What Products are Made in Vietnam // Vietnam Product Manufacturing and Sourcing
Are you looking to source from Vietnam but are unsure what's made there? Want to know more about Vietnam's manufacturing landscape? We created this guide to help you better understand Vietnam's industry and be more prepared when you source products from Vietnam.
Vietnam is an excellent place to source products, assuming your product can be made here. While Vietnam has a massive industrial base that is still rapidly growing, it still doesn't cover every industry like a particular country to the north. If your product is made in Vietnam, it will likely be cheaper or of a higher quality than the identical product from China. Many people are finding that products can be cheaper AND better in Vietnam. We'll review the products that can be manufactured in Vietnam.
Popular products made in Vietnam
Clothing and Textiles
Vietnam produced and exported over $30 billion in textiles and apparel in 2017, experiencing annual growth of over 10%. Several large companies do the bulk of their manufacturing here. Patagonia and The North Face primarily produce their products in Vietnam, as do H&M, Uniqlo, Gap, and J.Crew, among many others. Vietnam is also leading the way in sustainable manufacturing practices in the industry. Next time you buy a shirt or clothing item, check the label to see where it was made; there's a good chance it's made in Vietnam.
Wood at a Factory in Vietnam
Vietnam is currently the world's second-largest furniture manufacturer, behind only China. However, Vietnam is the fastest-growing furniture manufacturer globally, while Chinese furniture production is decreasing. Vietnam's diverse furniture industry encompasses a range from high-end, custom-made wood furniture to small boutique shops. Companies like IKEA, Ashley Furniture, and West Elm manufacture furniture in Vietnam.
Wooden goods
Vietnam exports over $5 billion in finished wooden products annually. Most of this focuses on furniture but also includes products for industrial use, such as wooden reels and handles for tools like shovels. Vietnam has tremendous access to high-quality hardwoods and the manufacturing capability to make high-end finished goods.
Footwear
Vietnam is one of the largest shoe manufacturers globally and has the largest export capacity. It produces over $12 billion worth of shoes annually and is experiencing rapid growth. Vietnam exports over 90% of its shoes, the world's highest rate. Vietnam isn't limited by style, either. Nike, Adidas, and many other brands have a vast manufacturing presence here. The output ranges from high-end leather shoes and sneakers to cheap flip-flops.
Iron and Steel
Iron and steel are among Vietnam’s fastest-growing industries, growing at an annual rate of over 20% for nearly a decade. Vietnam is the largest consumer and producer of steel in Southeast Asia. Vietnam can produce over 16 million tons of steel and more than 5 million tons of iron annually. In addition to manufacturing, Raw Steel Vietnam is also one of the largest importers of Scrap metals and has a tremendous capacity to recycle the scrap into finished goods.
Consumer Goods
Admittedly, an extensive category, consumer goods are Vietnam’s largest industry. In 2017, Vietnam exported over 70 billion dollars worth of consumer goods. Consumer goods are items used by end consumers (as opposed to businesses). For FBA sellers, this is good news, as most items already sold on Amazon are classified as consumer goods.
Packaging
Vietnam is one of the world’s leaders in packaging. Packaging that factories can manufacture in Vietnam ranges from cardboard boxes and soda cans to plastic packaging and a wide variety of other materials. Vietnam exported over $1.7 billion in packaging. Packing includes, but isn’t limited to, the food and beverage, cosmetics, pharmaceutical, bottling and beverage, barcoding, printing, and labeling industries. Additionally, ProPak Vietnam is the largest global trade show for packaging, held annually in March in Ho Chi Minh City. Therefore, if you wish to create high-quality custom packaging, Vietnam is a great place to consider.
Plastic Sheets at a Factory in Vietnam
Plastic and rubber goods
Vietnam exports over $5 billion a year in Rubber and plastic goods. These are essential consumer goods such as rubber dog toys and sunglasses. Vietnam has a large capacity to produce products. The most common method is plastic injections, but you can find any method here, including plastic extrusion and plastic welding. Rubber manufacturers in Vietnam are readily available. They can cover all rubber needs, such as extrusion, latex dipping, molding, and calendaring. Therefore, Vietnam is an excellent option if you are sourcing a product or components made of Rubber or Plastic.
