Vietnam’s biggest and most important holiday of the year is fast approaching! There is only about 3 weeks till the Tet Holidays – or the Vietnamese Lunar New Year – commences. The Vietnamese New Year is celebrated nationwide, which means that businesses will close. This includes factories. How does this affect manufacturing in Vietnam? During this holiday, workers will travel home to return to their families and celebrate the new year. Manufacturing will thus be stopped for this period.
For this period, there are 2 key questions that need to be asked.
- How long will factories be closed?
- How will the factory closures affect me?
In this blog, we will answer the 2 key questions, and give you a better insight on the situation.
How long will Vietnamese factories be closed for the Tet Holidays?
Generally, even though the official date of the Tet Holiday would be the 5th of February, factories in Vietnam will be closed for 1 week, from the 2nd of February to the 10th of February. If there are no orders, factories may take an additional week off.
How will this affect manufacturing in Vietnam?
Factory closures will have various impacts on manufacturing in Vietnam, including:
- Delayed Production Time and Quotations: During this period, production times will be delayed, and quotations will be processed slowly due to slow feedback from factories.
- Production Queues: Production backlogs can affect your company. This is especially so if orders are placed late. With 1-2 weeks of orders backed up, factories will process orders from preferred partners. Do talk to us about using our leverage to get orders processed quickly.
Comparison with China factories
Compared to Chinese factories, Vietnamese factories have a shorter break during the New Year Period. This is because prior to the Chinese New Year break, the Chinese celebrate a traditional holiday called the Laba holiday. Therefore, Chinese factories can close for up to a month, which is significantly longer than that of Vietnamese factories.
Therefore, ordering your products from Vietnamese factories might be better for your company during the new year period. The ODM Group has recently opened an office in Ho Chi Minh City, so do contact us about working with Vietnamese suppliers during this period. Alternatively, you can also read through some blogs on Vietnamese factories, which could pique your interest.
How can you work around these factory closures?
- Planning: We suggest that you order early to avoid disappointment. Placing an order early can also minimize problems that might be caused by rushed production either before or after the new year.
To celebrate the lunar new year, ODM has released its annual pig merchandise. The merchandise help spread Breast Cancer Awareness, so do get yourself a pair to support this great cause! 20% of profits go to breast cancer charities.
Here’s a blog on a factory visit to a Vietnamese bag manufacturer! This trip helped to open our eyes to the different aspects of making a bag!
A factory visit to a leather supplier! We certainly learnt a lot about the leather manufacturing process from this trip!
Here’s a very interesting form of marketing: Bicycle Marketing!
Here are some custom red packets to celebrate the new year!