HS Footwear Co., Renowned Footwear Manufacturer Shares What You Need to Know About the Import-Export Process When Working with Footwear Manufacturers in Vietnam

Footwear companies are increasingly ordering their products from Vietnam. If you are in the industry, you might be wondering, why is this happening? How does Vietnam handle export items? What are the basics of the importation of goods into the United States?

Over the last decade, China has lost increasingly more business to Vietnam’s footwear manufacturers. Companies such as Fast Retailing Co., Ltd. have moved operations from China to other countries, as their wage costs are cut in half when manufacturing in Vietnam.

Indeed, in 2014, Nike, Adidas, and Puma increased their business with Vietnam by 25% compared to 2013. Furthermore, in 2017, factories in Vietnam produced 44 percent of Adidas footwear. Worldfootwear.com also noted that Vietnam’s footwear exports are up by 11% for the year. So, how does this translate to dollars? In the first nine months of 2018, Vietnam exported nearly 11.8 billion US dollars’ worth of footwear.

“According to the latest edition of the World Footwear Yearbook, in 2017 Vietnam produced 1.1 billion pairs of shoes (a share of 4.7% in worldwide production), taking the third position as the largest producing country. In 2017 Vietnam was the second largest exporter of footwear with a 7.1% share (1.0 billion pairs) behind China (9.7 billion pairs; 67.5%).”

Footwear companies are also choosing Vietnam manufacturers because of their import-export processes. Vietnam wants a vibrant economy, and they have few, if any, barriers to products for export.

The most common and inexpensive way to start exporting products from Vietnamese footwear manufacturers is by first establishing a trading company. In order to be permitted to export, (or import,) a foreign investor must also register with the Department of Planning and Investment (DPI). Additionally, the investor must obtain an Investment Certificate. The good news is that most goods and services being exported from Vietnam are exempt from tax.

Prior to importing a product, you may contact the U.S. Customs and Border Protection (CBP) office at the port of entry where your merchandise will enter the United States. A complete directory of the various ports of entry can be found on the CBP website. There are many rules regarding the subject of imports to the U.S.A., but footwear is not hazardous in any real way, so the barriers are low.

According to U.S. Customs and Border Protection, “CBP does not require an importer to have a license or permit, but other agencies may require a permit, license, or other certification, depending on the commodity that is being imported.”

In conclusion, Vietnam footwear manufacturers are in demand, and the demand is growing. Although importation into the U.S.A. has its regulatory hurdles, importing products from Vietnamese footwear manufacturers shows no significant barriers.

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How to Save Money on Accounting Fees

Accounting fee is an unavoidable cost in any business. Most businesses pay accountants by hours worked or the workload done. The charges of accounting can be hefty and an unexpected expense on a business. It is essential to find a way to reduce these fees that add to your massive costs leading to lower returns in business.

Oculus group is an accounting company that ensures you get accounting services at a reduced fee. You can click here for a list of services.

How do you reduce accounting fees?

1) Make use of leverage technology

Xero is a software that automates tasks previously done by accountants. It can perform functions such as bank reconciliation. Using this software will ensure you save money on accounting fees. The software is fast and reliable, and its maintenance fees are low compared to hiring an accountant who will take days to complete the task manually.

Technology-based technology is essential in cutting costs on any business task. Applying xero makes the work efficient and accurate. You will reduce the need to hire accountants who in most cases overcharge their services.

2) Pay accountants on the fixed fee agreement

You need to make a smart contract with the accountants. If you opt to pay the accountants on hourly bases or workload, they will overcharge you. If for instance, your deal is by the hourly payment the accountant will ensure they spend more hours on a small task to accrue more pay. Regardless of the workload ensure you make a fixed fee agreement.

The fixed fee agreement will not give you unexpected costs and will ensure the accountant does their work fast and efficiently. This approach will save you money on accounting fees.

3) Shift to do bookkeeping on spreadsheets

Maintaining straight forward records will ensure the accounting task is simple. The more your records are precise, the less you will incur accounting fees. Records on spreadsheets will provide your documents are well maintained and not difficult to trace.

4) Simplify your transactions recording

Ensure all your transactions are well maintained and clear. If your accountant spends more time traces a document, the more you will incur accounting fees. Attach all invoices systematically for easier reference.

5) Assign only accounting tasks to an accountant

Ensure your accountant only handles duties that are accounting based. A clerk can do some essential functions such as bookkeeping. Don’t allocate additional tasks to an accountant. If you want to save money on accounting fees, the first strategy is ensuring you minimize their responsibilities. Ensure they perform functions that require their expertise and knowledge.

Bottom Line

To make higher rates a business need to cut unnecessary costs in their operation. Accounting fees is a significant expense in all companies as transactions are vital in every dealing. Finding a way to reduce accounting fees is essential.

The best way to reduce accounting fees is to maintain concise and transparent records. Additionally only allocate accounting based tasks to an accountant. Applying leverage technology will also help you to save accounting fees.…

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