00:01 Hey, this is Daniel Audunsson here and I wanted to shoot this quick video for you today talking about sourcing in Vietnam and specifically sourcing private label products in Vietnam. So I sent an email out to my email subscribers a couple of weeks ago just telling you what I was up to and um, that I was about to go to Vietnam for about 10 days to learn about sourcing in Vietnam. And I simply asked you if you would be interested in learning more about that and knowing, you know, about the things that I would discover and learn during that trip. And I had a lot of yeses back, a lot of interest. So that's why I'm shooting this video for you now. And I want to, you know, explain and provide value to you by sharing some of the main things that I learned about sourcing private label products in Vietnam during that trip.
00:54 And I think if you are sourcing and selling products, um, private label products for Amazon in particular in 2019 and beyond. This is really important, uh, methods and uh, yeah, I hope you get a lot of value from it. And you know, you pay attention to these things cause they could potentially make you a lot of money and help you a lot. So first thing I want to mention is, is why I went there. So I've had Vietnam sort of on my radar for, uh, several years and I've been seeing it coming like, uh, at some point manufacturing contract manufacturing is going to start a switch from, from China to Vietnam more and more. So. And it's, you know, for economic reasons and you know, the way China is evolving and changing as a country versus the position Vietnam is in right now. And so I think the shift is really starting to happen now.
01:50 So I've sort of held back on it. Um, but this year I've decided to go all in on Vietnam and it's because the shift is really happening. So the trade war and the tariffs on China nosy are accelerating this shift. So that manufacturing in Vietnam compared to China is becoming more and more viable and more and more basically an exciting option compared to China. So I went there to look for our products and opportunities and you know, I came away with several different product lines, uh, that, um, uh, exploring and, and looking to add and, and sell. Uh, so some really cool opportunities and you know, products that some of them could be made in China, but having the made in Vietnam is, is Lexi less expensive and actually the quality is better in a lot of cases. So it's, it's really cool. Um, and I want to share it with you as well that, you know, some of my most successful students that I'm working with right now, they're sourcing products outside of China and also outside of a domestic market.
02:57 So they're not sourcing the product that's in the USA and selling it in the USA. ENT, not in China. So they're going to these places like Vietnam, India, um, and other countries that are under the radar. And really just, you know, they're higher, basically barrier to entry. So that creates a lot of opportunity and there's a lot of products there that, uh, nobody's really paying attention to when it comes to private labeling on Amazon. So it was really exciting. And yeah, again, so a lot of my most successful students right now, that's what they're doing. They're going to these places and finding products that have a much less competition because there's way fewer people or sellers actually going after them and sourcing them. So that's exciting. Um, so first thing I wanna really like tell you about two years is the sort of outlook for Vietnam and what I'm seeing.
03:51 So what's going on, what's the landscape and what can you expect if you go and source in Vietnam versus let's say China. And you know, the first thing that is important to note is what I just mentioned with like the barrier to entry. So right now, um, in 2019 and I'm sure it's going to be the case in the coming years as well for, uh, anyone that's selling private label products, uh, in particular. And, uh, specifically for Amazon, you know, if you're a private label seller on Amazon like me, then, um, finding these opportunities that are more basically under the radar or they have a higher barrier to entry I think is really important. So one of the best opportunities is to actually find products in places that don't have a lot of private labelers. So compared to let's say, China where you have Alibaba and that's sort of the default location to source going to a place like Vietnam or India or some other country.
04:51 I mean there's a lot of other countries as well as opportunities, you know, that's going to really like weed out 99% of the competition for you if these products are, you know, specifically made in these countries or they're made better or cheaper. So it could be a combination of these things are, for example, in Vietnam, uh, there's items that are only made in Vietnam or really, you know, in particular made in Vietnam, but there's also items that are made in Vietnam and also, let's say China, but they're made, uh, either better and, or cheaper in Vietnam. Uh, which is obviously a huge advantage. So that's one thing and that's why I think this is important now in 2019, you know, not just, uh, you know, doing what everyone else is doing and it has always been that way. You also have to stay ahead of the curve and basically a step ahead of the pack.
