Discover Vietnam’s sourcing advantages

Posted: February 28, 2022

by Stef Calimlim (Content Editor)

Image from Getty

Why Source from Vietnam

As one of the top Asian countries for sourcing, Vietnam is well-positioned to lead the global market to a higher grade with its innovative manufacturing ecosystem and resilient economic performance amid disruptions. Touted as a low-cost global manufacturing hub with competitive labor costs, Vietnam is poised to continue driving its manufacturing growth owing to its strategic location, favorable multilateral trade agreements, political stability, multiple industry specializations and ample raw material supply.

Geopolitical diversity

A favorable geographical location means that buyers have access to Vietnam’s vast port infrastructures, allowing for better shipping efficiencies. With rising costs in China due to the COVID-19 pandemic and the US-China trade war, Vietnam offers a viable sourcing alternative due to its geographic proximity to global supply chains, stable political systems and tax incentives.

Vietnam is strategically located at the heart of the Asia-Pacific region where logistics cost is lower than neighboring regions. It also implements free trade policies that allow for diversification and lower trading costs. The country has one of the most competitive tax schemes in Southeast Asia, offering industry-specific incentives, and tax exemptions and reductions to investors.

Low-cost manufacturing, high-quality workmanship

Aside from low labor and material costs, Vietnam is known for its flexible, highly adaptable and skilled labor force that is prepared to hit the ground running. Suppliers are more than willing to accept small orders without compromising the quality of products.

Vietnam’s labor participation rate in the year 2019 alone has reached 76.6 percent. Despite a slowdown brought about by the pandemic, Vietnam’s economic recovery is poised to accelerate this 2022 as its GDP growth is expected to rise to 5.5 percent from 2.2 percent from last year according to the World Bank.

Programs such as the Better Work Vietnam, which taps the assistance and expertise the UN’s International Labour Organization (ILO) and World Bank Group member International Finance Corporation (IFC), are engaged in the improvement of the working conditions of employees, employers and governments and boosting the garment industry’s garment industry.

Raw material abundancy

What makes Vietnam unique among neighboring countries is its abundance of raw materials, allowing manufacturers to handle varying buyer requests with more flexibility and at a lower cost. As such, the country has become a versatile and competitive destination for manufacturing outside of China.

Source these quality products from Vietnam:

Home & Kitchen

Rattan utility basket

H&J Craftlink Co. Ltd

MOQ: 300 pieces

Price: $6.92 - $9.50

Sourcing Knowledge Center

Discover Vietnam’s sourcing advantages

Why Source from Vietnam

Geopolitical diversity

Low-cost manufacturing, high-quality workmanship

Raw material abundancy

Source these quality products from Vietnam:

Home & Kitchen

Fashion Clothes & Fabrics

Building Materials

Discover more products from Vietnam

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