China is known for its massive production capacity and infrastructure, but will it stay that way for long? And how can a considerably smaller country like Vietnam compete?

As global markets shift and supply chain resilience becomes a top priority, more foreign companies are re-evaluating their sourcing strategies. While China has long been the world’s top factory, Vietnam is quickly gaining attention as a worthy competitor. Rising labor costs, trade tensions, and shifting geopolitical dynamics have dealt a blow to China’s sourcing appeal, prompting businesses to diversify their supply chains. 

In this article, we break down the key sourcing benefits of Vietnam vs. China, with clear comparison tables to help you decide which country aligns best with your supply chain goals.

1. Labor Costs

Factor	Vietnam	China
Average Monthly Wage	± 200–400 USD	± 400–800 USD
Labor Market Growth	Rapid, with a young workforce	Slower, with an aging population
Best For	Labor-intensive manufacturing	Skilled or semi-skilled production

Verdict: Vietnam wins with its affordable labor advantages, especially for high-labor, low-skill industries like textiles and furniture.

2. Manufacturing Capabilities

Factor	Vietnam	China
Technical Manufacturing Industries	Limited (textiles, footwear, electronics)	Advanced (electronics, machinery, automotive)
Production Scalability	Growing, but limited	Highly scalable across industries
Raw Material Availability	Often imported from China	Abundant local supply chains

Verdict: China has broader and more mature manufacturing capabilities, but Vietnam is catching up in key sectors.

3. Infrastructure and Supply Chain Logistics

Factor	Vietnam	China
Port Infrastructure	Improving, but not yet up to par	World-class and high-capacity
Transport Efficiency	Moderate, with ongoing development	High-speed rail and robust highways
Industrial Parks	Growing with FDI support	Extensive and fully integrated
Lead Times	Slightly longer	Short and consistent
Supply Chain Ecosystem	Less integrated	Deeply integrated

Verdict: China leads in more efficient logistics and integrated infrastructure, though Vietnam is rapidly investing in modernization.

4. Trade Agreements and Tariffs

Factor	Vietnam	China
US Tariffs	Avoids many US tariffs	Subject to US-China tariffs
Global FTAs	CPTPP, EVFTA, RCEP	RCEP, but fewer Western FTAs
Trade-Friendly Markets	EU, Japan, Australia, US	Asia-focused, with current trade disputes in the US and EU

Verdict: Vietnam offers stronger access to tariff-free exports in Western markets.

5. Political and Regulatory Environment

Factor	Vietnam	China
Government Support	Pro-FDI, offering multiple tax incentives	Pro-FDI but more state-controlled, meaning stricter government oversight
Bureaucracy	Moderate	Complex and regionally varied
Regulatory Risk	Low geopolitical tension	Higher conflict due to the US-China trade rivalry

Verdict: Vietnam has a more welcoming regulatory climate for foreign investors.

6. Product Quality and Technical Expertise

Factor	Vietnam	China
Product Consistency	Gradually improving	High, especially in tech sectors
Skilled Labor Pool	Growing, but still new	Strong and experienced

Verdict: China excels in quality for complex products, though Vietnam is catching up quickly.

Final Verdict: Which Country Should You Choose?

Business Need	Best Choice
Low-cost and labor-intensive manufacturing	Vietnam
High-volume and high-tech production	China
Faster and more integrated supply chain	China
Lower export tariffs to the EU and the US	Vietnam
Warmer regulatory climate for foreigners	Vietnam
Consistent product quality and proven track record	China

Bonus Strategy: China + Vietnam = Best of Both Worlds?

Sourcing from Vietnam vs. China isn’t as simple as picking one over the other. Both have their pros, cons, risks, and rewards. That’s why many foreign companies are implementing a “China Plus One” strategy, where they maintain some operations in China while expanding into Vietnam. This approach balances cost and continued supply chain resilience, giving businesses a competitive edge in an increasingly volatile global market.

Work with Double M to Make the Right Sourcing Choices

Making the right sourcing choices is a strategic decision that depends on your industry, product complexity, budget, and target markets. From the comparison tables we’ve provided, here’s a summary of what each country does well:

• Vietnam offers cost efficiency, tariff advantages, and growing capabilities.
• China delivers scale, speed, and technical excellence.

To make sure you make a sound and profitable sourcing investment, work with a devoted and experienced market entry consultant like Double M. We provide supplier sourcing services in Vietnam that take you from establishing a database, contacting chosen suppliers, to finalizing online meetings. 

Contact us to confidently design a sustainable, cost-effective, and foolproof sourcing strategy that positions you for long-term success in ASEAN and beyond.

Struggling to crack the Vietnamese B2B market? You’re not alone.
For many foreign businesses, Vietnam is a fast-growing, digitally connected, and rich industrial land of promise. Yet, turning potential into profits is rarely straightforward. What works in your home country might fall flat here, where local relationships and business culture play an outsized role in decision-making.

Whether you’re launching a new product, setting up operations, or expanding your partner network, the real challenge lies in one thing: generating high-quality B2B leads that convert.

So how do you break through the noise in Vietnam’s competitive market? Let’s explore.