05:43 And right now just by going outside of China or outside of our domestic market, you're taking a step ahead of the pack, so to speak. Uh, because sourcing products, for example, from Vietnam still isn't, um, like a common thing. It's not something that most people are doing. So it has a lot of fantastic opportunities and untapped almost opportunities for private labeling on amazon.com or for amazon.com or for Amazon co UK or you know, any other country really. Uh, so it's exciting. And then terrorists, obviously, like I mentioned, the, the reason the shift has been accelerating to Vietnam, uh, is in to do the terrorists. So if you're selling private label products on Amazon, you know, all about the terrorists and that they're going up. And I've been saying that, I'm sharing that with my clients for example, for for many months now that I don't think that terrorist and the trade war is going anywhere.
06:42 You know, I think it's just going to escalate if anything. And that seems to be the case, you know, sadly from like early this year, even last year and so far it's been true. And I think it's because of, you know, more deeper reasons due to like geopolitics and things. If you really look up like look into it and read up about it, you realize that you know, there's a deeper shift and a deeper conflict going on between like China and the United States right now. Then you know, there's the temporary trade thing. So that's why I think it's not going to go away. And it's better just to accept the fact and actually look for the opportunities because any problem or situation like this is gonna create opportunities and Vietnam is booming, for example, as a result of this, it's creating a massive opportunity for Vietnam, for example, one of many places.
07:36 So, you know, with terrorists of like 20, 30% on Chinese goods, a lot of these goods may have Muslim or terrorists, uh, coming out of Vietnam. And the U S has been looking at putting terrorists on Vietnam. And they might. But from my understanding, like talking to, uh, several of my friends that I have that live in Vietnam and things like that, you know, they've been telling me and I've been hearing that, you know, the Vietnamese government is really keen and it's really important for them to actually make sure they don't have these same sort of terrorists, um, put on them like China. And, you know, I believe they're going to be successful in avoiding that in large part because they're going to do whatever they have to, to, to avoid voided. And fundamentally speaking, you know, the United States is not against Vietnam or targeting Vietnam. It's not an economic sort of war or, um, you know, true competition between the United States in Vietnam.
08:32 Like it is Vietnam and China, but that's pretty much like war. Uh, so, uh, economically speaking, so as why I think Vietnam isn't gonna have the same situation and Vietnam is going to, you know, have that inherent basically benefit versus China is that there's not as much terrorists basically on the products. Obviously that's going to save you a lot of money potentially. So, you know, when do we add to that the fact that, um, um, that we have low labor costs and things like that as well and being them isn't going to touch on in a moment. You know, this really adds up to a great opportunity for a lot of products coming out of Vietnam versus coming out of China. Now there is this trench shipment problem as I'm sure you've heard about in Vietnam where basically China, uh, and some other countries will ship not completely finalized products into Vietnam and sort of do the final assembly in Vietnam in the ship it out to, uh, avoid the terrorists basically.
09:36 And this is something that o z like the United States and other countries are, uh, aware. Often they want to basically, you know, make sure this sort of trickery can't be going on. And that anyone that does that isn't really gonna succeed with it. Uh, but it is a big issue right now. And it's one of the reasons that, um, United States for example, has been threatening more tariffs on Vietnam, uh, if they can resolve it. So Vietnam is working really hard like the government to, to make sure that this isn't going on and they can actually crack down on this sort of behavior. So while it is a huge problem and it's very prevalent right now, um, you know, they're going to be able to basically get better at preventing that cause that's in their interest. So I'm sure they're going to do that. So I'm not too concerned about this.
10:24 Um, but then basically related to this, what's interesting is that a lot of Chinese manufacturers, and I've known about this for years now, you know, they've also been seeing this shift calming, like labor costs in China are going up. China's becoming more basically focused on high tech industries and they want to, you know, become a more dominant or established leadership in those types of industries, which makes sense. Cause China is, you know, a developed country now more or less. Uh, so obviously they want to move to the same industries like the u s and other countries are, um, focused on more high tech and things like that. So the, you know, more average manufacturing them, you know, like the most, most of the things we private label, they basically now will be made, uh, more and more so in other countries that have low labor costs like Vietnam.
