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5-Year Vietnam Sourcing ROI Calculator

Plug in your annual spend, process mix, and China exposure. Get a detailed breakdown of tariff savings, unit cost reduction, and total 5-year ROI from moving to Vietnam.

Section 301 tariff math Unit price differential Transition cost model 5-year net ROI
Step 1 of 4 Your Sourcing Spend

Your current sourcing picture

Tell us about your current spend so we can calculate your tariff exposure and savings potential.

How the ROI Model Works

Three savings levers — each independently defensible, each verifiable from public data.

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Lever 1: Section 301 Elimination

Section 301 tariffs add 7.5%–25% on top of normal MFN duties for Chinese-origin goods. Vietnam-origin goods carry $0 Section 301. This is the highest-certainty savings driver — rates are published by USTR.

China spend × China% × move% × tariff rate
= Annual tariff savings
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Lever 2: Unit Price Differential

Vietnam manufacturing labor and overhead costs are typically 15–30% lower than equivalent Chinese factories for precision processes like CNC machining, die casting, and stamping. This estimate is based on documented price comparisons.

China spend × China% × move% × price diff%
= Unit price savings
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Lever 3: Transition Costs (Deducted)

Upfront costs are real: tooling, first article qualification, PPAP documentation, and buffer inventory during the parallel-run period. The calculator deducts all Year 1 costs so the ROI is honest — not marketing math.

Tooling + QA + buffer inventory
Deducted from Year 1

Section 301 Tariff Reference — China vs Vietnam

Rates sourced from USTR published tariff lists. Vietnam: $0 Section 301 on all HTS chapters below.

Manufacturing Process HTS Chapter China Section 301 Vietnam Section 301
CNC Machining — Industrial Ch. 84 +25% $0
Electronics Assembly Ch. 85 +25% $0
Aluminum Die Casting Ch. 76 +25% $0
Steel / Iron Articles (Stamping, Forging) Ch. 73 +25% $0
Injection Molded Plastics Ch. 39 +25% $0
Consumer Electronics (certain) Ch. 85 List 4A +7.5% $0

Source: USTR Section 301 tariff lists. Rates subject to change. Always verify with a licensed customs broker for your specific HTS codes.

What US Manufacturers Say

"

The tariff math was undeniable. Once we ran the numbers on our CNC components, moving to Vietnam was the only logical choice. Dewin made the transition straightforward.

Greg L. Wilhite
President, DOMS Precision Components
"

We were paying 25% Section 301 tariffs on every steel part we imported. Vietnam gave us the same quality, faster lead times, and zero tariff exposure.

Francisco García Quintana
Purchasing Manager, LAROME Industrial
"

I was skeptical about Vietnam manufacturing quality. The Dolphin audit reports and factory photos changed my mind before I even placed a first order.

Vishnu Shanker
VP Operations, Texas Technology
179+
Audited Vietnam Factories
$0
Vietnam Section 301 Tariff
30–50%
Est. Landed Cost Savings
16+
Free Trade Agreements

Frequently Asked Questions

How is the 5-year ROI calculated?
Three drivers: (1) Section 301 tariff elimination (USTR-published rates, 7.5–25%); (2) unit price differential (est. 15–30% lower Vietnam labor + overhead); (3) minus Year 1 transition costs (tooling, qualification, buffer). Net ROI = total 5-year savings minus transition costs. All estimates labeled as such.
What is Section 301 and why does it only apply to China?
Section 301 tariffs were imposed under the Trade Act of 1974 specifically targeting Chinese-origin goods. Vietnam-origin goods carry $0 Section 301. Depending on your HTS chapter, moving from China to Vietnam eliminates 7.5–25% in additional duties on every dollar you import.
How accurate are the savings estimates?
The tariff savings figures use published USTR Section 301 rates — precise. The unit price differential (15–30%) is a documented estimate based on Vietnam vs. China labor cost comparisons. We label all estimates — use this as directional, then request a detailed quote for your specific parts.
What does Dewin charge for the transition?
No upfront consulting fee. Dewin earns a margin on parts — the same model as any managed sourcing partner. Our service includes factory matching, 50-point Dolphin Audit, First Article Inspection, PPAP documentation, and COO management. Tooling costs are direct and reflected in unit pricing.
How long does a China-to-Vietnam transition take?
With Dewin's pre-audited factory network, most clients receive first article samples in 8–14 weeks. Full qualification including PPAP and COO documentation typically takes 4–10 months. Many clients run China and Vietnam in parallel during transition to eliminate supply risk.

Your next step: real factory quotes

The ROI planner gives you the macro picture. A real factory-matched quote tells you the exact savings on your specific parts — with Section 301 documentation included.