Buying from Vietnam undergoes a dynamic transformation in the global commerce landscape. With the saturation of domestic capacity, American retailers are strategically diversifying their sourcing destinations. This shift is particularly evident as US retailers liquidate their existing stock, creating a temporary surge in costs for goods sourced from Vietnam.

sell off, buying from Vietnam

A Temporary

It’s crucial to remember that this situation is likely temporary. While the initial cost of goods from Vietnam might appear higher currently, this is primarily due to the specific circumstances within the US market.

While the immediate aftermath might pose challenges for cost-effectiveness, experts assert that Vietnam remains an excellent location outside of China for a sustainable, long-term supply chain strategy. The country’s robust manufacturing infrastructure, skilled workforce, and favorable business environment make it an attractive proposition for US businesses seeking stability and resilience in their supply chains.

Vietnam’s Long-Term Potential:

Despite the short-term cost fluctuations, Vietnam remains a strategically advantageous location for long-term sourcing strategies outside of China. Here’s why:

  • Stable and Growing Economy: Vietnam boasts a robust and continuously growing economy, making it a reliable source for various goods.
  • Skilled Workforce: Vietnam possesses a skilled and adaptable workforce, catering to diverse manufacturing needs.
  • Diversifying Supply Chain: Sourcing from Vietnam helps diversify your supply chain, reducing dependence on any single location and mitigating potential risks.
  • Competitive Tax Rates: Vietnam offers attractive tax incentives for FDI companies, including competitive corporate income tax rates and tax holidays for qualifying projects. This significantly reduces operational costs and boosts profitability.
  • Government Support: The Vietnamese government actively encourages foreign investment through various investment promotion programs and streamlined business registration processes. This demonstrates a clear commitment to fostering a welcoming and supportive business environment.
  • Vietnam’s FTAs: like CPTPP and RCEP, offer preferential market access and reduced tariffs, enhancing global competitiveness for Vietnamese products.


While the current US purchasing situation might cause temporary cost considerations, it’s essential to maintain a long-term perspective. Vietnam, with a strong economy and skilled workforce, is a strategic, reliable partner for diverse supply chains beyond China.

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Categories: Sourcing Blog