Low Cost Country Sourcing

Low Cost Country Sourcing INDIA & VIETNAM

  • Enter New Market
  • Cost Reduction

Sourced categories are designed to be manufactured in high income countries

  • Achieve Desired Quality
  • Realized Cost Saving Potential
  • Product Piracy
  • Supply Bottlenecks
  • Increased Risks
  • More Challenges

Design for low cost country sourcing

  • Use of comparative advantages
  • Developing of low cost country manufacturing process

LCC

About India

Location: Located in southern Asia, India is the seventh largest country in the world.
Capital: New Delhi
Official Language: Hindi and English
Currency: Rupees
GDP: 2.61 Trillion USD (2017)

Major Exported Categories

  • Aluminium Articles
  • Leather Saddlery and Harness
  • Engineering Goods
  • Ceramic Products
  • Plastic and Rubber
  • Natural Pearls (Gems and Jewellery)

Key Points

  • 65% of the population is 35 years or younger
  • Data and intellectual property security and privacy laws relating to intellectual property and patents are strong and improving. IP theft is less of a concern in India. 
  • RM Cost-India is one of the cheapest source for iron ore, aluminium and other non ferrous raw materials.
  • Widely used English language.

LCC

About Vietnam

Location: Vietnam is located on the eastern coast of the Southern Asian Indochienese Peninsula.
Capital: Hanoi
Official Language: Vietnamese 
Currency: Dong
GDP: 223 Billion USD (2017)

Major Exported Categories

  • Telephones and their parts 
  • Machinery, Instruments, Accessories
  • Rubber
  • Footwear
  • Textile and Garment
  • Electrical/Electronics machinery

Key Points

  • Construction of US $600 million Vietnam Space Center by 2018 
  • 40% of the population is 25 years or younger
  • Vietnam has attracted total registered foreign direct investment (FDI) of US $300 billion in 2016
  • Digital Savvy- the smart phone penetration is 26% of the population
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