Why Source from Vietnam for Your Business?
Unlocking Opportunities with East to West Sourcing
At East to West Sourcing, we specialise in connecting EU and UK businesses with the vast potential of Vietnamese manufacturing. Vietnam offers a compelling combination of factors that make it an ideal sourcing destination, and with Free Trade Agreements (FTAs) in place with the UK and the EU, importing high-quality Vietnamese products has never been easier or more cost-effective.
Competitive Production Costs:
Vietnam boasts a young and skilled workforce of over 60 million, translating to attractive production costs compared to traditional sourcing regions.
On average production and manufacturing costs in Vietnam can be up to 20% lower than in China for similar products.
The difference in cost of labor between China and Vietnam is significant. On average, Vietnam’s labor costs are half as much as China’s labor costs at US$2.99 (VND 68.000) per hour compared to US$6.50 (VND 148.000) per hour respectively. Since 2016, the average increase in hourly wages per year in China is more significant than the increase in Vietnam.
Free Trade Agreements
This is a real draw for foreign buyers looking to avoid high tariffs placed on Chinese goods as a result of the China–United States trade war.
Both the UK and the EU have FTAs with Vietnam, eliminating or significantly reducing import duties on a wide range of Vietnamese goods. Within 7 years of the 2020 EU-Vietnam Free Trade Agreement (EVFTA), the EU will remove 99.2% of tariffs, equivalent to 99.7% of Vietnam’s revenue from exports to the EU. This translates to significant cost savings for your EU business.
Diverse Product Range
Vietnam offers a vast array of products suitable for the EU market, from apparel and textiles (accounting for over 20% of exports) to furniture, electronics, and housewares. In 2023, Vietnam's export value reached a record high of 354.67 billion USD, showcasing its growing importance in the global manufacturing landscape.
High-Quality Manufacturing
Vietnam has made significant strides in recent years, establishing a reputation for high-quality manufacturing across various industries. Our rigorous factory audits and quality control measures ensure you receive products that meet your exact specifications.
A Stable Political and Economic Climate
Vietnam has cultivated a stable political environment under the one-party system, fostering a business-friendly climate. The country's impressive economic growth trajectory has made it an attractive destination for foreign investment. This stability offers businesses a predictable operating environment, essential for long-term planning.
China Plus 1
Vietnam has emerged as a compelling alternative to China for many businesses seeking to diversify their supply chains. This trend, often referred to as "China +1" or "de-risking," highlights Vietnam's growing appeal as a manufacturing hub. The country's strategic geographic location, coupled with its skilled workforce and competitive costs, positions it as a prime choice for companies looking to relocate or expand their production base beyond China.
A Strategic Geographic Location
Vietnam's strategic location in Southeast Asia offers several advantages. It is well-connected to major shipping routes, facilitating efficient transportation of goods to global markets. Additionally, Vietnam's proximity to other Asian economies presents opportunities for regional trade and collaboration.
Beyond Cost Savings: Building Long-Term Partnerships
At East to West Sourcing, we understand that successful sourcing is about more than just finding the cheapest option. We focus on building strong relationships between you and Vietnamese suppliers, fostering clear communication and ensuring a smooth and efficient import process.
Let East to West Sourcing be your bridge to Vietnamese manufacturing success.
Contact the team today to discuss your specific sourcing needs and explore the exciting possibilities that Vietnam offers for your business!
