Vietnam Sourcing Guide & Key Manufacturing Facts: 2025 Edition

Vietnam Country Guide: Overview

• ➤ Vietnam is now a top manufacturing hub in Asia and a leading China alternative for U.S. importers for specific industries.
• ➤ The U.S. is the largest importer of Vietnam’s manufactured goods, from textiles to electronics.
• ➤ Shifting tariffs and global strategy have accelerated Vietnam’s rise as a sourcing destination, however a lot of the manufacturing is owed by Chinese ownership and that is being stress-tested due to the current political climate.
• ➤ Its supply chain strengths span traditional sectors and foreign-invested electronics — but challenges remain.

Vietnam at a Glance:

With rising exports to the U.S. and strong positioning in Asia, Vietnam is a top destination for importers exploring alternatives to China. It combines traditional sector strength with growing high-tech assembly via FDI players like Samsung and Apple.

• ➤ Competitive in textiles, furniture, and electronics — though high-value output is largely driven by foreign-owned factories
• ➤ Low labor costs (~$3/hour) and government-backed investment in industrial growth
• ➤ Domestic supply chain still developing — many inputs are imported, often from China
• ➤ QC consistency, language gaps, and smaller factory scale remain sourcing challenges
• ➤ Best-fit when paired with local agents, inspections, or as part of a China+1 strategy

Why Vietnam?
(Key Export Sectors)

Vietnam’s top sectors shape what’s possible in sourcing — from supplier access to timelines and product consistency.

• ➤ Apparel, wood, and furniture offer strong local networks and high flexibility
• ➤ Electronics exports are booming — but driven by FDI and harder to access
• ➤ Factory models vary: domestic firms in traditional goods, JVs in tech sectors
• ➤ Export readiness often aligns with sector maturity — not company size

Skilled Labor & Sourcing Challenges

• ➤ Vietnam faces ongoing gaps in skilled labor — despite efforts by Samsung and others to train local workers in electronics and precision manufacturing.
• ➤ Key shortages persist in technical areas like machining, QA, and production engineering.
• ➤ Common sourcing issues include uneven product quality, smaller production scale, and language/cultural barriers.
• ➤ While customs processes are improving, bureaucratic delays and shifting policies still affect timelines — especially at smaller ports.
• ➤ These challenges are manageable with strong prep: local agents, QC teams, and supplier platforms help ensure consistency.