Quality Inspection Services in Vietnam

Product Quality Inspection Services in Vietnam

ATI (Asia Textile Inspections) is a leading Third-Party quality inspection services company providing product quality inspection services in Vietnam. Quality is the penultimate factor for grading the production processes and the finished product. ATI has dedicated team of inspectors across an array of industries task. Whether it is the garments, furniture, textile products or toys; we have inspectors with skillsets of said product.

China is one of the biggest markets in the world. As we are familiar with the recent America-Chine trade war when President Trump announced executive order for banning US companies to work with Huawei. Big companies like Google even stopped working with China’s tech giant Huawei. All of this fuss brought risk and warning for all of the importers. Following this America-china trade war concern, importers have started ignoring China for their businesses. In this type of scenario, Vietnam should be the second option for importers and businessmen. Because Vietnam has a big market like China with such cheap rates of products. Vietnam is like ‘other China’ in terms of market and business. We do offer our quality inspection services in Vietnam as well.

Vietnam An Attractive Market For Importers

A good thing about Vietnam is that this place is full of opportunities. There is a lot of local labor force available looking for work at cheap rates. So, almost everyone gets work here. Even the government of Vietnam is supporting and inviting foreign companies to shift their business to Vietnam.

Vietnam is also an attraction for doing business because here raw materials are easily available at reasonable prices. Vietnam doesn’t manufacture too much but the availability of all types of raw materials at good rates is a huge plus. This is an edge for importers and business communities who are looking for working with Vietnam.

Another reason for importing goods from Vietnam is that there are no such strict restrictions or commercial laws like the U.S. Having relaxation in laws and business, importers do get more confidence to work with Vietnam instead of the U.S.

As an importer, if you want to shift your business from China to Vietnam then that’s the right decision. You would be able to sign a contract with any of the Vietnamese company but shifting business is not that easy. Therefore, we have a global network of ATI team full of professional and experienced individuals that will help you in relocating your business. Let’s discuss some of the core factors that you should keep in mind while switching your business from China to Vietnam.

Production Cost Comparison Between Vietnam And China

An increase in costs is making it difficult for local and foreign companies to work in China. There was a time when labor force of China was one of the cheapest labor forces for importers to work with. A 60% increase in wages has lowered the gross profit of labor-based industries of China.

If we take a look at Vietnam, there is a way difference in between China and Vietnam in terms of the labor force and wage rates. In Vietnam, rates are low and the supply of labor is extensive. This difference is a huge plus for importers who are willing to relocate their business from China to Vietnam.

• In 2019, the minimum monthly wage of Vietnam is about $125 to $180 on an average basis.
• In 2019, the minimum monthly wage of China is about $143 to $180 on an average basis which is twice of Vietnamese average wage rate.

From these figures, we can say more confidently that Vietnam is a more attractive place for importers in terms of wages and extensive labor force.

Cost Of Relocation And Facility Development

Based on labor costs, we can’t make sure that shifting your business from China to Vietnam is the right decision or not. After making your mind to relocate your business, all you have to do is to get to know how much it cost for relocating and other facilities in Vietnam.

As with time, the interest of foreign importers and businessmen in Vietnam is increasing. More business towards Vietnam means increase in the cost of resources like land. Let’s check out some figures about the costs of land in Vietnam.

• In 2017, an average cost of renting the industrial place on a long-term lease at Vietnamese industrial park increased from $60 to $70. Whereas in 2018, the cost of land per square meter increased up to $90.
• Near Ho Chi Minh City, monthly rent cost for existing factory buildings in the industrial area has been increased from $3 to $4 within a year.

Following are the extra costs:

• Converting industrial plants to manufacturing sites has its own cost.
• Pay for shifting automated production lines from China to Vietnam.
• Allowances for sending experienced Chinese workers to Vietnam.

Cost Of Components And Imported Materials

China exports more than it imports. In 2017, China exported $2.26 trillion in goods while it imported $1.84 trillion. These figures show how much China is self-sufficient and independent in terms of producing goods at a big level. Those who are looking for shifting their business from China to Vietnam might get a disadvantage here. The main reason is that China can produce all those goods and raw materials that Vietnam cannot. That’s where China gets an edge because even if people relocate their business from China to Vietnam they would have to import a large number of goods from China.

Importing goods from China will increase the importer’s cost that means lower profit. The only benefit is transportation because Vietnam is located close to China so transportation costs would not be that much.

Let’s check out what Vietnam is importing  :

• Garments industry of Vietnam imports 70% to 80% of textiles from China.
• Vietnamese electronics industry imports manufacturing inputs cost 77% of the total product value.
• The pharmaceutical industry of Vietnam is importing 85% to 90% of medicines.
• China’s plastics industry also importing manufacturing inputs that cost 70% to 80% of total production cost.

