Vietnam 2025: Global Sourcing Success with Local Expertise

Why Strategic Sourcing Demands Local Expertise 

As the global sourcing landscape evolves rapidly, Vietnam stands at the forefront—offering cost advantages, sectoral expertise, and resilient trade relationships despite tariff recalibrations. For international businesses looking beyond headlines and price points, the real differentiator is not just geography, but the quality of their local partnerships. 

Vietnam’s Enduring Strengths Amplified Through ET2C 

Vietnam’s moderate 20% US tariff, robust manufacturing base, and powerful network of FTAs continue to set it apart from competitors like China (30% tariffs), India (25% tariffs ) and Thailand and Cambodia (19% tariffs). For companies in Europe, the USA, or UK, these advantages are only fully realized when combined with the right local expertise. 

ET2C  is one of Europe’s leading global sourcing companies with teams based on the ground in all major sourcing markets. ET2C has been based in Vietnam for over fifteen years—an established presence that delivers unrivaled market access and operational know-how. Our bilingual, bicultural teams provide the on-the-ground support needed to convert opportunity into measurable sustainable impact. 

 Why Vietnam Remains a Strategic Sourcing Destination in 2025 Despite Tariff Shifts In August 2025, the United States revised its tariff policy under President Trump, reducing the proposed 46% tariff on Vietnamese imports to a more manageable 20%. While this change may seem like a setback at first glance, it reinforces Vietnam’s position as a resilient and forward-looking sourcing hub. For global companies seeking cost-effective, reliable, and transparent supply chains, Vietnam continues to offer compelling advantages

1. Tariff Recalibration: A Strategic Opportunity 

The initial 46% tariff was part of a broader protectionist agenda, but Vietnam’s swift diplomatic negotiations led to a revised 20% rate. This outcome reflects Vietnam’s growing influence in global trade and its ability to navigate complex geopolitical landscapes. Importantly, the 20% rate is significantly lower than tariffs on other Asian countries like China (up to 145%) and India (25%), making Vietnam a moderate-risk, high-reward sourcing partner. For companies outside the USA Vietnam’s capabilities as a sourcing destination remain compelling without the additional lever of positive tariff variance. 

2. Vietnam’s Competitive Edge in Manufacturing 

Vietnam’s manufacturing sector remains robust, supported by: 

• Low labour costs: Averaging \$2.50–\$3.50/hour, compared to China’s \$4.00–\$6.50 . 
• Reasonable electricity and operational costs: Electricity costs range from \$0.12–\$0.15/kWh, with moderate rent and tax rates. 
• Strategic location: Positioned on key trade routes, Vietnam offers logistical advantages for global distribution. 
• FTA network: Vietnam is part of multiple Free Trade Agreements (FTAs), including CPTPP, EVFTA, and RCEP, which reduce trade barriers and enhance market access

3. Product Specialization: Where Vietnam Excels 

Vietnam is perhaps most well-known for its manufacturing excellence in Shoes and Apparel supplying many of the World’s most high profile brands. Alongside this market expertise Vietnam has developed manufacturing and Innovation strength in several key sectors: 

• Textiles and garments: High-volume, cost-efficient production. 
• Electronics and components: Especially mobile phones and consumer electronics. 
• Furniture and wood products: Leveraging sustainable forestry and craftsmanship. 
• Footwear and leather goods: Strong export performance to the U.S. and EU. 
• Agricultural products: Coffee, seafood, and rice exports continue to grow. 

These sectors benefit from Vietnam’s skilled labour force, improving infrastructure, long term R&D and Innovation and government incentives. 

4. Government Reforms: Transparency and Ease of Doing Business 

Vietnam’s Government  is rolling out a range of reforms to streamline ministries, reduce red tape and boost efficiency. These new policies are focused on: 

• Regulatory reforms: Streamlining customs procedures and reducing bureaucratic hurdles and improving dispute resolution and Governance 
• Promoting the Private Sector as the main drivers of economic growth 
• Infrastructure investment: Expanding industrial zones and upgrading transport networks. 
• Digital transformation: Promoting e-government and digital trade platforms. 
• Tax incentives: Offering corporate tax breaks and simplified compliance for foreign investors  
• International Integration and Engagement, building on FTA’s, expanding market opportunities   

These efforts aim to make Vietnam a more transparent, investor-friendly environment, aligning with global standards and attracting long-term partnerships. 

5. Strategic Resilience and Diplomatic Agility 

Vietnam’s non-retaliatory stance and commitment to negotiation reflect its “Bamboo Diplomacy”—flexible yet firm. The country continues to strengthen ties with the U.S., EU, Japan, and ASEAN, ensuring diversified trade relationships and reducing dependency on any single market.  Conclusion: Vietnam Is Not Just a Backup—It’s a Strategic Anchor 

Despite the 20% tariff, Vietnam remains a smart sourcing choice. Its cost advantages, sectoral strengths, and government reforms position it as a resilient and adaptable partner in global supply chains. For companies seeking to future-proof their sourcing strategies, Vietnam offers stability, scalability, and strategic value. 

Turning Global Sourcing Complexity into Opportunity: The ET2C Approach 

Navigating the Vietnamese market can be challenging—time zone differences, language barriers, and unfamiliar business practices can undermine even the strongest intentions. Here’s how ET2C solves for this: 

• Supplier Search & Validation: Our local specialists personally audit and vet every supplier, drawing on deep sector knowledge to ensure transparency, compliance, and quality. 
• Quality & Compliance Management: ET2C’s ongoing QC inspections, product testing, and documentation ensure adherence to EU, US, and UK standards—safeguarding your brand reputation. 
• Communication Excellence: With teams fluent in Vietnamese and English, we bridge cultural and linguistic divides, driving clarity and speed in negotiations and daily communications. 
• Vendor Relationship Management: By maintaining daily contact and fostering continuous improvement, we secure best-in-class delivery performance, responsiveness, and cost optimization. 
• Agility & Risk Mitigation: Our clients benefit from ET2C’s nimble, local response to market, logistical, or regulatory shifts—ensuring resilient, future-proof supply chains. 

ET2C Setting the Standard for Global Sourcing Partnerships 

As Vietnam grows into a strategic anchor for international supply chains, partnering with a proven expert is no longer optional—it’s essential. ET2C’s longevity, local roots, and global mindset uniquely position us to help Western businesses overcome market complexity and build lasting competitive advantage. 

Vietnam A Strategic Anchor in any Long Term Global Sourcing Roadmap 

Vietnam’s compelling cost structures, evolving export sectors, and government reforms create an environment rich with opportunity. But to unlock this potential, companies need more than access—they need deep, local expertise, seamless communication, and unwavering quality assurance. For over fifteen years, ET2C has stood at the intersection of global ambition and local knowledge, enabling clients to harness the full promise of Vietnam’s dynamic sourcing landscape. If you’re ready to future-proof your supply chain and scale with confidence, ET2C is your strategic partner in Vietnam. To learn more about Sourcing opportunities in Vietnam drop us line today to book a meeting www.et2c.com / contact@et2cint.com 

For those seeking to diversify sourcing or invest in a future-ready production base, Vietnam delivers unrivaled growth, favorable policy reforms, and impressive resilience to global shocks. Now is the opportune time to explore Vietnam’s potential as a key pillar of your sourcing strategy. To learn about the global product sourcing opportunities within Vietnam and how to rapidly search, validate and audit potential new suppliers contact our team in Ho Chi Minh city