By admin       2018-05-24

Because of the uncertainty over China, supply chain managers in the US are considering a backup plan and eyeing Vietnam as an alternative sourcing destination. US businesses are sourcing more products and goods from Vietnam, with imports doubling in the last five years. The top products sourced from Vietnam include furniture, textiles, tires and electronics. But even before the tariff tit-for-tat with China, many companies were looking to Vietnam over the past few years as another place to source goods. Exports from Vietnam to the US totaled 46 billion dollars last year, and that figure is expected to rise to 51 billion dollars by the end of this year. There are quite a few reasons the Vietnamese market is appealing for businesses. It's one of the world's fastest growing economies. The country is open to foreign investment and strives for transparency and ease of doing business. Its strategic location positions the nation as central to several of the world's main shipping routes. But sourcing from Vietnam doesn’t come without risk. The quality of suppliers is not very high. Vietnam's evolving economy continues to have issues with sustainability and unsafe or forced labor. What sourcing managers importing goods from Vietnam are looking for is transparency. They feel that as long as suppliers are transparent, the benefit definitely outweighs the risk.

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