Introduction: Why Vietnam Should Be on Your Sourcing Radar

In today's challenging business environment, diversifying your supply chain is no longer just a strategic option—it's becoming a necessity. As New Zealand businesses look beyond traditional sourcing destinations, Vietnam has emerged as one of Asia's most promising manufacturing hubs. With its rapidly developing economy, competitive production costs, and growing technical capabilities, Vietnam offers Kiwi businesses a compelling alternative for product sourcing.

This comprehensive guide explores why Vietnam is an increasingly attractive sourcing destination for New Zealand companies, the benefits of recent trade agreements, key industries for sourcing, practical considerations for successful engagement, and how Epic Sourcing can help you navigate this dynamic market.

The Growing NZ-Vietnam Partnership: A Strong Foundation

The relationship between New Zealand and Vietnam has strengthened significantly in recent years, culminating in the elevation to a Comprehensive Strategic Partnership in February 2025. This milestone places New Zealand at the top tier of Vietnam's international relationships and signals a strong commitment to deepening economic and trade ties.

Trade Statistics and Growth Trajectory

Bilateral trade between New Zealand and Vietnam has grown impressively—over 44% in the past five years alone. Currently, Vietnam ranks as New Zealand's 14th largest trading partner, with two-way trade worth approximately NZ$2.68 billion in 2024.

New Zealand's primary exports to Vietnam include:

• Education services
• Dairy products
• Timber and wood products
• Horticultural products
• Meat and animal products

Meanwhile, Vietnam's exports to New Zealand are concentrated in:

• Electronics and telecommunications equipment
• Garments and textiles
• Footwear
• Furniture
• Agricultural products, including coffee and seafood

This complementary trade relationship creates a solid foundation for New Zealand businesses looking to source products or components from Vietnam.

Trade Agreements: Unlocking Preferential Access

New Zealand businesses sourcing from Vietnam benefit from several major trade agreements that reduce barriers and create new opportunities:

Regional Comprehensive Economic Partnership (RCEP)

Implemented in January 2022, the RCEP is the world's largest free trade agreement, covering approximately 30% of global GDP. For New Zealand-Vietnam trade, the RCEP:

• Eliminates tariffs on 87.8-98.3% of goods between Vietnam and RCEP members
• Harmonizes rules of origin across the region, simplifying compliance
• Streamlines customs procedures and reduces administrative barriers
• Enhances predictability and transparency in trade regulations

The RCEP is projected to add around $2 billion to New Zealand's GDP by 2030, with Vietnam trade being a significant contributor to this growth.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

The CPTPP, which both New Zealand and Vietnam have ratified, provides even deeper trade liberalization:

• Eliminates all outstanding tariffs on New Zealand exports to Vietnam, including up to 27% duties on paper and paperboard products (by 2021), 18% duties on fish and seafood (by 2021), 34% duties on processed meats (by 2027), and 15% duties on steel (by 2028)
• Improves market access for services, including education, technical, and professional services
• Strengthens intellectual property protections
• Sets high standards for labor and environmental practices

For New Zealand importers, these agreements mean lower costs, simplified procedures, and greater certainty when sourcing from Vietnam.

Key Industries and Products to Source from Vietnam

Vietnam's diverse manufacturing sectors offer multiple opportunities for New Zealand businesses:

1. Textiles and Garments

Vietnam is one of the world's largest textile and garment exporters, known for:

• Competitive pricing
• Growing capability in both mass production and smaller batches
• Increasingly sophisticated design capabilities
• Expertise in sportswear, casual wear, and workwear

2. Furniture and Home Décor

With abundant timber resources and skilled craftsmanship, Vietnam excels in:

• Wooden furniture (indoor and outdoor)
• Rattan and bamboo products
• Home décor and handicrafts
• Custom furniture manufacturing

3. Electronics and Technology

Vietnam has rapidly expanded its electronics manufacturing capabilities:

• Manufacturing of consumer electronics
• Electronic components and assembly
• Computer parts and peripherals
• Growing capacity for higher-value electronics

4. Footwear

As the world's second-largest footwear exporter, Vietnam offers:

• Sports shoes and casual footwear
• Leather shoes and boots
• Specialized and technical footwear
• Customizable designs and materials

5. Agricultural Products and Food

Vietnam's diverse agricultural sector provides:

• Coffee (Vietnam is the world's second-largest coffee producer)
• Seafood, including shrimp, pangasius (basa), and tuna
• Tropical fruits and processed foods
• Nuts and spices

Vietnam's Manufacturing Advantages for NZ Businesses

Vietnam offers several distinct advantages that make it particularly attractive to New Zealand importers:

Cost Competitiveness

• Labor costs in Vietnam are approximately 40% lower than in China
• Operating costs, including utilities and rent, are generally more affordable
• Overall production costs often result in 10-15% savings compared to more established manufacturing locations

Quality Improvements

Vietnam has made significant strides in quality management:

• Growing adoption of international quality standards (ISO, HACCP, etc.)
• Increasing technical capabilities through technology transfer and investment
• Higher reliability and consistency in manufacturing processes
• Improved quality control systems and procedures

Strategic Diversification

Sourcing from Vietnam helps New Zealand businesses:

• Reduce over-reliance on a single market (like China)
• Create redundancy in supply chains
• Mitigate geopolitical and trade tensions risks
• Build a more resilient business model

Favorable Business Environment

The Vietnamese government actively encourages foreign business engagement through:

• Streamlined investment regulations
• Investment incentives in key sectors
• Ongoing infrastructure improvements
• Growing support for international commerce

Practical Considerations for Vietnam Sourcing

While Vietnam offers tremendous opportunities, New Zealand businesses should consider several practical aspects:

