Why Amazon Sellers Turning to Manufacturers in Vietnam over China?

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Inside the mind of a successful Amazon seller, it all comes down to the bottom line:

“How much can I source the product for, and how much can I sell it for?”

But in 2025, the sourcing strategy is no longer just about price. Savvy sellers are now rethinking their entire supply chain — and many are making a strategic pivot toward working with a manufacturer in Vietnam.

Let’s break down why this trend is gaining momentum and what sellers should consider before choosing a Vietnamese manufacturing partner.

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Have China’s products risen in cost? 

For decades, China has been the go-to hub for manufacturing, thanks to:

  • Price competitiveness at scale
  • A massive supplier base
  • Infrastructure built for global export

However, recent macro-level changes have made sellers rethink the reliance on Chinese suppliers:

Rising Manufacturing Costs

  • According to Moody’s Analytics, China’s average annual wages increased from $5,400 in 2010 to over $13,600 in 2020, and continued to rise post-COVID.
  • Higher labor costs = higher product prices, cutting into profit margins for Amazon FBA sellers.

Geopolitical & Tariff Pressures

  • The US–China trade war has driven up tariffs for Chinese-made goods.
  • Regulatory unpredictability has made sourcing from China riskier for small to mid-sized sellers.
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Supply Chain Disruptions

  • From China’s zero-COVID policies to recent port congestion and geopolitical instability, many Amazon sellers have experienced production delays and shipping bottlenecks.

As a result, sellers have started seeking alternative sourcing destinations in Southeast Asia — and Vietnam is leading the pack.

Vietnam: The rising star for product sourcing

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Why choose a manufacturer in Vietnam?

While all the points above are completely valid, there is another reason why an FBA seller will select a product made in Vietnam over China. It’s simply because it’s made in Vietnam, not in China. 

Competitive Pricing

  • Vietnam’s labor costs are 30–50% lower than China, making it a cost-effective alternative for many product categories.

Diversified Product Capabilities

Vietnam has matured far beyond textiles. Today’s Vietnamese manufacturers produce:

  • Furniture & home décor
  • Kitchenware
  • Pet products
  • Toys & baby goods
  • Handcrafted and eco-friendly goods
  • Outdoor and garden items

Trade Agreements & Pro-Business Environment

  • Vietnam is part of CPTPP and EVFTA, giving it preferential trade access to the US, EU, and Australia.
  • Government support for foreign investment in manufacturing continues to grow.

Improved Infrastructure

  • Rapid improvements in ports, industrial zones, and logistics hubs make Vietnam an increasingly reliable player for global fulfillment.

Is “Made in Vietnam” the new competitive advantage?

For Amazon FBA sellers, differentiation is everything.

In a saturated marketplace where dozens of sellers offer similar products, product origin can be the deciding factor for many customers. “Made in Vietnam” may not always mean better quality or lower cost, but it signals authenticity, transparency, and global awareness — especially in categories like eco-living, handmade, or fair-trade goods.

Perception Drives Sales

  • Many buyers are actively choosing non-China-made products due to ethical, political, or quality concerns.
  • Listing a Vietnamese-made product can create a perceived point of difference — helping sellers stand out in crowded categories.

Should you work with a manufacturer in Vietnam?

If you’re looking to:

  • Reduce supply chain risk
  • Lower sourcing costs
  • Differentiate your brand
  • Enter new product categories like sustainable goods or handmade decor

… then it’s time to seriously explore Vietnamese manufacturing.

With the right vetting and logistics provider, your partnership with a manufacturer in Vietnam can be the catalyst that transforms your Amazon business in 2025 and beyond.

At Wayfindr, we connect e-commerce sellers with trusted manufacturers and 4PL partners across Vietnam and Southeast Asia. Whether you’re sourcing furniture, pet accessories, or lifestyle goods, we can help you reduce time-to-market, minimize risks, and manage fulfillment end-to-end.

Nick Bartlett

About Author

Nick Bartlett

Co-founder & Director

Nick co-founded Wayfindr to help brands design and build market-leading carbon-neutral D2C logistics. As Director, he brings 15+ years of experience across logistics, marketing, supply chain and retail from Asia Pacific to the world.

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