Regarded by many as the world’s factory, China is no longer as cheap as it used to be for some manufacturers and buyers. Prompted by rising wage demands, buyers from across the globe are looking for greener pastures – new sources of manufacturing that can help them maintain and increase their margins. Southeast Asian, especially Vietnam, has come to the forefront as the next destination for low-cost labor. With the growing popularity of manufacturing, InTouch has begun inspections in Vietnam as well.
Vietnam as an Emerging Manufacturing Hub
Similar to what began in China decades ago, Vietnam is experiencing rapid economic development. In addition to offering a growing labor force and lower wages, the country’s open government and geographical position make Vietnam an ideal alternative for production.
All these advantages of Vietnam attract both companies that used to work with China and those new to Asia. According to a 2013 Investment Climate Statement by the U.S. Department of State, around USD $10-11 billion in foreign direct investment were brought to Vietnam from 2008 to 2013. Additionally, manufacturing in Vietnam increased by 8.6 percent in the first 9 months of 2014 compared to a year earlier.
Inspections in Vietnam
You may be in the process of moving production from China to Vietnam. Whether you’re carrying out inspections in Vietnam yourself or traveling to visit a factory there, you might be surprised at what you find. Many factories in Vietnam are owned and operated by Taiwanese, Hong Kong or Mainland Chinese nationals. Even many of the mid-level managers in factories in Vietnam are often foreigners from these areas. As a result, you’ll find that you won’t need Vietnamese language skills in order to communicate. Most factories have employees that are able to communicate in English and Chinese.
Vietnam’s entry into the industrialized world economy has not come without growing pains. The demand for better quality control in Vietnam has never been greater. To meet this growing need, InTouch has started inspections in Vietnam. Since July of last year, InTouch has been inspecting products in Hanoi, Ho Chi Min City and other areas. InTouch now has a team of inspectors located throughout several major cities in Vietnam and is expecting to build that team further in 2015.
So if you’re placing an order with a supplier in Vietnam and product quality is on your mind, drop us a line, we can be your boots on the ground there, too! Let the professionals at InTouch handle inspections in Vietnam on your behalf.