Factory Audits, Inspections, And Quality Control In Vietnam // Ultimate Guide
Factory audits and inspections in Vietnam are essential for businesses looking to ensure the quality and reliability of their manufacturing partners. Several companies, including Bureau Veritas and V-Trust, among others, offer these services in Vietnam. These services typically include various types of audits, such as factory audits, environmental audits, and social compliance audits, to assess the capabilities and compliance of manufacturers in Vietnam.
The rise of Vietnam as a manufacturing hub has led to an increased demand for quality control and supplier audit mechanisms to ensure product quality and build trust with manufacturing partners. These services are crucial for verifying manufacturing capabilities, product quality control, and the social and environmental aspects of production facilities in Vietnam.
Local Vietnamese auditors are highly trained and specialized in conducting audits of ethical, structural, environmental, and manufacturing aspects, possessing a deep understanding of the region's language, culture, laws, practices, and regulations. Therefore, businesses seeking to manufacture in Vietnam can benefit from utilizing these inspection and audit services to ensure compliance and product quality.
Due to improved business conditions and education, Vietnam has a large workforce with technical training and the skill sets to produce high-quality products. Labor costs in Vietnam remain low compared to those in China, making it the most popular destination for factories relocating from China, which currently faces high labor costs and US tariffs. Vietnam is adapting investor-friendly policies and attracting large-scale investments to the country.
Moving Manufacturing From China To Vietnam
The Vietnamese government collaborates with businesses to ensure that opening a factory in the country is easy. The government’s openness has effectively increased international corporations such as Nike and Adidas, which now own large manufacturing centers in the country. In addition, the political stability, large workforce, and convenient location on the Pacific Ocean make it one of Asia’s best investment locations.
However, the main issue for Western companies in Vietnam is the lack of trustworthiness during the sourcing process. To properly analyze your suppliers and ensure the factory operates at the highest standards, consider hiring an inspection company to audit your factory and verify that the supplier is who they claim to be. Auditing is a must-have for every business starting production in Vietnam.
Factory Inspections In Vietnam: The Basics
This guide will provide an overview of the quality control and auditing process in Vietnamese factories, as well as the top quality control services available in Vietnam. Quality control companies are integral for preserving your company’s reputation, especially if you own a large manufacturing business.
Businesses want to verify that their manufacturing facilities are running at full capacity. They also want to know about the social aspect and how their workers are treated to avoid violations. Some services can help you conduct inspections for as little as $300. In addition, it’s possible to hire agencies without setting foot in Vietnam, allowing you to save time by auditing factories from a distance.
Factory Inspection Controls: Product Types
Factories in Vietnam typically specialize in a specific product, and some factories serve as the global headquarters for their respective manufacturing facilities. If you’re considering whether to invest in an audit, we generally recommend audits for factories producing the following products:
Fashion/clothing.
Accessories.
Footwear.
Household items.
Electronics.
Power tools/machinery.
Hardware.
Industrial machines.
Garments.
A local Vietnamese auditor can audit each of these factory types and provide a report on the facilities' state, the manufacturer/supplier’s production capability, product quality control, and the social and welfare aspects of workers’ environmental factors.
Vietnam has recently been manufacturing an increasing number of high-value items. If you’re worried about your supplier’s production capacity or want to analyze the factory’s environmental impact, you can hire an auditing company.
Vietnam Factory Audits: Cities/Provinces
Vietnamese quality control and audit companies provide their services in all major cities and provinces throughout Vietnam. Because most factories are outside city centers, the auditing company may have to travel 30 minutes to 1 hour to reach their destination. Most Vietnamese auditors offer services to factories located near major cities, such as Ho Chi Minh City (HCMC) and Hanoi. Vietnam is a smaller country compared to China, which means audit services are available in all provinces:
Bac Ninh
Binh Phuoc
Hai Phong
Dong Nai
Binh Duong
Long An
Factory Inspection/Audit Costs In Vietnam
The cost of a factory inspection in Vietnam varies depending on the specific requirements of the inspection. The average price for a general checkup to verify manufacturer capacity typically ranges from $300 to $ 400, depending on the company. If you want a detailed audit of the social aspects of the factory’s environmental impact, you can pay up to $1000. The prices for Vietnam audits tend to be higher than those in China, despite the same audit quality and reporting standards being applied.
The main difference is that Vietnam has less competition among quality control and supply chain companies than China, which means they can command higher audits. You can arrange a QC audit in China for 30-50% less than the price of a similar audit in Vietnam.
Benefits Of Factory Audits In Vietnam
✔ Obtain ISO certifications for the products you manufacture.
✔ Verify your supplier’s manufacturing capability and compliance with national production regulations.
✔ Learn about the environmental impact of your manufacturing plant.
✔ Establish your brand as an environmentally-conscious company.
There are numerous benefits to conducting an audit or inspection of your Vietnamese company before entering into a business partnership with a Vietnamese supplier. Each investor should conduct at least one inspection to minimize risk when engaging with a local company. You want to ensure you’re doing business with the right company to protect your capital and brand. The screening process is thorough, and you’ll receive detailed reports on the company’s performance and the factory's internal operations.
