Are You Relocating Production from China to Vietnam? Read This Before Proceed

It is not surprising that importers have begun to reassess their choice of having export partners located in China due to the recent America & China trade war. This uncertainty about the future of relations of economics with China potentially adds an aspect of risk to the businesses for which most of the importers find themselves uncomfortable in the nation. With this scenario, the second option that comes to mind of the businesses while looking for a country to succeed in outsourcing is Vietnam, which sometimes is known as “other China” for firms looking to find a cheap market for their outsourcing business.

Production from China to Vietnam

 

Due to the abundance of cheap labor to operate at affordable prices, the government formed to welcome foreign and outsourcing businesses, as well as the availability of easy and cheap raw materials makes this nation a somewhat attractive location for all the importers around the globe. This nation has become more attractive owing to the comfortable business conditions and prevailing laws of business in this nation, certainly nothing compared to that in the US.

Therefore, it makes sense for you, if you want to transfer your business from China to Vietnam. Although, this transfer process is not as simple as just signing a contract with a company in Vietnam. There are many other factors that must be taken into consideration while finalizing your relocation decision regarding whether or not to relocate this dealing to another country.

 

Relocating Production from China to Vietnam

In this blog, I will be sharing with you a guide that helps you arrange your ideas and take into account some other key aspects which are related to transferring your business to Vietnam from China. You can consider all these factors before deciding whether migration is the best option for you and your business.

Are there manufacturers available to produce your products?

The primary questions you should ask yourself is whether there are manufacturers available in this country to produce the goods that you want to get manufactured. Also, is the inspection facility better here as compared to inspection service in China. Now, this is a fairly straightforward idea, but it is a common idea that most of the companies may tend to ignore. In addition to this, you should keep in mind that finding one or two suppliers is not really enough. Take this for example: while you search in search engines like Alibaba for plastic bag manufacturers, it’ll return a number in twenty in Vietnam. In comparison to this, the number of producers that are available in China will cross even thousands.

 

Production from China to Vietnam 2

This very clear instance should convey the idea that competitiveness in countries like Vietnam is very little as compared to that of China. For any type of product that you want to manufacture, you are likely to find ten if not twenty times more producers in China than in Vietnam. This is due to the reason Vietnam still has a long way to go in the diversified and advanced industries that China has- especially in the case of high-tech products like airspace parts that are quite difficult to find in a country like Vietnam.

According to a recent report by the Vietnamese government, the following are among the top industries which are located in this country:

  • Electrical machinery and equipment: $94 billion (USD).
  • Crochet or knit clothing and accessories: $13 billion.
  • Furniture, lighting, bedding, signs and prefab buildings: $8.9 billion.
  • Footwear: $19.9 billion.
  • Machinery, including computers: $14.6 billion.
  • Clothing and accessories (not knit or crochet): $13.8 billion.
  • Optical, medical and technical apparatus: $5.6 billion.

Let’s Wrap Up:

No doubt, Vietnam is one of the most rapidly growing markets in the world for global outsourcing. Even though it lacks the infrastructure to compete with that of China, the growing foreign investment in this country is likely to take care of this as well. If you are doubtful about the quality of the products manufactured in this country, you can hire a Chinese inspection services agency  that can handle all the quality-related issues for you in this country.