Since 2020, a growing number of French SMEs have been reassessing their dependence on Chinese suppliers. Between rising production costs, geopolitical tensions and supply chain disruptions, Vietnam has emerged as the most serious alternative. But is it really the right choice for your business?

Why Chinese suppliers have lost competitiveness

For twenty years, China dominated global sourcing thanks to unbeatable labor costs. This model has gradually eroded for several reasons:

Evolution of production costs: beyond wages alone, it is the entire Chinese production chain that has seen its costs increase — energy, internal logistics, industrial real estate, regulatory compliance. The overall quality-to-price ratio rebalanced over the years.

Additional customs duties: trade tensions between the United States and China have led many Western countries to reassess their own tariff rates on Chinese products. French importers are not spared.

Concentration risk: the COVID-19 crisis brutally highlighted the dangers of excessive dependence on a single supplier country. Companies that had 80 to 90% of their supplies from China suffered massive stockouts in 2020-2021.

Vietnam, a credible alternative for which sectors?

Vietnam is not universally superior to China. There are sectors where it excels, and others where China remains dominant.

Sectors favorable to Vietnam:

Textiles and apparel: Vietnam is the world's third-largest exporter of clothing. Factories in the Ho Chi Minh City and Hanoi regions produce for global brands like Nike, Adidas and Zara. Quality standards are high, and lead times are manageable.
Agribusiness: coffee (Vietnam is the world's second-largest producer of robusta coffee), spices, tea, cashews, processed fruits. Vietnamese agrifood products benefit from a growing quality image in Europe.
Crafts and decoration: bamboo, rattan, wicker, lacquer, ceramics. Vietnam has recognized craftsmanship expertise and skilled labor in this sector.

Sectors where China remains dominant:

Electronics and components
Machinery and industrial equipment
Chemicals and plastics

The decisive advantage: the EVFTA agreement

This is probably the most powerful argument in favor of Vietnam sourcing for French importers.

The free trade agreement between the European Union and Vietnam (EVFTA), which entered into force in August 2020, provides for the progressive elimination of 99% of customs duties on trade between the two zones. For a French importer, this translates concretely into:

Textiles: customs duties reduced from 12% to 0% on most clothing categories by 2027
Agribusiness: full exemption on many products (coffee, tea, spices, preserves)
Crafts: duties already at 0% on virtually all products

To benefit from these advantages, products must comply with EVFTA rules of origin — this is where a local sourcing agent like CNL Sourcing brings real value, by verifying that suppliers are eligible and preparing the necessary certificates of origin.

Price comparison: Vietnam vs China in 2026

As an indication, here is a comparison of production costs for common products:

| Product | China Price (FOB) | Vietnam Price (FOB) | France Customs Duties | |---|---|---|---| | Cotton T-shirt (500 pieces) | €3.20 | €2.80 | China: 12% / Vietnam: 0% | | Wicker basket (200 pcs) | €4.50 | €3.90 | China: 3.7% / Vietnam: 0% | | Robusta coffee (1 tonne) | €2,800 | €2,400 | China: 9% / Vietnam: 0% |

The price difference in production is 10 to 20% in favor of Vietnam depending on the categories. Add the EVFTA customs advantage and the difference in total cost can reach 25 to 35%.

Points to watch out for with Vietnam sourcing

Vietnam also presents constraints that must be anticipated:

Language barrier: Vietnamese is a complex tonal language, very far from European languages. Unlike China where commercial English is widespread in export factories, many Vietnamese suppliers communicate only in Vietnamese. Working with a French and Vietnamese-speaking agent like Anna Nguyen eliminates this barrier.

More limited production capacities: Vietnamese factories are generally smaller than their Chinese equivalents. For orders exceeding 50,000 pieces, you sometimes need to work with multiple factories in parallel.

Developing logistics infrastructure: the ports of Hanoi and Ho Chi Minh City are well equipped for export, but maritime transport times to France are slightly longer than from Shanghai (28-35 days vs 25-30 days).

Conclusion: should you leave China?

Not necessarily leave, but diversify. The most relevant strategy for a French SME in 2026 is to allocate 30 to 50% of its Asian purchases to Vietnam in categories where the country excels (textiles, agri, crafts), while maintaining its Chinese supplier relationships for other products.

This diversification reduces the risk of disruption, optimizes taxation via EVFTA and provides access to suppliers who are often more responsive and flexible than those in China on small volumes.

CNL Sourcing supports French SMEs in this transition — supplier audits, negotiation in Vietnamese, on-site quality control and EVFTA customs assistance included.