Importivity
China vs Vietnam

Move Manufacturing From China to Vietnam

Global brands are shifting production from China to Vietnam to cut costs, sidestep tariffs, and diversify their supply chains. We plan and run the relocation end to end, with vetted partners, on-the-ground QC, and a compliant setup.

Why Companies Are Moving From China to Vietnam

For decades, China has been the world's factory floor. But rising tariffs, higher wages, and growing supply-chain risk have pushed companies to look for alternatives, and Vietnam has emerged as the leading one, with lower labour costs, favourable trade agreements, and a fast-growing industrial base.

This wave of China manufacturing moving to Vietnam is not about abandoning China overnight. For most brands it's a deliberate shift, moving the right products to Vietnam to unlock cost and tariff advantages while keeping quality and reliability intact.

China6
Vietnam
Factory scale
Mega-factories capable of millions of units a month.
Mid-size facilities; expanding but capacity-constrained.
Product range
Electronics, machinery, textiles, chemicals, metals.
Apparel, footwear, furniture, light assembly.
Minimum order qty
Factories optimised for mass-volume runs.
More willing to take smaller & mid-volume orders.
Tooling & prototyping
Fast mould-making, CNC, and 3D-printing clusters.
Basic tooling in-house; complex moulds often imported.
Labor cost
Avg. manufacturing wage ~$6–8/hr in coastal hubs.
Avg. manufacturing wage ~$2–3/hr, trending up.
Workforce skills
Large pool of skilled engineers and technicians.
Young workforce; skilled labour limited in advanced sectors.
Quality systems
Widespread ISO, GMP, and third-party audit readiness.
Top-tier factories certified; long tail still inconsistent.
Supply-chain depth
Raw materials → components → finished goods in one region.
Many inputs still imported from China & South Korea.
IP protection
Better enforcement, but counterfeiting persists.
Less enforcement infrastructure overall.

Highlighted cells show the stronger option for that factor. The right choice depends on your product, volume, and priorities.

What You Gain by Moving Manufacturing to Vietnam

Vietnam offers a mix of cost savings, tariff advantages, and expanding industrial capacity that makes it the standout China alternative for global brands.

Lower Labor Costs

Save significantly on labour-intensive production compared with China, average manufacturing wages run roughly a third to a half of coastal-China rates.

Tariff Advantages

Sidestep U.S. Section 301 tariffs on Chinese goods and benefit from Vietnam's CPTPP and EVFTA trade agreements for better market access.

Diverse Supplier Base

Vietnam's rapid industrial growth has expanded its capabilities across textiles, footwear, furniture, metals, and electronics assembly.

Strategic Diversification

Reduce reliance on a single country and build supply-chain resilience with a China+1 footprint that spreads cost and policy risk.

What Stays in China, What Moves to Vietnam

Every relocation is a set of trade-offs. Here's the honest balance sheet for each country so you move the right lines.

China: Reasons To Keep It

  • Unrivalled production scale and factory density
  • Self-contained supply chains from raw material to finished good
  • Advanced tooling, rapid prototyping & mould-making clusters
  • Deep pool of experienced engineers and quality managers

China: Reasons To Move

  • Rising wages increasing per-unit production costs
  • Section 301 tariffs adding 10–25% to U.S. landed cost
  • High MOQs can lock out smaller brands
  • Concentration risk from sourcing everything in one country

Vietnam: Why It Wins The Move

  • Significantly lower labour costs than China
  • Flexible on smaller and mid-volume production runs
  • Strong track record in apparel, footwear, and furniture
  • Government incentives attracting new factory investment

Vietnam: What To Plan For

  • Limited capacity in electronics, metals, and heavy industry
  • Many raw materials and components still sourced from China
  • Tooling capabilities lag behind for complex products
  • Skilled-labour shortages in precision and advanced manufacturing

How We Move Manufacturing From China to Vietnam

Importivity is not just another sourcing company. Our process removes the uncertainty from relocation and protects your margins at every stage, making the move predictable, transparent, and profitable.

01

Discovery

We define product specifications, compliance requirements, target costs, and timelines, so we shortlist the right Vietnamese factories from the start and align the move with your business goals.

02

Factory Vetting

Our team identifies, audits, and validates manufacturers from our Vietnam network. Unlike companies that hand over a list of names, we confirm certifications, capacity, and reliability before you commit.

03

Sampling & Tooling

We oversee prototype development, mould and tooling creation, and pre-production validation, critical when transferring tooling from China, where tolerances can make or break profitability.

04

Quality Assurance & Control

We inspect at every stage, pre-production, in-line, and final. This prevents quality drift during the transition and ensures Vietnamese output meets the standards your customers already expect.

05

Compliance & Packaging

We manage testing, labelling, and certification for markets like the U.S. and EU, from RoHS for electronics to FDA for plastics, protecting you from hidden liabilities as you switch origin.

06

Logistics

Our team coordinates everything from the Vietnamese factory floor to final delivery, with vetted freight forwarders and customs documentation handled so you avoid delays and hidden costs.

The Bottom Line

There's no universal answer, only the right fit for your product, volume, and tariff exposure. Most brands land on one of these three plays.

Keep in China, complexity & scale: when your product demands advanced tooling, complex assemblies, massive scale, or deep supply-chain integration. China's factory ecosystem can build almost anything, but expect higher MOQs and rising labour costs.

Move to Vietnam, cost & flexibility: when you're producing apparel, footwear, furniture, or light-assembly goods and want lower labour costs with more flexible order quantities. Ideal for brands scaling up but not yet ready for China-level volumes.

Split (China+1), hedge your risk: keep complex, high-precision SKUs in China and shift labour-intensive, simpler-assembly lines to Vietnam, cutting cost concentration and tariff exposure while holding quality where it counts.

Frequently Asked Questions

Companies are moving to Vietnam to cut labour costs, avoid tariffs, and diversify their supply chains. Vietnam offers competitive wages, strong trade agreements (CPTPP and EVFTA), and a rapidly developing manufacturing base, making it the leading "China+1" destination for brands reducing concentration risk.
Move to Vietnam: textiles and apparel, footwear, furniture, basic metals, and consumer electronics assembly. Often keep in China: complex plastics, precision tooling, and advanced multi-component electronics.
There are transition costs, supplier vetting, tooling transfer, sampling, and logistics changes, but the long-term savings from lower labour and tariff relief usually outweigh that initial investment. Importivity models the full landed cost before and after so you can see the payback period clearly.
Timelines vary, but most transitions take 6–12 months. That window covers supplier qualification, sampling and tooling transfer, compliance checks, and the first stabilised production runs. Simpler, labour-intensive products move faster than complex, tooling-heavy ones.
Yes, especially in textiles and consumer electronics. While China still leads in advanced manufacturing, Vietnam's factories are rapidly adopting global quality certifications and practices. In both countries, output quality depends far more on factory vetting and QA/QC oversight than on the country itself, which is exactly what Importivity manages for you.
Many Chinese imports to the U.S. still carry Section 301 tariffs that add 10–25% to landed cost. Vietnam sits outside those China-specific duties, so it can be meaningfully cheaper at your door even when factory quotes are similar. We model tariff exposure upfront so the country that looks cheaper on paper is still cheaper after duties.
You rarely need to move everything, and almost never all at once. Most brands adopt a China+1 approach, keeping complex, component-heavy products in China while shifting tariff-sensitive or labour-intensive lines to Vietnam. This cuts tariff exposure and supply-chain risk without losing China's scale where you still need it.

Not sure which way to go?

Tell us your product and targets. We'll model a tariff-aware landed cost for both and recommend the best fit, on a free call.