Vietnam has taken good advantage of its low labor cost. The country offers competitive manpower cost of less than half of Chinas costs. At the same time, the government has positioned industrial development, particularly manufacturing, as the core economic momentum. Therefore, Vietnam has gradually become a favorite manufacturing hub, a counterpoise with China in terms of offering sourcing services in the region. Samsung has relocated a majority of its largest factory to Vietnam, and other global manufacturer like Intel, LG, Microsoft Nokia also follow this trend.
The most attractive sectors for sourcing services are electronics & ICT, textile, wood processing and food processing. These are labor-intensive manufacturing sectors in which Vietnam can offer cost-effective manual labor. Vietnam’s proximity to rich wood sources like Laos also makes it more appealing to wood and wood product manufacturers.
Many Swedish companies are actively sourcing from Vietnam, from Sweden or from sourcing offices established in Vietnam. Example companies are ICA, Plantagen, Frigoscandia, Tetra Park, and Runsven