Move Manufacturing from China to Vietnam

Global brands are shifting production from China to Vietnam to cut costs, avoid tariffs, and diversify their supply chains. Discover how your business can benefit from Vietnam’s growing manufacturing ecosystem.

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Why Businesses Are Moving Manufacturing from China to Vietnam

For decades, China has been the world’s factory floor. But rising tariffs, higher wages, and increasing supply chain risks have pushed companies to explore alternatives. Vietnam has emerged as a powerful option, offering lower labor costs, favorable trade agreements, and a fast-growing industrial base.

If your company is considering a shift, moving manufacturing from China to Vietnam could unlock competitive advantages while maintaining quality and reliability.

If your company is considering a shift, moving manufacturing from China to Vietnam could unlock competitive advantages while maintaining quality and reliability.

Industries Best Suited for Moving Manufacturing from China to Mexico

Vietnam offers a unique mix of cost savings, tariff advantages, and expanding industrial capacity that make it an ideal choice for global brands.

Lower labor costs

Save significantly on labor-intensive production compared to China.

Tariff advantages

Avoid Section 301 tariffs and benefit from CPTPP and EVFTA trade agreements.

Diverse supplier base

Vietnam’s rapid industrial growth has expanded its capabilities in textiles, metals, and electronics.

Strategic diversification

Reduce reliance on China and increase supply chain resilience.

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Industries Best Suited for Moving Manufacturing from China to Vietnam

Not every sector shifts equally well. Here’s where Vietnam shines and where China still maintains an edge.

Winner: China
China dominates plastics and injection molding with decades of expertise, advanced machinery, and high-volume production capacity.

Vietnam’s edge: Best for simpler plastics, smaller runs, or when avoiding U.S. tariffs is critical. Vietnam is building capabilities but can’t yet match China’s precision and scale.

Winner: China
China leads in complex metals, automotive, and aerospace precision machining with mature supply chains and cost efficiency at scale.

Vietnam’s edge: Vietnam is growing in basic metals and general fabrication. For companies seeking tariff relief and simpler requirements, it’s becoming a cost-effective alternative.

Winner: China
China’s electronics ecosystem—from semiconductors to high-precision assemblies—is unmatched. Speed, expertise, and dense supplier networks make it the global leader.

Vietnam’s edge: Vietnam is becoming a hub for consumer electronics assembly (phones, accessories) thanks to investments from brands like Samsung and Apple suppliers. It’s best for mid-level complexity at lower cost.

Winner: Vietnam
Vietnam outpaces China in apparel manufacturing due to lower labor costs, sustainability practices, and trade agreement benefits.

Why consider China anyway?
China still has scale advantages and integrated supply chains for luxury apparel and technical textiles. If you need advanced fabrics or rapid design-to-production, China remains competitive.

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How These Resources Fit Into Your Strategy

Each of these resources can be used on its own but they’re most powerful when applied together as part of a streamlined sourcing process.

BOM Template

Use the BOM Template to organize your product specs.

Follow with the RFQ Template to collect accurate supplier quotes.

Visit suppliers using the Factory Visit Checklist.

Once you select a partner, implement the Supplier Onboarding Checklist.

Use the Landed Cost Calculator to forecast true costs and finalize pricing.

Keep the Product Sourcing Guide at hand as your reference manual throughout.

 

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.

6

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India +91
Pakistan +92
Australia +61
Japan +81
Germany +49
France +33
Italy +39
Spain +34
Russia +7
South Korea +82
Mexico +52
Brazil +55
UAE +971
Singapore +65
Malaysia +60
Thailand +66
Vietnam +84
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Real examples of how our sourcing company delivers results across industries and markets.

Frequently Asked Questions

If you need further assistance, feel free to reach out to our team!

Why are companies moving manufacturing from China to Vietnam?

Companies are moving to Vietnam to cut labor costs, avoid tariffs, and diversify supply chains. Vietnam offers competitive wages, strong trade agreements, and a rapidly developing manufacturing base.

Textiles, apparel, basic metals, and consumer electronics are the most common industries shifting. Complex plastics and advanced electronics typically remain in China.

Transition costs exist (supplier vetting, setup, logistics changes), but long-term savings from lower labor and tariff advantages often outweigh initial investments.

Timelines vary but most transitions take 6–12 months. This includes supplier qualification, sampling, compliance checks, and initial production runs.

Yes, especially in textiles and consumer electronics. While China still leads in advanced manufacturing, Vietnam’s factories are quickly adopting global quality certifications and practices.

Still have questions?

Our team is happy to help! Visit our Help Center or contact us directly.