Henrik Pontoppidan, Director of S2U Design, talks about the new Production Powerhouse and how to make the most of it.

Vietnam’s manufacturing sector is thriving, and while factories are open to new business, they are now past the post COVID desperation. Many are already at full capacity, fuelled by rising demand as companies shift production from China. Many are investing in new modern factories, and a lot of Chinese, Korean, Thai and Taiwanese manufacturers invest and build factories in Vietnam. If you’re looking to source from Vietnam, understanding the fundamental differences between China and Vietnam is crucial.

China vs. Vietnam: Transaction vs. Relationship

China’s sourcing model is transactional – you browse a catalogue, place an order, and receive a product. Factories are structured for off-the-shelf sales, and relationships are secondary. This is not how things work in Vietnam.

Vietnam’s manufacturing is relationship-driven and predominantly OEM-based. Factories do not operate from catalogues; they develop products with buyers. If they have a real showroom, models on display are usually not for sale – they are developed for specific clients. The best manufacturers prioritize serious, long-term customers. If you approach sourcing with a transactional mindset—sending a photo and asking, “How much?” – you’re likely to be filtered out of the factory-perceived top-tier customer group. Instead of dealing with key decision-makers, your request will land with a junior sales assistant who is there to take orders, not guide product development.

This is why S2U Design plays a crucial role. We don’t just find you a factory or obtain a quote for you – we get you in front of the right factories, the right people, and ensure you’re taken seriously. We create a clear, professional brief on your behalf before engaging with manufacturers. This is a critical step in securing the best partners and achieving the right results.

Understanding the Process: A Personal Perspective

Buyers often approach me with a simple request: “Can you get a price for this?” alongside a product image. What they sometimes don’t realize is that sourcing in Vietnam is not a simple price check. Before a factory can quote, every detail must be defined—materials, construction, finish, packaging, and logistics. Then, we need to identify the right manufacturer, negotiate terms, and refine the design for cost feasibility. Without this process, if a quotation is successfully obtained, it will be rather meaningless.

Another common question is: “Will the factory do XYZ?” For example, “Will they use high-grade veneer?” or “Will they add corner protection to the packaging?” The answer is: They will do exactly what you specify – but only if you specify it. Unlike in China, where some details may be standard, Vietnamese factories expect clear instructions. If you fail to specify something important, you may get an unwanted surprise. This is where S2U Design steps in—we ensure that nothing is left to chance.

What Success Requires From You

If your goal is to develop a unique OEM product, you must accept that it requires investment—both in time and resources. There’s no quick fix, but the effort pays off. With a well-structured approach, you can create highly competitive, unique products that give you a real edge in the market.

However, if you expect instant quotes, next-day orders, and off-the-shelf solutions, Vietnam will be frustrating. That’s not how the industry operates. Success comes from understanding the process and working with the right partners who can execute it for you.

The Best Factories Are in High Demand

Reliable manufacturers – those with strong quality control and dependable lead times -don’t chase business. They have their own selection criteria for choosing customers, just as we have criteria for selecting factories. While each factory has its own focus, one universal truth applies: they prioritize serious buyers who demonstrate commitment. If you engage casually, you won’t reach the decision-makers who matter.

How S2U Design Ensures Your Success

At S2U Design (www.s2udesign.com), we don’t just guide you—we do the heavy lifting on the ground. Our services ensure that you get the right products, at the right price, from the right factory, without having to navigate Vietnam’s complexities alone.

Here’s what we handle for you:

• Factory Selection & Evaluation – Identifying manufacturers that align with your needs.
• Detailed Design & Technical Documentation – Ensuring every specification is clear and precise.
• On-the-Ground Factory Checks – Meeting with CEOs and key decision-makers.
• Negotiation & Pricing – Structuring the deal for long-term success.
• Production Oversight & Quality Control – Preventing costly mistakes.

The result? You get a simple, profitable solution where you can place orders with confidence. The investment in our service typically pays for itself within the first or second container through smarter sourcing, cost savings, and faster lead times.

The Time to Act Is Now

Vietnam’s top factories are in high demand. If you delay, you risk missing out on the best partners—or worse, getting stuck with unreliable suppliers.

If you’re serious about winning in Vietnam, let’s talk. Visit www.s2udesign.com to see how we can secure your supply chain and position you for success.

You can also drop me a line on henrik@s2udesign.com