Sourcing from Vietnam: Finding the right supplier

This article is an excerpt from Sourcing From: Vietnam, a series of reports that provides buyers sourcing information from alternative manufacturing hubs in Asia. To read the entire article, click here.

The Sourcing From series is produced by the Hinrich Foundation, a development organization that aims to promote sustainable global trade by, among others, helping create jobs in emerging Asia. It also produces industry-specific sourcing reports through Online Developing Country Sourcing.

Conducting initial research in your home country before going on a buying trip is key when searching for the right supplier.

A supplier‘s list can be obtained from a Vietnamese embassy or trade commission in your country. From the list, you can make an initial selection and start further research. Embassies usually maintain an information center, which will have a collection of publications and trade directories prepared by government agencies and private organizations. You can also meet with the trade commissioner or a staff member of the Department of Trade to discuss your requirements before visiting Vietnam.

While getting the name of prospective suppliers and their addresses may be easy, determining their reliability as well as checking prices, quality and packaging available can sometimes be a challenge. Even if you hire an agent to handle the purchasing, there is no substitute for examining all aspects of the deal personally to make sure that everything is suitable for your plan and needs.

Finding verified suppliers on Global Sources:

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Vietnam Trade Promotion Agency

Vietnam Trade Promotion Agency is a government organization under the Ministry of Industry that is responsible for state regulation of trade and investment promotion for the development of industry and trade. Some of its main activities include:

• Proposing policies and measures for the development of business support activities, national branding programs and investment for development of industry and trade to the government
• Providing business information to trade support institutions and enterprises
• Conducting market research and analysis in order to formulate national trade promotion policies

Vietnam Chamber of Commerce and Industry

The Vietnam Chamber of Commerce and Industry is one of the largest trade promotion agencies in the country. VCCI is an independent, nongovernment, nonprofit organization with the mission to protect and assist business enterprises, contribute to the socioeconomic development of the country, and promote economic, commercial and technological cooperations between Vietnam and the rest of the world. VCCI is a direct member of the International Chamber of Commerce organization.

VCCI is also involved with the Vietnam Business Forum Magazine (VBF) which publishes four English and two bilingual issues monthly. The magazine releases publications featuring industries, events and diplomatic relations between Vietnam and other countries. VBF also organizes several business-matching events to provide a platform for enterprises seeking investment and business opportunities.

Trade publications

A number of magazines, buyers guides and websites are published in Vietnam and circulated around the world. These publications and directories are found online and in Vietnamese trade offices and embassies and are designed to give foreign buyers the latest information in local products.

Trade associations

Associations in key export-oriented industries sometimes offer services that can be helpful to buyers. Many are prepared to attend to trade and investment inquiries. They can connect prospective buyers with local manufacturers and arrange buyer-seller meetings. They also conduct market surveys and organize overseas trade missions. Many associations have publications that can be useful to both manufacturers and overseas buyers.

Backgrounding your supplier

Checking a supplier's background is necessary but it can be difficult to do, as there are many short-lived traders or manufacturers who accept an order without the resources to make a timely delivery. The threat of being taken to court or looming bankruptcy is sometimes dealt with by simply closing shop without leaving a forwarding address.

Determining suppliers' capacity to deliver the ordered goods on time is a necessary step in the sourcing process. You also need to verify the nature of the suppliers' businesses, their status as exporters and their creditworthiness before placing an order.

It might become necessary to check on your prospective supplier's financial standing, especially when a large amount of order is involved. One reason is to determine whether the supplier is capable of handling your order and is not in danger of going bankrupt. A close examination of his finances will indicate whether he has the means to make good on his promises.

Hiring an agent

Some foreign buyers might choose to hire an agent in Vietnam to handle the purchasing in their behalf. Getting an agent might be the best option if you do not want to spend a lot of time with the details of sourcing in Vietnam or with follow-up work. Agents can locate products and suppliers and can also perform other groundwork. They can follow up orders that have been placed.

Choosing an agent who is familiar with all facets of trading can ensure that the goods are delivered on time. You will need to check the agent's experience. A reliable agent knows how to deal with the problems inherent in the exporting system, and can suggest various alternatives in case your supplier fails to deliver your order promptly or correctly.

Vietnam sourcing reports

• Vietnam Sourcing: Bags
• Vietnam Sourcing: Fashion accessories
• Vietnam Sourcing: Home furnishings
• Vietnam Sourcing: Lawn & garden
• Vietnam Sourcing: Promotional gifts
• Vietnam Sourcing: Table & dinnerware
• Vietnam Sourcing: Toys
• Vietnam Sourcing: Wicker baskets
• Vietnam Sourcing: Wooden & wicker furniture