Current U.S. import duty rates on Vietnamese goods and why Vietnam has become a leading alternative sourcing destination.
The primary appeal of Vietnamese sourcing for U.S. importers is the tariff differential. While Chinese goods face 30-35% combined effective tariff rates, equivalent Vietnamese products enter the U.S. at standard MFN rates of 10-16%. On a $10 FOB product, this translates to a duty cost of $1.00-$1.60 from Vietnam versus $3.00-$3.50 from China.
Vietnam is strongest in textiles and apparel, footwear, electronics assembly, furniture, and seafood. The country has invested heavily in manufacturing infrastructure for these sectors, and many Chinese factories have opened Vietnamese subsidiaries to serve the U.S. market at lower tariff rates.
U.S. Customs has increased scrutiny of goods claimed to originate in Vietnam. Ensure your products undergo substantial transformation in Vietnam to qualify for Vietnamese origin. Maintain detailed manufacturing records, factory audit reports, and bills of material to prove origin if challenged by CBP.
Vietnam's imports to the U.S. carry standard MFN tariff rates averaging 10-16% depending on product category. Vietnam is not subject to Section 301 tariffs, making it significantly cheaper than China for many product categories.
For many product categories, yes. Vietnam offers tariff rates 15-20 percentage points lower than China on Section 301-affected goods, competitive labor costs, and a growing manufacturing base. However, capacity constraints and higher per-unit costs in some categories can offset tariff savings.
No. The U.S. and Vietnam do not have a bilateral free trade agreement. Vietnam receives standard MFN rates under its WTO membership. However, Vietnam is a member of CPTPP and RCEP, which benefit its global trade positioning.
There is ongoing scrutiny of trade transshipment through Vietnam, where Chinese goods are routed through Vietnam to avoid Section 301 tariffs. CBP has increased enforcement, and there is legislative interest in addressing tariff circumvention through third countries.
MarginHub models the total landed cost difference between Vietnamese and Chinese sourcing for your specific products.
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