Where Should You Manufacture Next?
Compare costs, tariffs, lead times, and industry strengths across China, Vietnam, and Mexico. Our comparison hub makes global sourcing decisions simple.
Why Compare Manufacturing Locations?
Why location choice matters Supply chain impact
Choosing where to manufacture can determine the success or failure of your supply chain and go-to-market strategy.
Countries differ vastly in wages, skill levels, infrastructure, regulations, and risks.
Find your best-fit country Cost · Quality · Stability
What you’ll uncover
Identify which country offers the best balance of cost, quality, and stability for your industry.
Surface hidden factors Trade & risk
Beyond the obvious
Reveal advantages or challenges—like trade agreements or political climate—that aren’t obvious at first glance.
Decide with data—skip the guesswork Evidence-based
China vs. Mexico vs. Vietnam Manufacturing Comparison
Quick signals on cost, skills, infrastructure, ease of business, and risk.
| Factor | China | Mexico | Vietnam |
|---|---|---|---|
| Labor Cost (USD/hour) | Higher High (>$6) | Moderate ~$4 | Lower ~$3 |
| Workforce Skill Level | High (varied by cluster) | Moderate–High | Emerging |
| Infrastructure & Logistics | Strong ports, developed rail Longer transit distance to US |
Good infrastructure Nearshoring advantage to US |
Developing infrastructure Growing logistics sector |
| Ease of Doing Business (Rank) | Moderate (bureaucratic hurdles) | Favorable (trade pacts incl. USMCA) | Improving (still developing) |
| Political / Operating Risk | Medium (trade tensions, IP concerns) | Low–Medium (proximity to US) | Medium (rapid changes, weaker IP) |
Labor Cost (USD/hour)
China · Mexico · VietnamWorkforce Skill Level
CapabilityInfrastructure & Logistics
Transit & networksLonger transit distance to US
Nearshoring advantage to US
Growing logistics sector
Ease of Doing Business (Rank)
Regulatory frictionPolitical / Operating Risk
Stability & IPChoosing the Best Country for Your Needs
With Importivity, you get more than a sourcing agency you get a product sourcer who handles vetting, compliance, and landed costs, delivering a trusted partner that reduces risk and protects margins.
Priorities Define the Winner
Every company values different outcomes; some chase the lowest landed cost, others demand strict quality control, while many seek a balance between speed, savings, and reduced risk. Your priorities will shape the right country choice.
Use Comparisons as a Compass
Our matrix and in-depth country guides give you the data to weigh tariffs, lead times, labor availability, and industry strengths side by side, helping you cut through guesswork and see the trade-offs clearly.
Stay Ahead of Shifting Trends
Global manufacturing changes fast. Labor rates, infrastructure, and trade agreements evolve annually. Revisiting comparisons regularly ensures your sourcing strategy adapts with the market and keeps your supply chain resilient.
Global Manufacturing Country Comparisons
The same tools that powered this prototyping case study are available free in our resources hub.
China vs. Vietnam Manufacturing
China has long been the global leader in manufacturing, but Vietnam has quickly emerged as a strong alternative for businesses seeking lower costs and reduced tariff exposure. This guide compares China vs. Vietnam across industries like plastics, metals, electronics, and textiles to help you decide where to place your next production run.
Plastics Winner: China
China remains the plastics manufacturing leader, with unmatched injection molding capacity and faster tooling turnaround. Scale and supplier competition keep costs reasonable.
Why Vietnam might still fit: For U.S. importers, Vietnam avoids Section 301 tariffs and can deliver 10–15% landed cost savings. For simpler plastic parts where precision isn’t critical, Vietnam is a smart alternative.
Metals Winner: Vietnam
Vietnam’s lower labor costs and increasing investment in sheet metal and fabrication make it attractive for basic and mid-level metal work.
Why China might still fit: For advanced CNC, tight-tolerance machining, or large-scale production, China’s supplier base is still unrivaled.
Electronics Winner: China
China has the deepest electronics ecosystem globally, covering PCB, components, and final assembly.
Why Vietnam might still fit: Electronics assembly is booming thanks to Samsung and Apple supply chains. For tariff-avoidance or basic assembly, Vietnam is competitive.