7 Proven Strategies to Generate High-Quality B2B Leads in Vietnam

1. Localize Your Value Proposition

Your product or service may be globally competitive, but is it relevant to Vietnamese businesses? Every market requires specific hands-on approaches. Here are a couple of tips to give you an upper hand against competitors:

• Don’t settle for just localizing language. You also need to adapt the context.
• Highlight how you solve local pain points. Emphasize how your services deal with supply chain delays or regulatory compliance.
• Use local success stories or case studies where possible.

Pro tip: Partner with a local consultancy firm like Double M to fine-tune your messaging.

2. Leverage Vietnamese B2B Platforms

While LinkedIn is growing in Vietnam, it’s not the only game in town. Explore other B2B platforms to maximize your potential presence in the market, such as:

• MuaBanNhanh, BizViet, and VietnamBiz are widely used by local companies.
• Zalo, Vietnam’s top messaging app, is increasingly used for B2B communication and advertising.

Optimize your company profile on these platforms and explore native ad placements.

Pro tip: A/B test ad creatives localized in Vietnamese and monitor CTRs closely. Local language significantly boosts engagement.

3. Attend Trade Shows and Industry Events

In-person interaction still reigns supreme in Vietnam’s B2B culture. Attend major events like Vietnam Expo, VietBuild, or Vietnam Manufacturing Expo. Consider sponsoring a booth or hosting a workshop to showcase your company’s thought leadership. Try to focus on relationship-building over hard selling.

Face-to-face meetings can fast-track decision-making and establish trust much faster than cold outreach.

Pro tip:  Don’t wait for walk-ins. Use exhibitor lists and LinkedIn to schedule meetings ahead of time with target attendees.

4. Build a Strong Local Partner Network

If you’re not “in the circle,” your outreach may fall on deaf ears. That’s why partnerships matter. Work with local distributors, consultants, or B2B service providers who already have market access. If all else fails, consider joint ventures to pool resources and contacts.

Warm introductions carry significant weight in Vietnamese business culture.

Pro tip:  Ask partners to personally introduce you to key stakeholders via Zalo or email. Cold intros are far less effective in Vietnam.

5. Invest in Vietnamese-Language SEO and Content Marketing

Google Search still dominates, and Vietnamese-language search terms are key to visibility. Optimize your site for Vietnamese keywords relevant to your niche. Commit to publishing locally-relevant content: white papers, blog posts, or explainer videos in Vietnamese. Local backlinks from reputable Vietnam domains (.vn) can boost your rankings.

Content that educates rather than sells tends to generate better B2B engagement.

Pro tip:  Use native Vietnamese writers with industry knowledge to craft content that actually resonates. Avoid Google Translate or artificial translators at all costs.

6. Use Targeted LinkedIn Outreach

LinkedIn is gaining popularity among Vietnamese professionals, especially in tech and manufacturing. Here are a couple of proven tips to excel in this area:

• Use Sales Navigator to segment decision-makers by industry, role, and region.
• Personalize every message; referencing industry challenges or recent local news goes a long way.
• Avoid aggressive tactics; relationship-first still applies.

Pro tip:  Focus on decision-makers in high-growth sectors like logistics, manufacturing, and tech.

7. Run Account-Based Marketing (ABM) Campaigns

ABM is a strategic marketing approach that targets high-value individuals to build stronger customer relationships. ABM works especially well in Vietnam’s B2B space, where individual relationships matter more than volume. Here are the steps for a successful ABM:

• Identify 10–50 high-value companies you want to work with.
• Create customized landing pages or campaigns tailored to each company’s needs.
• Use paid ads on Google and Zalo to remarket to decision-makers.

ABM helps cut through the noise and speak directly to your ideal leads.

Pro tip:  For top-tier accounts, send localized welcome kits or company swag via a local partner. Physical touchpoints work wonders in Vietnam.

Common Mistakes Foreign Companies Make

Now that you know the do’s, let’s quickly address the don’ts and some pain points foreign companies often encounter:

• Cold outreach falls flat: Mass emails or LinkedIn blasts often get ignored, especially if there’s no prior relationship.
• Language and cultural barriers: Miscommunication can easily derail a promising lead.
• Poor local visibility: Without a strong online and offline presence in Vietnam, even great offerings go unnoticed.
• Lack of local trust: Vietnamese B2B buyers value long-term relationships, not transactional sales.

Understanding these pitfalls is the first step. The next? Adapting your strategy through an expert local consultancy.

How Double M Can Help Generate Quality Leads

As a market entry consultant, Double M has a lead generation service tailored for your benefit. Like we’ve covered above, and through our extensive experience in the Vietnamese market, here’s the formula you need to generate quality leads and achieve B2B success:

Patience + Localization = B2B Success in Vietnam

Generating high-quality B2B leads in Vietnam isn’t about blasting your message, it’s about earning attention, building trust, and showing that you understand the market. It takes time, cultural sensitivity, and a local-first mindset. But here’s the catch: You can’t rely on generic, global strategies. Vietnam demands a more nuanced, localized approach.

If you’re ready to invest in relationships, adapt your approach, and play the long game, Vietnam could become one of your most valuable markets in Asia. Need help getting started? Double M can help you bridge cultural gaps, craft localized campaigns, and generate leads that actually convert.

