The Chinese newspaper: The number of US companies considering Vietnam as the top supplier doubled, a trend likely to continue in 2021.

American and European companies are gradually reducing their dependence on the market and sourcing from China. Considered one of China's alternatives in the region, Vietnam maintained its position during the turbulent 2020, South China Morning Post said.
Although China has recovered relatively strongly from the pandemic and has controlled the epidemic much faster than in the West, the long-term trend to diversify its supply chain from China continues, according to one report. The survey was conducted with more than 700 companies worldwide in March.

In 2019, 96% of US-based companies and 100% of European-based companies voted China as one of their top three supplier countries, but the beliefs of US and European companies with China fell to 77% and 80% respectively in the first quarter of this year, according to Qima, a supply chain solutions provider, who conducted the survey.

Already affected by the US-China Trade War, China's influence as a market and supply to Western buyers continues to take another hit in early 2020, after Covid-19 outbreaks and blockades.

However, even as US and European companies are reducing their dependence on the Chinese market, China remains the leading source of supply. For businesses outside of China as a whole, more than 85% of companies surveyed have listed China as one of the top three sourcing markets for electronics and toys.

"This shows that, despite efforts to diversify supplies, European and American companies continue to view China as one of their most important manufacturing partners," the report said. wishes to maintain business connections with Chinese suppliers ".

It should be noted that this belief is also due to China's effective control of the pandemic. Besides, other factors include "long history of cooperation", "good performance in quality compared to other localities" and "China's progress in ethical compliance compared to other regions. developing sector "also gives China points in the hearts of companies.

Considered one of China's alternatives in the region, Vietnam has maintained its position throughout the turbulent 2020 year. In early 2021, Vietnam was named the top supply market by 25% of global companies surveyed.

Before the US-China trade war, several Chinese companies, especially in the textile and apparel industry, moved to Southeast Asian countries such as Vietnam, and many manufacturers from different industries moved in. Vietnam since the trade war started.

Meanwhile, India, which is considered a textile powerhouse and currently struggling with Covid-19, is also believed to be one of the top supplier partners for at least a third of the companies surveyed in many fields, including eyeglasses, jewellery, fashion accessories and shoes.

Vietnam is particularly popular with US-based businesses, as the proportion of U.S. firms considering Vietnam as one of their top three supply regions has nearly doubled in the past four years, reaching 43% in early 2021.

And in Europe, 25% of companies surveyed listed Vietnam among the top three sourcing countries in the first quarter, 15 percentage points lower than last year, but still high. more than 11% in 2019.

Out of all the companies that switched to suppliers elsewhere last year, to avoid pandemic effects and other risks, nearly a third said Vietnam was among the top picks of the surname. For US companies, the figure is even higher than 40%.

And that trend is likely to continue in 2021. Among the companies surveyed intend to find new suppliers in the next 12 months, 38% US firms and 28% European firms. The survey indicated plans to move some of their supplies to Vietnam or buy more from existing suppliers.

At the same time, businesses do not rush to China. Only 6% and 11% of brands based in the US and EU say they are sourcing in China.

US companies also contradict China's sourcing of the future. While about a third of them plan to buy more from Chinese suppliers by 2021, many companies also plan to stop buying from China altogether.

However, there is still a difference between the plan and the action. In the Qima survey, 73% of companies surveyed globally said they plan to find new suppliers by 2020, but only 38% of them actually do. . For US-based brands, 93% of them announced plans to diversify their supply chains by early 2020, but only 49% did.

Older articles

The benefit of die casting in Vietnam

The benefit of die casting in Vietnam

Young and abundant workforce, high-skilled engineers, and maximum support from...

Vietnam aluminum products in Doors and windows

Vietnam aluminum products in Doors and windows

The pace of urbanization in Vietnam is increasing rapidly, and with it,...

Vietnam aluminum products in the mechanical and electronic industries

Vietnam aluminum products in the mechanical and electronic industries

Aluminum is applied to production activities in mechanical and electronics in...

Sign up to download the profile

Complete your information in the form below

You did not use the site, Click here to remain logged. Timeout: 60 second