Ocean freight is the most widely used method of transportation in the world, being quite simply the cheapest method on the market. Usually, sea freight becomes interesting when you send volume over 2 cubic meters, below that we suggest to opt for air freight. Although you have the choice between shipping by groupage (LCL) or full container (FCL), this method is - unsurprisingly - much slower than air.
As you may have understood, when you ship in groupage (LCL - Less than Container Load), you are sharing the container with other shippers. Conversely, when you opt for a full container solution (FCL - Full Container Load), you reserve the entire container. In general, from a financial point of view, we suggest to go for an FCL from 15 cubic meters although the 20ft container has a capacity of 33 cubic meters.
First and foremost, ocean freight is simply the cheapest solution on the market when shipping large volumes. Failing to be loaned, this method is secure and allows you to charter goods in most countries around the world. In addition to this advantage, sea freight also makes it possible to ship prohibited goods by air such as electronic products with batteries.
Our team relies mainly on 2 factors to determine the departure (and arrival) port. As a first step (and this is the most important factor), we analyze the international port closest to the starting address. Secondly, we check the prices of the different shipping lines according to the port of departure. We generally select the cheapest method unless contraindicated as a problem of time.
Besides the time issue that you can overcome with air shipping, this method is generally cost effective (financially speaking) when shipping a small volume / weight: usually below 2 cubic meters or 200 kgs. For all higher volumes and if your priority is profitability, then you will opt for a solution by sea.
It is the IATA (International Air Transport Association) organization that regulates all air traffic and therefore air freight. This is an area with very strict rules to avoid technical problems which can turn into a tragedy. Thus, many products cannot be shipped by air such as batteries, liquids, flammable products ...
The price of an air freight solution will depend on multiple factors. Obviously, you will find the weight, the volume, the point of departure and arrival but not only! You must also consider the nature of the goods as well as the ancillary steps such as packaging service, storage, truck mileage ... The more complex an operation is, the more expensive it will be. Note that the airline will use the greatest weight between the gross weight (on the scale) and the volumetric weight based on the following ratio: 1 cubic meter = 167 Kgs.
Do you have a time problem? Air freight will be the right solution! As mentioned above, it will also be a competitive method if you want to ship a small parcel around the world. Also note that this is a reliable method of transport since it requires less handling which reduces the risk of loss / theft / breakage during the shipping process.
FNM Vietnam can provide rail freight services to the major cities in South East Asia and China. Thanks to our great partnerships with railway companies, their great services are available for us.
In destination of China and all the ASEAN countries, road freight is a fast and inexpensive way to transfer your goods from Vietnam. Our skilled truck drivers will always transport your products safely.
Your goods can be sent anywhere in less than 4 days with express freight. We partnered with the big names of this industry, like DHL, Fedex, TNT and UPS to provide this kind of services.
Sourcing Services
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Warehousing Services
Customs Clearance
Crossborder freight
Door To Door
Relocation
Freight insurance
Multimodal Transport
The government has taken a stance to change its image across the world and enhance the economy of Vietnam by venturing into manufacturing. As known, Vietnam is an agricultural focus country.
The government wants to diversify the country’s portfolio to minimize the threat to their economy from external influence. Companies like yours can take benefit of this sentiment and get your production going, as the government will be making it easier for foreigners to make international trade with them.
At the beginning of the 21st century, A Bilateral trade deal was signed between the United States and Vietnam. The RCEP agreement was also signed by Vietnam aka Regional Comprehensive Economic partnership that has a web of 15 nations and nearly a 3rd of the population on the west Pacific Rim on this planet, all in 1 trade Zone, this was possible as Vietnam was already a reputed ember of ASEAN trade agreement which is for south-east Asian countries exclusively. This shows that Vietnam has access to source materials from its partners and neighboring countries in the ASEAN and RCEP regions.
The government of Vietnam provides tax benefits to attract foreign investment into the country. To build the manufacturing industry domestically, they provide establishments that are technologically advanced in industrial colonies at discounted tax rates, strategic tax holidays, and other tax incentives to grow and build in the country. These benefits help the new manufacturers to increase their capability and capacity at lower tax rates.
Connectivity can become a problem, as one might think for a country like Vietnam. The city of Ho Chi Minh aka Saigon, the financial capital of Vietnam, has gone under progressive infrastructure growth, especially in the south.
The locale surrounding the city of Hanoi, the capital of Vietnam, has gone under large investments with electronic tech giants such as Samsung towards the growth of the region by deploying people and money in mass. This region of Vietnam is ahead of the rest and is recommended due to connectivity and ease of moving supplies from port to your facility and vice versa with finished parts or products. In a booming region in the efforts for expansion, roads are being built, railways and ports to support growth when it comes to manufacturing.
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One of the major stakeholders, employees are the driving asset for organizations, the central government understands the need to upskill their people, to enhance the knowledge and skills of their workforce, this is another way the central government is making their domestic market vibrant and a part of the diversification of the economy. There are several vocational programs in their arsenal of development initiatives. The labor force manufacturing is high quality and has enhanced the capabilities of the Vietnamese workforce.
For the Vietnamese government, sustainability is a primary motivator. They want to be a carbon-neutral country by 2050, and one of their green goals is to develop a sustainable manufacturing industry.
This is an excellent time for businesses who want to become more sustainable and want to start from scratch. Vietnam has benefits in that the manufacturing industry is a rising sector in the country, and they can apply sustainable directives for cleaner energy and manufacturing processes to establish a green economy in its totality through infrastructure, which is only the beginning. If green manufacturing is ingrained in your company’s DNA, it may be the determining factor in the manufacture of your product.
You may already be aware of the number of manufacturing choices there in China, it becomes overwhelming sometimes to which manufacturer to choose. Despite the Pandemic hit in the year 2020, the World Bank in Vietnam reported the manufacturing sector alone brought $45 billion in revenue in US dollars but in the same year China made $3.2T in US dollars.
We see the difference is more than 60x times, which shows Vietnam’s manufacturing sector does not have a solution for every manufacturing need. The choices are limited, you will have to find the right connections to know about the domestic market and get in touch with the right partner. You will need someone to check if the manufacturer has all the resources such as specific technical equipment for your product’s creation and does it have relevant skilled labor and specific equipment.
It is also required to check certifications for quality control, which is progressively developing as well. All boils down to selecting the right manufacturer to make sure your production is seamless. The capability of Vietnam is limited for now and it’s still developing its manufacturing sectors unlike China, so It might not be the option for everyone, but it can be an option for you Contact FNM Vietnam for more info.
Vietnam’s two most generous challenges in construction allure production area, that it is increasing, and it has a sole-body, central regulated administration. Infrastructure bettering be reluctant demand and organizing. Government bureaucratic rules may be confusing although reconstructing, two together endure determinant into your conclusion, exceptionally by what method they grant permission impacts your schedule and in what way or manner long it will enjoy receiving your brand to display.