Entering a new market like Vietnam offers exciting growth opportunities for foreign companies. With its young workforce, competitive labor costs, and strategic location in Southeast Asia, Vietnam continues to attract international businesses from various sectors. However, navigating Vietnam’s complex labor laws, cultural nuances, and HR regulations can be challenging. And that difficulty is doubled for companies without a local presence.

One of the most effective ways to work around these challenges is through HR outsourcing. In this article, we’ll explore the key advantages of HR outsourcing for foreign firms entering the Vietnamese market.

1. Faster Market Entry Without Legal Entity Setup

Setting up a legal entity in Vietnam can not only be time-consuming but also costly. It can take up to several months, with an estimated cost of the tens of thousands. HR outsourcing bypasses all of that, allowing foreign companies to hire employees in Vietnam without having to establish a local subsidiary. Through a local partner, commonly referred to as an Employer of Record (EOR) or Professional Employer Organization (PEO), you can onboard staff, issue compliant contracts, and manage payroll within days, not months.

This enables your company to test the market or launch operations quickly and efficiently, without committing to a full-scale investment from the get-go.

2. Local Compliance and Risk Management

Vietnam’s labor laws are evolving, and compliance can be tricky for companies unfamiliar with the local legal landscape. From probation periods and contract types to social insurance contributions and termination procedures, small missteps can lead to penalties or legal disputes.

By outsourcing HR to a Vietnam-based provider, you gain access to local HR and legal expertise, ensuring full compliance with Vietnamese labor laws, tax regulations, and employee benefit requirements. This minimizes risks and keeps your business reputation intact.

3. More Scalability with Less Cost

Hiring a full internal HR team in Vietnam is not always cost-effective, especially in the early stages of market entry. HR outsourcing offers a lean, affordable, and scalable solution that allows you to control costs while accessing high-quality services.

As your business grows, outsourced HR partners can help you scale your workforce up or down quickly, depending on your needs. This flexibility is particularly valuable in industries with fluctuating labor demands or project-based hiring.

4. Access to Local Talent and Recruitment Support

A local HR outsourcing partner typically has deep knowledge of the Vietnamese labor market, salary benchmarks, and recruitment channels. They can help you attract and retain top local talent by optimizing job postings, screening candidates, and managing interviews. It can often even conduct recruitment operations more effectively than a foreign firm could on its own.

Moreover, they understand cultural expectations and workplace norms in Vietnam, helping bridge communication gaps between foreign management and local staff. For example, due to Vietnam’s tradition of having parents provide housing needs until marriage, job hopping may be more common than in your home country. These little considerations and specific insights may not seem like much, but they’re the difference between a worthwhile employee and a waste of time.

5. Leave Time on the Table for Core Business Operations

Managing HR processes, especially in a foreign market, can take a lot of care and attention. Outsourcing these tasks lets your team focus on strategic business activities like product development, customer acquisition, or building partnerships.

With HR administration, payroll, compliance, and employee support handled by a reliable partner, you free up valuable internal resources to drive growth.

Takeaways

HR outsourcing in Vietnam offers foreign companies a smart and efficient pathway to establish their local presence. It reduces legal complexity, saves time and money, and connects your business to the local talent pool. HR outsourcing makes hiring employees in Vietnam easy. You can just sit back, relax, and watch your company grow naturally, all without the need for an immediate legal entity.

Whether you’re testing the waters or planning a long-term investment, partnering with a trusted HR outsourcing provider in Vietnam can be the competitive edge your business needs. From payroll outsourcing to local compliance, a market entry consultant will make sure you make the most out of Southeast Asia’s manufacturing powerhouse. For more workforce solutions in Vietnam, contact us at Double M.

Local Partner Selection in Vietnam – Vietnam continues to emerge as one of Southeast Asia’s most attractive destinations for foreign investment, driven by a young population, a growing middle class, and an open trade environment. However, navigating local regulations, business culture, and market dynamics can be challenging without the right support on the ground. That’s where choosing a strong local partner becomes essential.

In this article, we’ll guide foreign companies on how to select the right local partner in Vietnam, outlining key criteria, potential pitfalls, and practical steps to ensure a successful collaboration.

Why You Need a Local Partner in Vietnam

While Vietnam welcomes foreign investment, many sectors still require or benefit from collaboration with a local entity. Key reasons to seek a local partner include:

• Regulatory Compliance: Some industries are partially restricted or unavailable to 100% foreign ownership.
• Market Access: A local partner can provide access to established networks, distribution channels, and customer bases.
• Cultural Understanding: Vietnamese business culture is relationship-driven. A local partner can bridge cultural and communication gaps.
• Operational Efficiency: Local firms know how to navigate bureaucracy, logistics, and labor challenges more efficiently.

Key Criteria for Selecting the Right Local Partner in Vietnam

1. Industry Experience and Reputation

Look for a partner with a proven track record in your target industry. They should have strong local knowledge, government relationships, or, at the very least, recognition and a positive reputation in the market.

Pro Tip: Ask for case studies, references, or client lists. Do background checks discreetly through local advisors.

2. Strategic Alignment

Make sure your goals align. Is the partner looking for a long-term relationship or short-term profit? Do they understand your brand values and vision?