Textile Winner: Vietnam
Vietnam’s dominance in apparel exports, coupled with FTAs, makes it one of the best countries for clothing production.
Why China might still fit: For advanced fabrics, synthetics, or blended textiles, China maintains a technological edge.
Mexico vs. Vietnam Manufacturing
Deciding between Mexico and Vietnam for your manufacturing strategy is a choice between nearshore convenience and Asian cost efficiency. Mexico offers proximity to the U.S., USMCA benefits, and a strong industrial base in automotive and aerospace. Vietnam, on the other hand, is one of the fastest-growing global hubs for apparel, plastics, and electronics, often delivering lower labor costs and tariff advantages.
Plastics Winner: Mexico
Mexico’s plastics sector is highly integrated with U.S. supply chains. Injection molding and packaging manufacturing benefit from shorter shipping routes, faster lead times, and reduced freight costs. Mexico’s plastics manufacturers also operate under USMCA, helping U.S. importers avoid Section 301 tariffs that apply to many Asian suppliers.
Why Vietnam might still fit:
Vietnam is cost-competitive for plastics, particularly for large volume consumer goods where labor is a major cost driver. However, longer transit times and reliance on Chinese raw materials can limit speed and flexibility. If tariff avoidance and lower per-unit costs are the priority over speed, Vietnam remains a solid contender.
Metals Winner: Mexico
Mexico’s metal manufacturing is globally respected, particularly in automotive and aerospace sectors. CNC machining, stamping, and fabrication benefit from decades of supplier maturity and alignment with U.S. industry standards. With nearshore proximity, quality assurance is easier, and shipping costs are substantially lower compared to Asia.
Why Vietnam might still fit:
Vietnam offers cheaper labor for basic metal fabrication and sheet metal work. However, its precision machining and specialized finishes still lag behind Mexico’s capabilities. Vietnam can be considered for non-critical components where cost is the overriding factor.
Electronics Winner: Vietnam
Vietnam has rapidly emerged as an electronics powerhouse, with companies like Samsung, Apple, and Intel building major assembly operations there. The labor pool is cost-effective, and FTAs allow duty-free or reduced-tariff access to multiple markets. Vietnam’s ecosystem for electronics assembly is stronger than Mexico’s in terms of scale and global brand integration.
Why Mexico might still fit:
Mexico is growing as an electronics assembly base, especially for nearshore manufacturing of consumer products destined for North America. Its advantage lies in shorter supply chains and faster replenishment cycles for U.S. companies. While the supplier ecosystem is smaller than Vietnam’s, Mexico is attractive for final assembly where speed matters most.
Textile Winner: Vietnam
Vietnam is a global leader in apparel manufacturing, consistently ranking among the top exporters worldwide. Its textile industry benefits from competitive labor costs, advanced apparel production, and strong compliance with international standards. For clothing brands, Vietnam delivers both quality and scale.
Why Mexico might still fit:
Mexico’s textile base is smaller and higher cost, but nearshoring makes it useful for smaller runs, fast fashion, or brands prioritizing U.S. market speed. If your business requires rapid design-to-shelf cycles, Mexico’s proximity can outweigh Vietnam’s pricing advantage.
Mexico vs. China Manufacturing
Choosing between Mexico and China for your supply chain strategy comes down to balancing proximity vs scale. Mexico offers nearshore manufacturing with USMCA benefits, reduced shipping times, and easier communication for North American businesses. China, the world’s manufacturing powerhouse, delivers unmatched scale, supplier depth, and advanced capabilities across virtually every industry.
Plastics Winner: China
China remains the global leader in plastics manufacturing. From injection molding to packaging, China’s sheer scale of suppliers, raw material integration, and tooling speed are unmatched. Costs per unit often remain lower thanks to competition and economies of scale.
Why Mexico might still fit:
Mexico offers shorter lead times, lower freight costs, and tariff-free advantages under USMCA. For companies serving the U.S. and Canada, Mexico can sometimes offset higher production costs by drastically reducing shipping time and customs complexity. Mexico is best suited for brands that need fast replenishment or want to avoid Section 301 tariffs on Chinese plastics.
