Navigating the Electronic Component Supply Chain: A Guide to Sourcing from China to Vietnam

In such an interconnected world, it is easy to import goods from one country to another. You can easily import electronic components from China to Vietnam. However, it would help if you still did things right when making such a move.

In 2022, Vietnam’s import from China was valued at US$117.65 billion and the numbers have been on a steady rise. Electrical components and equipment are ranked at the very top of the list. They are the most imported products from China to Vietnam. For the past 26 years, Vietnam’s imports from China have been growing at a steady rate of 22.1% per annum.

The fact that these two countries have a friendly business relationship makes it easier to import goods such as electronic components from China. There are very few legal hurdles or bottlenecks that one should go through when doing the importation process.

If you are planning to source electronic components from China to Vietnam, here is a perfect guide for you. You will learn various tips on how to easily navigate through the supply chain.

The state of Vietnam’s electronics industry

As we have stated, electronic components and equipment are the leading products that are imported from China to Vietnam. One of the reasons behind these numbers is the vibrant electronics industry in Vietnam.

In as much as Vietnam imports electronic components, it is also a leading exporter of electronic goods. This means that it manufactures and assembles different electronic goods that are utilized in the global market.

To be precise, Vietnam takes 1.8% of the total global electronics market. In 2020, it was ranked the 10th largest exporter of electronics globally. It has managed to achieve this high rank in the worldwide market due to both internal and external factors. Internally, low labor costs and friendly policies are attributed to the country’s impressive position.

On the external level, Vietnam has been establishing good trading relationships with different countries, including China. This has made it easier for manufacturers in Vietnam to source components and at the same time export their products to different countries around the world.

Vietnam hosts an array of big names in the electronics industry such as Samsung, LG, Intel, Canon, and Foxconn among others. It also hosts many other small companies that manufacture different types of electronic products.

Other than electronic goods companies, Vietnam also hosts research f and learning facilities that focus on electronics.

All these entities rely on electronic components to manufacture electronic goods or conduct research in the field of electronics. But, where do they get the components? This is where China comes in. They import electronic components from China to Vietnam.

Electronic components determine the functionality of an electric device or appliance. They are usually connected to work with each other. Some of the electronic components that are imported from China to Vietnam include semiconductor chips, diodes, transistors, resistors, oscillators, inductors, connectors, switches, and ICs among many others.

Which of the above components are you planning to source from China to Vietnam? Keep reading to get more tips.

Why source electronic components from China?

Both commercial entities in Vietnam prefer sourcing electronic components from China. What is the reason behind this?

China is the world’s manufacturing hub for electronic components. You can be sure to find all types of electronic components that you need for your projects here. The availability of raw materials such as rare earth elements makes it easy for manufacturers to produce electronic components.

Low cost is another key reason why China is an attractive market for buyers seeking to buy electronic components. Most factors required for the production of electronic components are cheaper in China than anywhere else in the world.

A well-developed supply chain is a top reason why buyers in Vietnam prefer sourcing electronic components in China. It has a stable business ecosystem that supports manufacturers, suppliers, and buyers. Buyers from different parts of the world can easily source electronic components without any serious challenges.

For these and many other reasons, you should not hesitate to source electronic components from China to Vietnam.

Know and understand your needs

The supply chain is quite complex and if you are thinking of having a smooth navigation, you should start by defining your needs. State what you want as this will determine every step and action that you will take in the supply chain.

Start by defining and listing all the electronic components that you need. If you are a manufacturer, you can define their uses or applications.

You should also define the volume of the components and your budget. In some cases, you may prefer working with products from particular brands. Do not hesitate to outline this information. Once you know all your exact needs, you can proceed with the other steps.

Search electronic component suppliers and distributors

Once you have defined your needs, you can proceed to look for the suppliers or providers. The electronic components supply chain is flooded with many suppliers. What makes it hard is all the suppliers claim to be the best in the business. You should take time to vet each supplier before you choose one.

Establish the reputation of the supplier from other customers in Vietnam. You may also consider their experience in the electronics industry.

Price and cost of importing electronic components from China to Vietnam

Price is a major factor to consider when getting into the electronic components supply chain. As a business, the price of the components will have a direct impact on the overall cost of production. Most buyers choose China because they are assured of getting the most affordable electronic components for sale. This will ensure that they get reasonable profits from the sale of their products.

Start by comparing prices from different suppliers in the supply chain. From there, you should be able to choose one that is within your budget.

However, price should not take all the attention. Instead, focus on the value of the product that you will get from the components. In other words, do not be quick to buy the cheapest electronic components in China at the expense of quality.

The volume of electronic components

How many electronic components are you planning to import from China to Vietnam? Since most importers are in different businesses, they prefer buying electronic components in bulk. This is one way of ensuring that they get their products at competitive prices.

A key parameter that you should consider when it comes to the volume of electronic components is the MOQ (minimum order quantity). Most suppliers in China require buyers to use a minimum amount of money when making their purchases.

If you are new to the electronic components supply chain, you may start by ordering less volume of products or components. You can then increase the volume with time depending on the demand.

Quality matters

It is critical to pay attention to the quality of electronic components that you import from China to Vietnam. Always ensure that they are of premium quality.

A key advantage of buying high-quality electronic components is they will guarantee the integrity of the final products. Incorporating such components into the device and application means that the final product will be reliable and also deliver excellent performance.

How do I get quality electronic components in China? Especially when we consider the fact that the supply chain is quite extensive and complex.

First, look at the brand of the components. Who are the manufacturers and what kind of reputation do they have? Choosing a reputable electronic component manufacturer in China increases your chances of getting the best-quality components.

You should also look at the supplier. Ensure that they are not only reputable but also have the certifications to prove they can deliver quality components.

You may also hire professionals for in-depth proof of product quality. For instance, some quality verification procedures may entail conducting physical tests on the samples that the supplier provides.

Consider working with a sourcing agent

Navigating the electronic components supply chain is a long hectic process. The good news is you can make things easier. One of the easiest ways is by using the services of an electronic components sourcing agent. They will handle most of the tasks on your behalf and yours will be to wait for the products to be shipped to Vietnam.

Take your time and find reputable sourcing agents in China. Given the technical nature of electronic components, ensure that the sourcing agents are specialists in the field of electronics. They should also have enough experience in the field of electronics as this will increase your chances of getting quality products.

Conclusion

Are you in Vietnam and do you intend to build products that will be powered by electric energy? It all starts with sourcing electronic components from China to Vietnam With the information in this guide, you can comfortably navigate through the supply chain and buy electronic components that you need in China.

In case you need the services of sourcing agents, you should consider choosing ICRFQ. We are one of the leading electronic component sourcing agents in China. For the past 20 years, we have been navigating the electronic components supply chain, helping clients get the exact components that they need.