Quality Inspection Control Costs

A huge amount of importers work with third-party quality inspection companies for inspecting their product manufacturing in China. As we know that China is a big market so besides having an extensive labor force there are also a lot of third-party quality inspection companies working in China. But, the disadvantage of these inspection companies is their lack of team presence on a global level.

Following this issue, you would have to face several problems for examining your product due to the lack of quality inspection services teams in other countries like Vietnam.

• In case of more distance, traveling costs for sending an inspection team to reach a manufacturing place will increase as well.
• Time scheduling for product inspection is required. From Vietnam, it would take inspection team a few days to reach China.

So before choosing any third-party quality inspection service, it is recommended that you make sure that whether the inspection team provides their services in Vietnam or not. The inspection service company should have a network of inspection teams on a global level. Working with a local inspection service team with a small circle will make it difficult for you to handle traveling costs.

Availability Of Infrastructure And The Ease Of Doing Business

Being World’s second-largest economy, China is like a key trading partner for many states. Both local and international business communities looking forward to expanding their business in China. Over the years, China has developed itself as a trade giant country for import-export infrastructure. Business models and activities of China attract foreign investors and businessmen to work with China.

If we compare Vietnam to China, Vietnam is way behind China in terms of trade infrastructure. Vietnam is not that advanced or self-sufficient in the trade industry. Main reasons for Vietnam’s lacking in trade are:

• Lack of resources.
• The slow growth of a business.
• Small land allocated for businesses.

But the interesting fact to know is that Vietnam is better than China in the ranks of Ease of Doing Business scale. According to the report by World Bank, Vietnam ranks on 68th number whereas China ranks on 78. Over the last few years, Vietnam has shown positive and constructive progress in a lot of disciplines like:

• Worked on supplying electricity throughout the country to reduce outages.
• Adopted new civil code for giving credit facilities in order to deal with collateral assets.
• Made new laws for implementing rules and regulations regarding the protection of businesses.
• Improvements in physical structure have been made for giving confidence to investors in terms of investing in Vietnam.

Our Product Quality Inspection Services in Vietnam are as follows:

Pre-Production Inspection

Pre-production inspection is the basic inspection service that can be utilized either before the production phase starts for checking inputs or at the earlier stage of the final assembly.

What Is Checked During A Pre-Production Inspection?

Following are some of the most common steps that a pre-production inspection involves:

• The Materials/Components:

To get your product, you would have to get in contact with any supplier of that particular product. Well, sometimes suppliers prefer quantity over quality for attracting more customers. They offer you low rates to get your attention towards them in terms of buying products. Following this, they use low-quality and unreliable materials that might be against the rules of your country.

To avoid such a situation, our inspectors do evaluate and inspect some samples of that product and send them to a laboratory for further testing.

Our inspector might check different properties of your products like color, weight, size, color, etc to make sure that they comply with your requirements.

• A Prototype

Sending product like a large cupboard as a sample to the inspector doesn’t make sense. Following this issue, you can ask your inspector to go for checking the product himself and send you pictures for complete validation of the product without wasting your resources and time.

• The Processes Of Mass Production

As a customer, it’s your right to make sure that the production of your product is according to your requirements. For verification, our inspector can assist you in getting all insights about the production process and methods implemented by the supplier as per your given specifications.

During Production Inspection

During process inspection known as DUPRO is a perfect inspection for:

• Shipments of large in-quantity products.
• Product lines with continuous production.
• Shipments with on-time restrictions.
• Further examination if pre-production inspection results were not up to expectations.

During production batch, ATI will inspect and check products for any possible defects. We will be checking for any irregularities or fluctuations so we can assist you in terms of giving you required suggestions for taking disciplinary measures during the phase of Pre-Production inspection.

We have a team of qualified and experienced inspectors for you to keep updated about your product. Inspectors will update you at each step of production through a complete inspection report along with photos. Having a worldwide network of inspectors, we would provide inspection services in your location within a few days of receiving your request.

During DUPRO, our inspectors would provide you their expert views about production so you can spot out any anomalies from that contract with your supplier. Our inspection services will give you that trust and surety that suppliers are producing high-quality products for you according to the standards of your brand.

Initial Production Inspection

Initial Production Inspection (IPI) as name telling itself that this is the inspection that takes place at the very beginning of the production process. The main purpose of this inspection is to verify that the use of raw materials compliance with your quality inspection standards or not. It is like giving you an overview of your product in terms of making you satisfied. Following are the parameters that are inspected during IPI :

• Evaluating production limit and equipment capacity within the factory for giving the customer an estimated cargo ready date.
• Checking that the quality control system of a factory is up-to industry standards and also whether it meets your quality expectations or not.
• Professional audit techniques to keep quality control measures according to
• The audit production techniques to make sure that all quality control measures are per expectations.
• Checks for quality and quantity of raw materials and core components to be used in products. Predicts possible errors and problems that might occur in the factory during the production phase to build the trust of the client in terms of producing the product according to the client’s expectations.

