Choosing The Right Sourcing Model In Vietnam

Written by Dam Thi Phuong Mai and Edward Barbour-Lacey

• Foreign investors can choose several legal structures to build a successful Vietnam sourcing strategy.
• Investors should choose the most suitable business model and compare each option against their primary sourcing needs.
• The optimal choice of structure comes down to two key factors: local hiring needs and cost-effectiveness.

While Vietnam has several legal structures that can be used as a necessary building block to a successful Vietnam sourcing strategy, it can often be difficult for companies (particularly those new to Vietnam) to decide on the optimal solutions needed to support their mainland sourcing activities.