Vietnam rediscovered as new manufacturing country
27 October 2022
More and more entrepreneurs are looking at Vietnam as an interesting option for manufacturing. Whereas China is still battling with lockdowns on a regular basis, Vietnam’s economic market has been known as strong and solid for a while now. What’s more, tariff preference has been in place for a number of years too – presenting interesting opportunities for importers. What do you know about the Vietnamese market?
Can Vietnam steal China’s crown?
You could think of it as a shift. Unfortunately, China’s many lockdowns are the spanners in the works: seen as one of the causes of the current slowdown in China’s economic growth. The lockdowns also create a constant need to anticipate unexpected factory closures, causing unwanted inconsistencies in shippers’ supply chains.
Shippers are critical, and rightly so, and ask themselves what they can do to spread the risks. After all, standing around empty-handed is not an option, and looking for a different manufacturing country seems like a logical step. And why wouldn’t you look into the stable trading market in Vietnam, where you can take advantage of tariff preference to boot?
The stable market, tariff preference, free trade and other advantages
Vietnam is known for its stable market of supply and demand. In addition, there are several other major advantages to manufacturing in Vietnam. The relatively low (wage) costs and the tariff preference, or (partial) exemption from paying import duties, make importing from Vietnam interesting for many importers.
In order to further boost trade with Vietnam, the European Union signed a free trade agreement in 2020. In this, economic interests are paramount. As well as creating more jobs and economic growth, there is a focus on better working conditions, human rights, and the environment.
You do need a REX declaration to benefit from this interesting scheme, arrange this declaration with your supplier. Please ensure that the required REX declaration meets the requirements, so you can prevent unnecessary delays, customs checks, and fines.
Ritra Cargo has worked with a local, reliable agent for many problem-free years. Our agency operates under European management, and they have offices in the country’s main manufacturing locations: Hanoi and Ho Chi Minh City.
From the very first moment of ordering to final delivery at the end destination: you can rely on a well-organised process, all managed by a single contact person – exactly as you have come to expect from us.
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