Sourcing Handmade Bags & Purses from Vietnam: A short how-to guide

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Sourcing Handmade Bags & Purses from Vietnam: A short how-to guide

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There’s a lot of things happening in our global economy. And things move fast. As a business owner, whether you’re involved in manufacturing, sourcing or dropshipping, you have to stay ahead of your competition and do your best to predict changes in the global economy. For many decades, China has been the world’s factory – a great source of cheap labor, raw material and finished goods.

Thanks to China’s role in global manufacturing, most of what you own has a tag that says “Made in China.” But this is changing. China’s development from a third-world economy to the second largest economy in the world has shifted its role from manufacturing to becoming a service economy. In addition, this has resulted in rising costs in labor – which has increased the costs for businesses around the world. It also hasn’t helped that the US-China Trade War has increased the cost of business because of rising tariffs.

Now, big players like SamsungNike, Adidas and even Wal-Mart are looking to other countries for cheap labor. One of them is Vietnam. 

Why Vietnam?

Vietnam today is quickly becoming the new hub for global manufacturing, thanks to its low labor cost, strategic location with regard to seaports, and its stable political landscape and economy. Vietnam has a large potential labor force that is quickly moving from rural areas such as villages and towns, where work is scarce and typically involves farming, to big cities where wages are higher and work is more plentiful. 

Vietnam’s strategic location is also important. It shares a direct land border with China, so for international and Chinese businesses and their factories, the move isn’t as costly as moving an entire continent away. 

There’s a lot of products that can be found in Vietnam, as it has become a global exporter of finished goods, if you’re looking to source products outside of China because of rising costs or because of tariffs. Here’s a list of some of the top product categories:

  • Clothing & textiles
  • Bags & luggage
  • Electronics (PCB, 3D printing, CNC, etc.)
  • Jewelry
  • Product packaging
  • Footwear
  • Furniture

As you can see, there’s a lot that can be sourced from Vietnam, and more product categories are quickly joining the list as Vietnam’s manufacturing and economy continues to grow. If you’re looking for something more specific, for example, handmade arts & crafts – contact us and we’ll use our experience in sourcing to get you the best products available, and even help you design, develop and create your concept from scratch.

What’s the best shipping companies / freight forwarders?

Most of Vietnam is linked to the sea, so Vietnam is in an excellent position to use ocean freight to ship products all over the world. This has created a thriving market for shipping companies and freight forwarders that regularly work with business owners like you! While you don’t always have to work with a forwarder that’s located in Vietnam to ship your goods, it makes it much easier if you do. They know the country and know their business – and ultimately, that helps you. We’ll list some of our top freight forwarders and what transportation methods they offer.

  • Saigon Ocean: based in Ho Chi Minh (Saigon), the company offers sea and air freight, along with domestic transportation services. They’ll also help you with customs brokerage, consolidation solutions for multiple countries, and to facilitate exports and imports
  • Royal Cargo Vietnam: a subsidiary of the larger company established in the Philippines, Royal Cargo has branches in HCM, Hanoi and Hai Phong. Their expertise provides sea and air freight, along with domestic warehousing, logistics, and transportation services for heavy equipment
  • Tien Phong Trade and Transportation Services: based in Hanoi, Tien Phong offers sea, air, and land freight (between Vietnam and China), as well as warehousing and customs brokerage
  • JAS Vietnam: their offices in Vietnam will help you with sea and air freight, land and intermodal transportation, customs brokerage, consolidation and logistics
  • Head Way: with a head office in HCM, they provide services with sea and air freight, domestic shipping, and project cargo handling

Leading factories in Vietnam

While we covered a list of the top product categories in Vietnam, no how-to guide is complete without listing some of the best and well-known factories in each of those categories. Without going into too much detail and allowing you to do the due diligence, here’s a list of the top factories by product category. Of course, there’s many more factories in Vietnam with years of experience to be found!

Textiles

  • G&G II Garments Factory Vietnam
  • Fashion Garment Ltd.
  • Quickfeat
  • Vert Company
  • 9mode Clothing Manufacturer

Bags/luggage

  • Senda Vietnam Co. Ltd.
  • Domingo Bag Factory
  • Kowide Outdoors
  • EverWin
  • Hop Phat Bag & Garment Co. Ltd.

