As global sourcing continues to evolve, Vietnam has emerged as a key player in Southeast Asia’s supply chain. The 2024 Vietnam Print Pack exhibition, held from September 18 to 21 at the Saigon Exhibition and Convention Center (SECC) in Ho Chi Minh City, offers a clear snapshot of the region’s growing importance. This year’s event attracted over 350 companies across two halls, with exhibitors primarily from Vietnam, China, and a few from Malaysia, India, and Indonesia, reflecting the interconnected nature of Southeast Asia’s supply network.
The exhibition showcased a broad range of products and technologies, from packaging machinery to printing solutions, with a particular focus on sustainability and green practices—two critical trends shaping today’s global supply chains. The discussions and exhibits offered valuable insights for procurement professionals seeking to tap into the Southeast Asian market.
The Rise of Sustainability in Vietnam’s Packaging Industry
Southeast Asia, and Vietnam in particular, is rapidly aligning itself with global sustainability goals. As environmental regulations tighten worldwide, the need for eco-friendly and sustainable packaging solutions has become more urgent. The rise of the "carbon neutrality" and "carbon peaking" agendas since 2020 has led many countries to introduce plastic reduction laws, further pushing the development of a green economy.
At the Vietnam Print Pack exhibition, buyers were increasingly asking for products with environmentally friendly credentials, often using keywords like "green" and "sustainable" during their searches. This trend highlights how deeply the global sustainability agenda is influencing trade. Many exhibitors echoed this sentiment, pointing out that products failing to meet these environmental standards, from raw materials to end-of-life recycling, are finding it harder to gain entry into key markets. This shift underscores the importance of sustainability not just as a trend but as a new standard in the global supply chain.
"Made in Vietnam" vs. "Chinese Manufacturing in Vietnam": A Buyer’s Dilemma
Vietnam’s strategic position as a manufacturing hub continues to strengthen, supported by an increasing number of foreign investments. Over the past year, Chinese enterprises have significantly expanded their presence in Vietnam, with nearly 1,800 Chinese companies registering between October 2023 and August 2024. This influx has provided local buyers with more choices, particularly when comparing Vietnamese manufacturers with Chinese firms operating locally.
For buyers, the decision between sourcing from local Vietnamese suppliers and Chinese manufacturers in Vietnam often comes down to price, quality, and reputation. While price competitiveness is important, supplier reliability—the trustworthiness and proven track record of a company—often tips the scale. Buyers frequently refer to this as the "Supplier's reputation (reliability level)," which isn’t just about brand awareness but rather about certifications, successful case studies, and consistency in delivering on promises. This highlights the growing demand for trusted, certified partners in the supply chain, making reputation a key factor in procurement decisions.
Logistics: The Hidden Cost Factor in Global Sourcing
Another critical factor raised during the exhibition was the cost of logistics. Vietnam’s logistics costs account for approximately 16.8% of its GDP, significantly higher than the global average of 10.7%, according to the Vietnam Logistics Business Association. For many buyers, high international shipping costs remain a major concern, especially for smaller orders. As a result, some buyers prefer sourcing locally within Vietnam to mitigate these expenses.
Addressing these logistics challenges is essential for suppliers looking to succeed in the Vietnamese and broader Southeast Asian markets. Several exhibitors pointed out that setting up local maintenance or after-sales facilities—rather than moving the entire production line—can be a more cost-effective strategy. This hybrid approach allows suppliers to produce goods in their home countries while providing local support to Vietnamese buyers, offering an attractive balance between cost and service.
Southeast Asia: A Key Player in the Global Supply Chain
With Vietnam’s packaging market expected to grow from $2.6 billion in 2024 to $4.14 billion by 2029, it’s clear that the country is a significant focal point for global supply chain development. For businesses looking to expand into Southeast Asia, Vietnam offers not only a competitive manufacturing base but also a growing network of suppliers who are adapting to global trends in sustainability and logistics optimization.
In conclusion, the 2024 Vietnam Print Pack exhibition provided a glimpse into the future of global sourcing in Southeast Asia. As the region continues to embrace green practices and innovative logistics solutions, procurement professionals must prioritize supplier reliability, sustainability standards, and cost-effective transportation strategies. Leveraging AI sourcing tools can further empower buyers to navigate this dynamic market, ensuring they find the best partners to meet their global supply chain needs.
Comentarios