Alternate Sourcing Options: Vietnam

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Choosing the Right Manufacturing Hub for You: Alternatives to China

Today, one of the biggest decisions that an Amazon seller is faced with is simple: choosing a country in which they are going to manufacture their private label goods. Amazon sellers’ choice where to source their goods could be one of the most important aspects of building your brand.

As an entrepreneur, you need to not only be mindful of your intellectual property, but also to the fiscal side of business that focuses on the numbers and where you are succeeding/hurting. Private label businesses must focus on efficient manufacturing while emphasizing cost-reduction.

With the continuation of our series on alternative up-and-coming manufacturing hubs around the globe, Rosenbaum Famularo, P.C. suggests that Amazon sellers consider having their private label goods manufactured in Vietnam.

Vietnam – From Humble Beginnings to Rapid Growth

Vietnam is a reformed state that provides immense opportunities for outsiders. In fact, the reforms that were set in place have not only opened up the economy to foreigners, but it has also provided them with the possibility of owning property or shares of major holdings in Vietnamese companies. This should speak volumes to Amazon sellers who want to own or invest in their factories.

Another great aspect for Amazon sellers with private label products is Vietnam’s labor costs. Labor in Vietnam remains significantly lower than other major manufacturing hubs. Numbers have shown that operational upkeep in Vietnam is around twenty percent less than an area such as China.

Other facets of fiscal advantages include the country’s corporate income tax (which sits around twenty percent), the low cost of social welfare for workers in terms of their relative salary and last but not least - the country’s bilateral double tax agreements.

However, most appealing to Amazon sellers should be the country’s protection of intellectual property rights.

In 2006, Vietnam implemented intellectual property laws that comply with an internationally recognized agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Vietnam is taking major steps to protect innovations from theft.

For Amazon sellers, the major reasons to consider Vietnam for the manufacturing of your goods include:

  • Low cost of labor;
  • Low social welfare costs;
  • Favorable tax programs, and;
  • Growing protection of intellectual property rights.

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