Vietnam is one of Asia’s major sourcing centers for innovative handcrafted gifts and premiums. An abundant local supply of materials and strong design capability complemented by expert artisans in handicraft villages are among the industry’s strong characteristics attracting overseas buyers.
Craft gifts, promotional items and stationery are the main product categories manufactured. Models come in traditional and modern designs.
A wide array of easily accessible materials are used, including glass, metal, plastic, paper and wood. A few key components are imported from suppliers in the US, Europe, Asia and Australia.
The line has been growing steadily since Vietnam was admitted to the World Trade Organization two years ago. This has helped suppliers to diversify and move away from domestic markets.
The industry currently enjoys an expanding clientele, which includes major international brands such as Coca-Cola and Nike. Overseas buyers from the US, the EU and Japan are also recognizing the advantages of sourcing from Vietnam and thus increasing their sourcing activities in the country.
Despite strong buyer interest, however, a number of challenges are confronting the industry. Chief of these is weak demand from key markets as a result of the global economic slowdown.The first few months of 2009 have seen shipments decline by as much as 40percent.
In response, suppliers have sought the assistance of the government, which in turn has enacted policies beneficial to the line.
The following are some of the keytrends we see in Vietnam’s gifts and premiums industry:
• The majority of suppliers will keep prices stable under efforts to attract orders in view of weak overseas demand. A number of companies expecting favorable results from governmental assistance will push quotes up by 5 percent.
• Exports are generally seen to increase in the next 12 months as manufacturers anticipate the slow down to end and demand from key markets to pick up.
• Shipments to the US and Canada are expected to increase in the months ahead, but the EU and Asia-Pacific will remain the top export destinations.
• New releases will feature unique and innovative styles. Manufacturers will be emphasizing their competitive advantages over China, which include strong design capability.
The above is extracted from the Executive Summary of China Sourcing Report: Vietnam - Gifts & Premiums
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/baby-travel-care-products
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