Vietnam is increasingly gaining popularity in sourcing because of its low-cost consumer products. In that way, the country has become extremely attractive for sourcing as an alternative to China, Thailand and Indonesia. It seems like the sourcing companies are preferring Vietnam over those three countries mostly. Alongside, Vietnam has is executing such stuff as an alternative to India for I.T. and other outsourced services. Comparatively, it is observed that the outsourced services in India have gained less popularity being the second mainframe of Information Technology. Low-cost country sourcing precisely has not been found in many countries recently except for Vietnam. For your information, the country is well-developed and offers a willing and talented workforce that is relatively stable to political environments.
To your knowledge, Vietnam’s GDP growth in the year 2009 has left other regional countries to stay backwards in cases of sourcing. The GDP growth was so friendly for sourcing that researchers expected the growth rate to be around 7% in 2010. Thus, it happened for real. Moving on, other I.T. services, Vietnam has shown its capability of leading the way in supplying competitively priced footwear in the world. Being the fifth-largest exporter of shoes and sandals, Vietnam sourcing has become ideal for many suppliers around the world.
Advantages of Sourcing in Vietnam
It has been recorded that the Vietnamese are greatly committed to quality and are especially known for building strong work ethics. Vietnam’s workforce is filled with literacy where everyone is willing to learn and get trained for being the best despite having a poor education facility. It has been observed that they possess enough capability in protecting intellectual properties (patents and trademarks) than a few other lost cost countries. Looking at everything, it is recorded that Vietnam is a highly qualified country and surprisingly, they understand the need for products and services. Therefore, they enable the usage of low-cost country sourcing by various suppliers across the world.
Currently, Vietnam is showcasing the popularity it has gained and moreover, the country is having enormous orders for products and other services including the most used utilities – Information Technology and footwear.
Disadvantages of Sourcing in Vietnam
Facing a growing economy, Vietnam often suffers from an inadequate infrastructure in communications, banking and transport. Reliability in legal advice and financial markets of Vietnam is difficult as skills and knowledge of international trade are too limited. Inflation is also one of the primary factors to consider before going for signing contracts with them in a long run.
Like other markets in different countries, Vietnam also faces tough challenges during sourcing. For cutting the odds, dedicated research and preparation is the only key. Alongside, involving third-party usages who are experienced can be good for Vietnam sourcing. They will definitely be coming up with proper pieces of advice including shipping, legal customs and other monetary matters for the betterment of sourcing..
Sourcing Instinct 