Vietnam Sourcing: Strengthening Supply Chains in 2025

Vietnam Sourcing: Pillar of Strategic Sourcing and Supply Chains Resilience in 2025 

Introduction 

In 2025, the global sourcing strategy for manufacturing and procurement has reached new levels of sophistication. Strategic sourcing models have shifted dramatically due to rising geopolitical tensions, supply chain disruptions, and the growing need to future-proof supply chain resilience.  

As organizations expand their supplier networks beyond China, Vietnam sourcing has emerged as a cornerstone of global sourcing strategy, attracting multinational companies determined to build resilient and efficient production bases.  

Vietnam Strategic Sourcing and FDI Development 

Vietnam sourcing is central to the global sourcing strategy of leading manufacturers seeking diversification. Foreign direct investment (FDI) in Vietnam’s processing and manufacturing sector soared to over $10 billion by mid-2025, with nearly 2,250 new projects underway.  

Fueled primarily by the China +1 strategy. This is a direct response to US-China trade conflicts and the rising costs and vulnerabilities associated with a China-centric supply chain. According to data from 2023 to 2025, Vietnam’s manufacturing FDI inflows have grown significantly, positioning the country among the top beneficiaries of global investment aiming to diversify supply bases. 

Strategic sourcing leaders have recognized Vietnam’s competitive labour costs, skilled workforce, and favorable trade agreements. The nation’s rise as a strategic sourcing destination is underpinned by Government reforms focused on supply chain resilience: 

• Streamlining customs operations 
• Digitalising documentation 
• Improving logistics infrastructure  

As a result, multinational companies from sectors such as electronics, textiles, footwear, consumer goods, and automotive parts are rapidly establishing or expanding manufacturing facilities in Vietnam, viewing it as a resilient and cost-effective alternative to China. 

Global Supply Chain Resilience: Why Vietnam Matters

For companies designing a global sourcing strategy, the supply chain Read More resilience offered by Vietnam sourcing is unmatched in Southeast Asia. The country benefits from a strategic location along South China Sea shipping lanes and has signed 17 free trade agreements (FTAs), giving manufacturers unparalleled tariff advantages. Firms focused on strategic sourcing have invested heavily in Vietnamese supplier development, rigorous factory audits, and ongoing quality assurance to build supply chain resilience even during periods of regulatory change and tariff shocks.  

Vietnam sourcing brings advantages in agility and redundancy—two hallmarks of supply chain resilience. Brands implement nearshoring strategies, channeling orders through Vietnam to avoid overdependency on single-country production. The local government’s pro-investment stance ensures future growth, enabling procurement teams to maintain a strategic sourcing presence with rapid scalability.  

20 years in Vietnam, our Perspective on Strategic sourcing  

ET2C International have been based in Ho Chi Minh city for nearly 20 years, working with our clients to develop the sourcing opportunities available in Vietnam as part of a global sourcing strategy. During that time, we have witnessed and been active participants with our clients in the shift in global sourcing within Vietnam. From the WTO ascension in 2017, a fundamental part of Vietnam becoming deeply integrated into the global. To the pro trade agreements such as the EVFTA (EU-Vietnam Free Trade Agreement) and CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership). 

We have seen our clients ambitions for sourcing from Vietnam mirror the sectoral leap.  From low value high labour assembly work to high value manufacturing. This move has created improved infrastructure and local supporting industries (SME’s)supplying components, packaging and basic services to the new factories. 

The needs and ambitions of our clients in Vietnam have changed rapidly as the market has evolved. To become a centre for global supply of higher value products. This has been accelerated by the year of turmoil in global trading, protectionism and geo-politics. To learn more about how Vietnam could become a central part of your global sourcing strategy speak to one of our experts: contact@et2cint.com 

Navigating Strategic Sourcing in Vietnam  

Companies adopting a global sourcing strategy in 2025 should rapidly build their understanding of Vietnam sourcing for several reasons: 

• Vietnam sourcing aligns with best-practice strategic sourcing frameworks, offering supplier diversification that is essential for supply chain resilience.  
• Execution of strategic sourcing in Vietnam requires on-ground expertise—partnering with local agents and advisory groups ensures compliance with complex regulations and audit controls.  
• Vietnam sourcing makes use of world-class infrastructure, with advanced seaports, airports, and digital customs systems positioned for scalable and resilient supply chains. 
• Businesses collectively report that supply chain resilience is greatly enhanced with a Vietnam sourcing base as a hedge against US-China trade volatility. 

