What Products are Made in Vietnam - Vietnam Product Manufacturing and Sourcing
Are you looking to source from Vietnam but you’re not sure what’s made there? Want to know more about the manufacturing landscape of Vietnam? We made this guide so that you can understand Vietnams industry better and be more prepared when you source product from Vietnam.
Vietnam is a great place to source products, assuming that your product can be made here. While Vietnam has a massive industrial base that still rapidly growing it still doesn't cover every industry like a certain country to the north. The good news is, that if your product is made in Vietnam that it will likely be cheaper or of a higher quality than the same product from China. In fact, many people are finding that products can be cheaper AND better in Vietnam. We’ll go over what products can be made in Vietnam.
Popular products made in Vietnam
Clothing and Textiles
Vietnam produced and exported over $30 Billion in textiles and clothing in 2017 and is experiencing over 10% growth a year in the industry. Several large companies do a bulk of their manufacturing here. Patagonia and The North Face do a bulk of its production in Vietnam, as well as H&M, Uniqlo, Gap, J.Crew among many others. Vietnam is also leading the way in sustainable manufacturing practices in the industry. Next tie you buy a shirt or clothing item check the label to see where it is made, there’s a good chance it’s made in Vietnam.
Vietnam is one of the largest manufacturers of shoes in the world and has the largest export capacity in the world. Vietnam produces over $12 Billion worth of shoes a year and is growing fast. In addition over 90% of the shoes that are produced in Vietnam are exported overseas, which is the highest rate in the world by far. Vietnam isn’t limited by whose style either. Nike, Adidas, and many other brands have a huge manufacturing presence here. The output ranges from high-end leather shoes and Sneaker to cheap flip flops and everything in between.
Consumer goods, which is admittedly a very broad category, is Vietnam's largest industry. In 2017, Vietnam exported over $70 Billion dollars worth of products classified as consumers goods. Consumer goods are basically anything that ends up being used by an end consumer (as opposed to a business). For FBA sellers this is good news since most of what is already sold on Amazon is classified as a consumer good.
Plastic and rubber goods
Vietnam exports over $5 Billion a year in Rubber and plastic goods. Most of these tend to be basic consumer goods such as rubber dog toys to sunglasses. Vietnam has a large capacity to produce goods. The most common method is plastic injections, but you can find any methods here including plastic extrusion and plastic welding. Rubber manufacturers in Vietnam are easy to find and can cover all rubber needs such as extrusion, latex dipping, molding, and calendaring. If you are sourcing a product or components made of Rubber or Plastic than Vietnam is a great option for you.
Vietnam is currently the second largest manufacturer of furniture in the world, behind only China. However, Vietnam is the fastest growing manufacturer of furniture in the worlds while Chinese furniture production is decreasing. Vietnam's furniture industry is very diverse ranging from high-end custom made wood furniture to small boutique shops. Companies like IKEA, Ashley Furniture, West Elm and more manufacture furniture in Vietnam.
Vietnam is one of the world's leaders in packaging. Packaging that can be manufacturers in Vietnam ranges from cardboard boxes, soda cans, plastic packaging and much, much more. Vietnam exported over $1.7 Billion in packaging. Packing includes but isn’t limited to the food and beverages, cosmetics, pharmaceutical, bottling and beverages, barcoding, printing, and labeling industries. In addition, ProPak Vietnam is the largest trade show for packaging in the world and is held every march in Ho Chi Minh City. If you want to create a high-quality custom packaging then Vietnam would be a great place to look.
Vietnam is the world's second largest exporter of coffee in the world by volume, exporting over 1.3 Million tons in 2012. It should be noted that 97% of the beans are Robusta beans and not the higher quality of Arabica beans. Nonetheless, Vietnamese coffee farmers are quickly improving their quality and targeting the specialty coffee market. Vietnam's coffee industry already has several major players and exports to almost every major country in the world. Exports totaled 1.55 Million tons and Cosmo has a dedicated team for sourcing coffee.
