I see some good advice, published in Linkedin or elsewhere, aimed at importers sourcing products from China, Vietnam, or other low-cost Asian countries. A lot of this advice is sound. However, I noticed that a good chunk is NOT applicable to companies buying under 20 million USD a year -- and, sometimes, not under 1 billion USD a year. I made a list of 9 things large importers can get, but small companies usually can't negotiate. (Of course, there are many exceptions, but they remain … [Read more...]
Does the Future of Vietnam Manufacturing Depend on Taiwan?
I talked with a client who was working in a Taiwanese factory established in Guangdong in the early 1990s. It had been set up recently — production was previously done in Taiwan. Their facility was making products that require metal, rubber, plastic, and textile parts. At the very beginning, all these parts were coming in full containers from their old Taiwanese suppliers. Over a few years, they convinced all their main component suppliers to set up production in South China, in order to … [Read more...]
Transferring Production from China to Vietnam to Avoid Tariffs
Many companies US importers from China have seen margins annihilated. It's logical to look at transferring production from China to places like Vietnam. I am writing this from Vietnam, where the tariffs imposed by the Trump administration on made-in-China goods mean new business opportunities. If you are affected, what are the key questions you should ask yourself? Access to component suppliers If you buy bamboo decoration, you should already be in Vietnam. If you have … [Read more...]
Is There a Future for Manufacturing in China?
[This is a guest post by Fredrik Gronkvist, who writes great advice on chinaimportal.com.] Ever since I first set foot in China, back in 2009, I felt that I was late to the party. Ever since that dreadfully hot day in August, I’ve kept hearing that it’s only a matter of time before the country is priced out of the manufacturing game, and is ready to step up to more lucrative activities. About one year ago I was sitting down with two friends from back home, who were visiting Shanghai for a … [Read more...]
Overview of the Vietnam Manufacturing Sector
Our marketing assistant Maria has done research on the Vietnam manufacturing sector: the top export industries, the trends, the labor costs, and logistics. Here is her article. Textile and Clothing – top sector no more? Out of all Vietnam manufacturing sectors, the most known would probably be the textile industry. Due to extremely competitive wage policies, one of the lowest in the region, textile and clothing has become the largest contributor to Vietnam’s exports. Thanks to the bilateral … [Read more...]