How finding suppliers for manufacturing in Vietnam taught us the hard way what not to do

If you're looking to find suppliers to switch to in order to reduce production costs, Vietnam is a smart choice! But be ready to navigate cultural differences that may affect business communication and expectations. Finding suppliers for manufacturing in Vietnam taught us quickly, price means nothing without quality and clear communication.

New Vietnam's manufacturing wave, from the ground up

This new wave of Vietnamese manufacturing is redefining supply chains in Asia. Those companies who think long-term will begin sourcing other production locations as soon as geopolitical tensions arise. No one wants to deal with surprise tariffs. Vietnam’s offering a cleaner, cheaper path forward—stable, cost-efficient, and positioned right in the middle of Asia’s logistics network. It’s no wonder global firms are accelerating their plans for manufacturing in Vietnam.

According to the Ministry of Planning and Investment, Vietnam pulled in over $500 billion in foreign direct investment in 2024. Of that, $25.58 billion went directly into manufacturing and processing industries.

There’s more behind the shift:

• There’s a reason Nike, Adidas, Samsung, Intel, and Foxconn keep betting on Vietnam — they’ve seen what works.

• Labor is still affordable. Depending on the region, monthly base wages sit between $132 and $190.

• Infrastructure’s catching up fast. With Vietnam’s central location, fulfillment across Asia and beyond gets a whole lot easier.

How to find suppliers in Vietnam?

Finding suppliers in Vietnam was a lot harder than in the UK or US, for a number of reasons: the language barrier, cultural differences, and—most importantly—a fundamental difference in vision. Foreign companies often struggle with how to find manufacturers in Vietnam who meet their quality and delivery expectations. Back in 2015, during the time when we were trying to find a supplier for manufacturing in Vietnam for the first time, I was deeply disappointed by unpredictable business environment. They simply couldn’t understand what we were trying to do. This is what we faced here in reality:

• In Vietnam, a phone call often works better. Don’t rely on emails alone. Suppliers may miss your email, but they’ll pick up the phone.

• Information provided over the phone call is often different from what you get when you meet the supplier's staff in person.

• Prices and time frames are not always final, despite prior agreements.

• Don’t trust the website blindly. What’s on the website isn’t always what you get. Supplier info online can be outdated or just wrong. That’s why anyone looking to find manufacturers in Vietnam should verify each claim made on websites.

Always expect the unexpected

We had a signed manufacturing agreement — regular updates, QC photos. Everything looked perfect. Until one Friday, the factory went silent. Monday? Still no response. The factory owner had taken a higher-paying contract from a European brand and dumped us mid-run. This is what nobody tells you when you Google "how to find suppliers in Vietnam". You're not sourcing products. You're betting your business on people who might not even pick up the phone next week.

A pretty factory tour means nothing if they fold when a better offer shows up

Years ago, a friend of mine who worked in the import-export business, exporting stuff from Vietnam to Korea, warned me: "Do not sign long-term contracts with Vietnamese manufacturers."

Three months in, the factory added a "raw materials adjustment" fee. Then came the "currency volatility" surcharge. Finally, a demand for 50% more deposit to resume production. It wasn’t a deal — it was bait.

If you’re finding suppliers in Vietnam for the first time, you will be tempted by these honey traps. Vietnamese factories know what international buyers want to hear and they’ll say it all to get you hooked. Focus on completing short-term, seasonal contracts you can actually enforce under Vietnamese law.

The hidden subcontractors

Our samples were stellar. Our prototype passed inspection. We were ready to scale. But the moment we ramped up quantity, quality tanked. Turns out, our "factory" was a glorified office subcontracting our orders to a backyard workshop 90 minutes outside Hanoi. Zero accountability. Zero compliance. When you’re deep in how to find suppliers in Vietnam, you assume you’re working with who you met. Reality? You might be 3 layers removed from the people who actually make your product.

Strategic frameworks for evaluating supply chain entry into the Vietnamese manufacturing industry

Sure, some operational hiccups may persist. But a grounded strategy can unlock major cost benefits within Vietnamese manufacturing and supply chain contracts. Here’s what to get right before and after finding a supplier in Vietnam:

Do your homework before you try to find a supplier in Vietnam

Finding suppliers in Vietnam takes research, and curated Vietnam sourcing websites like Vietnamia can help narrow down best options faster. Once a supplier shows potential, take time to verify. Don’t let first impressions fool you. Don’t take anything at face value. Get a sample, call their past clients. Dig into how they actually run manufacturing.

Quality control gets tricky when you're not in Vietnam

There will be times where you need to conduct surprise third-party checks to keep everything on track and catch the little details before they become an issue for your business. We have witnessed many times, how third-party inspections can pick things up, even if the Vietnamese supplier is trusted. Let Vietnamia support your import-export business! Our team understands the demands of your import-export business, furthermore, offers additional communication and inspection services to enhance the outcome of sourcing or manufacturing from the right suppliers in Vietnam.

Transparent agreement terms

Clear Vietnam manufacturing agreements reduce misunderstandings during scaling. No matter how minor the agreement seems, write it down. A manufacturing contract in Vietnam needs to be drafted in Vietnam, by someone who understands both the business terms and the local legal system. At Vietnamia.org, we don’t recycle Western templates. We create bilingual, binding agreements — and we keep our lawyers close. Just in case.

The true future potential of manufacturing in Vietnam is still not yet fully realized. Finding suppliers in Vietnam is not easy, especially for foreign entrepreneurs who have no previous experience — and that includes everything from registering a company in Vietnam to negotiating supplier agreements. Many suppliers in Vietnam have strong technical capabilities and offer competitive pricing, but lack experience working with foreign entrepreneurs.