Vietnam has several major electronic companies that have major manufacturing in the country, such as Samsung, LG, HP, Canon, Foxconn, and many more that have major operations in the Country. Most notably Samsung makes the majority of it’s Galaxy Smartphones in Vietnam and by itself exports around $58 Billion USD worth of goods a year from Vietnam. Vietnam has the capability to make integrated circuits, Smartphones, Cameras, Televisions and much more. Intel has a large manufacturing presence as well. The main appeal of Vietnam 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 their skilled labor force to not just compete with China but almost anywhere else in the world for high tech manufacturing.
Vietnam has a very large and dynamic construction material industry. The types of materials that can be found in Vietnam range from cement to steel supports. As well as screws, bolts, fasteners, rebar. Construction materials exports are right at $2 Billion a year.
Vietnam exports over $5 Billion in finished wooden goods a year. Most of this is focuses on Furniture but includes goods for industrial uses such as wooden reels and handles for tools such as shovels. Vietnam has a huge amount of access to high-quality hardwoods and the manufacturing capability to make high-end finished goods.
Iron and Steel
Iron and steel is one of Vietnam's fastest growing industries, growing at a staggering rate of over 20% a year for almost a decade now. Vietnam is the largest consumer and producer of steel in South East Asia. Vietnam has a capacity to make over 16 million tons of steel a year and over 5 million tons of Iron. 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.
Vietnam is currently the third largest exporter of Seafood in the world, behind Norway and China. Vietnam Exported $5.8 Billion USD of seafood and employees directly and indirectly over 8 million people. Vietnam has over 2,000 miles of coastline that stretches north to south, allowing it to have a large diversity of environments to fish. In addition, Vietnam has a large amount of Aquaculture farms that are built inland as well in the ocean. Please Note that Cosmo Sourcing does not have the capabilities to source seafood.
This is by no means a complete list and many goods that I have not mentioned can be found here. If you are interested, I would look at the list of Alibaba alternatives and suppliers databases to see about what products can be made here.
Where in Vietnam can you find products?
If you are focusing on a particular industry, then the production tend to cluster into a particular region or industrial area. Vietnam has set up a few industrial zones that promote free trade but also focus on a particular industry. In order to encourage Foreign Direct Investments, Vietnam has set several up Industrial Investment Zones (IZ). 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 4 years
50% discount on Corporate taxes for up to 9 years after the first 4 years
In addition to this, there are some specific benefits to encourage certain industries to set up in Vietnam. It should be noted that Vietnam uses the terminology Economic Zone or Investment Zone, but that for all legal intents and purposes is the same as a Free Trade Zone.
Where are these industrial zones?
While there are many there are a few major ones to note:
Vietnam Singapore Industrial Park - http://www.vsip.com.vn/
Originally founded in 1996 as a joint project between Vietnam And Singapore. VSIP started with one industrial park located 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 of Hanoi and Haiphong, located on the coast near Hanoi, and Quang Ngai in central Vietnam.
Hiep Phuoc Industrial park - https://www.hiepphuoc.vn/en/
Located in the Nha Be District of Ho Chi Minh City, Hiep Phuoc is a massive industrial park that maintains its own port. The park contains over 200 companies.
Dinh Vu - Cat Hai economic zone - http://haiphongdpi.mn.com.vn/en/
Is a massive 22,000 Hectare Free trade zones that are located in the two provinces that bear its name. The Economic zone is located on the coast near Hanoi and has 3 ports, one of which is a deepwater port.
Dong Nai Industrial Zone Authority - http://diza.dongnai.gov.vn/en
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 $7billion USD. 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 VIETNAM SOURCING COMPANY
If you’re looking for a partner in Vietnam then check out Cosmo Sourcing. If you are interested feel free to reach out to me at firstname.lastname@example.org or ask me any questions you may have. Cosmo has been sourcing in Vietnam since 2014 and has worked with several clients to find products, partners, and suppliers. Cosmo is one of the only Sourcing companies that have expertise in both China and Vietnam and can actively source and compare products in both countries. Thanks for reading and we look forward to working with you!