Henrik Pontoppidan, Director of S2U Design, talks about the hidden factories of Vietnam.

How to Find and Access the Best Suppliers

It may be a surprise to you, but some characteristics of doing business in Vietnam – particularly searching for new Manufacturing Partners – are arguably opposite to what one would expect from a western perspective:

In Vietnam…

• The Best factories are invisible.
• The visible factories are rarely the best ones, if you want to buy direct at good prices.
• Customer is not king by default – Being king is earned!
• Get to know the boss or forget it

Acknowledge and accept these points from the outset. Devise a plan to navigate them, and you are off to a good start. Read on to find out why – and how…

The Challenge of Finding the Right Factories

Many buyers assume that a good manufacturer will have a well-developed online presence or exhibit at trade shows. That’s often not the case. Most great manufacturers get their head down and focus on their production to satisfy a few large customers with whom they have a developed a partnership. They typically operate in the shadows – even large factories with thousands of workers.

Meanwhile, some lesser factories aggressively market themselves, employing slick presentations and social media campaigns to attract foreign buyers. Many of these are small workshops hoping for a breakthrough but lacking the capability to fulfil large orders. The last thing you want is to pay a deposit to a factory that is simply not equipped to deliver.

Why Your Inquiry Might Go Unanswered

Even after identifying potential factories, getting a response from them can be a major challenge. The best factories aren’t actively searching for new customers, and their sales departments aren’t structured to handle inbound inquiries efficiently.

Most factories receive a flood of inquiries, many of which turn out to be from small buyers who lack the necessary volume or from sourcing agents fishing for quick commission opportunities. Because of this, factories have little incentive to respond to speculative emails.

To increase your chances of engagement, make an effort to formulate your inquiry professionally, short, concise and straight to the point. Explain your purpose and follow up your email with a phone call – if you have the ability to do this in Vietnamese it helps a lot. But the person calling needs to be competent and a little persistent. Getting attention requires good sales skills, even though it’s all about buying. Speaking directly with someone, even if it’s a junior sales representative, dramatically improves your odds of getting a response and securing a factory visit.

Gaining Access to Decision-Makers

If you are serious about sourcing in Vietnam, the key to meaningful interaction is reaching the factory’s senior management. The real challenge is cutting through the noise and proving that you are a valuable customer.

Good factories receive countless inquiries, many from small buyers who lack the volume they require or from independent opportunistic sourcing agents with no real clout. Factories are well aware that many of these agents are often competing with several other agents for the same project, making factories hesitant to invest time in discussions that may not lead anywhere.

Sourcing agents – if you use that approach – also tend to act as gatekeepers, fearing they’ll be cut out of the deal if direct communication is established between the buyer and the factory boss. Even if you bypass the agent, factory sales staff may still block access to senior management, as they don’t want to disturb their busy bosses unless they are convinced there’s a real opportunity.

Navigating this requires diplomacy, persistence, and a clear value proposition. You need to convince the sales staff that their boss should meet you—and then persuade the boss that your business is worth their time.

The Right Approach: A Case Study

A client I’m currently working with understands these challenges and has taken a structured approach. They have engaged me to systematically identify and vet factories, ensuring they only spend time visiting manufacturers that are genuinely suitable, when they visit new potential manufacturers in Vietnam.

We started with a list of at least 50 factories, found through deep research and industry connections, networks and industry groups of manufacturers, – not just Google searches. After filtering them down to 10-15 highly suitable factories across four categories, we successfully gained access to senior management, had face to face meetings, and presented the case. The client, who has their own department of design, product development and specifications, will now travel to Vietnam to meet factory owners who already recognize the business potential, eliminating wasted time and dead-end conversations. This client can hit the floor running.

This method saves months of effort and significantly increases the likelihood of finding the right manufacturing partner.

Need help with Sourcing in Vietnam?

If you are facing similar challenges in setting up or optimizing your supply chain in Vietnam, I can help. Also, if you don’t have the right design capacity we can help too. Feel free to reach out at henrik@s2udesign.com.

Also, check out this page on my website for more details:
Sourcing Services & Prices