Pro Tip: Look for red flags, like a partner pushing for immediate sales or distribution deals without discussing long-term strategy.

3. Financial Stability

Evaluate the partner’s financial health to ensure they can support the venture. This is especially important if you’re entering a joint venture or revenue-sharing arrangement.

Pro Tip: Review audited financial statements wherever they are available, or have an outside firm conduct a financial health check.

4. Legal and Regulatory Compliance

Ensure your partner is compliant with all Vietnamese laws and licensing requirements. Involvement in legal disputes or non-transparent practices can pose serious risks.

Pro Tip: Verify business licenses and cross-check with the Vietnam National Business Registration Portal.

5. Cultural Fit and Communication

Strong personal relationships are critical in Vietnam. Choose a partner who communicates openly, respects timelines, and values trust-based collaboration.

Pro Tip: Spend time in-country, meet with potential partners face-to-face, and assess their responsiveness and professionalism.

Common Mistakes to Avoid When Searching for a Local Partner in Vietnam

• Rushing the Process: Don’t settle for the first interested party. Take time to meet multiple candidates and thoroughly consider your options.
• Lack of Clear Agreements: Always formalize partnerships with detailed contracts covering responsibilities, IP rights, revenue sharing, and exit terms.
• Ignoring Cultural Differences: Don’t assume that business practices from your home country will apply in Vietnam.
• Overlooking Local Legal Support: Engage Vietnamese legal counsel early to avoid surprises with contracts or compliance. Work with market entry specialists like Double M, who have services for regulatory support and internal audits.

Practical Steps to Find a Local Partner in Vietnam

More than legal support, Double M simplifies the process of locating local partners with tailored Business Matchmaking Services. These are designed to connect you with the right partners from the start. Here’s how the process works:

1. Preliminary Meeting

We begin with an initial consultation to understand your business and goals. This includes a deep dive into your current operations, your presence in similar markets like Indonesia, your product offerings, the type of local partners you’re looking for, and key information about your competitors. This step ensures we’re aligned from the beginning.

2. Market Research and Market Note

Based on your preferences and criteria, our team conducts detailed market research to identify the most compatible potential partners in Vietnam. You’ll also receive a Market Note, which outlines shared business interests, complementary capabilities, and strengths. Everything that is needed to build a strong, mutually beneficial relationship.

3. Partner Rating and Selection

Once we’ve compiled a list of qualified prospects, we’ll present you with potential partners to review. You’ll then assess and prioritize them based on your interest using a 4-point ranking system from not suitable to very good. This step helps narrow the list down to your most promising prospects.

4. Final Meeting

After you’ve selected your preferred partners, we organize a final meeting with all parties. This session is designed to discuss the final terms, align expectations, and lay the groundwork for a successful long-term collaboration.

Takeaways

Entering Vietnam’s fast-growing market can be highly rewarding, but selecting the right local partner will make or break your long-term success. With the right partner, foreign companies can navigate Vietnam’s complex but rewarding market with greater confidence and speed.

Need help finding a local partner in Vietnam? Contact Double M now to work with our experienced market entry consultants and ensure your expansion strategy hits the ground running.

Talking about trade in 2025 is a heated topic. Both export and import tariffs keep increasing with no sign of stopping. But there’s a silver lining. In hard times, countries are building stronger connections to protect each other’s interests. One of the ways they respond to tariffs is through Free Trade Agreements (FTAs). Vietnam has built itself into a formidable player in the global economy, in no small part thanks to FTAs. As a growing hub for manufacturing, exports, and foreign direct investment, Vietnam’s FTA network is positively reshaping its economic landscape.

One of the country’s popular FTAs that has received global attention was the European Union (EU)-Vietnam Free Trade Agreement. Geert Bourgeois, former member of the European Parliament, said about the agreement: “The trade committee is giving a positive signal to the ASEAN region and the rest of the world at a time when trade tensions are rising. Besides its geopolitical and economic importance, I am convinced that this agreement will accelerate the reform process within Vietnam. The ratification will strengthen further progress on labour and environmental standards and the respect for human rights.”

Let’s delve into each of Vietnam’s trade agreements, how they benefit, and the sectors that see the most long-lasting impact.

The Top 4 largest Free Trade Agreements in Vietnam

• The Regional Comprehensive Economic Partnership (RCEP)

Effective from: 2022

Partners: ASEAN Member States, Australia, China, Japan, New Zealand, and South Korea

• The EU-Vietnam Free Trade Agreement (EVFTA)

Effective from: 2020

Partners: All 27 countries in the European Union

• The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

Effective from: 2019

Partners: Australia, Canada, Japan, Mexico, New Zealand, Peru, Singapore, Vietnam, and pending others

• ASEAN Free Trade Area (AFTA)

Effective from: 1993

Partners: All 10 countries in ASEAN

These agreements reduce or eliminate tariffs, simplify customs procedures, and encourage foreign investments, making them key factors driving Vietnam’s rise as a preferred business location in Asia.

Key Benefits of Vietnam’s Free Trade Agreements

1. Accelerated Export Growth

FTAs have significantly lowered tariff barriers, allowing Vietnamese goods to compete more effectively in international markets. For example, under the EVFTA, 99% of tariffs on Vietnamese exports to the EU will eventually be eliminated, giving Vietnamese products a competitive edge in one of the world’s largest markets.

