Is China Still Cheaper Than Vietnam for Small Business Manufacturing?

Your observation is very careful. For a cross-border e-commerce company like you, which pursues low MOQ and small orders and fast response, at this stage, China still completely defeats Vietnam.

You thought you had saved 20% of your labor costs in Vietnam, but you were dumbfounded when you went to purchase raw materials. Vietnam's local accessories, packaging materials, hardware and even zippers are highly dependent on imports from China. It takes a week to transport fabrics and accessories from China to Haiphong Port or Ho Chi Minh Port in Vietnam and two rounds of customs clearance. You can't afford the time. Moreover, this "secondary transportation" directly hedges Vietnam's artificial dividends. Including freight and tariffs, the unit price of parts and components that Vietnam eventually gets is often 15% to 30% more expensive than local purchases from China.

When we find a factory in Dongguan or Guangzhou, China, we can not only make 300 to 500 pieces, but it also takes only 15 days from download to shipment. This not only greatly reduces your risk of overstocking, but also helps you save a lot of overseas storage fees. Many people blindly pass on the idea that Vietnam can avoid additional U.S. tariffs on China. Moreover, the United States is now extremely strict in reviewing China raw materials transshipped from Vietnam. Once it is identified as "Made in China for standard replacement," it may face punitive high tariffs.