Vietnam's manufacturing industry is developing faster than ever, which means that finding the best supplier for your products is simpler, but not as in China yet, in fact, it’s still a number of difficulties.
The main obstacle to sourcing a supplier in Vietnam is the fragmented business environment. Despite having the third-fastest economic growth in the world, Vietnam is nonetheless going through some growing pains.
When looking for a supplier, it can occasionally feel like the Wild West, and getting information without being there in person can be difficult.
Despite this, you can still get assistance from a number of sources. The finest strategies to find a supplier in Vietnam are gathered in this guide.
If you are looking to import products from Vietnam, but you have some apprehension regarding the supplier, this article will help you !
How to source with Alibaba
In Vietnam, there are several supplier directories. To find manufacturers in Vietnam, Alibaba.com is the largest online supplier directory.
Vietnamese vendors may be found on Alibaba.com in a special section, and they are showing up more frequently when looking for a variety of different kinds of products.
Users of Alibaba.com may filter suppliers by country. As a result, you have the option to limit your supplier selection to Vietnamese companies.
All Gold Suppliers on Alibaba.com are also verified, including those situated in Vietnam. As a result, they offer one of the few trustworthy sources of supplier information in the nation. Which includes the name of the company, the registered address, the legal status, the registration number, issuance authority, date of issuance, the name of applicant and its job title.
How to source with Globalsources
Vietnamese suppliers are also featured on Globalsources.com's supplier directory. However, there are significantly fewer vendors here than on Alibaba. Some of them also go to Hong Kong's Globalsources trade exhibitions.
Despite having a few Vietnamese suppliers, Globalsources.com offers the most information about them of any website, including the same as Alibaba plus :
- The authorized capital
- The paid-up capital
- The Import and Export License
- The business scope
When choosing a supplier, it's crucial to consider the business's scope, legal representation, and registered capital (also known as paid-up capital).
Some other suppliers directories
Then there are the directories of nearby suppliers to achieve your researches.
We believe that when it comes to internet accessibility, Vietnamese providers need to catch up.
Vietnamese Sourcing fairs and trade shows
Like the rest of the globe, Vietnam hosts a number of trade exhibitions every year.
In Vietnam, specialized sectors are the main focus of the majority of trade exhibitions. Over 90% of trade exhibitions in Vietnam are held in only two locations, namely Hanoi and Ho Chi Minh City. Visit 10 times for a complete list of trade shows in Vietnam.
Vietnam Expo 2023
The largest trade fair in Vietnam, or Vietnam Expo as it is more generally known, is also one of the few that is not industry-specific.
The goal of Vietnam Expo is to promote business and industry in Vietnam and link foreign customers with Vietnamese suppliers.
The Canton Fair is intended to be for China, as is the Vietnam Expo for Vietnam. The Fair takes place in Hanoi, and the following one is scheduled for April 2023.
Vietnam International Furniture & Home Accessories Expo
The largest furniture trade event in Vietnam is most frequently known as VIFA EXPO. Over 1,800 booths and approximately 400 firms were present the previous year. The exhibition offers a wide variety of furniture producers, handicrafts, home furnishings, and more.
Every year, the occasion takes place in Ho Chi Minh City. The event will highlight the newest production techniques and technologies in addition to final items, with a strong emphasis on furniture and home accessories.
The next VIFA EXPO will takes place from 31th August to 3rd September 2022.
The Vietnam International Textile & Apparel Accessories Exhibition
One of the biggest trade events in Vietnam for clothing, textiles, and accessories, this event is commonly known as VITA Tex (zippers, buttons, etc.).
Vietnam is quickly rising to the top of the list of nations producing apparel and textiles. As a result, this event is starting to serve as the focal point for Southeast Asian, Chinese, and Vietnamese garment manufacturers. We advise you to attend this event and its two sibling events if you're interested in starting a new clothing business.
The Vietnam International Textile & Garment Industry Exhibition and the Vietnam International Footwear Machinery & Material Industry Exhibition are both taking place at the same time as this event.
The emphasis of these events is more on the manufacturing equipment and supplies than on the finished products. In 2022, the exhibition will take place at Ho Chi Minh City from 21st to 24th of September.