Impact: Companies sourcing from Vietnam can access higher-quality goods, including but not limited to electronics, textiles, and furniture. Each sector is at a more economical price due to reduced export costs.

2. Attracting Foreign Direct Investment (FDI)

Vietnam’s FTA network, along with its stable political environment and strategic location, has made it a magnet for FDI. Multinational manufacturers are shifting operations to Vietnam to benefit from tariff exemptions and diversified supply chains.

Impact: For logistics firms, industrial park developers, and service providers, the influx of FDI presents new partnership and infrastructure development opportunities.

3. Diversification of Trade Partners

With access to markets in Europe, North America, and across Asia, Vietnam has diversified its trade partnerships. This reduces dependency on any single market and enhances economic resilience.

Impact: Businesses that rely on global supply chains benefit from Vietnam’s diversified trade network, reducing risk and increasing supply chain flexibility.

4. Improved Regulatory and Business Environment

To meet FTA obligations, Vietnam has undertaken major reforms in areas like labor laws, IP protection, and transparency. These changes are creating a more structured and transparent business environment.

Impact: Companies doing business in or with Vietnam can expect improved legal protections, greater ease of doing business, and stronger compliance standards.

What Sectors See the Biggest Boost from Vietnam’s Free Trade Agreements?

Several industries in Vietnam are benefiting more from FTAs than most, including:

Textiles and Garments: As the world’s second-largest apparel exporter after China, reduced tariffs are fueling additional growth in this sector.

Electronics, Information, and Communications Technology: The country is fast becoming a key link in the global electronics supply chain, thanks largely to the government’s “Make in Vietnam” initiative promoting self-reliance.

Agriculture and Seafood: With FTAs opening access to high-demand markets for specialty products, producers are also capitalizing on antibiotic-free fish farming as part of the nation’s efforts to combat antimicrobial resistance.

• Automotive and Machinery: Investment from Japan, Korea, and EU nations is ramping up production capacity in Vietnam. The market is being driven by rising middle-class incomes and increased private car ownership, with future growth projected through 2035.

Takeaways

Whether you’re diversifying supply chains, investing in manufacturing, or providing services, Vietnam’s growing network of FTAs represents a strategic opportunity for foreign companies. Vietnam’s proactive trade strategy is transforming it into a competitive and attractive destination for global businesses planning to conduct B2B activities. As FTAs continue to strengthen and expand, now is the time for companies to harness Vietnam’s high-growth market.

To stay compliant with evolving trade rules, you should leverage professional consultants or legal advisors familiar with Vietnam’s FTA landscape. Through Double M, our years of market entry expertise will allow you smooth access to Vietnam’s market, with services such as import handling, food and beverage regulatory support, along with many others. Contact us now with your specific inquiries to start your journey into Vietnam’s vast potential.

In the first quarter of 2025, Vietnam’s labor force reached 52.9 million, a massive 500,000+ increase from the previous year. Don’t miss out on this wealth of opportunity. Utilize the population of young and qualified workers as the backbone of your business in Vietnam. But how can you make sure the employees you get are the right ones? This article will guide you on the necessary steps needed to attract and hire local talent in Vietnam.

Top 5 steps for hiring local talent in Vietnam

Understand the job market

The first step is to learn Vietnam’s employment landscape from the inside out. Familiarize yourself with Vietnamese labor laws and regulations to avoid legal overstep. Be informed on current industries with emerging talent pools. In 2025, this is STEM, including AI, IT, renewable energy, fintech, and health tech. Survey how the industry you’re aiming for looks all around.

Know the local recruitment channels

Every country has online job platforms with various levels of reach and popularity. Depending on LinkedIn alone won’t pan out for the best. Here are the go-to sites that people in Vietnam use to seek employment.

Other than online platforms, partnering with local recruitment agencies or reputable headhunters can increase the chances of finding the perfect candidate for your company, especially for senior-level positions and hard-to-fill roles.

Tap into university partnerships and internship programs

Don’t limit your employee search to only graduates. In this day and age, there are a lot of university students willing to work hard for their careers. And Vietnam is no exception. 

If you want to invest in the longevity of your company, then you should build partnerships with top universities like Vietnam National University, RMIT Vietnam, or HCMC University of Technology. Through them, you can attend university job fairs to promote your company and offer internships or graduate trainee programs.

Research average salary and expectations

Different cities have different minimum wages for workers. It’s best if you conduct a comparative study on each and weigh the potential return on investment. As a benchmark, it’s around 188 USD in the capital city of Hanoi. This means that Vietnam’s labor costs are lower than those of Thailand and the Philippines. 

However, there is a mandatory 23.5% benefit to take into account, such as 17% social insurance. Comprehensive research ensures you can give potential employees an honest overview of job expectations and benefits.

Use an Employer of Record service

In the context of Vietnam, an Employer of Record, or EOR for short, is a third party that handles all hiring and employment responsibilities without needing an established local legal entity. The benefits of using an EOR are many, the first of which is skipping the need for registration. It also makes for faster setup, admin, and hiring time. It guarantees a low compliance risk and boasts a flexible pay-as-you-go method.

