Outsourcing to Vietnamese market in paper industry

Outsourcing is not a new term in the business environment. Outsourcing one or some functions of the company will support to reduce cost, enhance competitive advantages and in some cases, will help to enter new consumption markets. There are two important factors that outsourcing can support the successful of businesses: one C “cost” and one P “place”. Placing new plants or factories in the cheaper places will help to be optimal of using raw materials, deploying cheaper labor cost and delivering to customers faster and more convenient. Finland has many good products, some of them have the world reputation. However, the price of those products is still high even in the local market. Researching and making the decisions of outsourcing business operations to other low-cost manufacturing countries is one of the rival management decisions at this moment. Vietnam is the new factory of the world with below analyzing points will be the one of destinations. This thesis mentioned not only the potentials of the market, but also the business opportunity of the abundant populated country. Pulp and paper industries account for two-thirds of the total production value of the forest industry. This industry has the big opportunity to outsource their business to Vietnamese market. The thesis will focus on researching the specific products and Finnish companies to recommend the way of doing business and how to manage supply chain to get the most advantage for this decision