Finding Reliable Suppliers and Manufacturers in Vietnam: Frequently Asked Questions

In 2023, Vietnam was the world’s largest exporter of fuel wood, amounting to USD 3.11 billion. Last year, Vietnam’s top export products were electrical machinery and equipment, valued at USD 121.7 billion, followed by footwear, USD 25.4 billion, and mechanical appliances, USD 23.5 billion.

As global supply chains continue to shift and diversify, Vietnam keeps the competition going, emerging as a top destination for sourcing reliable suppliers and manufacturers. Partly due to its strategic location (close to China) and increasing trade transparency, Vietnam offers a compelling alternative to traditional manufacturing hubs.

Whether you’re a small business owner or an established enterprise, this guide will walk you through the key steps for finding trustworthy suppliers in Vietnam (and avoiding costly mistakes in the process).

Why should you find Supplier Sources in Vietnam?

Over the past decade, Vietnam has established a strong reputation for producing high-quality goods across various industries. It is the second-largest exporter of textiles and garments in the world, ranking only behind China. Due to Vietnam’s lower overhead, labor costs, transportation costs, tariffs, and a more stable political climate, it’s proving to be an attractive alternative to China.

On top of that, Vietnam’s participation in free trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has made it easier for international businesses to work with local manufacturers. Many Vietnamese suppliers are gradually opening their doors to changes and compliance with international standards.

How to Find Reliable Suppliers and Manufacturers in Vietnam?

1. Utilize Online B2B Platforms

Vietnam’s online marketplace is continually expanding with platforms such as Alibaba, Global Sources, Vietnam Export, and VietFactory. They host thousands of verified Vietnamese suppliers. But due to the overwhelming number of vendors, you should be wary of their credibility.

Pro Tip: Look into each company profile and find ones with high response rates, positive reviews, and successful transaction histories. Search using industry-specific keywords like “Original Equipment Manufacturer (OEM) garment factory Ho Chi Minh City” or “Business Social Compliance Initiative (BSCI) certified furniture supplier Vietnam.” Lastly, secure your online payment with escrow to ensure your funds are safe and not misused during transactions. 

2. Attend Trade Shows and Sourcing Events

Events like the Vietnam International Supporting Industry and Manufacturing Exhibition (VIMEXPO) can offer you multiple collaboration opportunities. For home textile, you can find events arranged by the Vietnam Handicraft Exporters Association (VIETCRAFT). Many other trade fairs are industry-specific trade fairs, and they allow direct access to suppliers. 

Pro Tip:  Meeting manufacturers face to face gives you a chance to meticulously inspect products, test their quality, and build trust with the vendor. If your schedule is packed and can’t attend events in person, many trade shows offer virtual exhibitions and online networking alternatives.

3. Work with Local Sourcing Agents

Vietnam sourcing agents or companies are middlemen with established networks in the country, willing to connect buyers with suitable manufacturers. They can vet manufacturers for you, presenting a comprehensive profile, testifying to their legitimacy, reputation, and even negotiating on your behalf.

Pro Tip: Make sure to choose Vietnam sourcing agents with transparent pricing, industry experience, and strong local networks.

4. Visit Factories in Vietnam

If you’ve found a supplier but are still hesitant about their reliability, nothing beats a factory audit. You’ll be able to assess the workplace conditions and judge whether or not they’re up to your safety standards and qualifications. Doing your due diligence upfront reduces risky issues later down the line when production begins.

Pro Tip: Undergoing trade missions is the perfect endeavor to give you on-the-ground insights and hands-on impressions on the quality and compatibility of Vietnam manufacturing plants.

What are the Common Pitfalls to Avoid when Sourcing from Vietnam?

1. Communication red flags

Be careful of language barriers. Find a local partner to bridge the communication gap.  Poor communication may also be a red flag for fraud. Delayed replies, vague answers, or inconsistent promises are all warning signs. To avoid being scammed, always have clear agreements on product specs, timelines, payment terms, and penalties.

2. Forgetting background checks and quality assurance

Before making any deals, make sure you thoroughly verify potential suppliers’ licenses and online presence. Reputable suppliers often hold certifications like GOTS or OEKO-TEX for textiles. Even if they’re not fraudulent, you should still request samples to evaluate product quality before committing to large orders.

3. Logistic delays

Prepare for potential delays in shipping time and accommodate your plans to account for it. Experienced logistic providers and third parties can help you navigate possible shipment issues. To anticipate unwanted holdups, you should also test suppliers by ordering a smaller batch before scaling up production.

4. Hidden costs

Keep in mind the potential hidden costs that come from shipping, taxes, and customs duties. Compare prices and negotiate discounts for high volume orders. Don’t hesitate to ask follow-up questions until their pricing is transparent. And even then, extremely low prices may mean corners are being cut, so discussing with a knowledgeable third party is recommended.

How to Successfully Source from Vietnam?

Vietnam manufacturers offer a wealth of opportunities for sourcing high-quality goods, but success depends on doing your homework.  Now that you’re familiar with the ins and outs of supplier sourcing in Vietnam, from using online B2B platforms to factory visits, the question remains: how can you successfully carry it out?

To avoid costly mistakes and business decisions you’ll regret, it’s wise to employ professional third parties for market entry, like Double M. Double M provides comprehensive supplier sourcing services, starting from establishing a database through our private networks. Next, our team will contact your chosen suppliers. Finally, we will set up an online meeting for you. With Double M, everything you need to do to establish a foreign company is made easy. Take the next step by contacting us with your company information, and we’ll do the rest!