Effectively, you’ll protect your business before you put your capital on the line. The factory inspection is the final step in the process before production begins, and you need the last bit of reassurance before proceeding. In addition, inspections can help you verify basic details, such as the location of goods production, including your supplier’s production capacity, auditing matters for all potential buyers or mediator companies producing for third-party clients.
Why Businesses Need Factory Audits
If you find a supplier on the internet and the supplier is claiming they’ll meet your production capacity, you must verify they’re telling the truth. The only way to do this is to hire an auditor to visit the factory premises and thoroughly inspect their production facilities.
The worst-case scenario is that the supplier outsources the work to another factory, which may not even be located in Vietnam. Additionally, correcting mistakes can lead to problems, such as reduced output quality and increased shipping time, particularly if the goods are not shipped from Vietnam. So, you risk compromising product quality and incurring shipping delays as well.
We recommend conducting multiple audits to ensure your factory is compliant and that your suppliers adhere to Vietnamese laws and regulations. While a single audit may help you verify the basics, such as that the goods are being manufactured in Vietnam, you’ll need multiple audits to verify that the factory is compliant with local laws and that the productivity is up to par over the long term.
Individual companies offer advanced inspections that include social inspections to verify that the workers are treated fairly and that there are no human rights violations in the factories. It’s also possible to arrange environmental-impact inspections to check whether the factory complies with international environmental laws.
Factory Audit Types In Vietnam
SQA Audit
Average cost: $300
SQA stands for “Supplier Assessment” and is the most popular audit for suppliers, verifying that the supplier is operating legally in Vietnam and produces the kind of products you’re looking for. SQA audits are general audits that verify the factory’s physical presence in Vietnam and determine whether it is registered and compliant with Vietnamese laws and regulations. The SQA audit is a necessary audit that we recommend for most businesses, and inspectors can carry out most SQA audits for as little as $300-$ 400.
EFA Audit
Average cost: $300-500
The EFA audit is a step above a basic SQA and stands for “Extensive Factory Audit.” It is for investors who want to verify the quality of the factory’s products and get an overview of the factory’s supply chain.
EFA audits place a greater emphasis on the technical aspects of the production line. Instead of verifying whether the supplier is legal and present in Vietnam, they focus on their production capacity. They inform you whether they can output the required product quantity within a specific time frame. EFA audits are valuable for investors who want to ensure their factories meet the demand according to the ISO 9001 standard. They cost slightly more but are usually below $500 per audit.
CSA Audit
Average cost: $800-1000
CSA audits are high-level audits designed to protect factory employees and establish brand social responsibility. CSA audits are “social” audits that effectively analyze how employees are treated. In addition, the CSA audit is an ethical audit that verifies the supplier’s efforts to create a safe and efficient work environment, utilizing all necessary safety equipment and adhering to relevant worker protection laws.
CSA audits are necessary for brands that manufacture products in large quantities and ensure their workers enjoy minimal workplace protection. The inspectors will spend hours observing and interviewing employees to provide you with a clear understanding of the factory’s operation. However, CSA audits are more expensive, costing $800-$ 1000 on average.
EA Audit
Average cost: $700-1000
The EA audit, which stands for “Environmental Audit,” investigates the factory’s environmental impact and the entire supply chain. Environmental Audits help brands develop a sustainable approach to their manufacturing process in Vietnam. If your customers are concerned about whether the products they’re buying were manufactured in environmentally friendly conditions, the EA audit will verify that your suppliers employ environmentally responsible practices.
EA audits also verify that the factory is compliant with international environmental laws and standards. The investigators analyze the factory for resource consumption, including pollution, and estimate the factory’s preparedness for emergencies. This type of audit takes longer and costs an average of $700 to $ 1,000.
Factory Audits: Vietnam Vs. China
What is the difference in terms of factory audits between China and Vietnam? Is the procedure the same as you had for your factory in China? The answer: It’s identical. The quality control services in Vietnam provide the same thorough investigation as those in China. Therefore, it’s possible to obtain the same services and inspections for factories; however, the main difference is that Vietnam’s prices are slightly higher, due to a shortage of quality control (QC) services.
Factory Audit Companies In Vietnam: Top 7 Companies
Explore our comprehensive guide for a complete list of Vietnam inspection and audit companies.
Vietnam’s quality control service industry is growing, with dozens of companies inspecting factories on behalf of buyers. However, individual companies vary in their dominance and experience within the industry. Most companies in Vietnam provide on-site agents to inspect and maintain factory quality control. Their services range in price from $300 to $1000+. Here’s a list of factory audit companies in Vietnam to consider for your business:
V-Trust
V-Trust is one of the most reputable quality control companies in Vietnam. The company specializes in Vietnam's main export products, including footwear, furniture, fashion, home decorations, garments, electronics (mobile accessories), industrial machines (parts, construction equipment), and home appliances.
