Companies Moving From China to Vietnam: Who, Why, and What It Means (2026)

Companies moving from China to Vietnam include Samsung, Nike, Apple suppliers such as Foxconn and Luxshare, and LEGO. Most are not leaving China entirely. They are adding Vietnam capacity to cut tariff exposure, costs, and concentration risk.

For buyers, the shift brings new supplier options and new risks. Supply chains are thinner, tariffs keep changing, and origin rules are stricter. VALO Vietnam helps buyers find verified Vietnamese manufacturers and request quotes directly.

This guide covers the major companies making the move, the drivers behind it, and what usually stays in China. It ends with practical steps and answers to common buyer questions.

Key Takeaways

• It is China plus one: most companies expand into Vietnam while keeping part of their China supply chain.
• The money is real: disbursed FDI hit a five-year high of USD 27.6 billion in 2025.
• Big names lead: Samsung, Nike, Apple suppliers, and LEGO all run major production in Vietnam.
• Some work stays in China: complex tooling, deep component chains, and many raw materials still come from China.
• Origin matters: goods must be genuinely made in Vietnam to avoid transshipment penalties.
• VALO Vietnam connects buyers directly with verified suppliers, with no middlemen and no buyer fees.

Is Manufacturing Really Moving From China to Vietnam?

Yes, but the shift is gradual and selective. The data shows steady, sustained investment rather than a sudden exodus.

What the Numbers Show

• Record FDI: disbursed foreign investment reached about USD 27.6 billion in 2025, the highest in five years.
• Manufacturing dominates: the sector took roughly 83 percent of disbursed FDI in 2025.
• Export engine: foreign-invested firms produced about 77 percent of Vietnam's 2025 goods exports.
• Brand-level proof: Vietnam made about 52 percent of Nike Brand footwear in fiscal 2026, versus 16 percent for China.

China Plus One, Not China Minus One

Most firms keep China for complex parts and domestic sales. They move final assembly or labor-heavy lines to Vietnam. This China plus one strategy spreads risk without abandoning an established supply base.

Major Companies Moving From China to Vietnam, by Industry

The companies below show how different sectors approach the move. Each example is based on public filings or official announcements.

Electronics and Technology

Samsung

Samsung is the largest example of electronics production in Vietnam. Its factories in Bac Ninh and Thai Nguyen produce more than half of its global smartphones. Samsung also makes TVs, appliances, and display panels in the country.

Apple and Its Suppliers

Apple does not own factories, but its suppliers have expanded in Vietnam. AirPods entered mass production in Vietnam in 2020. Foxconn and Luxshare later began test production of Apple Watch in northern Vietnam.

Read more: Are Apple products made in Vietnam and AirPods made in China vs Vietnam.

Foxconn

Taiwan's Foxconn, a key Apple partner, operates several plants in northern Vietnam. Its projects include a game console facility in Quang Ninh. These sites support electronics brands diversifying from China.

For the wider picture, see our guide to Vietnam electronics manufacturing.

Footwear and Apparel

Nike

Vietnam has been Nike's largest manufacturing base for four straight fiscal years. In fiscal 2026, Vietnamese factories made about 52 percent of Nike Brand footwear and 34 percent of its apparel. China's share of Nike footwear fell to about 16 percent.

Read more: Are Jordans made in China or Vietnam and Are Crocs made in China or Vietnam.

Adidas and Other Sportswear Brands

Adidas and many other sportswear labels also source heavily from Vietnam. The country's footwear clusters around Ho Chi Minh City, Dong Nai, and Binh Duong serve most global brands. Learn more about footwear sourcing in Vietnam.

Apparel Brands

Cutting, sewing, and finishing were among the first activities to move. Vietnam's experienced workforce suits both fast fashion and technical garments. Explore Vietnam apparel manufacturing and clothing brands made in Vietnam.

Toys and Consumer Goods

LEGO

LEGO opened a factory worth over USD 1 billion in Binh Duong in April 2025. It is the company's sixth factory worldwide and its second in Asia, after Jiaxing in China. The plant is a clear China plus one move, adding capacity rather than closing China.

Homeware and Lifestyle Brands

Household goods, storage, and lifestyle products increasingly come from Vietnam. Brands use Vietnamese factories to reduce tariff exposure on mass-market lines.

Furniture

US and European furniture importers have shifted large volumes to Vietnam. The country offers strong woodworking skills and plantation timber. See why furniture made in Vietnam now leads many retail programs.

