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Sourcing in Vietnam

Overcoming Common Sourcing Challenges in Vietnam

Most companies sourcing from Vietnam for the first time run into the same handful of problems, and almost none of them are about the country itself. They are about how the relationship with a supplier got started, and what got skipped along the way.

The factory-or-trading-company question

A significant share of “factories” that respond to sourcing inquiries are actually trading companies that subcontract production to one or more real factories and add a margin in between. That is not automatically a problem, some trading companies genuinely add value, but you need to know which one you are dealing with, since it changes your pricing, your minimum order quantity, and your ability to push for direct quality changes on the line.

The language and communication gap

Email and video calls can make a supplier relationship feel more established than it actually is. Specs get lost in translation, “yes” sometimes means “I heard you” rather than “I agree,” and a sample approval process handled entirely over email misses details that only show up in person. This is where a lot of quality mismatches originate, not in the factory’s capability, but in what actually got confirmed before production started.

The incentive problem

Many sourcing agents and consultants in Vietnam are paid by the factories and partners they introduce you to. That quietly shapes who gets recommended, and it means their incentives are not always aligned with yours. It is worth asking directly how an agent gets paid before trusting their recommendation.

How we handle it

We verify whether a supplier is a factory or a trading company before you commit, confirm specs and samples in person rather than over email, and work exclusively for our clients with no commissions from factories. That is what lets us tell you when a supplier is not a good fit, even when that is not what you want to hear.

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