In recent years, the landscape of global trade has undergone a significant shift. The United States is steadily reducing its reliance on imports from China—a trend that began during the height of the U.S.-China trade dispute and was further accelerated by the global supply chain disruptions caused by the COVID-19 pandemic.
This shift in sourcing strategies has created new opportunities for other manufacturing nations across Southeast Asia, with Vietnam, Indonesia, Malaysia, Thailand, Cambodia, Singapore, and the Philippines all seeing growth in export volumes to the U.S.
There has been a shift in imports from China to the U.S. The trend began 2 years ago with the U.S.-China trade dispute and was stimulated further due to the current pandemic. These outsourcing shifts have proved beneficial to countries like Vietnam, Indonesia, Malaysia, Thailand, Cambodia, Singapore, and the Philippines.
Vietnam: A Growing Global Manufacturing Powerhouse
Among Southeast Asian nations, Vietnam stands out as the top beneficiary of this shift. In recent years, Vietnam has made major investments in its port and inland transportation infrastructure, while also focusing on workforce training and manufacturing readiness. These efforts have paid off, attracting major global brands looking to reduce costs, improve resilience, and avoid overexposure to one supply market.
Vietnam in recent years has become a leader in developing port and inland transportation infrastructure along with workforce training. A growing number of businesses have relocated their factories from China to Vietnam in an attempt to escape the increasingly controlled environment and the rising costs. This has resulted in the production of some products such as footwear and electronics to migrate to Vietnam. The ocean carriers have also noticed this trend and have increased their services to these Vietnam ports. Other Southeast Asia countries are growing their manufacturing base as well, but at a slower pace than Vietnam.
As production shifts to Vietnam, ocean carriers have expanded their services to accommodate increased export volumes, adding more direct sailings and optimizing routes for better efficiency. Though other Southeast Asian countries are building their industrial base, Vietnam’s infrastructure and policy improvements give it a clear edge in meeting global demand today.
Top U.S. Imports from Vietnam
With trade volume increasing, the U.S. has become one of Vietnam’s largest export markets. Top product categories being imported from Vietnam to the U.S. include:
- Electric machinery and equipment (Vietnam’s top global export)
- Apparel and footwear
- Industrial machinery and mechanical appliances
- Leather goods, bags, and accessories
- Furniture and wood products
- Seafood, fruits, nuts, and agricultural products
- Iron and steel
The U.S. top imported cargo from Vietnam are electric machinery and equipment (also Vietnam’s number 1 export worldwide), apparel and footwear, industrial machinery, leather goods, furniture, fruits and nuts, fish, and iron and steel.
What Shifting Away from Imports from China Means for U.S. Importers
While moving away from China offers opportunities, it also comes with logistical and operational considerations:
- Infrastructure Readiness: Vietnam’s ports and roads are strong, but capacity limitations in other Southeast Asian countries may cause delays or bottlenecks.
- Customs & Compliance: Working with a knowledgeable partner is critical to ensure proper documentation and compliance with U.S. import regulations.
- Supplier Reliability: Vetting new factories and partners is key. Not all facilities have the same quality controls as those in more mature manufacturing markets.
- Tariff Strategy: Some Southeast Asian countries may offer preferential trade terms with the U.S., offering potential cost savings for importers.
The Future of Global Sourcing
As global conditions continue to evolve, supply chain diversification is no longer just a strategy—it’s a necessity. While China remains a major global manufacturing hub, many companies are choosing to de-risk by establishing additional sourcing in countries like Vietnam and its regional neighbors.
At Jade International, we are equipped to help importers navigate this transition. From identifying optimal trade lanes to managing customs and compliance, we provide the expertise and flexibility needed to successfully shift sourcing strategies.
Looking to diversify your supply chain beyond China?
Contact Jade International today to learn how we can help streamline your logistics from Southeast Asia to the U.S.ics and can help you navigate customs, carrier schedules, and compliance with confidence.