Chinese Companies Expanding Into Vietnam

Many movers are Chinese firms following their global clients. Electronics suppliers such as Luxshare now run Vietnamese plants. Packaging, logistics, and component makers have followed their customers too.

For buyers, this matters in two ways. You may still deal with Chinese management in Vietnam. You must also confirm that real production happens locally, not just final labeling.

Why Companies Are Leaving China

Global manufacturers are reassessing their China sourcing risks. Four pressures drive most decisions.

1. Rising Operating Costs

Wages, land, and overheads in China's coastal hubs have climbed for years. Minimum wages in major Chinese industrial cities now sit around USD 310 to 390 a month. That squeezes margins on labor-heavy products.

2. Tariff Pressure

Many Chinese-origin goods still carry extra US duties, including Section 301 tariffs. These raise the total landed cost of China-made products. Moving production is one way to reduce that exposure.

3. Supply Chain Risk Diversification

Relying on one country exposes companies to lockdowns, disasters, and policy shocks. Diversifying locations builds resilience. Our supplier diversification checklist shows where to start.

4. Political and Regulatory Tension

Geopolitical uncertainty and tighter compliance scrutiny push brands to reduce dependence on China. Many customers now ask suppliers to show multi-country sourcing plans.

Read more: Vietnam sourcing vs China

Why Vietnam Is the Top Replacement

Several countries compete for China plus one investment. Vietnam wins often because it combines location, cost, and trade access.

1. Proximity to China

Vietnam shares a land border of about 1,281 kilometers with China. Components from southern China can arrive in days. Vietnam is also just one hour behind China, which makes coordination easy.

2. Competitive Labor Costs

From January 1, 2026, Vietnam's highest regional minimum wage is VND 5,310,000 a month, about USD 204. That remains well below major Chinese cities. Compare regional rates in our guide to labor cost in Southeast Asia.

3. Extensive Free Trade Agreements

Vietnam belongs to the CPTPP, EVFTA, RCEP, and other deals. These lower duties into Europe, Asia-Pacific, and many other markets. Review the full list of Vietnam trade agreements.

4. Industrial Parks and Ports

Ready-built industrial parks cut setup time for new factories. Major ports serve both manufacturing regions. Compare locations using our list of each industrial park in Vietnam.

5. A Young, Growing Workforce

Millions of young workers keep entering Vietnam's labor market. China's factory workforce, by contrast, is aging. This supports long-term capacity in electronics, textiles, and consumer goods.

Industries Seeing the Biggest Shift

As more companies move from China to Vietnam, several industries stand out for experiencing the fastest and most significant relocation of production. These sectors benefit the most from Vietnam’s competitive labor costs, trade advantages, and expanding manufacturing capabilities.

1. Electronics

Vietnam has become a major hub for electronics assembly and component manufacturing, driven by investments from Samsung, Apple suppliers, and other global tech brands. The country offers growing technical expertise and competitive operating costs, making it a top destination for shifting electronics production.

2. Apparel

Cutting, sewing, and garment production are among the first activities companies move from China to Vietnam. The country’s experienced textile workforce and cost efficiency make it ideal for fashion and apparel brands looking to reduce expenses without sacrificing quality.

Read more: Clothing Brands Made in Vietnam: A Sourcing Guide for Apparel Businesses

3. Footwear

Vietnam is now one of the world’s largest footwear exporters, attracting brands that want reliable craftsmanship at lower production costs. Major global names have already shifted significant production volumes from China to Vietnam, reinforcing the country’s position as a premier footwear manufacturing hub.

Read more: Are Jordans Made in China or Vietnam?

4. Furniture

Furniture brands relocating from China to Vietnam benefit from the country’s strong woodworking tradition, abundant raw materials, and skilled labor. Vietnam has become a global leader in wood furniture exports, particularly to the U.S. and Europe.

5. Consumer Goods

Homeware, personal goods, household products, and lifestyle items are increasingly produced in Vietnam to reduce tariff exposure and diversify sourcing. Manufacturers find Vietnam’s supply chain reliable, scalable, and well suited for mass-market consumer products.

These industries illustrate why more companies are moving from China to Vietnam each year, with the trend expected to accelerate as global brands continue seeking lower costs, tariff advantages, and supply chain resilience.

How This Shift Impacts Global Buyers

The rise of companies moving from China to Vietnam is reshaping global sourcing, and buyers are seeing clear advantages.

1. More diverse supply options

As manufacturing spreads across both markets, buyers gain access to a wider range of suppliers, reducing reliance on any single country.

2. Better pricing stability

Vietnam’s lower labor and production costs often lead to more predictable pricing, especially for apparel, footwear, furniture, and consumer goods.

