Vietnam Supplier Identification & Evaluation

The client, a big online reseller in Sweden focusing on office-related products, has been sourcing their products from China. Now they want to diversify their supply base to other countries to secure the supply chain. Vietnam showed up as a promising market thanks to the newly ratified EU-Vietnam Free Trade Agreement, which allow them to enjoy a duty-free advantage when exporting products to the EU.

With that being discussed, the client asked ARC Consulting to conduct a Vietnamese supplier search of three different product categories. One of the categories is laptop bags and backpacks.

Laptop bag

The client has been dependent on the China market. However, due to the disruptions in the supply chain in China in recent years, the company would like to explore the potential in other markets. Among fast-growing markets, Vietnam appears the most interesting one to the client thanks to its favorable Free Trade Agreement with the EU, comparatively low labor cost, and growing production capacity. Having said that, ARC Consulting’s support came in handy, allowing the client to take advantage of our long-standing experience in Asian markets.

First, the client and ARC Consulting mapped out and reviewed the requirements for potential suppliers. Accordingly, Asi​a Perspective team performed a supplier screening assessment on the Vietnam market, short-listening the suppliers that match the set criteria through multiple rounds.

Second, ARC Consulting gathered company profiles, product catalogs, and quotations from suppliers. To deepen the analysis, the consultant team carried out extensive research and visit on-site the suppliers to verify the production capability.

Third, as requested by the client, ARC Consulting supported and set face-to-face meetings between the client with the prospects to further discuss technical aspects and cooperation opportunities.

ARC Consulting will help to proceed with further steps including final supplier selection, sample order placement, sample testing, and contract negotiation.

Over 100 suppliers were contacted by ARC Consulting team. After screening and factory visiting, 06 suppliers were selected to have face-to-face meetings with the client.

A comprehensive report on suppliers’ profiles and production capability was presented to the client to help them have an overview of Vietnam suppliers.

The project is ongoing as ARC Consulting is supporting the client to proceed with selected suppliers.

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