Metals Winner: Mexico
Mexico’s metal and CNC industries are globally respected, particularly in automotive and aerospace. With highly skilled labor, proximity to U.S. markets, and strong compliance with international standards, Mexico is the more practical choice for many buyers.
Why China might still fit:
China continues to dominate large-scale, cost-driven metal production, from sheet metal to casting. For complex or high-volume orders where cost efficiency outweighs speed, China’s depth of suppliers and experience can’t be ignored.
Electronics Winner: China
China is the world’s electronics hub. With established supply chains for PCBs, semiconductors, and assembly, its ecosystem remains unmatched. Access to components and supplier networks ensures faster prototyping and lower overall costs at scale.
Why Mexico might still fit:
Mexico is growing in electronics, especially for nearshore consumer goods assembly. Its advantage lies in speed to market for North America. If your business relies on fast turnaround, smaller batch assembly, or easier communication, Mexico is a rising alternative worth considering.
Textile Winner: China
China still offers the most diverse textile and apparel manufacturing ecosystem. From advanced fabrics to blended textiles, its production scale and supplier variety give it the edge. Costs are competitive, and quality control systems are mature.
Why Mexico might still fit:
Mexico’s textile base is smaller but strategically positioned for U.S. fast fashion and private label clothing. For brands needing rapid design-to-shelf cycles, Mexico’s proximity makes it an attractive option even at a slightly higher per-unit cost.
Moving Manufacturing from China to Vietnam
Focused on the trend of companies diversifying away from China, this guide outlines what it takes to shift production to Vietnam. It covers transition costs, differences in regulations, how to qualify new suppliers, and potential benefits like tariff avoidance.
Why businesses shift
Rising tariffs and ongoing Section 301 trade pressures have increased the true landed cost of Chinese manufacturing. At the same time, wages in China continue to climb, eroding one of its traditional cost advantages. Businesses looking to reduce risk and build resilience are spreading production across multiple countries, and Vietnam has become the natural first step.
Industries that benefit most
Textiles and apparel are Vietnam’s standout sectors, with competitive labor costs and preferential trade agreements that cut duties into the U.S. and EU. Metals fabrication and basic CNC machining also thrive thanks to lower labor overhead, while electronics assembly is growing rapidly under the pull of Samsung and Apple supply chains. For these industries, moving to Vietnam can mean both cost savings and tariff avoidance.
Why China still leads
China remains unmatched when it comes to advanced plastics, rapid tooling, and complex electronics manufacturing. Its massive supplier networks and decades of process maturity allow for speed and precision that Vietnam is still building toward. For many companies, the best solution isn’t abandoning China entirely but creating a dual-source model: keep high-skill or specialized production in China while shifting cost-sensitive categories to Vietnam.
Moving Manufacturing from China to Mexico
As U.S. companies look to shorten supply chains and reduce dependency on Asia, Mexico has emerged as a powerful alternative to China. Proximity to the United States, trade advantages under USMCA, and lower logistics costs make Mexico an attractive nearshoring option for a wide range of industries.
Why companies make the move
Shifting production from China to Mexico often starts with cost-of-ownership calculations. While China may still offer lower unit costs in some sectors, Mexico’s savings on freight, reduced lead times, and zero-tariff benefits under USMCA can offset those differences. Businesses are also motivated by easier travel, fewer cultural and time-zone barriers, and lower geopolitical risk.
Industries that benefit most
Mexico has strong capabilities in metals, automotive components, appliances, and textiles. Its plastics and packaging sectors are also growing quickly, supported by demand from U.S. brands that need faster replenishment cycles. For electronics, Mexico’s assembly plants are particularly competitive for consumer devices and industrial equipment sold into the North American market.
Where China still leads
China remains the global leader in advanced electronics, precision plastics, and high-volume, low-cost production. Its depth of supplier networks and rapid tooling capabilities still outpace Mexico in many areas. For companies with complex electronics or high-spec plastics, a hybrid approach often makes sense: nearshore basic production to Mexico for speed and cost stability, while keeping high-tech or specialized components sourced from China.
