Henrik Pontoppidan, Director of S2U Design, talks risk and commitment in Vietnam and how it’s a two-way street.

From Maybe to Must-Do: Getting Factories to Choose You

Over the years, I’ve written extensively about the conditions on the ground in Vietnam and how to navigate the challenges of buying here, equipping buyers with tools to build strong, profitable supplier relationships.
Today, I want to tackle a sensitive topic that isn’t often addressed publicly: the balance of risk and commitment.

Sourcing involves risk! Delays? Quality? IP? These are all valid concerns. And there are many ways to mitigate them – which I’ve covered in earlier articles.

But there’s another side of the equation we don’t talk about enough: the supplier’s risk.

Factories also take a gamble when they agree to develop your products. Are you a serious buyer? Will you pay on time? Will you place an order once the development is done – or ghost them after months of work? These questions affect whether your project becomes a priority or is quietly parked at the bottom of the to-do list.

One Bad Exit, Years of Closed Doors

Here’s a real first-hand example:
Ten years ago, while still living in the UK, I received an exciting request from one of the UK’s leading wholesalers, to develop and source a new range in Vietnam. Though I had a decade of sourcing experience through my retail business, OAKEA, I didn’t yet have a permanent presence in Vietnam. So, I brought in the owner of a respected sourcing company to lead the project, while I stayed involved in a consulting role.

Four months of work followed – factory visits, sampling, development, pricing. The factory, aware of the final buyer’s reputation, produced perfect samples at their own expense. Unbeknown to me, these samples were never paid for. And then – silence. The buyer changed direction and ghosted.

Years later, well established in Vietnam, I had a new project ideal for that same factory. I contacted the owner to set up a meeting. It was cordial – but awkward. They politely declined to work with me again. The experience had left a scar.

Now imagine that happening over and over. A buyer’s decision not to share risk with the supplier – even symbolically – can deeply damage future partnerships.

What Prioritisation Looks Like

So, what makes a supplier see your project as worth prioritizing?

Disengagement is often a question of priority. Management may not believe your project is real – or worth the investment of time and resources. Their engineers may be busy on projects with clearer commercial prospects. In short, you haven’t lowered their sense of risk or shown real commitment.

In fact, many projects stall just as they reach the finish line. A buyer might ghost right from the time all requests have been approved and a PO doesn’t come, as promised. That’s the best way to burn an otherwise valuable bridge!

You don’t have to over-promise or throw money around. But you do have to show that your project is serious.

Reading the Signals

Let me give you a few examples:

If you refuse to pay $50 or $100 for a sample – even if it’s symbolic – it tells the factory that you don’t value the work behind it. You’re saying: “I expect you to invest in my idea but I won’t risk even a symbolic amount.” That’s not a risk most good factories want to take.

When you attend meetings and request changes, improvement or better pricing, without sharing what a PO looks like and when it will be placed, you’re sending the same message. Factories work best when they know what success looks like. Try saying: “This is what I want. If you can deliver that by this date, I’ll place this order.” – and give them a conditional draft PO! If they deliver, never backtrack. Honour your word.

Likewise, be clear about what they have to do to win your business. Factories can handle competition – what they can’t handle requests for a lot of work while being kept in the dark.

Gut Feeling Over Paper Promises

Even experienced buyers often misunderstand how factory decision-making works in Vietnam. In the West, we lean heavily on credit reports, references, and gut feelings from meetings. In Vietnam, gut feeling comes first. A factory may commit to your project largely based on whether they feel you’re credible – not whether you say all the right things.

So much disappointment on both sides comes from a mismatch in expectations. A buyer believes a visit or email is enough to signal intent. A factory, meanwhile, feels it’s burning precious engineering time on something that might not materialise.

The real key is understanding that buying and supplying is a mutual investment. If you want attention, commitment, and great outcomes from your Vietnamese partners, you must show them that you’re willing to shoulder your share of the risk – and keep your promises.

Let’s Work Together

When you do, you’ll be amazed at the level of dedication and quality that follows.

If this approach resonates with you, take a moment to visit s2udesign.com/services-and-prices. I offer flexible support – from one-off services starting at $200 to ongoing cooperation where I handle everything from sourcing and development to problem-solving. You can cherry-pick or delegate it all.