Coffee
Vietnam is the world’s second-largest exporter of coffee by volume, exporting over 1.3 million tons in 2012. We should note that 97% of the beans are Robusta beans, not higher-quality Arabica beans. Nonetheless, Vietnamese coffee farmers are quickly improving their quality and targeting the specialty coffee market. Vietnam’s coffee industry already has several significant players and exports to almost every major country globally. Exports totaled 1.55 million tons, and Cosmo has a dedicated team that sources coffee.
Electronics
Vietnam has numerous major electronic companies, including prominent manufacturers such as Samsung, LG, HP, Canon, and Foxconn, among others, with significant operations in the country. Most notably, Samsung manufactures most of its Galaxy Smartphones in Vietnam and exports around USD 58 billion worth of goods annually from Vietnam. In addition, Vietnam can manufacture integrated circuits, Smartphones, Cameras, Televisions, and many more products. Intel also has a significant manufacturing presence. Vietnam’s main appeal over China isn’t that it’s cheaper but that Vietnam has a large and highly skilled workforce capable of performing complex tasks. Vietnam has leveraged its skilled labor force to compete with China and other countries worldwide for high-tech manufacturing.
Construction Materials
Vietnam has a vast and dynamic construction material industry. The materials found in Vietnam range from cement to steel supports and screws, bolts, fasteners, and rebar.
Seafood
Vietnam is the world’s third-largest seafood exporter, behind Norway and China. Vietnam exported USD 5.8 billion of seafood and directly and indirectly employed over 8 million people. Vietnam has over 2,000 miles of coastline, stretching from north to south, which provides a diverse range of fish habitats. Additionally, Vietnam has a large number of aquaculture farms, both inland and offshore. Please note that Cosmo Sourcing cannot source seafood.
This is not an exhaustive list; many goods not mentioned here can also be found here. If you are interested, I will review the list of Alibaba alternatives and suppliers’ databases to determine what products can be manufactured.
Where in Vietnam can you find products?
If you focus on a particular industry, the production tends to cluster into a specific region or industrial area. Therefore, Vietnam has established several industrial zones that promote free trade and specialize in specific industries. Additionally, Vietnam has established several Industrial Investment Zones (IZs) to encourage foreign direct investment. To date, there are over 220 Industrial zones and 16 Economic Zones.
These zones have several benefits for foreign investors:
10% tax rate locked in for 15 years
50% tax benefit for all employees
0 Corporate taxes for four years
50% discount on Corporate taxes for up to 9 years after the first four years
Additionally, there are specific benefits to encouraging certain industries to establish operations in Vietnam. First, we should note that Vietnam uses the terminology “Economic Zone” or “Investment Zone,” which is equivalent to a Free Trade Zone for all legal intents and purposes.
Where are these industrial zones?
While there are many, there are a few major ones to note:
Vietnam Singapore Industrial Park
They were founded in 1996 as a joint project between Vietnam and Singapore. VSIP started with one industrial park in Binh Duong, about 40 miles north of Ho Chi Minh City. Since then, they have expanded to several other major industrial parks. The others are located in Bac Ninh, just outside Hanoi and Haiphong, on the coast near Hanoi, and in Quang Ngai, central Vietnam.
Hiep Phuoc Industrial Park
Located in the Nha Be District of Ho Chi Minh City, Hiep Phuoc is a massive industrial park that maintains its port. The park contains over 200 companies.
Dinh Vu - Cat Hai Economic Zone
It is a massive 22,000-hectare free trade zone in the two provinces that bear its name. The Economic Zone is located on the coast near Hanoi and has three ports, including a deepwater port.
Dong Nai Industrial Zone Authority
It is located in Dong Nai, about 20 miles northeast of Ho Chi Minh City. The park has projects from hundreds of investors from over 30 different countries. The total investment in the park is over USD 7 billion. DIZA is very active in promoting the park, and if you are interested in setting up manufacturing in the country, you can reach out to them directly.
Cosmo Sourcing // Your Trusted Partner In Vietnam
Please email us at info@cosmosourcing.com
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 enable you to access new manufacturers that are not available in China, allowing you to 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.