Hanoi Group / Sourcing Division’s mission is to assist foreign clients to successfully implement global sourcing projects in Vietnam, which was selected the top manufacturing destination by Pricewaterhouse Coopers, which ranked 20 key emerging markets and found that for manufacturing companies looking to invest overseas, Viet Nam was the most attractive destination.
Intel's announcement to invest $600 million in an assembly and test facility in Ho Chi Minh City seems to have opened the floodgates for the rest of the industry to set up shop. Foxconn has begun the first stage of $5 billion project in manufacturing of electronic parts.
The trend can also be experienced with small and mid-sized foreign manufacturers also shifting production from their homeland and even from China to Vietnam due to recent impending labor shortages, increasing wages and anti-dumping policy applied for specific products imported from China by developed countries. Traditionally Vietnam has been an ideal location for low cost labor supply. And recent study also revealed that Vietnam is currently showing the lowest fully burdened labor rate in an educated workforce.
In the past few months we notified a trend of manufacturing base shift from several countries, including China to Vietnam for products of several labor-intensive sectors:
Metal and metal product manufacturing (mechanical engineering) Hand-made and semi-hand-made production Traditional handicraft Packaging Woodworking Plastic industry Textile and garment industry Electronic ware manufacturing
For Hanoi Group it is existential to (1) be close to the manufacturing source and (2) understand the local culture and customs. With our experience sourcing team consisting of local experts with international expertise, we differ significantly from international experts with expertise acquired in Vietnam.
