Vietnam: Your China Plus One Alternative
Reduce supply chain risk, mitigate tariffs, and build a resilient manufacturing base in Southeast Asia's most competitive export economy.
Why Companies Are Moving Now
US tariffs on Chinese goods, pandemic-era supply chain disruptions, and rising labor costs in China have accelerated a structural shift in global manufacturing. Procurement leaders and CFOs are no longer asking whether to diversify β they are asking where and how. Vietnam has emerged as the leading China Plus One destination for manufacturers across electronics, textiles, furniture, seafood, and industrial goods.
The Risks Driving Supply Chain Diversification
USβChina Tariffs
Section 301 tariffs of 25%+ on thousands of Chinese product categories have made Vietnam-origin goods significantly more cost-competitive for US importers.
Geopolitical Concentration Risk
Over-reliance on a single country for manufacturing creates systemic vulnerability. Diversifying to Vietnam reduces exposure to trade policy shifts and political risk.
Rising China Labor Costs
Chinese manufacturing wages have increased 5β8% annually for over a decade. Vietnam's labor costs remain 30β50% lower, with a young, skilled, and growing workforce.
Supply Chain Resilience
Post-COVID disruptions exposed the fragility of single-source supply chains. Vietnam offers geographic diversification with established port infrastructure and logistics networks.
Why Vietnam Leads the China Plus One Race
Favorable Trade Agreements
Vietnam has 16 active FTAs including CPTPP, EVFTA, and RCEP β giving exporters preferential access to the US, EU, Japan, South Korea, and ASEAN markets.
Established Manufacturing Base
Decades of foreign direct investment have built world-class manufacturing capacity in electronics, textiles, footwear, furniture, seafood processing, and industrial goods.
Competitive Labor Costs
Vietnam's minimum wage ranges from $150β$200/month depending on region β a fraction of coastal China β with a workforce of over 55 million people.
Strategic Location
Vietnam's 3,200km coastline and proximity to major shipping lanes provides efficient access to global markets, with major ports at Ho Chi Minh City, Hai Phong, and Da Nang.
Political Stability & Pro-Business Policy
Vietnam's government actively courts foreign investment with tax incentives, industrial zone development, and streamlined business registration for foreign companies.
Growing Supplier Ecosystem
Vietnam's domestic supplier base has matured significantly, reducing dependence on Chinese inputs and enabling more complete in-country value chains.
How Westpac Executes Your China Plus One Strategy
Identifying Vietnam as your China Plus One destination is the easy part. Executing the transition β finding qualified suppliers, managing quality, navigating regulations, and building relationships on the ground β requires local expertise and an established network. That is what Westpac provides.
Supplier Identification & Vetting
We identify and qualify Vietnamese manufacturers and suppliers across your product categories, conducting factory audits and capability assessments on your behalf.
Tariff & Trade Compliance Guidance
We help you understand rules of origin requirements, FTA eligibility, and import/export documentation to ensure your Vietnam-sourced goods qualify for preferential tariff treatment.
Quality Management & Oversight
Our on-the-ground team monitors production quality, manages inspections, and resolves issues before goods ship β protecting your brand and reducing costly returns.
FDI & Market Entry Advisory
For companies considering establishing a manufacturing presence in Vietnam, we advise on entity structure, industrial zone selection, incentives, and regulatory requirements.
Logistics & Supply Chain Coordination
We coordinate freight, customs clearance, warehousing, and last-mile logistics to ensure reliable, cost-effective delivery from Vietnamese suppliers to your distribution network.
Ongoing Relationship Management
We maintain active relationships with your Vietnamese suppliers and partners, managing performance, resolving disputes, and identifying opportunities to improve cost and quality over time.
Product Categories We Source from Vietnam
New to Vietnam?
Explore the full case for Vietnam β FTAs, workforce, infrastructure, and more.
Ready to Diversify Away from China?
Westpac International Trade has the on-the-ground presence, supplier relationships, and trade expertise to help you execute a successful China Plus One strategy in Vietnam. Let's start with a conversation about your products and supply chain goals.
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Vietnam Office β Ho Chi Minh City
#P4.51, Floor 4, The Prince Residence Bldg.,
#19-21 Nguyen Van Troi Street,
Phu Nhuan District, Ho Chi Minh City