Vietnam is rapidly establishing itself as a global manufacturing center. For decades, businesses have been shifting their supply chains to Vietnam. Vietnam is a viable alternative to manufacturing in China due to lower labor costs and a strategic shipping spot. Frequently questions about manufacturing in Vietnam below will help you determine if Vietnam is the right fit for you and your product.
How to find Factories in Vietnam?
Here are some helpful sources that provide information on suppliers:
- Asian Factories in Vietnam. There are many factories from Asia established in Vietnam, and they are familiar with international trade practices. For example, Korean Chamber of Commerce in HCM City, Commercial Officer at the Taipei Economic and Cultural Office in HCM City, Hong Kong Business Association of Vietnam …
- Vietnamese Industry Associations. You can reach hundreds of companies in Vietnamese Industry Organizations. There are some of them: Vietnam Textile and Apparel Association (VITAS), Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA), Vietnam Leather, Footwear and Handbag Association (LEFASO) …
- Local Economic Development and Investment Promotion Agencies. There are also Vietnamese government agencies that specialize in helping foreign companies identify suppliers or investment locations. For example, the Investment & Trade Promotion Center (ITPC), the Vietnam Chamber of Commerce & Industry (VCCI), Ho Chi Minh City Export Processing and Industrial Zones Authority of the Ho Chi Minh City (HEPZA)…
- Other Directories. There are some trust websites you can find Vietnamese suppliers like Vietnam export, Vietnam Manufactures, Vtown.vn, VietnamAZ, Yellowpage, global Manufacturers….
What are Vietnam’s Product Specializations?
Vietnam expects to become a new regional manufacturing hub for many global companies. The top exports of Vietnam are textile footwear, leather footwear, furniture, bags, broadcasting equipment, telephones. Vietnam attracted US$12.33 billion worth of foreign direct investment in the first four months of 2020, a year-on-year decrease of 15.5 percent due to the impact of the COVID-19 pandemic, according to the Foreign Investment Agency. In particular, thousands of companies in Vietnam, which practice eco-friendly production processes, are willing to work with interested parties with a vision for sourcing Vietnam products. The infrastructure is also favorable, as it is currently undergoing a lot of upgrades.
Production Abilities
Vietnam is thriving on a unique strategy of accepting investors, who process even low order quantities comparing to Chinese companies. It increases the opportunity for many companies and brands to venture into the Vietnam manufacturing industry. This strategy gives small companies, including start-ups, a chance to gain entry into the manufacturing of consumer products in Vietnam and takes advantage of the ready market overseas.
A small garment manufacturing company in Vietnam can employ about 500 workers. The capacity is approximately 500,000 pieces annually.
The Vietnam government is making all efforts to improve the manufacturing process for factories in the country. The infrastructure in Vietnam is upgrading to serve the needs of communication, travel, and freight transportation.
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