With the cost of wages in China tripling over the past decade, alongside the increase in taxes, energy prices and exchange rates, brands have sought to move out of China to pursue cheaper alternatives. With the Sino-US trade war further accelerating this “moving-out” process, more companies are focusing efforts on the South East Asian Market. Here’s are the advantages of sourcing in Vietnam is the way to go!
Fast Growing Economy
In this year alone, Vietnam is primed for a GDP growth of 6.9%, with emphasis on its manufacturing sector growing in double digits. In recent years, Vietnam has been the fastest growing economy in Asia. This does not seem to stop if it achieves its 6.9% growth this year. Its GDP growth of 7.08% last year is also the highest Vietnam has experienced within the last ten years.
With more factories intending to move out of China and possibly into Vietnam, there is no reason to believe a slowing in Vietnam’s GDP Growth. As more companies set up their factories here, this is a good business opportunity for sourcing products directly from the factories. However, when sourcing in Vietnam, it is important to have a company close to the ground to regularly inspect these companies. Having an office here, ODM is not only close to the ground but also works hard to ensure factories are producing at the top quality when sourcing in merchandise.
Vietnam is constantly finding ways to remain competitive. This is shown by their constant investment to produce and nurture a skilled workforce. This in turns allows Vietnam to produce a level of higher quality products compared to other countries within the region. With a combination of low labour rates and more emphasis to improve economically, Vietnamese people perform better in aspects such as e.g. reading, than other low earning countries. This also enables the workforce to excel in industries such as retail, manufacturing, e-commerce, and logistics. This allows you to produce quality personalised promotional products here.
At ODM we have in house designers who not only brainstorm your next promotional product but also understand production and bring design straight to manufacture. With a mix of Asian & European staff, not only are we able to effectively communicate with our clients, but also with factories.
Though still a communist nation, Vietnam has made many political and economic trade agreements. These trade agreements not only build multilateral relationships but also help boost Vietnam’s economy. Examples of such trade agreements include joining ASEAN in 1995, UN in 1977, the TPP in 2016, and the WTO in 2007. By joining ASEAN and the UN, Vietnam is able to create relations with Southeast Asian countries, and member states in the UN. Not only does this allow Vietnam to create political support, but also economical foreign investments. Vietnam will also be able to solve trade disputes via avenues such as the WTO and participate in large trade deals with the west via the TPP.
With good political stability, more brands will be moving their factories to Vietnam. With mass production happening, this allows you to source for cheap promotional items in Vietnam. This makes it easy to source drop shipping companies in Vietnam.
Looking for a sourcing agent in Vietnam? or looking for a business agent?
How Can ODM Help?
Looking for promo gifts or marketing gifts for your brand to boost sales? Fortunately, the ODM team can help you come up with inventive and unique product design and packaging. We have product designers who have vast experience in brand packaging designs for your business.
Not sure what you’re looking for? We also provide product brainstorming sessions and quality control services. Contact our team today to learn more about how we can help you grow your business through the use of effective custom promotional giveaways!
Interested in making leather products in Vietnam and need textile agents in Vietnam? Here’s what we documented during our Vietnam leather factory visit!
Interested in visiting trade fairs in Vietnam? Here’s what we saw at the Garment and Textiles Industry Exhibition!
What to source for merchandise? Why not visit Vietnamese Trade Shows to source for new promotional products?