Electronics

  • Fab 9
  • East West Manufacturing
  • TC Group
  • Sunching Electronics Vietnam
  • Than Long SJC

Product packaging

  • Binh Minh Pa Packaging
  • Direct Imex (offers eco-friendly packaging)
  • Accredo Asia
  • Hanh Packaging
  • Cat Tuong Packaging

Footwear

  • Innolux Group
  • Dong Hung Group
  • Dong Luc
  • Hanoi Rubber
  • Kingmaker Group

Furniture

  • Minh Duong Furniture Corp.
  • Dewberry
  • Woodnet
  • Thinh Phu Furniture
  • Kaiser 1 Furniture Industry

Jewelry

  • Bien Bac Jewellery
  • Vietnam Horn Jewlery
  • Quoc An V.N. Co. Ltd.
  • Saigon Jewel and Accessories Co. Ltd.
  • Phu Nhuan Jewelry

Upcoming Trade Shows in 2019-2020

 

Transparency is key, so let’s be honest for a second. While this short how-to guide is meant to provide you with information on sourcing from Vietnam, assuming you have zero knowledge and are looking to shift sourcing from China, it isn’t the all-knowing and end-all article. While we list some of our top choices for product categories, factories and shipping companies/freight forwarders, you will still have to find what works best for you. After all, in any business, a partnership that is right for your business will help your business grow! 

So, how can you do your own research and find what works best for you and your business? Trade shows, of course! Trade shows are not only good for you to do your research and meet suppliers, factories, and even try our products first-hand, but they’re also good for making the connections and building the relationships you will need. Here’s a list of upcoming trade shows that will help you.

  • METALEX Vietnam (October 10-12, 2019)
  • PrintPack Vietnam (October 16-19, 2019)
  • HanoiTex (October 23-25, 2019)
  • Vietnam International Textile & Garment Industry Exhibition (November 20-23, 2019)
  • VIFA-Expo (March 11-14, 2020)
  • ProPak Vietnam (March 24-26, 2020)
  • SaigonTex (April 8-11, 2020)
  • LifeStyle Vietnam (April 17-20, 2020)
  • Vietnam Plas (June 17-19, 2020)
  • ETE Vietnam (July 2020 (TBA))
  • Vietnam Manufacturing Expo (August 12-14, 2020)
  • NEPCON Vietnam (September 9-11, 2020)

What are the top product categories in Vietnam?

HANDMADE, SUSTAINABLE & ARTISAN BAGS

Remember that fabulous bag you almost bought in that bustling market on that amazing trip?  Regrets.  We've found it, and it's here for you at Temples and Markets. Every product tells a story and your new Temples and Markets bag tells the story of the little things you kept close when you travelled through beautiful Asia.  Why choose ethical bags?  We believe in sourcing products as beautiful as the places from which they came - and there's nothing beautiful about an Asian sweatshop!  So we bring you the very best of Artisans and Emerging Designers who hand make the unique bags you'll find in our ethical Bags collection. 

A COLLECTION AS DIVERSE AS THE CULTURES THEY SUPPORT

Browse our exclusive collection of clutches, evening wear, cross body bags, everyday shoulder bags, roomy beach bags,  basket bags, exotic tribal bags, kids bags and laptop bags for men and women. But it's not just about the practical side of our beautiful collection - it's about design.  There's nothing worse than the same-same design in every store.  Your bag is a statement piece, don't let that statement be "average".  We bring you the latest on trend colours and designs - but with exclusive style.  Because you deserve to turn heads with fabulous things! 

ABOUT YOUR NEW FAVOURITE BAG

Every item in our collection tells a story.  It may be a story of environmental sustainability, of women's empowerment, of artisan families who pass crafts from generation to generation or of thriving design enterprises.  More than that it tells your story.  Every item is selected to take you back.  Back to that breezy resort.  Back to lazy days on pristine beaches.  Back to the bustling market places alive with the scent of street food. Take yourself back to that fabulous trip.  Whether it's a little batik chic, some contemporary leather-ware or exclusive designs from Valerie Cordier Bags of Hanoi or Malee Bags of Chiang Mai, your new ethical bag awaits.  Start drooling... shopping now.

Sourcing In India, China And Vietnam: Challenges And Opportunities

1. Product Selection 

 

  • China is the world’s largest export of “anything”, if you are planning to build a brand it's challenging to get registrations and brand protections.
  • India also produces a lot of things mostly medium quality mass-produced products for the domestic market and high-quality Handmade, unique products. Products for Living, giving and Dining, Artisanal wood, and Furniture, Home furnishings, Metalwork, Garment and textiles, Eco-friendly products, stationery, can find high-quality products in India (not just cheap (Mostly Low volume production)
  • Vietnam produces Handbags, clothing, clothing, textiles, purses, bag packs, belts, etc fabrics of all kinds, Wood- High-end furniture, Homeware, Kitchenware, Plastic products- PPE.

 

2. Quality 

 

  • China: From cheap to high end.
  • India: High quality and Expensive.
  • Vietnam: High quality and mix of expensive and moderately expensive.

 

3. Key materials 

 

  • China: Wide range - textiles (synthetic and natural), metals, electronics, plastics, rubbers, etc.
  • India: Natural materials - Artisanal wood (acacia, mango, teak), leather, metal (brass, copper, stainless steel (low end), wrought iron), organic cotton, jute, Eco-friendly materials     
  • Vietnam: Natural solid wood, electronics, steel and iron finished products and clothing and textiles- high end.

