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China or Vietnam? Here’s the Honest Answer for Kiwi Importers
Vietnam is having a moment. Lower labour costs, growing factory capacity, and New Zealand’s CPTPP trade agreement make it genuinely compelling. But China still leads on infrastructure, product range, and speed-to-market for most categories. The right answer depends entirely on what you’re making — and we know both markets well enough to give you a straight answer.
Everyone’s Talking About Vietnam. But Is It Right for Your Product?
If you’ve been following trade news, you’ll know the narrative: rising Chinese labour costs, US tariff tensions, and a wave of manufacturers shifting production to Southeast Asia. Vietnam gets the most headlines.
But the reality on the ground is more nuanced. Vietnam is genuinely excellent for certain product categories. For others, China is still the clear choice — and will be for the foreseeable future. Making the wrong call means higher costs, longer lead times, or quality that doesn’t match your expectations.
We’ve sourced from both markets extensively. Here’s what we’ve learned.
China Is Still the Right Call When…
Complex Manufacturing
China’s manufacturing ecosystem is unmatched in depth. Electronics, precision parts, complex assemblies, and technically demanding products are still best made in China. Vietnam simply doesn’t have the supply chain infrastructure yet.
Speed to Market
Chinese factories are faster. More suppliers, more competition, more capacity. If lead time is a priority, China wins.
Product Range
Whatever you want to make, someone in China is already making it. The breadth of available factories, materials, and components is still unrivalled.
Tooling & R&D
If your product requires moulds, dies, or custom tooling, Chinese factories have more capability and experience. Product development and sampling is typically faster and cheaper in China.
Established Supply Chains
China’s manufacturing hubs — Shenzhen for electronics, Foshan for furniture, Yiwu for general merchandise — cluster suppliers in ways that reduce complexity and cost for multi-component products.
Vietnam Is the Better Choice When…
Textiles & Apparel
Vietnam is a world-class manufacturer of clothing, activewear, and fashion accessories. Labour costs are lower, quality is high, and the industry is mature.
Furniture & Homewares
Vietnamese furniture, particularly from Binh Duong province, is internationally recognised for quality. A strong alternative to Chinese furniture sourcing for the NZ market.
US Tariff Exposure
If you sell into the US market, products made in Vietnam avoid the Section 301 tariffs applied to Chinese-made goods. A significant cost advantage for certain categories.
CPTPP Duty Benefits
New Zealand’s trade agreement with Vietnam offers preferential duty rates that can meaningfully reduce your landed cost compared to China. We calculate this as part of our cost modelling.
Brand Story
For some brands, “Made in Vietnam” carries a positive connotation with consumers — particularly in fashion and premium homewares. Worth considering alongside the commercial factors.
China vs Vietnam — Side by Side
How We Help You Choose — and Source
Product & Category Assessment
We assess your product category, volume, quality requirements, and target markets to determine which country is the better fit.
Cost Modelling
We model the landed cost from both China and Vietnam — including factory price, freight, duties (factoring in CPTPP rates), and compliance costs. Numbers, not guesswork.
Supplier Identification
We identify candidate suppliers in the recommended market (or both, if it’s genuinely close) and start the vetting process.
Sampling from Both (if needed)
For borderline categories, we can run parallel sampling from Chinese and Vietnamese factories so you can compare quality and price directly.
Order & Logistics
Whichever market you choose, we manage the order, quality control, freight, MPI biosecurity, and NZ Customs clearance end-to-end.
Compliance Differs Between Markets — Here’s What to Know
Our streamlined process is designed to deliver outstanding results at every stage of your marketing journey. Here's how we do it:
CPTPP & Duty Rates
NZ has preferential duty arrangements with both China (ChAFTA) and Vietnam (CPTPP). The applicable rate depends on the product’s HS code and rules of origin. We calculate this as part of our landed cost modelling.
MPI Biosecurity
Both markets have products that can trigger MPI biosecurity requirements — particularly timber, natural fibres, and certain organic materials. We spec your products to minimise biosecurity risk.
Vietnamese Factory Compliance
Vietnam’s export sector is well-regulated for major product categories, but certification requirements and standards can differ from China. We navigate this for you.
Rules of Origin
To claim preferential duty rates under CPTPP, goods must meet specific rules of origin requirements. We ensure your products are structured correctly to qualify.
This Is For You If…
The Undecided Importer
You’ve heard good things about Vietnam but you’re not sure if it’s right for your product. You want an honest, data-backed answer.
The China Veteran
You’ve been sourcing from China for years and you’re curious whether Vietnam could offer a better deal — or reduce your tariff exposure.
The Tariff-Conscious Seller
You sell into the US market and you’re feeling the impact of China tariffs. Vietnam is worth a serious look.
The Textile & Apparel Brand
For clothing, activewear, and accessories, Vietnam is often the stronger choice. Let’s confirm whether it’s right for your specific product.
The Furniture Buyer
Vietnamese furniture is world-class. If you’re sourcing homewares or furniture for the NZ market, Vietnam deserves serious consideration alongside Foshan.
The New Importer
You’re starting from scratch and want to make the right call from day one — without years of trial and error.
Frequently Asked Questions
We’ve compiled a list of the most frequently asked questions to help you get the information you need.
For labour-intensive products like textiles, footwear, and furniture, yes — Vietnam’s labour costs are meaningfully lower. For more complex or capital-intensive manufacturing, the cost difference narrows or disappears. It always comes down to the specific product.
If you only sell in New Zealand, US-China tariffs don’t directly affect you. But if you sell into the US market (e.g. via Amazon FBA), goods manufactured in China attract significant additional tariffs that can wipe out your margins. Vietnam-made goods avoid these tariffs entirely.
Sometimes, yes. For borderline categories we can run parallel sourcing — getting quotes and samples from both Chinese and Vietnamese factories — so you can make a data-backed decision rather than a theoretical one.
Textiles, apparel, activewear, footwear, furniture, homewares, and certain food products. Vietnam’s manufacturing sector has matured rapidly in these categories and quality is genuinely competitive with China.
Electronics, precision engineering, complex assemblies, tooling and moulds, and products requiring a wide component supply chain. China’s manufacturing ecosystem in these areas is decades ahead of Vietnam.
Sea freight from Vietnam to NZ typically takes 18–25 days, slightly longer than from China (14–20 days). Air freight from Vietnam takes roughly the same as from China — 3–5 days. We factor transit times into your planning from day one.
Can’t find the answer you’re looking for? Send your questions to our friendly team.