3. Lower tariff exposure

Free trade agreements with the U.S., EU, Australia, and Canada help buyers minimize import duties and avoid the tariff pressures associated with China.

4. Improved supply chain resilience

By sourcing from Vietnam, buyers are less vulnerable to disruptions related to geopolitical tensions, regional lockdowns, or overconcentration in one market.

North vs South: Where Companies Are Setting Up

Northern Vietnam

Bac Ninh, Bac Giang, Thai Nguyen, Hai Phong, and Quang Ninh host most electronics investment. The region sits closest to southern China's component suppliers.

Southern Vietnam

Ho Chi Minh City, Binh Duong, and Dong Nai lead in footwear, apparel, furniture, and consumer goods. LEGO's plant is in this region. Compare both in North Vietnam vs South Vietnam.

What Usually Stays in China

Vietnam is not the right fit for every product. Companies often keep these activities in China:

• Complex tooling and molds: China's tooling ecosystem is deeper and faster.
• Multi-component electronics: many chips, modules, and parts are still made in China.
• Raw materials: fabrics, resins, and components often ship from China to Vietnam.
• Very high volumes: some Chinese plants run at scales few Vietnamese factories match.

Check product-level trade-offs in made in China vs made in Vietnam.

Challenges Companies Face in Vietnam

The move brings real benefits, but it also brings new problems. Plan for these from the start.

Thinner Supply Chains

Many industries still depend on imported inputs. That can extend lead times and add cost. Build buffers using our sourcing lead time guide.

Rising Land and Labor Costs

Costs are climbing in popular hubs. Industrial land in parts of Bac Ninh now costs more than in some Chinese regions. Newer provinces often offer better rates.

Smaller Factory Capacity

Many Vietnamese factories are smaller than their Chinese peers. High-volume programs may need several suppliers.

Compliance and Certifications

Buyers must confirm quality, safety, and ESG standards before onboarding. Start with supplier due diligence Vietnam checks.

Find Verified Vietnamese Suppliers on VALO Vietnam

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Browse Suppliers by Industry

Compare manufacturers by product, capability, and MOQ in one place. Shortlist the factories that fit your move from China.

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The Shift Is Real, but Selective

Companies moving from China to Vietnam are reshaping global manufacturing. Samsung, Nike, Apple suppliers, and LEGO show how deep the shift now runs.

Most firms add Vietnam rather than abandon China. The winners pick the right products, vet suppliers carefully, and respect origin rules.

Buyers can follow the same path at a smaller scale. Start with one product line and expand as results prove out.

Ready to add Vietnam to your supply chain? Browse verified manufacturers on VALO Vietnam. Submit a free RFQ and compare quotes directly from factories.

FAQ: Companies Moving From China to Vietnam

Which companies have moved production from China to Vietnam?

Major examples include Samsung, Nike, Adidas, LEGO, and Apple suppliers such as Foxconn and Luxshare. Most expanded in Vietnam while keeping some China operations.

Why are so many companies moving from China to Vietnam?

Rising Chinese costs, tariff pressure, geopolitical tension, and supply chain risk are the main drivers. Vietnam offers lower wages, trade deals, and proximity to China.

Are companies leaving China completely?

Rarely. Most follow a China plus one approach. They move assembly or labor-heavy lines to Vietnam and keep complex parts in China.

Are Chinese companies moving to Vietnam too?

Yes. Many Chinese suppliers follow global clients into Vietnam, especially in electronics, packaging, and components. Buyers should confirm that production genuinely happens in Vietnam.

Which industries are shifting production to Vietnam the most?

Electronics, apparel, footwear, furniture, toys, and consumer goods lead the move.

Are products made in Vietnam as good as those made in China?

In many labor-intensive sectors, yes. Footwear, apparel, and furniture quality is strong. Quality still varies by factory, so samples and audits matter.

Do goods made in Vietnam avoid China tariffs?

Only if they meet origin rules. Goods that are simply relabeled or lightly processed in Vietnam can still be treated as Chinese.

How do trade agreements affect companies relocating to Vietnam?

Deals like the CPTPP, EVFTA, and RCEP reduce or remove duties into many markets. US duties are set separately and have changed often, so check current rates.

How long does it take to shift sourcing to Vietnam?

Moving one product to an existing supplier can take a few months. Building a new factory usually takes much longer.

What should buyers consider before moving production to Vietnam?

Check raw material availability, factory capacity, lead times, compliance, and origin rules. Then test with a trial order before scaling.