Vietnam is gaining share in EU sourcing due to EVFTA and \u201cChina+1\u00a0in the event of\u00a0increased US tariffs on goods from China. But\u00a0not many\u00a0people are aware that\u00a0many Vietnamese plants are funded by Chinese capital.\u00a0However,\u00a0few\u00a0people\u00a0realize\u00a0that\u00a0some\u00a0Vietnamese\u00a0plants are funded by Chinese capital,\u00a0which\u00a0may\u00a0raise\u00a0questions\u00a0about\u00a0the rules\u00a0of\u00a0origin\u00a0and the\u00a0risk\u00a0of re-exportation.\u00a0Is\u00a0it\u00a0worth\u00a0continuing\u00a0to import from China?<\/p>\n\n\n\n
Imports from Vietnam to the EU are growing year on year, reflecting the EVFTA tailwinds\u00a0and increased interest in sourcing\u00a0from outside China. The same trade agreement provides for asymmetric tariff elimination \u2013 from August 1, 2020, approximately 84% of imports from Vietnam to the EU enter the EU duty-free, and\u00a0almost all\u00a0remaining EU tariffs will be eliminated by 2030.<\/p>\n\n\n\n
Global imports from China were on a general downward trend for quite some time.\u00a0Some\u00a0notable factors are\u00a0slowing global demand, U.S. tariffs, and supply chain diversification efforts.<\/p>\n\n\n\n
To adapt to the growing trend of supply chain diversification, many Chinese manufacturers have strategically invested in overseas production facilities. However, as they still rely heavily on components sourced from China, the\u00a0initial\u00a0stages of production typically begin domestically before being transferred abroad. Final assembly and value-added processes are often completed in South Asia\u2014particularly in countries like Vietnam\u2014where favorable geographic positioning and lower labor costs offer significant advantages.<\/p>\n\n\n\n
EVFTA\u00a0is\u00a0gradually\u00a0phasing\u00a0out\u00a0customs\u00a0duties\u00a0on\u00a0goods\u00a0from\u00a0Vietnam,\u00a0making\u00a0imports\u00a0of\u00a0Vietnamese\u00a0goods\u00a0into\u00a0the\u00a0European\u00a0Union\u00a0cheaper.\u00a0As long as\u00a0the goods meet\u00a0the\u00a0Rules\u00a0of\u00a0Origin\u00a0(RoO)\u00a0requirement\u00a0(by providing proper documentation of origin,\u00a0such\u00a0as EUR.1 \/ declaration of origin), imports can be exempted from EU tariffs.<\/p>\n\n\n\n
Consider Chinese suppliers when sourcing products such as advanced electronics, precision mechanical components, or batteries. China offers significant advantages, including highly scalable manufacturing, a well-developed\u00a0logistics\u00a0infrastructure, broad access to components, and shorter lead times for introducing new products or technologies.<\/p>\n\n\n\n
Vietnamese manufacturers, on the other hand, are a strong\u00a0option\u00a0for competitively priced textiles, fashion accessories, small household appliances, and electronic accessories. While Vietnam\u2019s supply chains are still developing\u2014which may result in longer shipping times\u2014goods that meet the EU\u2019s origin criteria for significant transformation can be imported without customs duties, lowering import costs by as much as 20%.<\/p>\n\n\n\n
Regardless of the sourcing country, always verify your supplier before placing an order.\u00a0A background check can be completed in as little as 48 hours and may help you avoid costly mistakes or unreliable partners.\u00a0Save time, reduce risk, and ensure your supplier is trustworthy\u2014start the verification process today.\u00a0Verify a business partner from China<\/a>\u00a0and from other countries\u00a0in Asia and the M<\/a>i<\/a>ddle East<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Vietnam is gaining share in EU sourcing due to EVFTA and \u201cChina+1\u00a0in the event of\u00a0increased US tariffs on goods from China. But\u00a0not many\u00a0people are aware that\u00a0many Vietnamese plants are funded by Chinese capital.\u00a0However,\u00a0few\u00a0people\u00a0realize\u00a0that\u00a0some\u00a0Vietnamese\u00a0plants are funded by Chinese capital,\u00a0which\u00a0may\u00a0raise\u00a0questions\u00a0about\u00a0the rules\u00a0of\u00a0origin\u00a0and the\u00a0risk\u00a0of … Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":9562,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[25],"tags":[498,848,847,301],"class_list":["post-9561","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-import","tag-china","tag-importing-from-asia","tag-sourcing-from-asia","tag-vietnam","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50"],"_links":{"self":[{"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/posts\/9561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/comments?post=9561"}],"version-history":[{"count":1,"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/posts\/9561\/revisions"}],"predecessor-version":[{"id":9563,"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/posts\/9561\/revisions\/9563"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/media\/9562"}],"wp:attachment":[{"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/media?parent=9561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/categories?post=9561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.examinechina.com\/wp-json\/wp\/v2\/tags?post=9561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}