In short, an EOR manages all the legal requirements for you, skipping complex hands-on administrative duties usually required for market entry. At the cost of reducing direct control over employment relationships, EOR simplifies everything that has to do with it, a shortcut for all tasks related to your employees, hiring or otherwise.

Important things to know about hiring local talent in Vietnam

• Employment contracts in Vietnam must be written in Vietnamese. That’s why working with a legal advisor is helpful, to make sure there is no unintended miscommunication from both parties. Common mistakes include omitting mandatory clauses like working hours and benefits, or exceeding 36 months for fixed-term agreements.
• Other than company owners and short-term workers, foreigners must obtain work permits before starting employment in Vietnam.

Ready to hire in Vietnam?

Now that you know the practical steps that take you from empty company to booming business, it’s time to turn that plan into action. Work with a trusted market entry consultant and make hiring local talent a walk in the park.  Double M is here to guide you with passing legal regulations and filling your company in Vietnam with skilled workers. Our recruitment services range from headhunting executives, drafting employment contracts, payroll services, and even Employer of Record.

Tap into Vietnam’s wealthy labor market by contacting Double M now.

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!

Vietnam, a country most well-known for its picturesque landscapes, has more to offer in 2025 than is often recognized. Prime Minister Pham Minh Chinh recently said as much, commenting, “Vietnam’s investment environment has been continuously reformed to make it easier for foreign investors.”

Consistently placed in the top 12 most successful countries for Foreign Direct Investment (FDI) attraction, the country strives to be a welcoming and reliable destination for foreign investors, fostering a healthy environment for growth.

Vietnam’s Economic Growth in 2025

Halfway through 2025, Vietnam’s Gross Domestic Product (GDP) has grown 7.52%, its fastest pace in 15 years. Moderating at 6.8, the economy is forecasted to settle around 6.5% in 2026. In a time of economic instability and tariff disputes, Vietnam looks to be a prime destination for investment, with a diverse range of profitable sectors. This guide will offer you a list of Vietnam’s top emerging trade opportunities.

Top 6 Emerging Trade Opportunities in Vietnam

1. Green Energy and Sustainability

At the COP26 World Leaders’ Summit in 2021, Vietnam announced its commitment to achieving net-zero emissions by 2050. In line with that goal, the country plans to deemphasize coal power plants, ceasing new construction by 2030. This opens up new opportunities for environmentally friendly tech like solar, wind, and Electric Vehicles (EVs). It’s good news all around for foreign investors, including tech startups.

Trending products: EV components, clean energy infrastructure, and energy management software.

2. Information and Communication Technology

Thanks to Samsung’s heavy investment in Vietnam, boasting multiple manufacturing plants, the country is a powerhouse in tech exports. This means a high smartphone penetration rate, with an average usage of 84%, well above the global average. More than that, Vietnam’s Information and Communication Technology (ICT) industry is experiencing exponential growth equivalent to USD 165.9 billion. The country is gaining traction in blockchain development, cloud computing, and artificial intelligence. According to the Ministry of Information and Communications, Vietnam’s ICT sector is aiming for USD 170 billion in revenue by the end of 2025. If they achieve that goal, the ICT sector would account for over 12% of national GDP.

Trending products: smartphone semiconductors and smart manufacturing systems. 

3. Retail and Consumer Goods

With a growing middle class and a rise in spending power, Vietnam’s demand for premium and branded products has increased. With the help of e-commerce, buying has never been easier, and the variety of products has never been higher. Vietnam’s government supports this rising consumer behavior by reducing the value-added tax (VAT) from 10 to 8% on essential goods. This means that production costs are more affordable, boosting profits and encouraging purchases.

Trending products: home appliances, personal care, and organic products.

4. Agri-Tech and Sustainable Agriculture

Vietnam is commonly known as a global exporter of rice, coffee, seafood, and pepper. But in 2025, it’s beginning to embrace agricultural technology as a tool to modernize its farming practices and ensure food security. One of the innovations is the use of blockchain to track products throughout the supply chain, from farm to home. There’s also a growing demand for IoT-based farming solutions to monitor operations, crop analytics, water-saving irrigation, and organic farming methods. Another booming business is cold chain logistics, keeping temperature-sensitive products safe and ensuring their quality.

Trending products: sustainable fertilizers, cold chain logistics, and blockchain traceability systems.

5. E-commerce and Digital Services

Strengthening both domestic and international supply chains, Vietnam’s virtual marketplace supports agricultural sales and cross-border trades. Not only that, but digital services benefit other industries, from ride-hailing to food delivery. This is most apparent from the projection of Vietnam’s e-commerce market crossing USD 49 billion in 2025, a 45 billion increase from the previous decade. To keep updated on the conversation, the major players to look out for are none other than Shopee and Lazada.

Trending products: e-commerce platforms, Software as a Service (SaaS), and mobile payment systems.

6. Tourism Infrastructure

Taking advantage of its beautiful landscape, Vietnam is receiving Foreign Direct Investment (FDI) of up to USD 40 million in March 2025. This attracts plenty of opportunities for infrastructure developers, from expressways to boutique hotels and eco-resorts. Last year alone, Vietnam’s international tourists rose 40%, benefiting the hospitality and entertainment sectors. Beyond new construction, Vietnam’s digital push opens its trade doors for travel tech and data analytics, welcoming a modern age of digital infrastructure.

