Has the Profitable Era of Vietnamese Auxiliaries Agents Come to an End?

"Mr. Zhang recently discovered that there were suddenly more than a dozen inquiry emails from Vietnam in his chemical auxiliary warehouse; Ms. Li's trading company just completed a Vietnam order last week, with a profit 30% higher than that in China..." Such scenes are frequentlyin factories in the Yangtze River Delta and the Pearl River Delta. With the rapid rise of the Vietnamese manufacturing industry, Auxiliary Export to Vietnam Agents is becoming a new blue ocean in the chemical field. But what opportunities and hidden dangers lie under this blue ocean?

According to data from the Ministry of Industry and Trade of Vietnam, in 2023, the import scale of auxiliaries in the three major industries of textiles, electronics, and plastics in Vietnam increased by 42% year-on-year. Behind this are three key driving forces:

• Industrial Chain Transfer Effect: International brands are shifting their production bases to Vietnam, driving upstream chemical demand
• Local Production Requirements: The new regulations in Vietnam require that the localization rate of key auxiliaries reach 40% by 2025
• Cost-Sensitive Procurement: Compared with European and American products, Chinese auxiliaries have obvious cost-performance advantages

The person in charge of the Vietnam office of Zhongshitong revealed that 37% of Chinese enterprises were returned due to compliance issues last year:

• Certification Barrier: Vietnam implements the mandatory QCVN 01:2023 certification for textile auxiliaries
• Logistics Trap: Special attention needs to be paid to the calculation method of demurrage fees at Ho Chi Minh Port for sea shipments
• Payment Risk: Some Vietnamese importers require a 90-day credit period and export credit insurance needs to be insured

A certain East China auxiliary manufacturer achieved a doubling of monthly exports through three strategic steps:

• Entrust Zhongshitong to complete the conversion of Vietnamese labels and MSDS
• Adopt the "Bonded Zone Pre-positioned Warehouse" model to reduce logistics costs
• Establish a profit-sharing mechanism with local Vietnamese distributors

The Vietnam Chemical Industry Association predicts that the annual growth rate of special auxiliary demand will reach 15% by 2028. However, the simple price war is difficult to sustain. It is recommended that Chinese enterprises:

• Develop special stabilizer formulas for the tropical climate in Vietnam
• Establish customer stickiness through technical training
• Pay attention to the new demands brought by the new energy field in Vietnam