Why Vietnam Sourcing is a Great Alternative to China?

Catalyst88 SourcingWhy Vietnam Sourcing is a Great Alternative to China?

Vietnam is fast becoming an excellent alternative to China for sourcing your factory products, especially if you don’t need to order in bulk or don’t mind spending a little extra money upfront. 

The factories there have excellent quality and quick lead times, and they also use safe working conditions and environmentally friendly manufacturing techniques. 

Here are many reasons why Vietnam sourcing can be better than doing business with China!

Let’s Get Started!

What is Vietnam Sourcing?

Vietnam sourcing is a term that refers to buying products from Vietnam. It is an essential part of global sourcing and is becoming increasingly popular among businesses worldwide. Vietnam is an excellent place to source products due to its low labor costs, favorable trade policies, and high-quality materials.

When sourcing in Vietnam, companies look to purchase products such as garments, electronics, furniture, textiles, and footwear. Vietnam is an excellent choice for those looking to buy products in bulk, as the country can offer competitively low prices on large orders. The country also has strong trade agreements with numerous countries, so it is easy to find sourcing partners in the region.

How to Source From Vietnam?

If you’re considering sourcing from Vietnam, here are a few tips to help you get started:

1. Research the Market

Before you start sourcing from Vietnam, it’s essential to do your research. Learn about the Vietnamese market, the types of products they manufacture, the cost of labor, and the cultural norms and etiquette. It will help you identify the best suppliers and know what to expect when working with them.

2. Connect with Local Agents

When looking for a supplier, it’s always best to work with local agents familiar with the region and its suppliers. They can save you time and effort, as they already have an established network of contacts. Also, many of them have built relationships with the suppliers, so they can provide valuable insights into the best way to approach negotiations.

3. Visit the Factories 

It’s essential to visit the factories of potential suppliers to get an idea of their production capabilities and the quality of their materials. You should also ensure that the factories are up to code and run efficiently.

4. Visit Trade Shows 

Attending trade shows is a great way to find potential suppliers and learn more about the Vietnamese market. You can meet with potential suppliers, get a first-hand look at their products, and even negotiate prices and terms.

5. Negotiate the Best Price and Terms 

Before finalizing any agreement, it’s essential to negotiate the best price and terms. Make sure to get everything in writing, so everything is clear about the terms of the contract.

Is Vietnam Sourcing an Alternative to China Sourcing?

Sourcing Vietnam is becoming increasingly popular among international buyers and manufacturers as an alternative to sourcing from China and for a good reason. Here, we detail why Vietnam for sourcing is an excellent alternative to China and what you need to know if you want to switch.

1. Lower Production Costs 

Vietnam is now one of the cheapest countries in the world to produce goods. It is due to its low labor costs, lower taxes, and less stringent regulations. It is an excellent option for companies seeking to minimize production costs without sacrificing quality. 

2. Skilled Labor Force

Vietnam has a well-educated, highly skilled labor force. It makes it an attractive destination for companies looking to manufacture complex products. The country also boasts a large pool of skilled labor, readily available and willing to work at competitive wages. 

3. Tax Benefits

Vietnam offers several tax benefits, making it an attractive destination for foreign companies. It includes a corporate income tax rate of only 20% and several export tax incentives. 

4. Political Stability

Vietnam is one of the most stable countries in Southeast Asia. It is an ideal destination for companies looking for a reliable, stable environment to manufacture their products. 

5. Proximity to Other Markets

Vietnam is conveniently located in Southeast Asia, making it an excellent option for companies looking to access other regional markets. 

6. Growing Infrastructure

Vietnam is making great strides in improving its infrastructure. The country has recently invested heavily in modernizing its transportation, energy, and communications networks. 

7. Access to Raw Materials

Vietnam has several natural resources that can be used to produce goods. It includes a variety of minerals and agricultural products. It makes it an excellent option for companies looking to source materials at low costs. 

8. Established Trade Relationships

Vietnam has been a member of the World Trade Organization and has established strong trade relationships with many countries. It gives companies a great opportunity to engage in international trade. 

9. Low Tariffs

Vietnam offers some of the lowest tariffs in the world. It helps companies reduce production costs and price their products more competitively in global markets. 

10. Growing Economy

Vietnam is one of the fastest-growing economies in Southeast Asia. It makes it an attractive destination for companies looking to expand their businesses. 

Cons of Sourcing in Vietnam

The country offers a wide range of highly qualified professionals, competitive labor costs, and a favorable business environment. However, some potential drawbacks to Sourcing for Vietnam should be considered before deciding to outsource there.

1. Language Barriers

Vietnam is a culturally diverse country, with many people speaking different languages. English is not widely spoken, making communication difficult. It can lead to miscommunication and misunderstandings between businesses and their Vietnamese partners, which could delay project completion.

2. Limited Access to Technology

In Vietnam, access to technology is limited due to the country’s low economic development. Finding professionals with up-to-date technical skills and access to the latest tools and technology can make it difficult. It could leave businesses with outdated solutions and affect the quality of the work they receive.

3. Legal and Political Risks

Vietnam is still a developing country and does not have the same legal and political safeguards as more developed countries. It can lead to uncertainty and risk for businesses, as there is no guarantee that contracts will be enforced. Furthermore, corruption or bribery is risky, which could lead to unexpected costs and delays.


Manufacturing Considerations for Sourcing From Vietnam

Vietnam is an increasingly attractive option for sourcing goods and services to meet your business needs. With its rapidly growing economy, the country is seen as a viable source for a wide range of products and manufacturing services.