Pros of Entering the Vietnam Market in 2025

• Lower Tariffs 

Vietnamese goods hold a steady 20% lower tariff than the 46% previously proposed by President Trump. While the United States strengthens tariffs on China and other regions, Vietnam stands to benefit. However, goods like footwear and wooden furniture are hit particularly hard, presenting opportunities for trade in other sectors.

• Open-door Policy

Since 1986, Vietnam has made the bold transition to a market-oriented economy, attracting foreign investment. But over time, the country has signed more than a dozen agreements with specific regions, like the European Union–Vietnam Free Trade Agreement in 2019, which promotes the export of Vietnam’s textile industries to the EU market and enables the import of advanced EU products.

• Strategic Location

With a capital city close to China, Vietnam remains a top choice for diversifying businesses, regularly referred to as the China+1 supply chain strategy. This means that if you establish a branch in Vietnam, your business can have a presence in China while not solely relying on it for profit.

Kickstart your Business in Vietnam with Double M

Vietnam’s economy is on the rise. It’s seeing an uptick in foreign investment, growing GDP, open-door policies, and a bevy of emerging trade opportunities. By looking at the current trends: green energy, communications technology, consumer goods, sustainable agriculture, e-commerce, and tourism infrastructure, you’re ready to dive into the wild but wonderful market of Vietnam.

What’s the wait? Make 2025 the year your business finds a home in Vietnam. If you’re wondering where to start, reach out to us and let Double M guide you from the ground up! We have a dedicated market research team that will help you get the lay of the land, with additional services to make all your business decisions easier.

Vietnam Procurement Consulting plays a vital role in helping businesses navigate the country’s procurement landscape, ensuring compliance with local regulations and optimizing sourcing strategies. Vietnam has emerged as one of the fastest-growing economies in Asia, attracting companies from all over the world seeking to capitalize on its expanding market and cost-effective supply chain. To succeed in this dynamic environment, businesses must understand local procurement processes, supplier networks, and regulatory requirements. With the right procurement consulting services, companies can streamline their sourcing operations, and secure competitive advantages in Vietnam’s

What is Procurement Consulting in Vietnam?

Procurement consulting in Vietnam involves advising businesses on sourcing, managing, ensuring compliance with local regulations. Consultants assist in optimizing procurement strategies, to help businesses reduce costs and achieve operational efficiency.

Key Services in Vietnam Procurement Consulting

Procurement consultants in Vietnam typically provide sourcing and supplier selection services, helping businesses identify and choose the most suitable suppliers that align with their needs and comply with regulatory requirements.

Procurement Landscape in Vietnam

The procurement landscape in Vietnam is complex, shaped by the country’s unique economic conditions, business practices, and regulatory environment. Understanding these factors is crucial for businesses seeking to optimize their procurement strategies.

Regulatory Environment

Vietnam’s procurement regulations are constantly evolving, influenced by the country’s integration into the global economy and its growing role in international trade. Key regulations impacting procurement in Vietnam include:

• Public Procurement Law: Governs the procurement process for government contracts, including requirements for transparency, competition, and fairness.
• Private Sector Procurement Guidelines: Private companies are also subject to specific laws concerning corporate governance, business ethics, and anti-corruption practices.
• Tax Regulations: Businesses must understand VAT, import duties, and other taxes that impact the cost of procurement in Vietnam.

Procurement Trends in Vietnam

Procurement trends in Vietnam have been shifting in response to global developments and local needs. Some of the notable trends include:

• Digitalization: The adoption of digital procurement platforms and technologies to streamline processes, enhance efficiency, and reduce costs.
• Sustainability: Increasing emphasis on sourcing eco-friendly products and sustainable practices in the supply chain.
• Global Supply Chains: With Vietnam’s role in global trade expanding, companies are increasingly sourcing from international suppliers, requiring consultants to manage cross-border logistics and compliance.

Why Businesses Need Procurement Consulting in Vietnam

Procurement consulting is essential for businesses in Vietnam due to several factors, including the complexity of local regulations, evolving market conditions, and the need to maintain a competitive advantage. Here’s why procurement consulting is crucial:

Navigating Local Regulations

Vietnam’s procurement regulations can be difficult to navigate, especially for foreign businesses. Procurement consultants help businesses stay compliant with local laws and avoid costly fines or delays. They can also assist in understanding the nuances of government contracts, which may involve specific procedures and documentation requirements.

Risk Mitigation

Procurement in Vietnam, like in many emerging markets, comes with risks such as supply chain disruptions, fluctuating prices, and political instability. Procurement consultants help businesses identify potential risks and develop strategies to minimize them, ensuring a stable and secure procurement process.

Cost Optimization

In a competitive market like Vietnam, companies must continuously optimize their procurement costs to maintain profitability. Consultants can provide insights into cost-effective sourcing strategies, negotiation tactics, and supply chain management practices that drive down expenses while maintaining quality.

Building Strong Supplier Relationships

Effective supplier management is a cornerstone of successful procurement. Consultants help businesses identify reliable suppliers, negotiate favorable terms, and establish long-term relationships that ensure the timely delivery of goods and services. Strong supplier relationships also contribute to better pricing and improved quality control.

