Vietnam is quickly becoming a serious manufacturing alternative to China, especially for American importers caught in between the US-China trade war. That said, Vietnamese suppliers are not as easy to find on Alibaba.com or Globalsources.com.
As such, many importers turn to Vietnam-based sourcing companies, with local knowledge and supplier networks. In this article, we list some of Vietnam’s leading sourcing agencies, most of which are located in Asia’s fastest-growing manufacturing hub – Ho Chi Minh City.
Listed Companies
- Tactical Sourcing
- AGS Vietnam
- Create Global
- Sourcify (Vietnam)
- Seditex
- Dragon Sourcing
- Modern Sourcing
- Vietnam B2B Direct
- Source of Asia
- Vietnam Sourcing
- Vietnam Sourcing Team
- V&S Sourcing
- Vietnam Sourcing Supply
- Vina-Concepts
Do I need a sourcing company when importing from Vietnam?
You can of course attempt to source Vietnamese directly, using Alibaba.com or even a Google search. However, Vietnamese suppliers tend to have a rather small online footprint, making them harder to find. Those that do have a larger online presence tend to be larger suppliers, which tend to have little interest in working with small buyers.
Vietnam based sourcing companies can bridge that gap, using their local network and expertise to match you with a qualified supplier. We’d say that, on average, sourcing agents provide more value in Vietnam, compared to more developed manufacturing countries like China.
What can a sourcing company do for me?
Their primary objective is to identify local manufacturers, qualified to make your product. In addition, sourcing agents should provide the following information about each supplier:
- Price
- Sample cost
- Production time
- MOQ Requirements
Further, the sourcing company should also provide information about the manufacturers:
- Company name
- Contact person (name, email, and phone)
- Office address
- Factory address
- Company certification (e.g. ISO 9001)
Sourcing companies refusing to provide supplier information are not actual sourcing companies, but traders. There’s a big difference between the two. Further, sourcing agencies don’t stop at supplier introductions. In most cases, they provide the following services:
- Factory tours
- Trade show tours
- Quality control
- Supplier background checks
- Lab testing (via a third party)
- Logistics (via a third party)
Some companies offer these services as an all-inclusive package, while others charge based on project milestones or individual services.
How do I find the best Vietnam sourcing partner?
This depends on your products and buying power. Here are some things you should take into consideration before selecting a partner:
Main Products: Most sourcing companies are specialized to a certain extent. For example, Tactical Sourcing is primarily geared towards bags/luggages, while Create Global is all about home and furniture. For obvious reasons, this also shapes their local supplier network – and therefore their ability to help you find a qualified manufacturer. The first thing you need to consider is, therefore, their product focus.
Local Office: Some sourcing agents operate as freelancers, without having an actual office or company entity in the country. While that doesn’t necessarily make them any less qualified, We recommend that you ask if they have an actual business operation in Vietnam.
Minimum Order Volumes: Some sourcing companies are willing to work with smaller buyers, while others exclusively work with major brands and retailers. You’re always better of working with an agency that values the business you bring.
Transparency: Some sourcing agencies act more like trading companies than procurement service providers. Don’t forget to ask them if you’ll be buying directly from the factory, or if you’re actually buying the products from the sourcing company.
Can I buy directly from factories in Vietnam?
Yes, there’s nothing stopping you from buying directly from factories instead of going through a sourcing agency. But, keep in mind that it’s much harder to find verified company data in Vietnam compared to China – assuming you can even find suppliers online in the first place.
Your other option is to send someone from your team to attend trade shows and factories in the country. That said, this can cost more than the commission you’d otherwise pay a sourcing agency.
Why are most sourcing companies based in Ho Chi Minh City?
Ho Chi Minh City, also known as Saigon, is Vietnam’s commercial epicenter. The city is currently one of the world’s fastest-growing export manufacturing and logistics hubs. This trend is set to increase, as we see more of our customers in the United States, Europe, and Australia coming to Ho Chi Minh City, looking for alternatives to China.
That said, there’s a lot of manufacturing in the middle and northern parts of Vietnam, all within close reach of the Ho Chi Minh city-based sourcing agencies.
How do sourcing companies in Vietnam make money?
Some companies, such as Tactical Sourcing, offer a range of flat-rate services, such as supplier introductions. Sourcing agencies also offer other cost models, including the following:
- Project-based pricing (installments)
- Order value commission (%)
- Recurring monthly service fees (ongoing procurement services)
- Flat rate services fees (quality checks, RFQ support, etc)
It’s common that sourcing agencies require smaller companies to pay an upfront fee, before starting a new project – while offering commission-based pricing to larger companies and their established clients. Some agencies also charge a flat-rate fee if the order value is below a certain threshold.
The TSC team,