 

4. Labour cost 

 

  • China: Moderate (Min wage $327/ month) Low skill- focus on mass production.     
  • India: Low (Min wage $90/ month), highly skilled maker communities.     
  • Vietnam: Moderate-but lower then China. (Min wage $155/ month)- Moderate skill.

 

5. Minimum Order Quantity (MOQ) 

 

  • China: High - expect at least 500pcs/SKU    
  • India: Low - as few as 10 or 5K to $10k MIV (Min invoice value)
  • Vietnam: High - expect at least 200-500pcs/ SKU.

 

6. Factory Production Time and payment terms

 

  • China: Fast - production usually take a month to 75 days - 3-4 weeks by sea 30%-70% - 30% Down and 70% at time of shipment, people also work on Letter of credit.     
  • India: Slow -Takes 10 weeks and another month on the water to get to the port 30%-70% - 30% Down and 70% at time of shipment, people also work on Letter of credit6-12 Weeks.     30% down and 70%
  • Vietnam: Lead times- demand has gone up, wait for capacity opens up, components sourced from china zipper and locks etc. 4-6 weeks, ports in Vietnam are smaller.

 

7. Ease of source 

 

  • China: Moderate - Alibaba, trade shows like Canton fair     
  • India: Difficult - No simple online platform such as Alibaba; Delhi Fair, Sourcing companies, or CBP searches     
  • Vietnam: Prices are closer to real price, 50% are Vietnam owned.

 

8. Logistics 

 

  • China: Smooth and easy to monitor     
  • India: India's infrastructure (roads, rails, etc) is not as developed - expect delays and keep a cushion in hand.     
  • Vietnam: infrastructure (roads, rails, etc) is moderately developed since the country is small - Minor delays and keep a cushion in hand.

 

9. Tariffs 

 

  • China: 25%+     
  • India: 0-5%     
  • Vietnam: 0%, free trade agreement with the EU and Vietnam, also free trade agreement with Vietnam.

 

10. Language Barrier 

 

  • China: Low to Moderate - most suppliers have English speaking staff for ease of business. 
  • India: Virtually none - English is widely spoken in India     
  • Vietnam:Casual work culture.

 

11. Risks 

 

  • China: Risk of the product being copied quickly, risk of the product being sold by Chinese sellers are very skilled, most e-commerce sourcing from china has no Brand identity. Lack of transparency
  • India: Delays and longer lead times, potentially higher costs for higher quality products, need an inhouse member for executing the project. Lack of transparency
  • Vietnam: Few multi-skilled workers, Worker loyalty to factories is low, Lack of transparency.

 

12. Vacation time

 

  • China: Chinese new year     
  • India: Diwali and Eid and many others    
  • Vietnam: Lunar New Year, Tết, The Lunar New Year

 

13. Packaging facility

 

  • China: Very superior    
  • India: Medium to Low-quality packaging infrastructure     
  • Vietnam: Quality is great and have everything from cardboard boxes, soda cans, plastic packaging, and much, much more.

 

14. Top websites for meeting suppliers

China:

 

  1. Alibaba. https://www.alibaba.com 
  2. DHgate. website: https://www.dhgate.com  
  3. Global Sources. https://www.globalsources.com 
  4. Made-in-China: https://www.made-in-china.com 
  5. DHgate: https://www.dhgate.com 
  6. GlobalSources: https://www.globalsources.com 
  7. Hktdc: https://sourcing.hktdc.com
  8. 1688: https://m.1688.com

 

India: 

 

  1. Indiamart: https://www.indiamart.com 
  2. Tradeindia: https://www.tradeindia.com 
  3. Alibaba:  https://www.alibaba.com 
  4. ExportersIndia : https://www.exportersindia.com
  5. Connec2india:  https://connect2india.com
  6. DHgate:  https://www.dhgate.com 
  7. eWorldTrade : https://www.eworldtrade.com 
  8. Global Sources: https://www.globalsources.com

 

Vietnam: 

 

  1. Alibaba: alibaba.com/vn 
  2. Vietnam Export: en.vietnamexport.com 
  3. Vietnam Manufacturers: vietnammanufacturers.vn/en 
  4. VTown : vtown.vn/en 
  5. VietnamAZ : vietaz.com 
  6. VietnameseMade :vietnamesemade.com 
  7. VCCI News : vccinews.com 
  8. Global Sources : Globalsources.com

 

15. Scalability and Flexibility 

 

  • China: Very High but not flexible.     
  • India: Low to Moderate, highly flexible
  • High: Very High and moderatly flexible. 

 

16. Brand recognition

 

  • China: Very High     
  • India: High and oppurtunity for great story telling
  • Vietnam:High

 
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