Manufacturing in Vietnam vs. China: Comparing Costs, Tariffs, and Supply Chain Realities
Key Takeaways for Sourcing Managers
- Duties keep changing: U.S. import duties on goods from China and from Vietnam have both changed several times since 2025. Confirm the current rate for your HTS code and each destination market before you compare quotes, and treat any percentage printed in an article as a starting point, not a fact.
- Labor-intensive work favors Vietnam: for plush toys and textiles, where sewing time drives cost, Vietnam is generally competitive with China’s coastal provinces. Compare real quotes for your specification rather than national wage averages.
- China keeps two clear advantages: on-demand fabric variety and the depth of its electronics supply base.
- Decide on landed cost: unit price plus current duty, freight and one-time costs (samples, molds, testing), for each origin and each market.
Sourcing teams comparing Vietnam and China have moved past simple FOB price comparisons. They now compare landed cost, exposure to trade-policy changes, compliance requirements and lead time.
For many brands the question is no longer “Vietnam or China” but which products belong in which country, and how to keep both options open as trade rules shift.
1. Tariffs: check the current rate, don’t assume one
Import duties are often the largest swing factor in landed cost between the two countries. They are also the least stable. Since 2025 the United States has repeatedly changed the additional duties it applies to goods from China and from other countries, Vietnam included, and announced rates have been revised within weeks. A rate quoted in an article, including earlier versions of this one, can be out of date by the time you read it.
What to do instead: classify the product (an HTS code for the United States, a CN code for the EU), look up the current rate for each origin in the official schedule (for the U.S., the USITC Harmonized Tariff Schedule), and ask your customs broker to confirm the total, including any additional duties that apply on the day of import.
Customs authorities determine origin by where a product is substantially made, not where it is packed or shipped from. Routing goods made in one country through another to change their declared origin is transshipment, which carries penalties for the importer. Takara declares origin where production actually takes place.
Beyond the United States, Vietnam’s trade agreements (including EVFTA with the European Union, CPTPP and RCEP) can reduce duties into several markets for goods that meet each agreement’s rules of origin. Eligibility depends on the product and where its materials come from, so confirm it shipment by shipment.
2. Labor and cut-and-sew capability
Plush toy manufacturing remains labor-intensive. Curved seams, edge turning, embroidery and safety-eye fitting are still largely done by hand, so sewing time is a large share of the unit cost.
Labor costs in Vietnam are generally lower than in China’s coastal manufacturing provinces, and the difference matters most on products where sewing dominates. Wages in both countries rise every year and vary by region and by factory, so the useful comparison is two quotes for the same specification, not national averages.
3. A balanced reality check: materials and electronics
Vietnam is strong for cut-and-sew work, but sourcing teams still need to weigh real constraints:
- Fabric variety: China has the world’s most concentrated textile markets, such as Zhongda in Guangzhou and Keqiao in Shaoxing. Unusual custom-dyed fabrics are often fastest to source there.
- Imported specialty fabrics in Vietnam: many plush fabrics, such as high-density short-pile velboa and recycled polyester fleece, are imported. When a fabric is not stocked locally, add its transit time to the schedule.
- Electronics: for products with sound modules, motors or complex internal mechanisms, China remains the deeper and usually cheaper supply base for components.
Takara confirms fabric availability with the assigned partner factory at quotation and builds any imported material into the production schedule. For plush in standard shapes, Takara’s catalogue of 400+ ready base patterns can shorten pattern-making before sampling.
4. Comparison matrix: Vietnam vs. China
The matrix below is qualitative, based on Takara’s experience placing orders with partner factories in both countries. Use it to frame questions, then decide with real quotes and current duty rates.
| Factor | Vietnam | China |
|---|---|---|
| U.S. import duties | Check current rate Changed several times since 2025. Confirm for your HTS code. | Check current rate Additional duties on China-origin goods have also changed repeatedly. |
| Labor cost | Generally lower Matters most for sewing-intensive products. | Generally higher in coastal provinces Offset in part by deeper automation and supplier density. |
| Compliance and audits | Audited partner factories are available. Programs such as amfori BSCI, Sedex SMETA or Disney FAMA are held by a limited number of facilities and suit larger orders. | The same programs are available. Importers selling into the U.S. should also be ready to document their supply chain under the Uyghur Forced Labor Prevention Act (UFLPA). |
| Fabric supply | Specialty fabrics are often imported. Plan their transit time. | Very wide local choice, often available within days. |
| Ocean freight to the U.S. West Coast | Direct services from Cat Lai (Ho Chi Minh City) and Hai Phong. | Direct services from Shanghai, Ningbo and Shenzhen. Transit times are broadly similar and depend on carrier and service. |
Comparisons by category: plush toys, Vietnam vs Dongguan · corporate gifts, Vietnam vs Yiwu · soft goods, Vietnam vs Zhejiang. Each includes a landed-cost worksheet.
5. Recommendations for sourcing managers
Takara has produced licensed merchandise and plush since 2013, including Pokémon merchandise in Vietnam, OEM work for Tagger (Doraemon, Shin-chan, One Piece) and Rohto’s blind-box plush. Three recommendations follow from that work:
- Shortlist Vietnam for sewing-intensive soft goods. For plush toys, cushion mascots, totes and promotional textiles, Vietnam is usually worth quoting. Compare landed cost with the duty rates that apply on the day you order.
- Start from a base pattern where you can. For standard plush shapes, choosing from Takara’s catalogue of 400+ ready base patterns can shorten pattern-making and sampling.
- Quote both origins for electro-mechanical items. For toys that combine molded parts, sound modules and plush skins, compare both countries. Where the product is substantially made determines its origin, so confirm with your customs broker before deciding where each step happens.
Frequently asked questions
Is manufacturing plush in Vietnam cheaper than in China?
For sewing-intensive products such as plush toys, Vietnam's labor cost is generally lower than in China's coastal provinces, and the difference matters most where sewing time drives the unit price. Wages in both countries rise every year and vary by factory, so compare landed cost from two quotes for the same specification rather than national averages.
What are the current US import duties on goods from Vietnam and China?
They have changed several times since 2025 for both countries, so do not rely on a rate printed in an article. Classify the product, look up the current rate for each origin in the USITC Harmonized Tariff Schedule (or TARIC for the EU), and ask your customs broker to confirm the total on the day of import.
When is China still the better choice?
When the product needs unusual custom-dyed fabrics that are fastest to source in China's textile markets, or when it contains electronics such as sound modules or motors, where China remains the deeper and usually cheaper component base. For electro-mechanical toys, quote both origins.
Can goods made in China be shipped through Vietnam to get Vietnamese origin?
No. Customs authorities set origin by where a product is substantially made, not where it is packed or shipped from. Routing goods to change their declared origin is transshipment and carries penalties for the importer. Takara declares origin where production actually takes place.
Do Vietnam's trade agreements reduce duties?
They can. EVFTA with the European Union, CPTPP and RCEP can lower duties into several markets for goods that meet each agreement's rules of origin. Eligibility depends on the product and where its materials come from, so confirm it shipment by shipment.