11:17 So a lot of Chinese manufacturers, they've been looking to move their manufacturing into Vietnam and that's happening. So instead of like, you know, doing the trench shipment thing where they're basically, you know, more or less cheating the system to avoid the terrorist, they're actually going to start producing products more and more. So in Vietnam. And I know of several manufacturers that have shops in China and Vietnam and was Vietnam is right next to China. Um, so, you know, it's natural that this one happen. So a lot of the same companies, same manufacturers that are in China, especially the bigger ones, the more established ones, they're going to start making their products in Vietnam. Mid says, you know, something that you're gonna notice and it's an opportunity, uh, and do something to be aware of. So like a manufacturer that is doing in the Vietnam and another one. There's not doing it. I mean there's a thing to consider here.
12:15 So the next thing I want to tell you about, I have some notes here. I want to just cover the main things for you. Uh, so I wrote it down in my notebook and, um, so the second sort of big thing I want to mention is the oral opportunity. So why, you know, why really what you want to consider at Vietnam. And I'm not trying to sell you on going to Vietnam at all, but that's obviously, uh, yeah, uh, to you. But I want to make you aware of the opportunity potentially for, um, products that are currently selling or products that you might want to sell in the future. Cause if you're looking for new opportunities, you know, I would, and I do go primarily into other markets now too, to look for those opportunities because they tend to be much more ripe for the picking and does better and, and more plentiful, um, in these other markets that most sellers aren't going into.
13:08 So, you know, Vietnam is booming. When I was there, for example, I'll tell you like I used to live in Vietnam, so I spent um, you know, a few months there basically living in Vietnam and there was this particular street I lived in and hold to mid city and Vietnam. And, uh, when I went back to, to Vietnam, I went to visit, uh, the same street. Basically. It was always curious to see, you know, uh, what had changed, but also this experience coming back there, uh, after like six years, cause this was like six years ago. And I can tell you that street is like completely transformed into the modern eights, so to speak. So Vietnam is changing fast. It's becoming, um, you know, uh, much more stronger economy with a lot of talented young people and things like that. And it's just, it's changing really fast. It's booming.
13:59 And, um, so in terms of the opportunity while we have this, you know, going on, like education is going up, there's more and more talented workers they can do in a more and more complex tasks and, and this specialize, you know, and making more and more different kinds of products or, you know, there's a more, basically it's a more developed country. So, uh, it's better for business in general when it becomes more devil up. There's more, uh, talent that can speak great English and you know, there's more development going on, becomes easier to do business. But in terms of a cost, so this is one of the big reasons you would want to consider Vietnam. And it's because the labor costs right now in Vietnam are about 50% lower than China on average. Um, and you know, there's not a number I'm describing from thin air, you know, this is not statistically a fact.
14:54 So the average salary in Vietnam is 50% lower than China on air. It's not, obviously China has a lot of different territories and things like that, but this is the average figure. And the thing is that this gap, the difference is going up. So there's actually a bigger and bigger difference in the, um, you know, the labor cost between China and Vietnam. So you know, from that you can conclude and it, you know, it's, it's true when you look at the costs of products, you know, the cost of manufacturing in Vietnam and those, the price per unit is going to be lower, um, on average in Vietnam. And then in China. Not always. It depends on what the, how they're making the products, how, you know, how sophisticated their machinery and everything is. But in general, the costs are lower in Vietnam. And what I've seen from my own resource, cause I've done some extensive research on this now, uh, comparing the data, um, I'm seeing that the price per unit of items in, in Vietnam, so the same items as you can get in China and in Vietnam it tends to be about 20% lower in Vietnam, sometimes more than that.
