Cambodia Sourcing Guide: 2025 Edition
Is Cambodia the Next Best Move for Your Supply Chain?
Overview
In recent years, Vietnam has secured its position as a pivotal manufacturing hub in Asia and a standout alternative to China for U.S. importers, as the U.S. is the largest importer of Vietnam’s manufactured goods.
Export Destinatons
Quick Stats
➤ $120B+ in exports to the US — America is Vietnam’s largest export market
➤ $3/hour average labor cost — less than half the cost in China
➤ 2M+ workers in the apparel industry
➤ 44% of manufacturing exports come from electronics, computers, phones & machinery
➤ 98% of electronics exports are produced by FDI (e.g., Apple, Samsung, LG)
➤ #136 in global labor productivity ranking, but steadily improving
Why Vietnam?
(Key Export Sectors)
Vietnam has a long history of strength in traditional manufacturing sectors including textiles, garments, and wooden products. These industries leverage a combination of skilled local labor and imported inputs, and they remain the economic backbone for millions of workers.
While foreign brands dominate the high-tech sector, Vietnam’s traditional industries stand out for their export resilience and proven scale. The apparel industry alone employs over 2 million people across the country.
Manufacturing Labor Force Competitiveness
➤ Vietnam's labor costs are among the lowest in the region, averaging around $3/hour — less than half of China's average.
➤ Productivity is steadily improving, although it still trails China.
➤ According to the World Bank, Vietnam ranks 136th globally in labor productivity — but is making progress through targeted training programs and FDI-backed factory development.
➤ Samsung alone has helped train tens of thousands of local workers for roles in electronics and precision manufacturing.
➤ Key challenges remain: skill mismatches, limited technical training infrastructure, and inconsistent labor availability across regions. Still, Vietnam’s workforce is increasingly seen as competitive for importers seeking value at scale.
Talk to a Vietnam Sourcing Guide
No hard pitch — just real insights from someone who knows the ground in Vietnam. Ask anything.