Vietnam: Next hot spot for Sourcing in Asia?
The Financial Times recently released an article, Vietnam offers companies China alternative, which talks of Vietnam’s prospects as an exporting destination. It does certainly seem that Vietnam’s favorable economic prospects, growing population and relatively lower prices could greatly bolster its exporting reputation.
Such with the exports of many other Southeast Asian nations, apparel and textiles have been the products of note for most buyers. It is said that over 5% of the country’s workforce works in textile manufacturing. Major buyers including Wal Mart, Tommy Hilfiger, Li&Fung, JC Penney have started significant sourcing operations there.
Source: Vietpartners.com
While lack of infrastructure and and much lower wages keep prices down, this can lead to more quality issues in production. As we see in Bangladesh, India and Cambodia, factories are generally less organized and more chaotic than even the most frenetic Chinese factories that we visit. Having proper eyes on the ground to ensure that you are taking advantage of the favorable costs in Vietnam is crucial to achieving your goal.
Being vigilant with your quality control in countries like Vietnam is required because chances are your factory may be focused on pumping out the maximum quantity of goods possible within the minimum time span. Performing factory audits, social audits and regular quality control inspections of your product is the most important step towards successful sourcing in this newly thriving market!