16:01 But that's sort of the thing you can expect, you know, roughly 20% lower. That's the price per unit. So not counting the terrorists. So when you add on the terrorists, obviously the same as can be bigger than that. So if you're making your product in China right now and you know, and it's also possible to have it made in, for example, Vietnam or another country, there's a lot of this applies to other countries as well, like India. Um, so then you know, you would want to consider it for sure. Like what is the difference in cost? Because if you can have 2030, 40, 50% lower costs than your competition or a big part of your competition with your product, that is a massive advantage. If you run, if you know how to run really good, uh, uh, paper click advertising on Amazon and, and different things like that, then you know, if that is a difference that's going to come in very handy when it comes to the competing.
16:58 It's having that additional uh, profit margin, uh, and just, you know, cash to basically spend to uh, win. And so that's something to consider. Obviously making the shift might not be a like one day thing. It may be a process, but if you're looking at that kind of a cost saving and it's something that's likely to become maybe even more, etc rated over time, then starting to make that transition is something I would strongly suggest to doing. It's not without issues and it takes time and effort and everything like that, but it can be a huge, huge thing for your business. And making this shift faster than or earlier than a lot of your competition as well is a potentially very powerful move. So I would strongly consider it, consider it if I were you, if you have opportunity.
17:52 So when it comes to categories I was in, not everything is made in Vietnam, right? So, um, if you're already selling products that are being manufactured in China, then obviously you wanna consider first of all, can I make these products in Vietnam? Are they made in Vietnam? Because not everything is. Uh, and also if you're looking for new opportunities, it's important to sort of be, you know, aware of the rough categories that we have in Vietnam for products. And so, you know, re listed some of them and want to mention some of them here for you. This is not an extensive list. There's a lot more as well, but we have, for example, textiles and clothing and furniture. It's can be a really good opportunity. Uh, homeware and handmade, handcrafted products, electronics, more and more so Chinese manufacturers because of the lower labor costs are starting to move into Vietnam, uh, automotive parts and even like construction, uh, type products.
18:53 And then coffee, you know, coffee is basically be one of the biggest exports that Vietnam has in the coffee from Vietnam is amazing. If you like coffee like me, it's, it's amazing. In Vietnam and Vietnam is basically becoming the number one, um, uh, export nation for coffee in the world. So if you sell coffee, uh, Vietnam is a place to checkout for sure. And those are, there's more common because you know, Vietnam is sort of becoming like the new China. Uh, and I'm not saying the Vietnam is like China. I know it's not the same country at all, but it's sort of like the new China for manufacturing. I think obviously China like Turner will just become like going into Vietnam. There's other places that other countries that are going to become, um, you know, more often manufacturing, um, hubs of the world. So it's not just going to be one place, but some portion of what's calling the minute China is shifting into Vietnam.
19:52 I think there's no doubt about that. So in a way, in a sense, it's sort of like the new China, it's next to obviously China as well. And yeah, so no, the third thing I want to mention, this is important is how we actually source in Vietnam and you know, yeah. So how do you actually go about doing that? Well, it's not as easy as in China right now because China has, you know, a really established basically framework or um, you know, based set up for sourcing. So it's really accessible and it's really easy to just like hop on over to Alibaba and find the supplier and sources from China. And you know, the Chinese manufacturers are really used to working with foreign companies and, and things like that. So it's a really mature market. It's as a benefit obviously. But when you go to a place like Vietnam, uh, right now it's not that devil lot.
20:46 Not like it's still fine, but it's not as they'll look. There's China. So one major thing that I've learned if you're going to source products in Vietnam is it's definitely important to be more, uh, basically we have a stronger skillset and knowhow and sourcing. So basically being more of a professional, um, sourcing, um, yeah, not more professional at sourcing. So you have, you know, your own processes and systems that you can apply to anything in source in Vietnam. That's important because if not, you could have issues with a lot of, uh, elements, a lot of variables in the manufacturing process, quality, um, you know, working with the suppliers, lead times, um, different things, consistency, communication, uh, she had been, uh, all kinds of different things. So it's important that you have really strong understanding of sourcing and you have the systems, you know, how to apply, you know, factory audits and um, you know, order quality inspections and all these type of things yourself.