Pre-Shipment/Final Random Inspection

Pre-Shipment Inspection is one of the final steps of inspection. Buyers, agencies, and suppliers prefer using this inspection to inspect newly manufactured products before sending in a shipment for import/export.

Following are the core purposes of a pre-shipment inspection:

• Check both the quantity and quality of merchandise as per specifications.
• Check for any possible irregularities or defects.
• Verify either product meets specific safety requirements of the market or not.
• Send billing and import reports.

We make sure that your shipments go through proper inspection before getting shipped out to you. Performing professional inspections on your shipments do save a lot of your precious time and money. We make sure that we inspect your products thoroughly and deeply so that you can give that confidence back to your customers in terms of reliability and safety of the product.

Sometimes people receive damaged or defected products and then they send those products back to the supplier for repair or exchange covering expenses by themselves. To avoid such a scenario, we make sure that if any of your products found to have defected during the pre-shipment inspection, then the supplier must fix that product before shipping out to you.

That’s why pre-shipment inspection is like a backbone of the whole inspection cycle that gives you security and confidence against any loss.

Container Loading Inspection

Container Loading Inspections is an important stage which guarantees that ATI’s staff are monitoring the entire loading process. The inspectors present on-site ensure that your order is complete and securely load into the container before shipment. This inspection is the stage whereby your shipment can be check for compliance with your requirements.

This quality inspection usually takes place at the factory as cargo is load into the shipping container. The inspection and supervision process includes a condition evaluation. Of the shipping container. verification of product information, quantities loaded, packaging compliance, and overall supervision of the loading process.

The following are the most commonly observe pointers during a container loading inspection:

• A record of weather conditions, the arrival time of container, the record of the container and truck number.
• Full container inspection and evaluation to assess any damage, interior moisture, perforations, and smell test to detect mold or rot.
• Confirm the number of goods and condition of the shipping cartons.
• Random selection of sample cartons to verify the packaged products in the shipping cartons.
• Supervise the loading process to ensure proper handling, minimize breakage and maximize space utilization.
• Seal the container with the customs’ seal and ATI seal.
• Record the seal numbers and departure time of container.

ATI Is One Of The Top Trusted Third-Party Quality Inspection Firms Operating In China. Why Is That So?

As an importer, the first thing you make sure is that your manufacturer producing your products according to your requirements or not. Sitting in another country, you can’t suspect and examine the whole manufacturing process going on in another country. That’s where our inspection teams do their job of complete monitoring and inspection of your product’s manufacturing process.

China is one of the biggest markets in the World so that’s why a large number of importers do take ATI’s inspection to inspect their product manufacturing in China. ATI keeps you updated with report of every inspection service step. Our fast and reliable inspection reporting gives that confidence to our customers about their product.

We aim to provide the fastest and professional inspection services to our customers worldwide. Our team categorized our inspection into five sub-steps so that every inspection process can take place without any irregularities. We have a global network of experienced and trained quality inspectors to make sure that the manufacturer doesn’t compromise on the quality of your product. Let’s take a general look at whole inspection process in these key points:

• Gather customer’s requirements.
• Contact particular manufacturer for sending customer’s requirements.
• Decide and set the audit date for inspection after discussing it with the manufacturer.
• Delivering required inspection services like PPI, DUPRO, PSI or CLI.
• Verify and Deliver the inspection report.

Vietnam the Most Rapidly Growing Export-Oriented Market

Well, Vietnamese market has got a boost from the America-China trade war in terms of business and exports. Following this trade war, hundreds of importers have stopped working with China and started to work with Vietnam. Although the trade and physical infrastructure of Vietnam is not that great like China but Vietnamese market is growing rapidly and consistently. Investors also showing their interest and confidence to invest more in Vietnam.

After discussing infrastructure and trade of both countries, following are the questions you should ask yourself if you want to shift your business from China to Vietnam:

• Is it easy to access manufacturers in Vietnam for producing your product? What are the quality standards of Vietnamese manufacturing companies? What type of risks involved in working with Vietnamese manufacturers?
• Can you meet all the expenses of business relocation from China to Vietnam? How the rise in resources cost will affect your business in Vietnam?
• Is Vietnam producing those raw materials and goods that are required in your product manufacturing? What would be the cost if you import those raw materials from China?
• Do you have good contacts with Chinese traders so they can assist your relocation process without any major blows?

For more queries related to Quality Inspection Services in Vietnam, you may contact us via email at inquiries@atihongkong.com