Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
Why Vietnam Continues to Become a Bigger Sourcing DestinationWednesday, August 16, 2017 > 09:59:47
While China still leads as the No.1 sourcing destination for the majority of fashion companies, Vietnam is the rising star. An FN Platform today focused on the reasons why the country is one to watch in sourcing.
Julie Hughes, president of the U.S. Fashion Industry Association led a discussion with speakers Steve DiBlasi, VP global sourcing at Lanier Clothes; Ron Klein, director retail & consumer management at PWC; Avedis Seferian, president & CEO of World Responsible Accredited Production; and Chris Walker, an apparel production advisor.
A reason for the country’s rapid growth in export manufacturing is based on its speed to market capabilities and focus on compliance.
Vietnam takes social compliance seriously, both on a factory and societal level, according to Seferian. “In terms of understanding good legal structure and law-enabling compliance, Vietnam is reliable and consistent,” he continued.
He also added that regardless of President Donald Trump’s Trans-Pacific Partnership (TPP) trade deal withdrawal, Vietnam will still remain a leading destination, and there’s money to be made.
Other factors adding to Vietnam’s appeal include its English-speaking management and machinery investments. The speakers also noted that because factories are moving from cities to rural areas, wages and employee turned are in turn being reduced.