Of 6 crucial steps to source goods from Vietnam, making an analysis of Vietnam manufacturers and choosing which one for your business are the very first steps.These first steps are of great importance, since they could lead to unexpected consequences if they are not taken into account. For this reason, this blog article in our Vietnam sourcing series will provide you with an essential guide to help you find and choose a right Vietnam manufacturer that you can place trust in.
Have a look at main points in this piece of writing:
1. Vietnam in the Covid 19 Era
There is no doubt that the Covid 19 pandemic has damaged the whole world in all the aspects since it first emerged in Wuhan province, China. One of the worst crises this virus has caused is a massive disruption in the global supply chain, leading to the fact that many manufacturers almost collapsed due to the lack of Chinese supply. And it’s the moment that they start rethinking China and seeking a new approach to remedy their supply chain.
Diversifying the supply sources instead of relying on just one source to take advantage of cost-efficiency is an option favored by many economies. In this way, Vietnam is one of the top destinations to which many countries consider to move their production. There are a number of reasons for why Vietnam is chosen in preference to other countries.
First and foremost, Vietnam has achieved success in the initial stage in the fight of containing Covid 19 epidemic despite the fact that this country is highly vulnerable due to the long shared border with China, limited healthcare infrastructure and dense population. Secondly, Vietnam has signed one more free trade agreement, called RCEP, opening more opportunities for Vietnam exports in years to come. And what is more? According to the General Statistics Office of Vietnam, the Vietnam GDP in the third quarter of 2020 is estimated to increase by 2.62% over the same period last year. Though this figure is the lowest one in recent periods, this is still a positive signal for the future recovery.
With achievements mentioned above, it could be said that Vietnam is making its ways to become an ideal manufacturing hub to other countries. Yet with plenty of manufacturers in this country, finding a suitable one is not easy at all. Have a look at recommended channels below for searching Vietnam manufacturers before getting into the sourcing process.
2. 5 Reliable Channels for Searching Manufacturers in Vietnam
There are 5 reliable channels for importers to search Vietnamese manufacturers. These channels are considered as the most reliable ones as they are used widely and some of them are even administered by the Vietnam government.
Alibaba could be considered as the most popular channel for importers to find their suppliers. Due to the fact that Alibaba is a market for manufacturers from all over the world to market their business, you should sort by country on Alibaba’s website when finding Vietnam manufacturers.
Like Alibaba, Amazon is also a very famous website for you to search for Vietnam manufacturers. There are many suppliers on Amazon, so confining the area to region or country would help you find a manufacturer in Vietnam more easily. The prices also vary according to the region/country you are searching.
This channel is supported by Vietnam government. Not only does it generally find suppliers in Vietnam, it also helps you sort these companies by Vietnamese regions and provide you with details on suppliers you are interested in.
Vietnam Trade Promotion Agency
Vietnam Trade Promotion Agency’s website is also under Vietnam’s Ministry of Industry and Trade administration This website provides a sector, called Trade Opportunity, helping importers to find trusted suppliers/manufacturers in Vietnam. This sector includes a list of Export – Import Businesses in Vietnam and all needed information about these businesses.
Each country possesses a Yellow Pages website for storing their businesses’ profiles. This website contains the address as well as other details about this countries’ business. Beside other channels above, this website is also an ideal place for foreign buyers to find and consider Vietnam manufacturers.
3. How to verify manufacturer that you can trust
It is obvious that there are more than just finding some suppliers on these websites above and immediately making a deal with them. Of course we do not want to fall victim to a scam, so checking whether our potential manufacturers/suppliers are legitimate or not is highly recommended. For this reason, a number of ways here will help you to verify a manufacturer efficiently.
Ask for Documentation
Asking for Documentation could be considered as the best way to verify if your potential manufacturer is legitimate or not. Even if the manufacturer has shown their legitimate documents on websites you find them, don’t hesitate to ask for more if necessary. In fact, the genuine businesses are always willing to show their documents to you.
Due to the fact that you live overseas, you cannot get all updated information about your potential manufacturers’ performances in recent years. Therefore, Checking backgrounds is extremely important to make sure that you are not going to work with a scam.
There are three main approaches, including Ask for References, Use Search Engines, and Call Directly.
In terms of Ask for References, it means that you ask these suppliers for the previous clients with whom they used to do business. Then, you can contact these people and ask anything you want to know about the manufacturer/supplier yourself. Nevertheless, keep in mind that scam suppliers could create false references, so you can find their clients online, directly contact them and ask for what you need. And in case that manufacturers refuse to supply their partners, it may be time for you to rethink.
Concerning Search Engines, you can easily search for recent news about a manufacturer. If you want to know whether this supplier has any bad reviews, you can add keywords like “scam”, “fraud”, or the like to find out more about them on Google search engine..
Regarding Call directly, this could be considered a good one also. In this way, you should call the manufacturer’s salesperson and discuss with them directly. It would be easier for you to find out whether they are lying or not since a scam supplier will become overreacted when being asked questions they are not comfortable answering.
Pay a visit in person to Vietnamese factory
For an order taking you tons of money, carelessness in verifying your manufacturer can cause serious trouble. This means that you should pay a visit to your potential partners. But you cannot just go to the factory by yourself, it is recommended that you should hire a quality assurance agency to accompany you on this trip. A QA agency offers the audit service to ensure that your potential Vietnam manufacturers completely meet your demand.
This article has just provided an essential guideline for any importers who are going to source from Vietnam, especially who are finding the most suitable and trusted suppliers in this country. With these 5 channels to find Vietnam manufacturers and a number of ways to verify them above, the very first step in your Vietnam sourcing process would be easier than ever.
Viego Global – Your trusted sourcing partner in Vietnam
Are you going to source from Vietnam, an Asia sourcing hub with great potential. Are you faced with any problems when sourcing Vietnam? With professional experience and presence at manufacturing location and economic centre, Viego thoroughly understands and has the capability to help you break through all the barriers as well as successfully do business in this country. Just leave you comment below or click HERE for further support