safety/good practice certificates that they might have.


If they agree we will ask for references of other clients.

Company culture

Is the supplier traditional in values? Do they innovate? Do they embrace new technology? Are their workers treated fairly? How willing are they to work with us to develop new items?


Are the production methods environmentally friendly? Do they responsibly manage waste? Are they considerate of greener alternatives?

Factory identification

Effectively finding suppliers in Vietnam requires local knowledge, regional understanding and experienced staff. Let us use our network and sourcing specialists to quickly send out enquiries and evaluate the best suppliers for your product.   


Supplier shortlist based on:

  • price
  • capabilities and previous production experience that match the requirements of your product enquiry
  • quality of the products made,
  • production capacity,
  • man power