With the cost of wages in China tripling over the past decade, the ongoing US-China trade tension, and an epidemic that upended international trade flows and halted production in China, many importers and buyers have pursued other alternatives – focusing their efforts on the Southeast Asian markets.
While Vietnam is arguably the popular sourcing alternative to China, the country has already established itself as a manufacturing powerhouse.
Here are other advantages of sourcing from Vietnam:
One of the fastest-growing economies in the world
While other countries faced lockdown-induced recessions, Vietnam was on track to become the fastest-growing economies in the world in 2020 – with manufacturing continuing to drive the country’s growth and exports.
Proximity to China
Vietnam’s proximity to China has made it the “obvious choice” for sourcing. Vietnamese manufacturers can easily procure raw materials and components from China with not as much bureaucracy, allowing buyers to have more control of the supply chain.
Labor costs in Vietnam are generally lower than in China. And with a younger workforce, the country can be a good option for products that are more labor-intensive.
Strong manufacturing sector
While Vietnam’s production base is not as diversified as China’s, it’s still fairly diverse for its size. In addition to exporting electronics and machines, Vietnam also manufactures a variety of products, including textiles, footwear and furniture.
Tips when sourcing from Vietnam
Whether you are a seasoned importer or a budding entrepreneur, here are some tips when sourcing from Vietnam.
- Products to source
Clothing, textiles, footwear, consumer goods, plastic and rubber products, furniture and packaging are among the major products you can source from suppliers in Vietnam.
- Finding suppliers from Vietnam
You can check out the new Search by Region tool on Global Sources and go to Vietnam Sources to find verified suppliers from the country and their product offerings. You can send a request for quotation on the products you’re interested in.
Find out more about the pros and cons of sourcing from Vietnam and other countries in Southeast Asia. Download the e-book on Sourcing Beyond China and Alternative Markets.