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Why Vietnam?
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Why local sourcing agent?


Mekodexim is an independent sourcing company. For the past ten years we have developed a deep and thorough expertise in Vietnam manufacturing across multiple products categories. Recruiting our services, Buyers will have a supplying network set up and run efficiently and sustainably at minimized cost in Vietnam; no longer be worry about wrong shipments, misunderstanding claims, disruption in supply; will be compensated adequately for any breach from suppliers.

Our services include:

  • Manufacturer / supplier identification & selection
  • Product costing, sample making & purchasing negotiation
  • Production & schedule monitoring, QA & QC
  • Shipment consolidation
  • Assistance in buyer's visits
  • Trading partner

Our services are direct to bring clients to access original source of supplies which result in more transparent control over production and quality, and thus more reliable outcome. We operate with our Buyers’ best interest at heart, look to drive the best possible value in Buyers’ supply chain. Our goal is to become an extension of Buyer’s own operations at a lower cost and higher efficiency.

Why Vietnam?

Vietnam is becoming increasingly attractive and emerging as a serious alternative to other traditional sourcing hubs. There are a number of key advantages that make Vietnam stand out from the rest of Asia when the movement out of China is foreseeable:

- Stable political environment and strong commitment of government to country's growth.

- Low labor costs: 50% in comparison to China and 40% to Thailand and Philippines.

- Workforce: young, high literate, willing to learn and high skill with annual increase of 1.5 million people.

- Better on quality control than its competitor Chinese companies and also are definitely better in protecting intellectual property (IP - patents, trademark, etc.).

- Strong work ethic and high commitment to quality.

- Working conditions and social welfares are judged to better than other cheap-labor countries (Bangladesh, Myanmar, Cambodia). After serious scandals of bad conditions in Bangladesh, India, China...  labor treatment has been more concerned in sourcing strategies.

- Easy to access to deep seaports.

- Available small to large production runs.

- Favorable trade polices: FTA with ASEAN, EU, US, a member of WTO and the Regional Comprehensive Economic Partnership (RCEP).

- More factories have migrated out of China and into Vietnam recently, and the tendency is forecasted to be continuously increased.

Vietnam is a good source for labor-intensive products and components. The following products are acknowledged of international competitiveness on prices and qualities.

  • Agricultural products
  • Agro-forestry products
  • Apparels & accessories
  • Aqua products
  • Ceramic & terracotta
  • Crafts
  • Cutlery
  • Electronic & Electrical equipment
  • Essential oils
  • Foot wears
  • Furniture
  • Herbal medicines
  • Home accessories
  • Integrated circuits
  • Iron & steel
  • Leather products
  • Machinery
  • Marble products
  • Optical cables and lenses
  • Plastic products
  • Processed foodstuff & beverage
  • Rubber products
  • Transformers, switching equipment & magnetic recorders

Why local sourcing agent?

Management of sourcing that spread over continents and time zones is challenging even for the experienced ones. Understanding difficulties when sourcing in Vietnam, you will see how extremely necessary to have a Vietnamese partner to help you in achieving efficient sourcing.

With just more than two decades of economic reforms and opening to world market, Vietnamese suppliers are not so familiar with international business practices, not so responsive and not so good in communication. Few of them are doing any form of international marketing. Manufacturing in Vietnam is fragmented, lack of supportive industries, and depends very much on imported materials. These shortcomings make it harder for Buyers to identify right suppliers.  It is difficult and time-consuming to find out who is really doing what and where.  Being alone, it very difficult and costly for you to achieve anything here. Face-to-face meetings between sourcing teams and suppliers, or audits, are critical. You think you are dealing with a factory when in fact it is just a go-between. Thus, finding a local company that you can trust and develop a long term business relationship is the key to success. A trustworthy Sourcing/Buying Agent will ensure you to access the original genuine supplies.

You will also face with challenges of small scale factories and limited capacities available. It is a complicated and costly to consolidate different suppliers yourselves instead of recruiting local partner specialized in dealing with all those things. A Buying Agent that has a broad network of contacts over the country and strong team available which each division specialized in certain products will enable the controlling and consolidation much more efficient.

Without support from a party who understand deeply about international trade practices and rules, only few Vietnamese suppliers are capable of giving complete quotation with samples or sales kits. In many case you will only be advised on true costs of product when really placing order. The poor net-work connection between suppliers themselves is also big obstacle for one supplier to give adequate offer.  A Sourcing/ Buying Agent will help to communicate and enable smooth connection from Buyer to Supplier, Supplier to Sub-Supplier to get the completed offer package for Buyers' inquiries at minimized cost and time. A Sourcing/Buying Agent could also support suppliers to access resources that enable them to give Buyer comprehensive supplies.

Most Vietnamese Manufacturers have very little experience directly with the final foreign buying demands and expectations regarding product quality, performance and packaging to understand fully the impact when the product is not made and prepared to 100% of the Purchase Order Specifications.  Nowadays, many Vietnamese Factories hire English speaking personnel, however the communication between the Buyer and the Factory can break down easily when it comes to artwork, printing, packaging, measurements, materials, compliance laws and regulatory laws from the Buyer’s country. It is not only language but also experience and capability matter. A professional Sourcing/ Buying Agent will ensure to get all those demands and expectations to be understood and implemented correctly.

As Vietnam is still a developing country, a lot of things that have been being taken for granted in more developed countries may not be available here. Nonetheless, barriers may be non-issue for the locals. That is why it is critical to utilize local partner strengths. Few suppliers have all the safety certifications or social compliances that international buyers need as first conditions for successful sourcing. However a Sourcing Agent can resolve it by having qualified specialists to consult suppliers in process of applying for and auditing to gain requested norms and standards.

It is not new lesson that an ounce of prevention is worth a pound of cure! The best insurance policy oversea Buyers can take is paying for QA and QC services. Having a local Agent to manage the Purchase Order oversight ensures no surprises when Buyer opens the shipment of goods. Having qualified team taking care of every step in productions line with eyes, ears and boots on the ground, a Sourcing/ Buying Agent will ensure the compliance with Buyer's norms and standards.