China Plus One Strategy:
Vietnam Is Your Move
US manufacturers are paying up to 145% in tariffs on China-origin goods. The smartest ones are shifting 40–70% of production to Vietnam — $0 Section 301, est. 30–50% lower landed costs, 179+ audited factories. Here's the complete playbook.
Section 301 Tariffs Still in Effect
China-origin manufactured goods: 25–145% tariff rate as of 2026
Vietnam: $0 Section 301 Tariff
Vietnam-origin goods are fully exempt from Section 301
Est. Savings vs. China+Tariff
30–50%
What Is China Plus One?
China Plus One (C+1) is a supply chain diversification strategy: you keep some China production, but you add at least one alternative manufacturing country to reduce tariff risk, geopolitical exposure, and single-source dependency.
It's not about abandoning China. It's about not being held hostage by it. With Section 301 tariffs at 25–145% on Chinese goods, US manufacturers who haven't diversified are paying a massive, entirely avoidable tax on every shipment.
Vietnam has emerged as the #1 China Plus One destination for US manufacturers because of its deep industrial base, competitive costs, zero Section 301 tariffs, and 16+ active Free Trade Agreements.
China Only (Old Model)
- ✗ 25–145% Section 301 tariffs
- ✗ Single point of failure in supply chain
- ✗ Geopolitical risk (Taiwan Strait, trade policy)
- ✗ Rising labor costs, eroding price advantage
- ✗ Growing IP protection concerns
China Plus One (Smart Model)
- ✓ $0 Section 301 on Vietnam-origin goods
- ✓ Est. 30–50% lower landed costs vs China+tariff
- ✓ Dual-source resilience — zero single points of failure
- ✓ 16+ FTAs covering Vietnam exports globally
- ✓ 179+ audited Vietnamese factories — verified, ready
What You're Actually Paying on China Parts
Section 301 tariff rates by common manufacturing category — and how much you could save by sourcing from Vietnam instead.
| Category | HTS Code | China Tariff | Vietnam Tariff | Est. Annual Savings* | Notes |
|---|---|---|---|---|---|
| CNC Machined Parts | 8466.93 | 25% | $0 | $75–200K | Most industrial machinery components |
| Sheet Metal Fabrication | 7326.90 | 25% | $0 | $50–150K | Enclosures, brackets, frames |
| Injection Molded Plastics | 3926.90 | 25% | $0 | $40–120K | Industrial/commercial components |
| Aluminum Die Castings | 7616.99 | 25% | $0 | $60–180K | Housings, brackets, structural parts |
| Electronic Components | 8536.50 | 25–145% | $0 | $100–500K+ | Connectors, switches (145% List 4) |
| Steel Stampings | 7326.20 | 25% | $0 | $30–100K | Brackets, clips, fastener components |
* Est. annual savings based on typical mid-size manufacturer buying $500K–$2M/year in components. Actual savings depend on volume, category, and factory pricing. Vietnam tariff rate = $0 Section 301 (Trade Act 1974, USTR). Use our cost calculator for a project-specific estimate.
5-Step China Plus One Transition
A practical roadmap for moving production to Vietnam without disrupting your supply chain.
Audit Your BOM for Tariff Exposure
Map every component to its HTS code and check for Section 301 exposure. Even moderate-tariff categories (25%) dramatically erode margin at scale.
Identify Vietnam-Compatible Parts
Not everything moves. Start with your highest-tariff parts that are process-compatible with Vietnam factories (CNC, sheet metal, die casting, stamping, injection molding, assembly).
Match to Pre-Audited Factories
Dewin's 179+ audited factories are pre-scored on our 50-point Dolphin audit. We match your parts to qualified suppliers with the right processes, certifications, and capacity.
Run Parallel Samples
Request T1 samples from Vietnam factories while maintaining China production. Compare quality, lead time, and cost before committing to a transition.
Transfer Production & Optimize
Shift 40–70% of volume to Vietnam initially. Keep China as backup if needed. Over 2–3 production cycles, optimize pricing, tooling, and logistics.
The Dewin China Plus One Advantage
Most sourcing platforms give you a list of factories. We give you vetted, audited, photo-documented suppliers ready for C+1 transitions.
179+ Pre-Audited Factories
Every factory in our network has been physically visited, photographed, and scored on our 50-point Dolphin audit. No anonymous network — you see the actual factory.
1,700+ Real Factory Photos
Real production floors, equipment, and teams — not stock photography. See exactly what you're getting before you commit a single dollar.
50-Point Dolphin Audit
Every supplier is scored across quality management, equipment capability, production capacity, compliance, and communication. You see the score before you pick.
On-The-Ground Team
Our team is in Vietnam — visiting factories, overseeing pre-shipment inspection, and managing QC. You get eyes on your production without flying to Ho Chi Minh City.
50+ Manufacturing Processes
CNC machining, die casting, sheet metal, injection molding, stamping, extrusion, electronics assembly, and more — across our full factory network.
Single Point of Contact
You don't need to manage 10 factories in a country you've never sourced from. Dewin is your one contact for RFQ, QC, logistics, and issue resolution.
How Dewin Compares for C+1 Transitions
| Feature | Dewin | Xometry | Fictiv | Alibaba/DIY |
|---|---|---|---|---|
| Vietnam-specific expertise | ✅ Core focus | ❌ No | ❌ No | ⚠️ Limited |
| Pre-audited factory network | ✅ 179+ audited | ⚠️ Anonymous | ⚠️ Anonymous | ❌ No |
| Real factory photos & videos | ✅ 1,700+ | ❌ No | ❌ No | ⚠️ Unverified |
| On-the-ground QC team | ✅ In Vietnam | ❌ No | ❌ No | ❌ No |
| Section 301 expertise | ✅ Specialist | ⚠️ Generic | ⚠️ Generic | ❌ No |
| 50-point factory scoring | ✅ Dolphin audit | ❌ No | ❌ No | ❌ No |
| Multi-region sourcing | ✅ VN + India + MX | ✅ US only | ✅ Multi | ⚠️ China-heavy |
C+1 Risks — And How to Manage Them
We'll be direct: moving production to a new country has real risks. Here's what they are and how to mitigate them.
Supply Concentration
Putting 100% of production in any single country is dangerous. C+1 means adding Vietnam, not replacing China entirely.
Mitigation: Move 40–70% to Vietnam initially. Keep remaining capacity flexible.
Quality Consistency
New factories need qualification. Without proper auditing, quality can vary significantly.
Mitigation: Use Dewin's 50-point Dolphin audit to qualify factories before committing production.
Longer Initial Lead Times
First production runs take longer due to tooling setup and process qualification.
Mitigation: Plan a 3–6 month transition buffer. Dewin's network reduces this vs. starting from scratch.
Communication & Time Zones
Managing a factory 12 time zones away without local support creates gaps.
Mitigation: Dewin has an on-the-ground team in Vietnam handling communication, QC, and daily factory visits.
China Plus One FAQ
Common questions from US procurement teams making the transition.
What is the China Plus One strategy?
Why is Vietnam the best China Plus One destination?
How long does it take to shift production to Vietnam?
What's the risk of depending only on Vietnam?
Does Vietnam have the manufacturing capabilities to replace China?
How much can I save by switching from China to Vietnam?
Ready to Stop Paying Tariffs?
Tell us what you're currently sourcing from China. We'll match you to pre-audited Vietnam factories and show you exactly what your landed costs look like — free, within 24 hours.
No commitment. No spam. Just real numbers on what you'd pay from Vietnam vs. China.