Procurement Consulting in Vietnam: Key Challenges and How Consultants Can Help

While procurement consulting offers significant advantages, there are several challenges that businesses may face when operating in Vietnam. Consultants can assist in overcoming these challenges by providing tailored solutions that address specific needs.

Cultural and Language Barriers

Vietnam’s business culture and language can pose challenges for foreign companies. Procurement consultants help bridge these gaps by providing cultural insights and facilitating communication with local suppliers and stakeholders. This helps businesses avoid misunderstandings and ensure smooth transactions.

Vietnam procurement consulting provides businesses with the expertise and strategic insights needed to navigate the complexities of the local market and optimize sourcing strategies. With a deep understanding of local regulations, trends, and challenges, procurement consultants are essential partners for companies seeking success in Vietnam’s dynamic economy.

Vietnam business licenses are essential legal authorizations that every company must obtain to operate legally within the country. Understanding the licensing requirements is crucial to ensure compliance with local regulations and avoid potential legal complications. With a rapidly growing economy and government initiatives to attract foreign investment, Vietnam presents significant opportunities for international businesses. However, obtaining the appropriate business license is a critical step that must be carefully navigated.

Types of Business Licenses in Vietnam

Depending on the industry and business activities, companies may require specific business licenses. Some of the most common types include:

1. Investment Registration Certificate (IRC)

Foreign investors looking to establish a business in Vietnam need to obtain an Investment Registration Certificate (IRC). This certificate is mandatory for all foreign-owned investment projects and establishes the investor’s right to invest within Vietnam. The application process involves preparing necessary documentation, including an investment project proposal and proof of financial capacity. The processing time is typically 15 working days from the date of document submission.

2. Enterprise Registration Certificate (ERC)

The Enterprise Registration Certificate (ERC) is required for all companies operating in Vietnam, whether foreign-invested or domestically owned. It serves as official recognition of a business entity and must be obtained before engaging in any commercial activities. The ERC includes essential details such as the company’s name, address, legal representative, and business lines. The application process requires submission of documents like the application for enterprise registration, company charter, and lists of board members and legal representatives.

3. Business License for Conditional Sectors

Certain industries in Vietnam are classified as conditional sectors, requiring additional business licenses beyond the ERC. These sectors include areas such as banking, insurance, telecommunications, real estate, and education. Companies operating in these fields must obtain specific licenses from the relevant regulatory bodies, such as the State Bank of Vietnam for financial services or the Ministry of Information and Communications for telecommunications.

4. Import-Export Business License

Companies involved in international trade must obtain an Import-Export Business License. This license is necessary for businesses that plan to import or export goods to and from Vietnam. It authorizes the company to engage in import-export activities and ensures compliance with trade regulations.

5. Specialized Business Licenses

Industries such as healthcare, food and beverage, telecommunications, and real estate have additional licensing requirements to comply with safety and industry-specific regulations. These licenses ensure that companies adhere to quality standards and operational guidelines, safeguarding public interest and maintaining industry integrity.

Steps to Obtain a Business License in Vietnam

The process of obtaining a business license in Vietnam involves several key steps:

1. Determine the Required License

Companies must first identify the appropriate business license based on their industry and business activities. Understanding the specific regulatory requirements for each sector is crucial at this stage. Engaging with local legal experts can provide clarity on the necessary licenses and permits.

2. Prepare Necessary Documentation

Typical requirements include a business plan, company charter, financial statements, and personal identification documents of company founders. Some industries may require additional approvals. Ensuring that all documents are accurate and complete can expedite the application process.

3. Submit the Application to Relevant Authorities

Depending on the type of business license, applications may be submitted to the Department of Planning and Investment (DPI), Ministry of Industry and Trade, or other regulatory bodies. Each authority has specific submission guidelines, and adhering to these can prevent delays.

4. Review and Approval Process

Regulatory authorities will assess the application, verify compliance with laws, and may request additional information. Processing times vary depending on the complexity of the business license and the industry involved. Maintaining open communication with the authorities can facilitate a smoother review process.

5. Receive the Business License

Once the application is approved, the company will be granted the necessary business license and can legally commence operations in Vietnam. It’s essential to display the license at the business premises as required by law.

Common Challenges in Obtaining Vietnam Business Licenses

While Vietnam is an attractive destination for foreign investors, companies may encounter several challenges during the licensing process, including:

• Complex Regulations: Navigating Vietnam’s legal framework can be difficult for businesses unfamiliar with local laws. Engaging local legal counsel can provide valuable guidance.
• Lengthy Approval Times: Certain business licenses, especially those in regulated sectors, may take longer to process due to strict compliance requirements. Planning ahead and submitting complete applications can help mitigate delays.
• Changing Compliance Requirements: Vietnam’s legal landscape is evolving, and businesses must stay informed about regulatory updates to maintain compliance. Regular consultations with legal experts can ensure ongoing adherence to current laws.

Why Professional Assistance is Essential

Given the complexities involved in obtaining business licenses, working with professional consulting firms can help streamline the process. For an overview of the company setup process, refer to our guide on company establishment in Vietnam.