Shipping and Logistics

Transporting goods from Vietnam to New Zealand typically involves:

• Sea freight: The most common option, taking approximately 18-25 days depending on the specific ports and routes
• Air freight: Faster but more expensive, typically 5-10 days door-to-door
• Costs: Shipping costs vary based on volume, product type, and timing, but are generally competitive with other Asian origins

To optimize logistics, consider:

• Consolidating shipments to reduce costs
• Working with experienced freight forwarders familiar with Vietnam-NZ routes
• Planning for seasonal fluctuations in shipping capacity and rates
• Building adequate lead times into your supply chain

Cultural and Business Practices

Understanding cultural nuances is crucial for successful sourcing:

• Relationship building is essential in Vietnamese business culture
• Face-to-face meetings are highly valued when possible
• Decision-making processes may be more hierarchical than in New Zealand
• Communication styles tend to be less direct, requiring careful interpretation

Quality Control and Compliance

Maintaining product quality requires:

• Clear, detailed product specifications
• Regular quality inspections throughout production
• Understanding Vietnam's quality control systems and limitations
• Potentially investing in third-party quality assurance services

Intellectual Property Protection

To safeguard your IP when manufacturing in Vietnam:

• Register important trademarks, patents, and designs in Vietnam
• Use robust confidentiality agreements with suppliers
• Consider compartmentalizing production when possible
• Work with reputable partners with demonstrated integrity

Regulatory Compliance

When importing from Vietnam to New Zealand, you must navigate:

• New Zealand Customs requirements, including Electronic Import Entry or Electronic Cargo Information (ECI)
• Biosecurity regulations under the Biosecurity Act
• GST (15%) and any applicable duties
• Product-specific standards and certifications

How Epic Sourcing Simplifies Vietnam Sourcing for NZ Businesses

Navigating the complexities of international sourcing can be challenging. Epic Sourcing offers a comprehensive solution specifically designed for New Zealand businesses looking to source from Vietnam:

Local Expertise in Vietnam

Epic Sourcing's Vietnam-based team brings local knowledge and on-the-ground expertise directly to Kiwi businesses. We've built relationships with reliable manufacturers across various industries, giving you access to pre-vetted suppliers who meet our quality and ethical standards.

End-to-End Sourcing Solutions

From identifying the right products to negotiating favorable terms and ensuring quality control, we handle the entire sourcing journey:

• Supplier identification and verification
• Sampling and product development
• Price negotiation and contract management
• Quality assurance and control
• Logistics coordination
• Import documentation and compliance

Communication Bridge

We overcome language and cultural barriers by providing:

• Bilingual project managers who understand both New Zealand and Vietnamese business cultures
• Clear, consistent communication channels
• Cultural context and interpretation
• Mediation during negotiations

Risk Mitigation

Our structured approach reduces the common risks associated with international sourcing:

• Thorough supplier due diligence
• Regular factory audits and inspections
• Detailed quality control protocols
• Contract protection and enforcement
• Supply chain visibility and transparency

Success Stories: NZ Businesses Thriving with Vietnam Sourcing

New Zealand companies across various sectors have successfully leveraged Vietnam's manufacturing capabilities:

Case Study: Furniture Retailer

A New Zealand furniture retailer partnered with Epic Sourcing to identify Vietnamese manufacturers capable of producing high-quality wooden furniture at competitive prices. The result: a 22% reduction in product costs while maintaining premium quality, enabling the company to expand its product range and increase market share.

Case Study: Apparel Brand

A New Zealand athletic apparel brand sought to diversify its manufacturing beyond China. Through Epic Sourcing's Vietnam network, they found specialized manufacturers for technical sportswear, resulting in improved product innovation, more flexible production runs, and a more resilient supply chain.

Case Study: Consumer Electronics

A Kiwi electronics company looking to develop custom accessories worked with Epic Sourcing to identify Vietnamese manufacturers with the necessary technical capabilities. The partnership resulted in successful product development, competitive pricing, and reliable ongoing production.

Getting Started with Vietnam Sourcing

Ready to explore the opportunities Vietnam offers for your business? Here's how to begin:

1. Assess your needs: Identify which products or components would benefit most from Vietnam sourcing
2. Research the market: Understand Vietnam's capabilities in your specific sector
3. Develop clear specifications: Create detailed product requirements and quality standards
4. Build a sourcing strategy: Define your approach, timeline, and success metrics
5. Consider partnering with experts: Leverage specialized knowledge to navigate the complexities

Conclusion: Vietnam as Your Strategic Sourcing Partner

Vietnam offers New Zealand businesses a compelling combination of cost advantages, quality manufacturing, strategic diversification, and preferential trade access. As Vietnam continues to develop its industrial capabilities and strengthen its trade relationship with New Zealand, the opportunities for mutually beneficial business partnerships will only expand.

With the right approach and support, Vietnam sourcing can help New Zealand businesses reduce costs, access new manufacturing capabilities, and build more resilient supply chains—ultimately creating a stronger foundation for growth and competitiveness in global markets.

At Epic Sourcing, we're committed to helping New Zealand businesses navigate the complexities of Vietnam sourcing, ensuring a smooth, successful experience from initial inquiry to final delivery. Our local expertise, combined with our commitment to quality and transparency, makes us the ideal partner for your Vietnam sourcing journey.

Ready to explore how Vietnam sourcing could benefit your business? Book a free strategy call1 with our sourcing specialists today.

Epic Sourcing provides end-to-end sourcing solutions that reduce the hassle, cost, and risk of sourcing products from China and Vietnam. With teams on the ground in Vietnam and New Zealand, we help Kiwi businesses source like pros, launch with confidence, and grow with success.

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