3 Challenges Faced by Sourcing Professionals: Solve Them by Soucing in Vietnam

by Stef Calimlim (Content Editor)

Buyers and other sourcing professionals, no matter how established or successful they are in their markets, also have their fair share of challenges and hurdles they need to overcome. Whether it’s about buyer-supplier relationships, procurement, sales, logistics, supply chain, communication or disruptions affecting global economies, finding the right solutions will require out-of-the-box thinking, perseverance and even a bold approach. Sourcing from emerging markets like Vietnam can help overcome these challenges.

Product innovation

In today’s hypercompetitive industries, innovation is the forefront of success. Innovation plays a central role in sustaining or elevating the competitive edge and determining the value of a company. With today’s technology, it’s easier for manufacturers to release new and innovative products at a fast rate.  This poses as a bane and boon for buyers because while they are guaranteed to never run out of options to offer customers, they also need to constantly be on the lookout for the latest products to keep up with the latest market trends and stay ahead of the game.

Vietnam is considered as one of the world’s leading countries in terms of high-tech exports and ranks among the top 30 worldwide in terms of market sophistication, according to the World Intellectual Property Organization (WIPO). The country is among the world’s 10 leading exporters of electronic products, which include smartphones, integrated circuits, micro assemblies and broadcasting equipment. The country’s focus on science, technology and innovation has enabled manufacturers to produce high-quality textile footwear, furniture and clothing, metal-clad products, cement and non-retail mixed cotton yarn, which are also among Vietnam’s top export products. Vietnam’s Ministry of Science and Technology has also stepped up to advance the technologies and technological know-how of domestic enterprises and manufacturers through its national high-tech development program. The program aims to have 500 high-tech manufacturers using hi-tech applications by 2030. Advancements in high-tech manufacturing ensure that products are manufactured not just in compliance with industry standards but are of the highest quality and reflective of the latest trends in various industries. Advancements in high-tech manufacturing ensure that products are manufactured not just in compliance with industry standards but are of the highest quality and reflective of the latest trends in various industries. These, as well as the rapid growth of the high-tech manufacturing industry in Vietnam, will provide buyers a wide-ranging selection of top-notch and innovative products at rates that are more competitive and attractive than bigger neighboring sourcing regions.

Competition

Buyers are aware that markets can be competitive, monopolistic or oligopolistic. Competition does not just occur among those in the same markets offering similar or even exact products. It also exists in the procurement process – whether sourcing raw materials or finished products. Vietnam, inarguably, offers valuable geographical features. It has long coastlines that are close to many international shipping routes, making it easily accessible for trading and commerce. Vietnam continues to offer low labor costs, allowing for increased productivity and profits. Its government’s openness to the global economy, coupled with regulations that encourage foreign investments, makes it a strategic and friendly business destination. Vietnam’s custom duty incentive policies, investment laws that lower the cost of doing business within the country, and region-based tax incentives and exemptions are standout features of the country that allow manufacturers and other businesses to offer quality products and services at competitive rates and with the right flexibility to meet the varying needs of buyers.

Stagnant business growth

Buyers face the challenge of growing their business, especially in times of unprecedented changes. For medium- and large-sized enterprises, the demands of a growing workforce can be a business growth challenge. The ever-changing needs of various customers, fluctuating raw material prices, rising cost of living, freight costs, decrease in sales, inventory management and supply chain continuity, new competitors, regulatory requirements, and shortage of resources and disruptions brought about not just by the pandemic but also the trade conflicts among big nations all impact a company’s business growth.

Vietnam’s rise from one of the world’s poorest countries to one of today’s top-performing countries in Asia is a testament of its resilience and strength. According to the World Bank, the country’s economic growth is forecast to accelerate to 5.5 percent by the end of 2022. Vietnam’s Ministry of Planning and Investment recently invested $15.42 billion for a socio-economic recovery program that aims to reboot and speed up the country’s economy which was heavily impacted by the COVID-19 pandemic. The country is also offering tax incentives, especially in the manufacturing and hi-tech industries, making it a more viable place to do business compared to its neighboring competitors. These tax incentives encourage manufacturers to invest in R&D and the latest technologies while enabling them to cut operational costs at the same time, leading them to improve their production and quality assurance process.

B2B sourcing solutions for buyers

Buyers are not without recourse in facing the sourcing challenges ahead of them. Whether finding trustworthy suppliers, including those from emerging and alternative markets like Vietnam, sourcing high-quality products and low-cost raw materials or making the procurement process convenient and secure, B2B platforms like Global Sources offer various services and sourcing solutions for buyers. Global Sources, offers a comprehensive sourcing experience for buyers as it provides not only traditional but also tailored services buyers can avail of to make their sourcing journey seamless:

RFQ (Request for Quotations)

RFQ (Request for Quotations) – A free service for all buyers worldwide that helps in providing as much product requirement details as possible, so as to get better & faster responses from suppliers

Sourcing Knowledge Center

Sourcing Knowledge Center – A repository of product stories, industry trend articles, buyer FAQs, sourcing guides and more

Buyers have the best sourcing options as Global Sources offers its unique Rest-of-the-World Sourcing feature which showcases trendy and innovative products across various categories from verified suppliers from emerging markets like Vietnam. Start your sourcing journey by checking out these reliable Vietnam suppliers:

Top products

Teak flooring

Global Wood Investment and Import Export JSC

MOQ: 142 sets

Price: $22 – $23

Inquire now

Wooden sofa bed

SF Solutions Co. Ltd

MOQ: 120 pieces

Price: $899

Inquire now

Eucalyptus plywood

Thien Duc Phat Export Co. Ltd

MOQ: 1 container

Price: $18,000 – $18,800

Inquire now

Folding gym mat

Gilimex

MOQ: 100,000 pieces

Price: $7.50

Inquire now

Woven storage basket

Haprosimex Saigon Household Goods Production JSC

MOQ: 500 sets

Price: $1 – $5

Inquire now

Leaf springs

Thaco Industries

MOQ: 10 tons

Price: $30 – $50

Inquire now

USB3.0 in-car charger

Vietnam Sunda Telecommunication Co. Ltd

MOQ: 2,000 pieces

Price: $1.75

Inquire now

Discover more products from Vietnam

Global Sources is a trusted, internationally recognized B2B sourcing platform that has been driving global trade for more than 50 years. The company connects authentic buyers and verified suppliers worldwide with tailored solutions and trusted market intelligence through trade shows, digital platforms and magazines. Visit our website to source the right product for your market and contact verified suppliers:

Also Read

3 Challenges Faced by Sourcing Professionals: Solve Them by Soucing in Vietnam>> Sourcing from Vietnam: What You Need to Know>> 4 Good Reasons Why You Need to Source from Vietnam>> Discover Vietnam’s sourcing advantages>> What Makes Vietnam a Reliable Sourcing Alternative>> Why source from Vietnam>> Vietnam: Strategic sourcing destination>>