Vietnam Sourcing Service

Vietnam Sourcing Service

Reading This article You will learn about Vietnam product sourcing- And will be explained should do direct import from Vietnam manufacturers or shoud go through a Sourcing agent.

This is a Case-Study when we sourced furniture products for a US company in 2020, it highlights advantages and pricing differences between many factories.

Be specific: the US company wanted to order 2 outdoor bench items And here is the table you can easily compare the FOB pricing quotation of each factory:

Factory AFactory B
Bench 155$/pcs79.5$/pcs
Bench 279$/pcs52$/pcs
(Required: NonFSC Acacia wood, joint finger, FOB pricing quotation, KD packaging, make sample and send out to the US).


So instead of ordering all items in one factory, should order Bench 1 from Factory A and Bench 2 from Factory B, It WILL BE A HUGE SAVING. By end of this article you will understand why the item pricing of each factory is widely different.

HIGHLIGHTS:

Overview about Vietnam Product & sourcing (Click)

-Vietnam vs China furniture who is better? in terms of price and quality

-Vietnam furniture factories

-Vietnam most desirable products seeked worldwide

-Sourcing fee table


1. Overall about Vietnam furniture:

Vietnam has become an emerging star in South Asia with annual GDP growth 7% per year.

Vietnam major export: Electronics, Furniture, Garment, footwear, agricultural products in which Vietnam furniture is the most desirable product seeked from worldwide in recent years. Here are some reasons:

  • On Google data, keyword search relating to furniture is so huge worldwide: “vietnam furniture”, “vietnam outdoor furniture”, “vietnam bamboo furniture”, “outdoor bench”, “wooden swing”, “wooden door”, “furniture company in Vietnam”, “furniture factory in Vietnam”, etc.
  • Although the Pandemic Covid-19 but Furniture export from Vietnam in 2020 is increasing 14% compared to 2019
  • As we know by our own data, as the time we were an outdoor furniture sourcing agent for a leading importer and retail company in the US (www.Bondmfg.com) in 2019 and 2020, Bond seeks furniture from Vietnam other than China because the price in Vietnam is more competitive and higher quality than that in China. We can easily find the reason: labor cost in Vietnam is cheaper more than half in China, Vietnam with millions of hectares of wood forest and ready raw material source: Acacia, Eucalyptus, pine, sapele, ash, iron wood, etc. While China never has the same thing, we will explain detail below.
  • Vietnam signed more than 18 FTAs with developed countries: EVFTA, CPTTP, VKFTA, VJEPA, AFTA, etc that will bring tariff of importing countries to almost 0% to products from Vietnam and here is reason which helps Vietnam export boosting (Please read more: EVFTA: protential for manufacturing in Vietnam, Pros and Cons of manufacturing in Vietnam)


2. Vietnam vs China furniture who is better? in term of price and quality:

As we were an outdoor furniture sourcing agent for a leading importer and retail company in the US (www.Bondmfg.com) in 2019 and 2020, Bond seeks furniture from Vietnam other than China, not only Bond, many leading importers from EU and the US are doing the same. We acknowlege that most products from China are cheapest on Earth (except products relating to Wood) We will show you why:

-China focusing on high tech, recent years China government gives more incentives to technology company instead of bulky and low profitable companies like Furniture, Agriculture, etc.

-Labor cost in China is more and more expensive, now more than double in Vietnam

-Wood forests in China are almost exhausted after years of unmerciful havesting during the time China was a developing country

-Find wood providers from China on Alibaba.com, we always find wood products there is 1.3 to 3 times more expensive than the same one in Vietnam. For example:


CHINA SELLER QUOTATION ON ALIBABA (2020)
Material: south pine wood
Use: outdoor
Dimension:1650x660x870 mm
Oil coating
Min Order: 100 pcs
Price: $172/pcs (EXW price)
Lead time: 1 month