21:54 You know, how to negotiate, you know, how to work the system of manufacturing contract manufacturing. It really well, like at a professional level. And this is something I spent a lot of time and energy, uh, becoming better at like the last two years I've been living in Hong Kong and I've been really, um, learning more about manufacturing because it didn't use to be that big of a deal when I got started in like 2012. But right now, especially to open up these sorts of opportunities, it really depends on your abilities and your skillset and how professional you are. You need to be able to approach it, you know, like a big company and take it seriously to have great results with it. So it's more bespoke, it's more dependent on you knowing what you're doing. Um, and you know, so pro level, uh, manufacturing and sourcing and procurement processes and systems, you know, just like the ones that I'm, I've been teaching my students that are then using these systems to be able to go into places like Vietnam and source successfully and open up a ton of opportunities for private labeling.
22:58 Sell them on Amazon right now, 2019. Um, then when it comes to the fainting manufacturers, you know, you can find some on sites like Aldi pop up. Obviously there's trade shows or even like global sources of summit and in Hong Kong will have some manufacturers that are based or have basis in Vietnam and other places. But in my opinion, what I found, if you really want to just go straight to the heart of the matter and get the products you want, you should have a sourcing agent. So you want to have basically a base or some sort of a, um, set up or told in Vietnam with an agent or someone who can work with, uh, basically, you know, a team. It could just be one agent. Uh, but you know, one person that is professional you can communicate with that can't get the job done video and aid you and find the suppliers and things like that because it's less developed.
23:53 And there's just so many advantages to using agents in general. Uh, cost savings overall compared to doing it yourself is efficiency, saves you so much time, um, and potential issues, but there can also negotiate better, create those relationships for you that go in a mean everything when it comes to a business and manufacturing, you know, what can you establish with a manufacturer or a time in terms of, um, you know, terms, costs or negotiations, um, shorten, lead times, all kinds of different things that are really important. So highly suggest a sourcing agent in Vietnam and even go into Vietnam yourself to, you know, create that relationship. Um, hire those people if you need to, if you want to be really successful sourcing there and just efficient, get the job done, get the prize, who want, uh, you know exactly the way you want them at the best possible costs.
24:48 Agents are the way to go. Uh, in my opinion, my experience. No. So that's, I think that's about it. Um, so I hope this has been useful. You know, that sort of the rundown of the main things that I've learned. Uh, so far sourcing in Vietnam, I was the, still fairly new to that. I've just been doing it this year and um, uh, pursuing several product lines, uh, from Vietnam right now. So I might, and I'm sure I'll be able to share more things with you, uh, in the near future. And if you'd like that, if you're interested in sourcing from Vietnam, then you know, you can let me know common below the video and let me know. Cause you know, I want to basically provide value to you based on what you want, uh, based on what is valuable for you. And I'll see, you know, related to what I'm doing as well.
25:35 But I hope this has been useful. And again, fantastic opportunity if you are selling private label products on Amazon in 2019 and beyond a lot of untapped, uh, items. So a lot of opportunities that known as we were looking at, no one is really going for that. You can't go for ahead of the curve, the head of the pack and, uh, reap the rewards of doing so. And that could be, you know, product no one is really looking at or it could be, you know, product that others are selling like in sourcing from China. But getting them done, getting them mate better lower costs in Vietnam instead of China can be a huge, huge deal. Um, so that's it for this video. Um, if you are interested in more help with this, like if you feel like you are missing, let's say some of the most professional processes and systems to source products and have them manufactured, um, you know, at the quality that you want at the lowest costs, you know, finding agents, doing that kind of stuff, like professional sourcing to open up these kinds of opportunities.
26:43 Um, then you can click the link below and you can actually schedule a call to speak with me one-on-one, uh, because I can help you with it if you're interested. Um, so you can schedule a free consultation with me and I'll speak with you one-on-one. Uh, if it's a good fit, I'm gonna have you fill out a quick application to make sure it is a good fit before we actually go on speak. And then we can have a quick conversation and I can tell you whether or not I can help you with the things that you're looking to do. So the link to do that is below this video if you want to speak with me. Uh, but that's it for this video. Again, I hope you found it really, really useful and valuable, and I'll talk to you again soon. Bye for now.
