Sourcing from Vietnam has become familiar with many countries in recent years thanks to its huge advantages. Yet there’s still people who do not really know what’s made and exported the most in this country. For this reason, this guide aims to help you have an overview of Vietnam products and a brief introduction of Vietnam industrial zones where you can find the products you want.
Find out more about Vietnam potential for Sourcing at Vietnam Sourcing – A Promising Land for Sourcing before reading this article.
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1. Top Vietnam Export Products
Vietnam has been considered as a manufacturing hub among Asian countries. Have a look at which products Vietnam are producing and exporting the most over recent years:
Electrical equipment includes things like telephones, mobile phones, electrical motors, spare parts and other components thereof which are of great importance in our daily lives. According to the Vietnam Customs’ Reports in March 2017, these Vietnam products lead in the list of Top 10 major export commodities of Vietnam, making up an significant contribution to the expansion of Vietnam’s total merchandise exports.
In fact, the largest export market of Vietnam for these products is the United States, a country with very strict regulations, stated by the United States Trade Representative. Furthermore, many technology giants are expanding their presence in Vietnam like Samsung, Intel, LG, HP Canon due to its skilled labor force fully capable of performing complicated tasks.
As stated by Vietnam Trade Promotion Agency, Vietnam now is the third largest footwear manufacturing country in Asia after China, China and places fourth in the world’s ranks. In fact, there are many reputable brands having chosen Vietnam over China as a place to manufacture their products like Adidas, Nike, etc.
In an article published by Vietnam Industry and Trade Information Center, the major export markets of Vietnam for these commodities include the US, China, Japan, Belgium and Germany. Of those countries, the US is the largest export market of Vietnamese footwear in the first seven months of this year.
Clothing and Textile
Not only does the Textiles and Garments significantly contribute to Vietnam’s total export value but it also solves the employment issues with more than 2.7 million people employed across six thousand textile companies as reported by Statista.
Furthermore, with a productive capacity in clothing manufacturing, Vietnam has become the fourth in top leading clothing exporters in 2019, according to Statista. The labor cost for clothing production is lower than other countries like China, Indonesia, Cambodia, which poses a major competition advantage for Vietnam in the global market.
Regarding the furniture category, wooden products play an important role in Vietnam’s economic growth. Despite the COVID 19 pandemic, Vietnam still maintains its growth in furniture export.
Thanks to the locals’ effort in sustainable forestation and forest development program, Vietnam productivity and product quality have increased substantially, making Vietnam “new star” in the furniture industry. For this reason, many brands famous for furniture like IKEA, Ashley Furniture, or West Elm decide to manufacture furniture in Vietnam.
Vietnam has long become one of the largest exporters of coffee beans, especially Robusta. In fact, for coffee in general, Vietnam is the second largest exporter after Brazil. However, when it comes to Robusta coffee, Vietnam is the country that supplies this type of coffee the most to the whole world.
Vietnam now possesses around 600,000 ha of coffee farms, mostly concentrating on three main provinces Dak Lak, Dak Nong and Lam Dong. In the first eight months of this year, Germany, the United States and Italy are the 3 largest markets of Vietnam coffee and the total value of coffee export in this period is up to US$ 184.35 million, according to the Vietnam Industry and Trade Information Center.
Want to source coffee from Vietnam? Check out our Coffee blog list HERE to have a comprehensive and informative guide to source coffee from Vietnam.
Fruit, vegetable and nuts
This export sector of Vietnam is growing significantly in recent years. Regarding vegetable and fruit exports, Vietnam’s largest export market is China. Since the serious effects of COVID 19 pandemic, a decrease in the total export value was witnessed in this market in the first quarter of this year.
Nevertheless, it seems that Vietnam fruit and vegetables have become more favorable in other countries, such as Japan, Thailand, the US, etc. which means that Vietnam can reduce dependence on the Chinese market by boosting exports to other markets, according to the Ministry of Agriculture and Rural Development. One more interesting fact, Vietnam is currently the largest exporter of cashew nuts in the world.
With more than 3,000 km of coastline, it came as no surprise to learn that Vietnam is the largest exporter of fisheries production worldwide after Norway and China, according to the 2016 report of Food and Agriculture Organisation (FAO) of the United Nations.
Vietnam mainly exports shrimp, pangasius, tuna, squid and octopus to other countries, including 170 markets in the world. Not only does Vietnam possess the advantage of the long coastline, its skilled labor force and high commitment of government for food safety are also factors that contribute to Vietnam’s potential for seafood export, stated by Vietnam Association of Seafood Exporters and Producers (VASEP).
Main export markets of Vietnam’s plastic products include China, Japan, Thailand, Malaysia and India. According to the Vietnam Industry and Trade Information Center, the country’s export of plastic products saw a growth in the first seven months of this year. In fact, Vietnam’s exports of plastic materials increased both in volume and value compared to June of 2019, by 36,5 per cent to 167,600 tons, and by 34,2 per cent to 234,07 million USD, respectively.
Concerning Rubber Goods, Vietnam is currently the member of the Association of Natural Rubber Producing Countries, which includes 13 countries having accounted for around 91 per cent of the global production of natural rubber during 2017. Furthermore, of which Asian countries, Vietnam has placed in Top 6 countries that have the highest natural rubber output.
Iron and Steel
It could be said that Vietnam’s iron and steel industry has high potential to reach a production growth rate and expand export markets in present and years to come. In the first nine months of this year, the General Department of Customs stated that Vietnam’s exports of iron and steel increased in volume and in turnover compared with the same period last year.
2. Where can you find Vietnam products?
Until the year 2020, Vietnam has more than 300 industrial zones in total spreading across the country, from the North to the South. These industrial zones not only offer a range of incentives to domestic and foreign investors, their labor source and infrastructure are also developed significantly, making them attractive places to manufacture Vietnam products. Check out a number of major industrial zones where to find Vietnam manufacturers in Vietnam below:
Dinh Vu Industrial Zone
Dinh Vu Industrial Zone is located in the Dinh Vu peninsula – on the lower river from Haiphong to the sea, on the continental shelf of the Gulf of Tonkin. With a total area up to 1,463 hectares and the advantages of a port city, a national transportation hub, Dinh Vu Industrial Zone has been attracting many domestic and overseas investors..
Vietnam-Singapore Industrial Park (VSIP)
VSIP was established based on the friendship and economic cooperation between Vietnam and Singapore. With the support from 2 countries’ governments, VSIP has a string of industrial parks located in many provinces, including Binh Duong, Bac Ninh, Hai Phong, Quang Ngai and Nghe An, making it an attractive industrial zone for foreign investors.
Hiep Phuoc Industrial Zone
Located in Nha Be District, Ho Chi Minh City, Hiep Phuoc possesses a strategic location with modern infrastructure, facilities, three international seaports and near international airport. with a total area of 1,686 hectares, this industrial park is the largest industrial zone in the city.
Phuoc Dong Industrial Zone
Located in Tay Ninh province, Phuoc Dong Industrial Park has a total area of 2,190 hectares. This industrial zone has a convenient geographical location – 42 km from Tan Son Nhat International Airport, 74 km from Cai Mep International Port, and only 23 km from Long An Port. Therefore, this industrial park facilitates not only the manufacturing process of Vietnam products but also the shipping.
Exporters/importers could run into a number of difficulties when trading internationally. Check out our Vietnam Sourcing blog list below to facilitate your sourcing process from Vietnam right away:
Viego Global – Your trusted sourcing partner in Vietnam
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