Outsourcing to Vietnam
From software to manufacturing or textile, Vietnam has become one of the favorite outsourcing destination in the world. Why are so many international brands outsourcing their production to Vietnam ?
It is in fact a mix demographic, political and economic factors
Let´s go through them:
- Economic growth
- Over last 10 years, Vietnam economical growth has been the 2nd fastest behind China at an average pace of 6.4% per year while the inflation was stabilized around 4.5%
- Asian Development Bank (ADB) ranked Vietnam as one of the fastest-growing economies in the world since 1990.
- Strategic location
- Vietnam is in the heart of Asia, a great HUB for shipping to US, Asia or Europe
- A population of 95M +
- Golden population structure
- 40 % population in the 15-24 age bracket
- Young, skilled and stable workforce base
- Adapt quickly to western standards
- Reliable and hard working
- The government and private stakeholders are working hard on further up skilling the local workforce
- Vietnam is an excellent choice combining affordability, competency and flexibility
- Minimum batches and order quantities are way more flexible compared neighbor countries such as China
- This is a major advantage for SMEs placing smaller orders
- Unique political stability
- Vietnam is known as the most stable Asian emerging country
- FDI welcoming country
- Vietnam has a strong incentive policy to boost foreign direct investment
- US Dollar based economy
- The VND rate is indexed to the dollar
- Free trade agreement
- Vietnam is actively negotiation and signing free trade agreement with partners worldwide
- ASEAN Member
- Since 1995
Main outsourcing opportunities in Vietnam are:
- mechanical engineering
- machinery assembly
Free Trade agreements
FTA with the EU
- The European Union and Vietnam reached an agreement on the EU-Vietnam Free trade agreement resulting in the first FTA of its kind between the EU and a developing country.
- Under the FTA, import tariffs of many goods categories from Vietnam into the EU are reduced to zero at entry.
- By 2025 all major trade barriers between EU and Vietnam will be removed
- Trade deals come to effect in 2018
FTA with Russia
- Vietnam is member of the Eurasian Economic Union trade agreement along Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan.
- The VN-EAEU agreement took effect in October 2016
- Under the agreement, 90 per cent of tariff lines have been cut or reduced. Of that amount, 59 per cent of tariff lines were removed right after the agreement took effect
- In the apparel and textile sector, import tariffs are cut from 10 to 0%.
- Vietnam currently exports about $320 million worth of apparel each year to Russia. Thanks to the agreement, this figure is believed to reach $ 1 billion within next years
Our outsourcing services
Search, benchmark and select your outsourcing Partners to be visited jointly
Turnkey solutions to host and manage your local staff and provide working premises, including HR and payroll services.
Sourcing of your standard apparels such as socks, shirts, jeans etc.
We can operate as your IPO, handling all your orders from negotiations through sampling, production orders QC and delivery survey up to packing of containers.
The outsourcing partner you need in Vietnam
From North to South, Nordesk offers reliable outsourcing support services in Vietnam.We have experience working with companies from several industries such as manufacturing, clothing… In different roles from classic partner search to quality control officers.