V-Trust operates as a third-party inspection company with offices in various manufacturing hubs, including India, Bangladesh, Cambodia, and China. In addition, v-Trust is certified by organizations such as OLAC and IFIA. V-Trust conducts nearly 6,000 inspections per month in Vietnam.
Address: 6/F, GIC Building, 211 Tran Nao Street, District 2, Ho Chi Minh City, Vietnam
Tel: +86 13602485680, +84-28-7108-9818
Website: https://www.v-trust.com/
Sofeast
Sofeast is a Chinese company based out of Shenzhen that expanded its services to Vietnam and became one of the country’s most significant quality control companies. Sofeast stands for “Smooth Operations In The Far East,” and the company began enabling Western companies to manufacture safely. The company offers quality control, product engineering, and supply chain management services.
Website: https://www.sofeast.com/
Quality Control Inspections in Vietnam
“Quality Control Inspections” is a Vietnamese checking agency for factory audits in Vietnam. The company is owned by B2B Direct, a sourcing and manufacturing company specializing in Vietnamese quality inspection. In Vietnam, Quality Control Inspections has 14 years of experience in the quality control business and a diverse range of clients, from small start-ups to multinational corporations. The company’s leading service is factory quality control, and they employ agents who visit the factories and analyze the products for reliability.
In Vietnam, quality control inspections deploy Vietnamese agents to clients’ suppliers and consult with them to ensure there are no misunderstandings regarding packaging, quality, design, production, or any other aspects essential to their clients’ production. As a result, the company can assess a factory’s production capability and deliver a detailed report of what the client can expect.
Website: https://qualitycontrol-vietnam.com/
AS International
AS International is a quality control inspection service operating in Vietnam and internationally. AS International’s primary QC service is for the textile sector, working with some of the world’s biggest fashion brands. The company has 35 years of experience in quality control and has established itself as a leader in the fashion and textile industries.
AS International has offices in Vietnam and 18 other European countries, as well as in Africa and the Middle East. It offers quality control, product development, and quality monitoring services. AS International has three offices in Vietnam: HCMC, Hanoi, and Da Nang.
Website: https://www.as-inter.com/
OFCO Group
OFCO Group is a logistics and quality control company. Jean-Charles Diener founded a seafood quality control agency for Western buyers importing seafood from Vietnam. OFCO Group provides a range of services for buyers who already have a product but need to investigate it before it gets loaded for an international destination.
OFCO Group’s leading services include pre-shipping audits and loading inspections. These help clients streamline the customs process at US ports by ensuring the product quality is up to par before it departs from Vietnam. Additionally, OFCO Group consults directly with suppliers to ensure there are no misunderstandings regarding quality.
Website: https://ofco.info/
QIMA
QIMA, formerly known as AsiaInspection, is one of Asia’s most significant quality inspection companies. QIMA has a large support team based in Hong Kong and operates in 20 countries. In addition, QIMA offers risk management services in Vietnam, helping buyers streamline their manufacturing processes while providing product development services.
Website: https://www.qima.com/
Vietnam Quality Control
Vietnam Quality Control is a factory audit and quality control company based in Ha Noi City. Its primary specialty is providing accurate information to its customers in the early stages before production begins. Vietnam Quality Control is involved in every step of the process, including product development, factory audits, beta testing, and subsequent quality control inspections.
Vietnam Quality Control has a speedy service that can provide an audit in as little as 48 hours and deliver a report directly to the clients. Vietnam Quality Control offers its services throughout Vietnam and can also conduct investigations at factories in other countries.
Website: http://vietnamqualitycontrol.com/
Vinacert
Vinacert is a private quality control company based in Vietnam. Vinacert specializes in food and agricultural products, guaranteeing safe exports to its international clients. The Vietnamese government has endorsed Vinacert as one of the premier quality-control services for agricultural exports.
Website: http://www.en.vinacert.vn/
Cosmo Sourcing // Your Trusted Partner In Vietnam
If you want to source from Vietnam, contact the Cosmo Sourcing team; we have been helping clients source from Vietnam since 2014. Cosmo Sourcing has the skills and the team to find you the best supplier possible. We are also established in China and are among the few companies that can source suppliers in both China and Vietnam. Pick the one you think is best.
Our Vietnam Sourcing services allow you to access new manufacturers that you would not be able to in China and avoid Tariffs. Our services are designed to take your idea, turn it into a product, and ship it to its final destination. Cosmo can handle everything from creating a product spec sheet to validating, sourcing, ordering, evaluating samples, arranging inspections, finding freight forwarders, ensuring quality assurance, negotiating, and shipping. We aim to handle every single step of your business in Vietnam for you.
If you start a new business, finding products and suppliers for your products is one of many things you need to handle. Our services are designed to handle every aspect of your business in China and Vietnam, allowing you to focus on growing your own business.
We have helped clients from Fortune 500 companies, brick-and-mortar stores, FBA sellers, and brand-new businesses. So don’t hesitate to contact us and let us know how we can help you.