What steps should be taken in choosing a Vietnamese sourcing partner after a list of potential candidates is created?

Once a list of potential candidates has been created, it is then time to proceed to the next stage of the process and begin the screening of the different companies. This stage often requires visiting the potential partner’s factories so that a clearer idea of their capabilities can be formulated. Due to the time involved, not to mention overcoming barriers such as language, many companies tend to hire a professional services firm to perform the screening process for them and to identify the best candidates to act as sourcing partners.

It should also be taken into consideration that, due to Vietnam’s legal rules, a company is not locked into the initial decision that it makes. These laws allow business entities to change the scale of their operations and change their legal form, as well as allowing them to do any other actions, which are entitled by law. In short, the scale of business is not fixed and can be altered according to the needs of the investors.

Once the basic specifics of a sourcing partner have been laid out by the company, the next step is to begin identifying which parts of the country are best suited for the needs of the company. Before any sourcing decision can be made, it is vital to thoroughly think through where it is best to strategically locate your business and where your sourcing partner should be located.