Low Cost Country Sourcing INDIA & VIETNAM
Objectives
- Enter New Market
- Cost Reduction
Challenges
Sourced categories are designed to be manufactured in high income countries
- Achieve Desired Quality
- Realized Cost Saving Potential
- Product Piracy
- Supply Bottlenecks
Consequences
- Increased Risks
- More Challenges
Solution
Design for low cost country sourcing
- Use of comparative advantages
- Developing of low cost country manufacturing process
LCC India
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 Vietnam
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