However, there are several considerations to consider when considering sourcing from Vietnam. 


Vietnam’s infrastructure has improved significantly in recent years, with investments in roads and ports improving the ease with which goods and services can be transported. It has encouraged many companies to source from the country, with the cost of production lower than in some other countries.

However, there are still infrastructure challenges to consider. For example, the country’s ports and roads can become congested, leading to delays and increased costs. Additionally, the cost of energy in the country is generally high, which can add to the cost of production.

Legal Environment

Vietnam’s legal environment is still relatively undeveloped compared to other countries in the region, such as China and India. It means that many of the customary business practices which may be taken for granted in other countries are still unknown in Vietnam.

It can lead to delays in getting projects off the ground and other challenges. Additionally, there are still several restrictions on foreign investment in the country, and it is essential to ensure that any business dealings are conducted within the law.

Cost of Production

The cost of production in Vietnam is generally lower than in many other countries in the region. It is due to the country’s lower labor costs and the availability of cheaper raw materials. Additionally, the energy cost is lower than in other countries in the region, which can help reduce production costs.

However, the cost of production may be affected by the country’s infrastructure, with delays and other issues leading to higher costs. Additionally, the cost of shipping and customs duty can add to the overall cost of production.

Quality of Products

The quality of goods and services produced in Vietnam is generally good, with the country’s focus on quality control and adherence to international standards ensuring that the goods and services produced are of a high standard.

However, it is essential to ensure that any goods and services sourced from the country are adequately inspected and tested to meet the required standards. Additionally, it is vital to ensure that suppliers have the necessary certifications and qualifications to ensure the quality of their goods and services.

How to Reduce Risk Sourcing From Vietnam?

The risk associated with sourcing from Vietnam is a significant concern for most businesses. But with the right Vietnam sourcing strategy and actions, sourcing from Vietnam can be a successful and cost-effective endeavor for your business. 

Here are some ways to reduce the risk associated with sourcing from Vietnam.

1. Choose an Established Supplier

When it comes to sourcing from Vietnam, it’s essential to choose a supplier that has an established track record and is known to be reliable. It will help to ensure that you receive quality products and services.

Look for suppliers who have been in business for several years and have a good reputation. Look for suppliers affiliated with organizations such as the Vietnam Chamber of Commerce and Industry (VCCI).

2. Verify Supplier Credentials

Please don’t take a supplier’s word for it. Verify their credentials. It includes checking their registration status, verifying their references, and other information that will help you gauge their level of reliability.

3. Visit the Supplier’s Premises

You should visit a supplier’s premises to get a better idea of the quality of their services. Make sure to observe the working conditions, check the company’s production line, and see how their products and services are handled.

4. Research Supplier’s Background

It’s also essential to research a supplier’s background. Check to see if they have legal or financial issues or other concerns. It will help you identify potential risks and ensure that you deal with a reputable supplier.

5. Investigate Payment Options

When sourcing from Vietnam, it’s essential to understand the payment options available. Make sure to research the various payment methods and determine the most suitable for your business.

6. Use an Escrow Service

An escrow service can help to reduce the risk of dealing with suppliers from Vietnam. An escrow service acts as an intermediary between the buyer and seller, ensuring that the money is paid and the goods are delivered as agreed.

7. Get Comprehensive Insurance

Finally, getting comprehensive insurance when sourcing from Vietnam is a good idea. It will provide you with protection if anything goes wrong.

Following these tips can reduce the risk of sourcing from Vietnam. Do your research and take all the necessary precautions to ensure that you deal with a reliable supplier.

What to Expect When Working With Vietnam Sourcing Specialist

A Vietnam sourcing specialist can be an invaluable asset when you’re looking for a reliable and cost-effective way of sourcing goods and services from Vietnam. Working with a Vietnam sourcing specialist can help you find the right vendors and suppliers for your needs, ensuring that you get the best deals and quality products.

So, what can you expect when you work with a Vietnam sourcing specialist? 

Here are some benefits you can look forward to when you outsource your sourcing needs to a Vietnam sourcing specialist:

1. Expertise

A Vietnam sourcing specialist will have extensive knowledge and experience in the Vietnamese market. They know the ins and outs of the country’s laws and regulations, cultural nuances, and customs. This knowledge can be invaluable when finding the right vendors and suppliers and negotiating the best deals.

2. Quality Assurance

A Vietnam sourcing specialist will be able to ensure that you get the best quality products, no matter what you’re looking for. They can provide quality control services and inspections, ensuring that the goods you receive meet your standards and expectations.

3. Cost-Effectiveness

Working with a Vietnam sourcing specialist can help you save money and time. They are familiar with the country’s laws and regulations and can help you find the most competitive prices and reliable sources.

4. Time-Saving 

Working with a Vietnam sourcing specialist can save you time and effort. They can handle all the sourcing processes for you, from finding the right vendors and suppliers to negotiating the best deals and monitoring quality control.

5. Support 

When you work with a Vietnam sourcing specialist, you can rest assured that you’ll have their support every step. They’ll be there to answer any questions you may have and provide you with advice and assistance throughout the entire process.


Many businesses choose China when sourcing products because of the low cost and fast shipping. However, China has its downside, a large number of factories that produce poor-quality products. 

Vietnam, on the other hand, is a country with a long history of manufacturing quality goods. In addition to being cheaper and faster to ship, Vietnamese sourcing can offer better environmental and social outcomes. Vietnam may be an ideal choice for your business if you want to make a positive impact while reducing costs.