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US, European buyers pivot away from China, toward Vietnam

Demand for Vietnamese products is increasing among U.S. and European buyers, many of whom are seeking to diversify their buying away from China, a survey has found.

Containers seen at Cat Lai Port in Ho Chi Minh City in April 2021. Photo by VnExpress.
Containers seen at Cat Lai Port in Ho Chi Minh City in April 2021. Photo by VnExpress.

Forty-three percent of U.S. companies said earlier this year that Vietnam was among their top three choices of source, twice the rate seen in 2019, according to a survey by Qima, a provider of supply-chain-compliance solutions.

The ratio in Europe was 25 percent, up 11 percentage points, it said.

"The appetite for Vietnam sourcing is far from satisfied and is poised to redefine the sourcing landscape in 2021," the survey said.

It said 38 percent of U.S. buyers named Vietnam among countries from whom they planned to buy more this year. The ratio was 28 percent among European buyers and 33 percent globally.

Demand for inspections and audits in Vietnam in the first quarter rose 16 percent year-on-year, showing that Vietnam remains a first choice for Western buyers diversifying from China, the survey said.

This was the third consecutive quarter of growth since beginning as a post-lockdown rebound in mid-2020, it said.

The most popular product category sourced from Vietnam was adult garments, accounting for 56 percent of all inspections in the country, the survey said.

The survey polled over 700 businesses with international supply chain.


Source: VNExpress


 

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