VIETNAM SIMILAR BENCH QUOTATION (2020)
Material: Acacia or Eucalyptus wood
Dimension:1650x660x870 mm
Use: outdoor
Oil coating or PU painting
Price: the 1st is $55, the secconde is $79/pcs (FOB price)
Lead time: 35 days
Mind order: 1 20 feet container

CHINA WOODEN DOOR QUALITY
Material: Laminated pine wood, and hardwood finger jointed core (mixed wood
Dimension:762x1981x42 mm
Use: inside
No oil coating
Price: $38.5/swing (EXW price)
Lead time: 35 days
Mind order: 100 pcs
Manufacturer: Qingdao Fuluoruisi international

VIETNAM WOODEN DOOR QUALITY
Material: Pine wood (100% solid)
Dimension:762x2302x42 mm (customizable)
Use: inside
Price: $33/swing (EXW price)
Lead time: 15-25 days
Mind order: 20 feet container

Note: all information from China sellers is public to buyers, we do not try to violate information secret term


3. Vietnam furniture factories:

Vietnam wood factories spreading

As years of sourcing Vietnam wood products for international importers, we would like to reveal a secrete that never revealed before by any media.

We categorize all Vietnam furniture factories into 3 places: North, South, Middle. Each place with its particular advantage, like, price competition, capacity, wood source, etc. For example:

In the South and Middle: the advantage is imported pine wood source, oak source, eucalyptus, etc. Many modern-big factories and mostly located in Binh Duong, Long An, Dong Nai province and credited up to 75% of the whole country’s wood export production.

Major wood products: Sofa, bed, Bench, Swing, outdoor furniture or good customizable products with high tech machine

If you want to order product from here, it normally requires very high order quantity and order a few months in advance.

Now is April but all big factories are now full capacity till end of the year.

Vietnam wood factories normally not prefer online platforms, they prefer market shows and also because there are many return customers.

In the North: the scale of wood factories in the north is very small to the South and Middle but increasing and the advantage in the north is ready abundant Acacia wood source, harvested locally. As acknowledged by Bristish navy in 18th century: “Acacia as a durable and valuable wood, being used for a variety of products such as tree nails, ship posts, beams, cogs, and, of course, furniture”

Acacia wood in the north is very cheap, we think, cheapest in Asia, Acacia timber wood is around $300/cubic meter. So factories in the north producing very competitive acacia wood products, like, bench, outdoor wood interlock deck, chat table set, door, indoor wooden floor deck, etc.

And order factories in the North is easier than in The South and Middle.

BIG Tips: As explained above, it easily to understand that: the same product (like outdoor acacia wood bench), if you order it in the South or Middle price up to FOB $79/pcs, if order in the North price is only FOB $55/ pcs.


4. Vietnam most desirable products seeked worldwide:

-Garment and footwear

-Agriculture product and seafood

-Outdoor furniture: bench, swing, tile interlock deck, wicker set, etc

-Indoor furniture: Sofa,door, wood deck, cabinet, etc

-Decor: lamp, balcony decor



If you have any question, please do not hesitate to contact us, +84 385 080 160 (WhatsApp)

5. Pricing service fee and the process

Flat ratedue at beginningremainder
Sourcing-Per Product Fee$ 999$349$ 650

We do the sourcing process in 4 steps – Validation-Full Sourcing-Quality Check-Ensure delivery.

  1. With Validation, our goal is to determine if your product can be made in Vietnam and if it does meet your quality and pricing.
  2. Once it passes the Validation, we move to the full sourcing phase in which we start by making an extensive list of potential suppliers, usually targeting about 100. We pre-qualify them to a shortlist typically aiming for about 30. From those prequalified factories, our team reaches out to every single one, both by email and phone, to get quotes. From that, we organize all the quotes for you and give you recommendations on which ones we think are the best for you. Ultimately though, this is your decision, and you choose the one you are most comfortable as a partner. Throughout the whole process, we provide access to a Google Drive folder so you can see the process live and get the full contact information of all considered suppliers.
  3. Supervise the production, arrange inspections, work with freight forwarders, and more.

Contact WhatsApp: +84385080160


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