The Importivity Process
Importivity is not just another product sourcing company. Our process is built to remove uncertainty and protect margins at every stage. Here is how we make global sourcing predictable, transparent, and profitable:
Discovery
We start by defining product specifications, compliance requirements, target costs, and timelines. This step ensures we source the right factory from the start and align with your business goals.
1
Factory Vetting
Our team identifies, audits, and validates manufacturers from our global network. Unlike many sourcing companies that hand over a list of names, we confirm certifications, capacity, and reliability before you commit.
2
Sampling & Tooling
We oversee prototype development, mold and tooling creation, and pre-production validation. This stage is critical in plastics manufacturing, metal fabrication, and electronics assembly, where tooling costs and tolerances can make or break profitability.
3
Quality Assurance and Quality Control (QA/QC)
Importivity conducts inspections at every stage: pre-production, in-line, and final. This prevents quality drift, reduces rework, and ensures your products meet the standards of both your customers and regulators.
4
Compliance & Packaging
We manage testing, labeling, and certification for markets like the U.S. and EU. Whether it is RoHS for electronics, FDA for plastics, or labor compliance for textiles, our product sourcing services protect you from hidden liabilities.
5
Logistics
Our logistics team coordinates everything from factory floor to final delivery. We work with vetted freight forwarders and manage customs documentation so you avoid delays and hidden costs.
Sourcing company Case Studies
Real examples of how our sourcing company delivers results across industries and markets.
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Frequently Asked Questions
If you need further assistance, feel free to reach out to our team!
What factors matter most when choosing a manufacturing country?
The most important factors are total landed cost, lead times, quality control standards, labor availability, and risk factors such as tariffs or IP enforcement. The right choice depends on your priorities; for example, if speed to the U.S. market is critical, Mexico often wins. If scalability and deep supply chains matter most, China may be the better fit.
How do tariffs affect my decision between countries?
Tariffs like the Section 301 tariffs on China can add significant costs to imported goods. Countries such as Mexico and Vietnam often offer tariff-free or reduced-tariff advantages under agreements like USMCA or ASEAN trade benefits, which can dramatically change your landed cost calculations.
Which country is best for plastics, metals, textiles, or electronics?
Each country has unique industry strengths:
Plastics: China dominates in scale, while Mexico provides shorter lead times.
Metals: Vietnam offers competitive costs, while Mexico delivers strong nearshore fabrication.
Textiles: Vietnam is a top global player for apparel, while Mexico excels in automotive textiles.
Electronics: China leads in advanced assembly, but Vietnam is rapidly becoming a strong alternative.
Should I move my manufacturing from China to another country?
Many companies are diversifying away from China due to tariffs, rising wages, and geopolitical risk. Mexico and Vietnam are the two most popular alternatives. Each shift comes with transition costs, supplier vetting, and compliance requirements, but the long-term savings and risk reduction can outweigh the short-term effort.
Is nearshoring to Mexico always better for U.S. companies?
Not always. While Mexico offers proximity, faster shipping, and USMCA benefits, its supplier base is smaller than China’s and can be more limited by industry. If you need high-volume, highly specialized products, China may still be the better choice. The decision comes down to balancing cost vs. convenience vs. capacity.
How do I know which country is right for my company?
Start with your priorities and constraints, whether it’s reducing tariffs, cutting lead times, or finding reliable suppliers in a specific industry. Then, compare your top options using tools like our country comparison hub, and request a sourcing consultation to map out costs and risks for your unique case.
Which country has the lowest labor costs for manufacturing in 2025?
As of 2025, Vietnam typically offers the lowest labor rates among major manufacturing hubs, followed by Mexico. China’s labor costs have risen over the past decade, though its scale and efficiency still offset some of that difference. Keep in mind that labor cost alone doesn’t equal total savings; tariffs, shipping, and productivity can make another country the smarter choice overall.
How often should I reevaluate my manufacturing location?
It’s smart to revisit your country comparisons every 12–18 months. Trade policies, tariffs, labor availability, and shipping costs change quickly. For example, shifts in U.S.–China relations, new trade agreements, or supply chain disruptions can make a previously “best” option less competitive almost overnight. Staying updated ensures your sourcing strategy aligns with current global conditions.
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