Anyone in procurement knows that Vietnam has been on a serious roll these past few years.
In the first half of 2025, Vietnam's exports of agricultural and seafood products to the U.S. continued their strong growth—coffee up 76.4%, fruit up 65.5%. Low tariffs, cheap labor, and a great geographic location—sounds like the perfect "China alternative."
My last shipment came from Vietnam. The price was indeed about 5% lower than China's. On the surface, it looked like a smart deal.
But in the end, I moved the order back to China.
Not because I'm "patriotic," but because after calculating the total cost—that 5% price difference wasn't nearly enough to cover the hidden pitfalls.
Vietnam's biggest problem in exporting food to the U.S. isn't price—it's compliance.
GPLUS, a U.S. company specializing in FDA compliance assistance, revealed a telling statistic: an average of 2 Vietnamese food shipments are rejected by U.S. Customs every single day.
Why? Mostly because they don't meet U.S. Food Safety Modernization Act (FSMA) standards. Labeling errors are also common—missing allergen information, incorrect nutrition label formats, and non-compliant product names.
By comparison, Chinese suppliers have been navigating this regulatory landscape for over a decade.
Take the Jiuquan Customs example: Gansu chili powder exports to the U.S. surged 627% year-over-year from January to April 2026, driven by a complete compliance system. Customs officials benchmarked FDA standards to help companies improve quality management systems, and even launched the "Gannong Waimao Tong" mini-program—allowing companies to check FDA regulatory requirements for spices with one click.
Chinese suppliers' compliance documentation has been battle-tested. Vietnamese suppliers are still playing catch-up.
Is a 5% price difference enough to cover the loss of an entire container being detained? No. Not even close.
Vietnam's other problem is supply stability.
In 2024, China exported 1.458 million tons of frozen vegetables—ranked first globally—with U.S.-bound exports up 25% year-over-year. Chinese suppliers have monthly production capacities of 500,000 to over 2 million units, supporting stable, large-volume, multi-batch deliveries.
Now look at Vietnam. For a Vietnamese food producer to enter a new market, it takes an average of $120,000 and one full year. Many Vietnamese factories still operate on a "small-to-medium batch" model—they get overwhelmed by large orders.
Add to that Vietnam's logistics infrastructure, which lags far behind China's—industrial clusters, cold chain facilities, port efficiency. The gap isn't something that can be closed in a year or two. Analysts have pointed out that Vietnam lags significantly in quality management, product traceability, and logistics development—some factories even forge traceability documents to get through customs inspections.
Is a 5% price difference enough to absorb a customer claim for late delivery? No. Not even close.
Vietnamese products face another hidden cost when entering mainstream U.S. supermarkets: the brand barrier.
Chris Nguyen, CEO of Ocean Marketing USA, pointed out that Vietnamese goods in the U.S. are primarily contract manufacturing—lacking a national brand identity like Korea or Thailand—making market penetration difficult.
"Other countries typically have branch offices, agents, or on-the-ground teams, while Vietnamese companies mostly rely on importers to handle everything themselves."
When Vietnamese fish sauce brand Phan Thiet was selected by Costco, it took over two years of vetting—two evaluation teams spent more than a month in Vietnam, inspecting factories, production processes, personnel records, and every step of the production line. One missing item and you start over.
Chinese food brands have already paved this path in the U.S. Synear dumplings have entered 149 Sam's Club locations across 15 states. Mixue Bingcheng opened its Hollywood flagship store. Chinese suppliers don't just supply—they help you get onto store shelves.
Is a 5% price difference enough to build brand recognition for a new country of origin in the U.S. market from scratch? No. Not even close.
One sentence: Vietnam saves you 5% on the quote. China saves you from all the headaches that come afterward.
Compliance: Chinese suppliers have already laid the FDA groundwork. Vietnam is still getting two shipments rejected a day.
Capacity: China can handle large orders and deliver on time. Vietnam struggles when orders get big.
Brand: China is already in Costco and Sam's Club. Vietnam is still knocking on the door.
I tried Vietnam for a few shipments. Went in circles. And when I added up the total cost—China was still the most cost-effective choice.
Procurement isn't about comparing quotes. It's about comparing who gives you peace of mind. Keep that 5% for yourself—call it your risk reserve fund.
