Vietnam’s supporting industry has experienced significant growth in recent years, thanks to government initiatives, strategic investments, and its increasing integration into the global economy. This article offers an overview of the current state of the industry and highlights the opportunities for buyers interested in procuring Vietnamese products.
A thriving supporting industry
Vietnam’s supporting industry consists of companies that manufacture components, parts, and accessories used in various sectors, including electronics, automobiles, textiles, and machinery. The industry has been growing at an impressive rate, with the total export value of supporting industries products increasing from $24 billion in 2016 to over $40 billion in 2021 [1]. The government aims to increase the local sourcing ratio to 70% by 2030, which will further boost the industry’s growth [2].
Government support and investment
The Vietnamese government has implemented various policies and incentives to promote the growth of the supporting industry. These include tax breaks, low-interest loans, and investment in infrastructure, such as industrial parks and logistics facilities. Additionally, the government has encouraged foreign direct investment (FDI) in the sector, attracting major global companies like Samsung, Toyota, and Intel [3].
Opportunities for global buyers
The rapid growth of Vietnam’s supporting industry offers numerous opportunities for global buyers:
- Cost competitiveness: Vietnamese manufacturers can offer competitive pricing due to lower labor and production costs compared to other countries in the region.
- Skilled workforce: Vietnam has a young, skilled, and adaptable workforce, with a literacy rate of over 95% [4]. The government has also been investing in vocational training programs to enhance workers’ skills in the supporting industry.
- Geographical advantage: Vietnam’s strategic location in Southeast Asia, along with its well-developed infrastructure, facilitates efficient shipping and logistics for global buyers.
- Increasing quality standards: Vietnamese manufacturers have been focusing on improving product quality and obtaining international certifications, such as ISO and IATF, making their products more appealing to global buyers.
How to source from Vietnam’s supporting industry
Buyers interested in procuring products from Vietnam’s supporting industry should take the following steps:
- Research potential suppliers: Utilize reputable databases and directories, such as Vietnam’s Industry Agency’s database or the Vietnam Chamber of Commerce and Industry‘s (VCCI) directory, to find suitable suppliers.
- Verify supplier credentials: Ensure that suppliers hold necessary certifications and comply with international standards.
- Visit trade shows and exhibitions: Attend industry-specific trade events in Vietnam to meet potential suppliers and learn about their products.
- Conduct on-site visits: Visit suppliers’ facilities to assess their production capabilities and quality management systems.
- Establish clear communication: Maintain open communication channels with suppliers to ensure timely delivery and product quality.
In conclusion
Vietnam’s supporting industry offers vast opportunities for global buyers seeking cost-effective, high-quality products. With continued government support, investment, and a focus on quality.