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 that it was not enough just to compare prices, because the real challenge wasn't cost, but rather communication and quality control. 

Market overview

Currently, Vietnam is a manufacturing hotspot for international businesses that want to diversity supply chain amid uncertainties caused by trade war escalations and new tariffs. Many manufacturing contracts shifted from China to Vietnam, due to Vietnam's fast-growing economy, location advantages, cheaper labor costs. The Ministry of Planning and Investment (MPI) reports that Vietnam received USD $500 billion in FDI in 2024, with the processing and manufacturing industry accounting for USD $25.58 billion.

There are several other reasons why Vietnam's manufacturing industry has been growing steadily as companies shift their production to Vietnam:

- Nike, Adidas, Intel, Samsung, Vans, Converse, Foxconn, and other top global brands have been increasing their presence in Vietnam.

- Factory wages in Vietnam are much lower comparing to neighboring countries ($132-$190 wages/a month).

- Comprehensive infrastructure and a strategic geographic location make Vietnam’s manufacturing industry attractive for businesses seeking to reach both regional and nearby international markets.

How to find suppliers in Vietnam?

To find suppliers in Vietnam is far more difficult than doing so in the UK or the US, due to several factors—communication barriers, cultural differences, and a fundamentally different vision; they simply couldn’t understand what we were trying to achieve. 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. This is what we faced here in reality:

- It's recommended to call the supplier, as it's common for emails to be left unanswered.

- 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.

- In addition, information on a supplier's website may not always be accurate, so having someone on the ground to handle communication and verify products in person is important.

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

Although certain operational challenges may persist, a well-structured business strategy that considers on-the-ground realities can lead to many cost-effective opportunities within the Vietnamese manufacturing industry. These are the most important steps to take before and after finding a supplier:

Proper research

The Vietnamia application is a useful resource for conducting initial research when finding suppliers in Vietnam, offering a comprehensive database of Vietnamese manufacturers and suppliers. Once a supplier has been found, evaluate their capabilities by verifying the manufacturer's reputation—talk to other companies that have worked with them, request product samples, and assess their quality.

Transparent agreement terms

Once a connection has been established with the right supplier, sit down and set agreement terms that work for both parties.

Third-party quality control

Unexpected third-party inspections are sometimes necessary to ensure that the manufacturing process stays under control and even the smallest details are handled without compromising quality. This is where Vietnamia comes in to support your import-export business! Our team not only understands the needs of your import-export business but also offers communication and inspection solutions to further improve the results of finding the right suppliers for sourcing and manufacturing in Vietnam.

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.