Vietnam The Evolving Economic Landscape 

The rapid rise in Vietnam sourcing has transformed the country into a high-value manufacturing hub. Strategic sourcing leaders from sectors such as electronics, textiles, and automotive actively pursue Vietnam sourcing strategies. The government’s continued investment in infrastructure, expressways, and digitalization support global sourcing strategy execution and sustain economic growth rates above 7%.  

Challenges and Solutions: Vietnam Sourcing for Supply Chain Resilience 

Despite its advantages, Vietnam sourcing is not without challenges. Strategic sourcing professionals encounter infrastructure bottlenecks and supply chain gaps, especially in imported materials. Supply chain resilience demands rigorous supplier verification, investment in workforce training, and careful navigation of tariff policy. By embedding best practices within their global sourcing strategy, procurement teams can optimize Vietnam sourcing for enduring supply chain resilience.  

Vietnam Global Sourcing Advantage  

Vietnam sourcing is now an essential building block of global sourcing strategy, particularly for companies committed to strategic sourcing and supply chain resilience. As manufacturing ecosystems mature and new supply chains develop, Vietnam sourcing delivers scale, flexibility, and crisis-proof operational stability. Companies that act early to anchor their sourcing in Vietnam will be best positioned to capture global growth and create robust supply chain resilience for years to come.

Key Actions to Build Supply Resilience with Vietnam Sourcing Partnering with ET2C 

• Diversify Suppliers and Multi-Tier Sourcing: Establish relationships with a network of qualified suppliers across multiple regions in Vietnam, not just a single industrial zone or city. This approach helps minimize risks from local disruptions and spreads sourcing activity across both established and emerging manufacturing clusters.  

• Invest in Robust Supplier Audits and Quality Assurance: Develop a structured supplier vetting programme, including on-site audits focused on compliance, workplace standards, and capacity. Implement ongoing quality control checks with local teams or expert partners to ensure product consistency, especially for sensitive or regulated categories.  

• Leverage Local Sourcing Agents and Expertise: Engage experienced global sourcing experts like ET2C who have had teams in Vietnam for many years. Whi can offer end-to-end support, from supplier validation and negotiations to shipping logistics and regulatory compliance. Local experts bridge language, legal, and business culture gaps, ensuring faster issue resolution and enhanced responsiveness to market or political changes.  

• Strengthen Digital Supply Chain Transparency: Work with Vietnamese based global partners to implement digital tools—such as ERP systems, real-time shipment tracking, or supplier scorecards—to improve supply chain visibility. Enhanced transparency enables better demand forecasting, dynamic risk management, and rapid response to emerging disruptions.  

• Develop Multi-Country, China + Vietnam Models: Design a global sourcing strategy that blends Vietnam sourcing with supplier relationships in other major Asian markets. This multi-country approach gives companies strategic agility and redundancy to pivot supply if problems arise in one country.  

• Foster Collaborative, Long-Term Partnerships: Build deep supplier relationships anchored in transparency, open communication, and shared improvement targets. Long-term partnerships encourage trust and flexibility, enabling suppliers to prioritize innovation, process upgrades, and rapid adaptation during disruptions.  

By embracing these concrete actions, companies can make Vietnam sourcing a resilient and reliable pillar of their global sourcing strategy, capable of withstanding future shocks and capitalizing on ongoing growth opportunities.  Talk to one of our experts at ET2C International to learn how you could unlock the benefits of sourcing from Vietnam contact@et2cint.com