Due Diligence

How to verify a Vietnamese manufacturer before your first order.

Most sourcing failures are not quality failures. They are identity failures — the entity that took the deposit was not the entity that makes the product, or could not make it in the volume promised. Here is the sequence we use, including the parts you can do yourself without paying anyone.

Start with what a deposit actually buys

The moment of maximum risk in a new supplier relationship is not production. It is the deposit — typically 30% on a first order, wired internationally, before anything physical exists. Every check below is worth doing in proportion to that number. A verification that costs 1–2% of a first order is cheap; the same verification after the wire is worthless.

Step 1: Confirm the entity exists and is what it claims

Vietnam maintains a national business registration portal where an enterprise registration certificate can be checked. What you are looking for:

Free check you can do today: put the registered address into satellite imagery. An industrial-zone address with visible warehousing is consistent with manufacturing. A residential address, a shophouse, or an office tower is consistent with a trading company.

Step 2: Validate every certificate at source

Do not accept a PDF. ISO certificates carry an issuing body and a certificate number that can be checked on that body's register; FSC and PEFC both operate public certificate databases; BSCI and SMETA results sit on Sedex and amfori platforms accessible to members.

Check under the entity's exact registered name and number, not a trading name. In our experience the failure mode is rarely outright forgery — it is more often a certificate belonging to a different company in the group, a certificate that expired, or a scope that covers a different product category than the one you are buying.

Step 3: Test stated capacity against observable reality

Stated monthly capacity is a marketing number until someone counts machines. The questions that separate a claim from a fact:

A gap between stated and observed capacity is not automatically disqualifying. It becomes serious when the explanation for the gap is subcontracting that was not disclosed.

Step 4: Ask directly about subcontracting

This is the check most buyers skip and the one that most often matters. Finishing, upholstery, plating, component machining — all are routinely sent to workshops the buyer never sees and never audits.

Undisclosed subcontracting puts a facility outside your audited scope entirely. Whatever social compliance, environmental, or origin assurance you obtained for the primary site simply does not extend to it. Under EUDR and UFLPA, that gap is the compliance exposure, not a technicality.

Ask on site, ask the production manager rather than the sales contact, and ask what happens when an order exceeds normal capacity. The answer is usually given freely, because from the supplier's perspective it is ordinary practice rather than a concealment.

Step 5: Screen before you commit, not after

Sanctions and forced-labour screening is fast, cheap, and rarely done at the SME level. Check the entity, its legal representative, and its parent or affiliated companies where identifiable. For US-bound goods, the UFLPA Entity List is the specific instrument, and an affiliation two steps up an ownership chain is enough to cause a detention.

What you can and cannot establish remotely

Honestly assessed: a competent desk check — registration, certificates, satellite imagery, screening, and a live video walkthrough — will eliminate a meaningful share of unsuitable suppliers at low cost. That is real value and you can do most of it yourself.

What it will not establish: whether the workshop you were shown on video is the workshop that will make your goods, whether the second facility exists, whether payroll records match timecards, or whether the timber in the yard came from where the paperwork says. Those require someone standing in the building.

The practical rule: do the desk checks first, on every candidate, and reserve a site visit for the supplier you are actually about to commit to. Verifying five suppliers on site is usually a waste of money; verifying the one before the deposit rarely is.

Related

Field Diligence verifies Vietnamese manufacturers against exactly these requirements, on behalf of the buyer and paid only by the buyer. Fixed published price of USD 2,200, agreed before work begins. Start with a free scoping conversation, or see a sample report first.