International Exhibition on Electrical Technology & Equipment
ETE The biggest electronics show in Vietnam. They expect approximately 20,000 visitors and 500 exhibitors in 2022. The focus of this trade event is on both components and all electronics. The International Exhibition on Products, Technologies of Energy-saving and Green Power (Enetec Expo 2019), which focuses on Green and renewable energy, and this event are hosted concurrently and at the same locations. The last ETE exhibition took place at Ho Chi Minh City on July 2022.
Which product can you import from Vietnam
Vietnam's industrial sector is smaller than China's. When it comes to OEM production, Asia may come in a close second.
Vietnam might be a viable manufacturing location if you are importing goods from one of the following product categories:
- Domestic textiles
- Bags & Luggage
- Printing and packaging
- Promotional Goods & Presents
- Agriculture and Food Products
- Plastic PVC
- Hair extensions
- Plastic in HDPE and LDPE
- Wooden goods
Vietnam is becoming as a key location for the production of electrical goods.
However, the nation's electronics industry is mostly dominated by international corporations like Samsung or significant contract manufacturers like Foxconn.
If you anticipate discovering a sizable number of private-label electronics producers as you can in Shenzhen, China, you will probably be dissatisfied.
FNM info : When you want to import a specific product, you need to be clear on your needs to ensure the supplier can produce it and make you a quote. To help you with this step, FNM Vietnam has written an article to explain how to make a product specification sheet. If you need to rely on a professional for this step, contact us !
Private label products imported from Vietnam
In general, Vietnamese factories are used to dealing with experienced customers and global brands. These firms don't try to acquire “ready-made” items because they have their own product ideas and technical requirements.
This also explains why Vietnamese producers, who are more focused on OEM, do not frequently engage in private labeling.
When some of these OEMs decide to build their own domestic brands, which later develop into regional and, in some cases, worldwide brands, this might alter in a few years. In the past 10 to 20 years, China experienced similar events.
As it makes use of already-existing equipment, private labeling is a component of this evolution.
About Dropshipping in Vietnam
In the late 2000s, traders in Hong Kong and Guangdong province developed the idea of dropshipping.
In Vietnam, though, we have yet to observe this take root, and we don't believe it ever will.
In fact, numerous Chinese dropshipping providers are currently concentrating on B2C sales to customers in Vietnam and other Southeast Asian countries.
Difference of prices between Vietnam and China
When compared to China, labor expenses are cheaper in Vietnam. Although it is important to large corporations like Foxconn and Samsung, decreased labor expenses only have a significant influence on overall costs.
However, this does not always mean that small to medium-sized importers that purchase goods from Vietnam will pay less per unit. First off, rising demand from big brands is causing salaries in Vietnam to rise. In order to recruit enough personnel, some contract manufacturers that relocated to Vietnam in recent years were obliged to provide incentives on top of salary increases.
The unit price is also affected by other expenses like electricity and logistics (remember that supplies are frequently transported from China).
However, because the China tariffs are still in effect and must be taken into account, the computation is different for importers from the US.
FNM info : This difference of prices can be an argument in the negotiation with other suppliers and an opportunity for us to find you the best quality and cost of the product you choose. If you need to rely on us, contact us !
Is it easy to work with Vietnamese suppliers?
According to the presumption that "Chinese manufacturers are problematic," Vietnamese factories must be simpler to deal with. Although we readily accept that communicating with Chinese firms may be challenging,
We don't believe you should anticipate any different behavior when working with Vietnamese suppliers.
Furthermore, problems frequently have less to do with other things and more to do with difficulties in production. Whether you're manufacturing in China, Vietnam, or even Europe, it's challenging.
FNM info : Work with a supplier is always a challenge when you don’t come from the country you’ll export your products from. Vietnam as a different language and a different culture. To be confident about your relation with your supplier, we advise relying on a professional like FNM, who’s a Vietnamese sourcing specialist ! Don’t hesitate to contact us if you need our services!
Vietnamese quality inspection
Many of the quality inspection firms operating in Vietnam have their headquarters in Hong Kong or Mainland China. Similar to other nations in the area, the typical cost per examination is between $300 and $400 USD.
