Vietnam and India Supply Chains: Unlocking Sustainable Value

Beyond Cost Savings: Unlocking Value in Vietnam & India Supply Chains 

How can US, UK, and European companies can move beyond cost savings to maximize value in Vietnam and India’s evolving supply chains. Learn about opportunities in innovation and sustainability, and how a global sourcing partner can help you navigate challenges like complex regulations and logistics gaps. 

Beyond Cost Savings: How to Maximize Value in Vietnam and India’s Evolving Supply Chains 

While cost-efficiency and the ability to build competitive advantage is traditionally the main driver for offshoring elements of supply chains to Vietnam and India, forward-thinking companies are finding that true competitive advantage lies in leveraging these countries’ evolving capabilities. 

As more companies are exploring moving their supply chains from China or executing a China+1 strategy the importance of Vietnam and India are building rapidly. 

Vietnam and India: Rising Stars in the Global Supply Chain 

Both Vietnam and India have emerged as powerful alternatives to traditional global sourcing hubs, each with unique strengths. This shift is part of a broader trend of supply chain diversification, where companies are seeking to build resilience and reduce over-reliance on a single country. Incorporating additional markets into their strategies to enable more agility in their response to wider global changes to product sourcing.  

• Vietnam: The Fast-Growing Alternative. Located in Southeast Asia, Vietnam has become a top choice for manufacturers of electronics, textiles, and footwear. The country’s young, skilled, and cost-competitive workforce, combined with a government committed to attracting foreign investment, has fueled its economic growth. Key trade agreements, such as the EU-Vietnam Free Trade Agreement (EVFTA), have further opened up new markets and lowered tariffs, making it an attractive hub for companies looking to export to Europe and beyond.  
• India: A Diverse Powerhouse. As the world’s most populous country and a rapidly growing economy, India offers unparalleled scale and diversity. Its “Make in India” initiative and Production Linked Incentive (PLI) schemes have successfully attracted industrial investment in sectors like pharmaceuticals, automotive components, and electronics. India is a global leader in generic medicines, and its textile industry is the second largest in the world, its Furniture and Home decor products are supplied to retailer globally. The country’s also has a very well invested and capable industrial machinery and components infrastructure supplying many companies in Europe and the US.  

ET2C International Global Sourcing Experts 

ET2C are a British owned global sourcing company with nearly 25 years experience working with their clients to make their sourcing simple. Our 200 colleagues are based on the ground in all major sourcing markets (China, India, Vietnam and Turkey) to enable rapid and insightful market and supply partner access.  

Our teams have been based in Ho Chi Minh city and Delhi for many years. They have built deep connections within the wider supply partner network, local government and business eco system ensuring a quick and effective introduction to India and Vietnam as new sourcing markets. We work with clients to deliver: 

• Rapid Margin Build  
• Risk Management 
• Supplier Management  
• Quality and Compliance Delivery 
• Supplier Search, Validation and Selection 

Global Sourcing Opportunities Beyond Cost 

Sourcing from Vietnam and India opens the door to significant value beyond simple cost reduction. 

• Local Innovation: Both Vietnam and India now offer increasing expertise in product development, design, and specialty manufacturing, making it feasible for companies to co-create with suppliers and access new ideas and technical innovation directly at the source. 
• Ethical and Sustainable Manufacturing: Access to local ESG (Environmental, Social, and Governance) programs is growing. Vietnam, in particular, benefits from EU and UK demand for ethically sourced goods, and India’s textile sector is making strides in organic and fair-trade certifications for Western buyers. 
• Emerging Consumer Markets: Sourcing from these markets opens doors to local and regional sales for companies looking to expand their footprint beyond the West.

Navigating the Complex Challenges of Global Sourcing  

Though the rewards are sizable, landing these benefits requires navigating a set of market-specific complexities: 

• Complex Regulatory Environments: Both India and Vietnam present unique legal, tax, and customs procedures, which are often subject to change and require constant monitoring for compliance. 
• Infrastructure Gaps: While investments continue, logistics infrastructure—ports, highways, and warehousing—may not always meet Western standards, leading to unforeseen delays or higher local costs. 
• Cultural and Communication Barriers: Differences in communication styles, decision-making hierarchies, and contract enforcement can cause misunderstandings and misaligned expectations. 
• Supplier Reliability and Quality Control: Ensuring consistent quality, on-time delivery, and adherence to standards can be more challenging with first-time vendors or those outside established industrial clusters. 

The Crucial Role of a Global Sourcing Partner 

A global sourcing partner can dramatically accelerate the benefit realization for US, UK, and European clients. By providing a crucial link between your business and the on-ground realities of these markets, a partner helps you mitigate risks and unlock value faster. 

• Market Intelligence: We keep abreast of regulatory changes, tariff developments, and supply chain risks in real time, helping clients avoid costly missteps. 
• Supplier Pre-Qualification and Audit: We leverage local networks and multilingual teams to screen, audit, and onboard reliable vendors, reducing the risk of fraud or underperformance. 
• On-Ground Problem Solving: Our local presence enables fast escalation of problems—whether related to shipment delays, factory compliance, or quality issues—often resolving them before they impact the client’s operations. 
• Process Standardization and Digital Integration: We provide standardized frameworks for compliance, contracts, and reporting, and increasingly integrate digital tools for visibility, control, and analytics across the extended supply chain. 
• Speed to Market: With local teams and established logistics partners, we can compress lead times for onboarding and first shipments, which is crucial for brands needing to respond quickly to market changes and seasonality. 

ET2C International your Global Sourcing Partner 

Our near 25 years of experience working with clients from across the globe has shown us the huge commercial benefits of moving supply offshore. For many markets it has gone beyond delivering competitive advantage and is becoming a necessity to compete in the market.  

To really ensure that your company can get the maximum benefit from offsourcing some elements of their supply chain, the need to develop a strong supply network is crucial to success. Whether you are adding additional sourcing markets to your current plan or starting your first foray into offshore supply, finding the right partner and building a strong working relationship is crucial. 

This is where our teams on the ground can prove to be invaluable. Not just finding and validating new suppliers but building a strong relationship and ensuring that orders are delivered to your quality and compliance standards on time. Ensuring supplier relationships are maintained to deliver a partnership for growth. Moving beyond a simple one dimensional transactional relationship to one of mutual benefit. This can only be delivered with a team on the ground supporting your objectives and delivering regular communication, ensuring you have total trust in your supply partners. To learn more about supply partner management and how it can transform your supply chain contact@et2cint.com  / www.et2c.com