In this issue of Vietnam Briefing Magazine:
- Deciding on Your Sourcing Partner
- Understanding Vietnam’s Sourcing Models
- Choosing the Right Sourcing Model
- Op-Ed: Vietnam as the Ideal Sourcing Destination
The newest issue of Vietnam Briefing Magazine, titled “Developing Your Sourcing Strategy for Vietnam,” is out now and available as a complimentary download in the Asia Briefing Bookstore from now through the month of July.
Rising costs throughout the Asian region, and in China particularly, are driving businesses to look elsewhere for their sourcing partners. Vietnam has emerged as a prime location for foreign companies seeking lower cost sourcing options.
The country stands out as an ideal location for sourcing for a number of reasons. Key among these are Vietnam’s plentiful supply of cheap labor, low business expenses, political stability, and growing domestic consumer market. The country also has substantial tariff, tax, and quota advantages for a number of products due to the country’s inclusion in numerous free trade agreements. Vietnam also has a number of strategically located industrial parks that investors can take advantage of.
In fact, the economy of Vietnam has been described as a “sourcing economy” since so many companies are now choosing to source their products within the country. A prime example can be seen with regards to the textiles market – 70 percent of the garment industry in Vietnam is dedicated to sourcing.
In this issue of Vietnam Briefing Magazine, we outline the various sourcing models available for foreign investors – representative offices, service companies and trading companies – and discuss how to decide which structure best suits the sourcing needs of your business. Perhaps the most important factors to consider when choosing a sourcing structure are your staffing requirements, your need for operational flexibility, and which option offers the greatest cost efficiencies. In this issue, we compare how each of these factors match up with the available sourcing platforms in order to help foreign businesses find the best option for their specific sourcing needs.
Developing Your Sourcing Strategy for Vietnam is out now and immediately available as a complimentary PDF download in the Asia Briefing Bookstore.
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email vietnam@dezshira.com or visit www.dezshira.com.
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