FNM can help you with this step thanks to our 10 years of experience in this field and all our experts based in Vietnam. We can proceed to the quality inspection of your product, and negotiate for free samples. We also have an audit service to ensure supplier reliability.
Vietnam laboratory tests
A sizable number of businesses have established lab testing facilities in Vietnam in recent years. Others are smaller regional operations, while some are run by big testing corporations.
In certain cases, we are still unable to locate an appropriate testing center in Vietnam. The product samples can then be shipped to a facility in China, Europe, or the US instead under these circumstances. Despite the fact that the items are produced in Vietnam, lab testing is not required to take place there. To be sure that your product will be well tested and respect standards, we advise you to rely on FNM, who will handle this step thanks to our experience.
MOQ in Vietnam
Vietnam is a smaller nation than China, thus logically, its MOQ (Minimum Order Quantity) requirements must be lowered. Not quite.
The demand for goods made in Vietnam has increased dramatically since the trade war truly got going in 2018. Prior to 2018, it was not common for Vietnamese firms to provide reduced MOQs, and after then, they have even less of an incentive to do so.
You might not be able to locate an appropriate supplier in Vietnam if you cannot attain a minimum of 500 to 1000 units per SKU and color. Of course, there are exceptions, but in general, this is what you will run with while looking for providers.
Cities and clusters with a primary industry
The southern regions of many Asian nations typically have economic sway. Ho Chi Minh City, usually known as Saigon, is the commercial and manufacturing hub of Vietnam, which is no exception.
The north also has sizable industrial regions. Especially in and around the port city of Hai Phong and the nation's capital, Hanoi.
Shipping and Ports
As previously indicated, the southern regions of Vietnam, which account for 70% of all exports, are the country's economic hub. The biggest container facility in the nation is obviously Saigon New Port. Nevertheless, providers may be found from the north to the south of Vietnam.
It's likely that your shipment may transit via one of the following ports if you begin importing items from Vietnam:
- Port Hai Phong (North)
- Tay Ninh (Central)
- New Saigon Port (South)
- International Terminal at Cai Mep (South)
To import products from Vietnam, you don't always have to cooperate with a forwarder that has its headquarters there. Remember that the majority of forwarders operating in Vietnam don't have local warehouses or offices, but rather collaborate closely with regional organizations, and that's the way the logistics sector operates.
Now, we can talk about costs, and, surprise…neither Vietnam nor any other country in the globe has any “cheap freight forwarders” or “discount shipping firms.” Shipping costs fluctuate continuously and are solely determined by the incoterm.
For instance, a CIF quotation is usually less expensive than a DAP or DDP quotation, but in the end, your cost will be the same.
Furthermore, predicting future pricing changes for shipping from Vietnam is difficult. Vietnam is now experiencing a significant export boom, and the trade conflict is expected to cause more businesses to relocate there in the upcoming years.
Tan Son Nhat International Airport in Ho Chi Minh City and Noi Bai International Airport in Hanoi handle the majority of air freight traffic.
There are several freight forwarders and air couriers operating in Vietnam, including DHL and FedEx. Additionally, the shipping and customs procedures are the same as in other nations.
Visas for visiting Vietnamese suppliers
A visa stamp on arrival is available to many nations, allowing for a two-week stay. If you want to stay for up to three months, you can also apply for a business visa.
You must first receive an invitation letter from the firm you wish to visit before you can apply for a business visa.
FAQ | How to Find Wholesale Suppliers in Vietnam?
What is Vietnam famous for manufacturing?
Vietnam is known to manufacture electronics, furniture, clothing and footwear, but it’s also a big exporter of rice and coffee.
How to negotiate with Vietnamese supplier?
The main point is to be very polite and respectful, if you’re not, you’ll don’t have what you want and the negotiation will be close. You also have to be aware of the fact that Vietnamese people can’t say no and will not tell you if they don’t understand something, you’ll have to be patient.
Are famous brands producing in Vietnam ?
Of course, a lot of brands have manufactures based in Vietnam like Samsung, Nike, Intel, Adidas and so much more!
What is the main industry of Vietnam ?
Even if we know Vietnam as great manufacturer, its main industry still agriculture which represents 14.8% of its GDP and employs 38% of the total workforce.
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