A movement of manufacturing to Vietnam that began in President Trump’s first term is accelerating as sky-high U.S. tariffs block Chinese exports.
In the scrum to keep the wheels of trade turning, Chinese companies are pivoting to neighboring countries to escape President Trump’s crippling tariffs.
The hustle is on show in Vietnam. Factories that make everything from jeans to Christmas wreaths are trying to get there fast. The ones that have already moved are ramping up. The Chinese e-commerce platforms Alibaba and Shein are helping companies find manufacturing alternatives in Vietnam.
The race to get out of China has gathered so much pace in recent weeks that a social media genre of fixers has surfaced to offer tips on how to reroute goods through not only Vietnam, but places like Thailand and Malaysia too.
The cost of sending products to the United States has soared in recent weeks, forcing factories to find new trade routes. Last month, China’s exports to Southeast Asia surged as shipments to America plunged, Chinese government data released on Friday showed.
While Mr. Trump has imposed 145 percent tariffs on China, he has paused new tariffs on Vietnam and other Asian countries until early July. Factories across the region have gone into overdrive.
“It feels like everybody is rushing to find a Vietnamese partner,” said Vu Manh Hung, who owns seven factories in northern Vietnam and was inundated with requests from Chinese businesses.