47% of Australian businesses are experiencing supply chain disruptions in 2026. This guide breaks down why Vietnam is the most compelling second-source option for Aussie importers right now, and exactly how to add it to your sourcing mix without losing what you’ve built in China.
If the past few years have taught Australian importers anything, it's this: a supply chain built around a single country is a supply chain waiting to fail.
In 2026, that lesson has become impossible to ignore. According to the Australian Industry Group, 47% of Australian businesses are experiencing supply chain disruptions — up from 35% in late 2024. US tariffs have sent shockwaves through global manufacturing. Shipping delays, port congestion, and raw material volatility have become the new normal.
And yet, most Aussie SMEs are still 100% reliant on China for their manufactured goods.
That's not a criticism — China is still the world's dominant manufacturing hub for good reason. But smart businesses don't wait until a crisis forces their hand. They diversify before they have to. And right now, Vietnam is the most compelling second-source option available to Australian importers.
This guide breaks down when it makes sense to add Vietnam to your sourcing mix, what it involves practically, and how to do it without losing what you've built in China.
Vietnam's rise as a manufacturing destination didn't happen overnight. But several forces have converged in 2026 to push it from "interesting option" to "strategic priority" for Australian businesses.
US tariffs have reshuffled the board. The sweeping tariff regime applied to Chinese goods has accelerated a manufacturing migration that was already underway. Global brands from Nike to Apple have moved significant production to Vietnam. That's not just a trend story — it's a signal that world-class supply chain infrastructure, skilled labour, and manufacturing capability are available and proven.
Vietnam's manufacturing sector is maturing fast. Five years ago, Vietnam was primarily known for garments and footwear. Today, it produces electronics, furniture, homewares, health and wellness products, industrial components, and a growing range of consumer goods. The country's export value exceeded US$371 billion in 2024, with Australia a growing trading partner.
Trade agreements make it cheap to import. The ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) provides preferential tariff rates on a broad range of goods imported from Vietnam. For many product categories, import duties are zero. Combined with Vietnam's already-competitive factory pricing, the landed cost advantage over China can be significant.
Logistics are better than most Australians realise. Vietnam's deep-water ports at Ho Chi Minh City and Hai Phong provide direct shipping routes to Sydney and Melbourne. Transit times are comparable to parts of China, and airfreight from Ho Chi Minh City to Australian capitals takes as little as 8–9 hours.
For a full comparison of manufacturing costs and capabilities between the two countries, read our guide on China vs Vietnam manufacturing in 2026.
Here's something a lot of importers miss when they think about Vietnam: diversification isn't primarily about getting a cheaper price. It's about reducing the concentration risk that comes with single-source dependency.
What happens if your Chinese factory burns down? What if the factory owner retires and the business winds up? What if new tariffs, export controls, or port disruptions make your current supply chain unviable overnight?
Businesses with a diversified sourcing base have options. Businesses without one scramble.
The ideal scenario isn't replacing China with Vietnam — it's building a resilient supply chain where two or more sources can flex to meet demand. You maintain your China relationships for products where they excel (complex electronics, tight-tolerance manufacturing, massive scale) while developing Vietnam as your go-to for categories where it's competitive: furniture, homewares, apparel, accessories, and growing product categories like health and wellness.
This is exactly the kind of thinking Epic Sourcing's Interim SCM and supply chain management service is built around — designing your supply chain strategically, not just reactively.
Not every product is a good fit for Vietnam. Understanding where Vietnam genuinely excels will help you make a smarter decision about what to move, what to keep in China, and what to split.
Vietnam's strongest manufacturing categories:
Products that still typically favour China sourcing include: highly complex electronics, precision machined metal components, large-scale industrial items, and products requiring very large MOQs or extremely tight technical tolerances.
Start by auditing your existing product range. Which products fall into Vietnam's strong categories? Be strategic about where you start — pick one or two products to pilot, rather than trying to move everything at once.
Vietnam's factory landscape is less consolidated than China's, which means finding the right supplier takes more legwork. Useful approaches include trade shows (VIFA EXPO, Saigon Tex, Vietnam Expo), B2B directories (Vietnam Manufacturers, Alibaba's Vietnam supplier section), referrals from sourcing agents who have Vietnam relationships, and factory visits for meaningful orders.
Our team has sourcing operations on the ground in Ho Chi Minh City. Read our Vietnam sourcing agent guide to understand how a local expert can compress your timeline from months to weeks.
Vietnamese suppliers use Zalo (Vietnam's equivalent of WhatsApp) for day-to-day communication — not email. Relationship and trust are as central to business culture in Vietnam as they are in China. Having a Vietnamese-speaking agent or partner isn't just a convenience — it's often the difference between a smooth sampling process and months of costly miscommunication.
Don't skip this step. Vietnam's manufacturing quality ranges from exceptional to ordinary, and you won't know which factory you're dealing with until you see physical samples. Budget 4–8 weeks for sampling and at least two rounds of revisions.
Products entering Australia must comply with Australian Consumer Law, relevant product safety standards, and DAFF biosecurity requirements for certain materials (particularly timber and natural fibres). If you're reviewing freight costs for the Vietnam-Australia route, it's worth reading our 2026 freight costs guide for current benchmarks.
Most international transactions are quoted in USD. Factor currency risk into your pricing calculations, particularly for large orders. Payment terms similar to China apply — typically 30% deposit, 70% before shipment.
Moving too fast. The enthusiasm to diversify quickly can lead to rushing supplier selection. Take your time, sample thoroughly, and don't commit large orders until you've validated quality.
Assuming Vietnamese suppliers operate like Chinese suppliers. The manufacturing cultures are different. Communication styles, timelines, and negotiation approaches differ from what you may be used to in China. Approach Vietnam with fresh eyes.
Ignoring logistics complexity. If you're consolidating shipments from both China and Vietnam, your freight forwarding arrangements need to accommodate two origins. Talk to your freight partner early.
Underestimating lead times for new suppliers. The first order with a new Vietnamese factory will almost always take longer than quoted. Build 4–6 weeks of extra lead time into your launch timelines until the relationship is proven.
The most sophisticated Aussie importers we work with have moved to a deliberate dual-source strategy: China for one set of products or functions, Vietnam for another. They manage them as a unified supply chain, with shared quality standards, consolidated logistics where possible, and a single point of coordination.
Epic Sourcing's Out Source service manages supplier relationships in both countries — which means your product development, quality control, and logistics are coordinated by one team, regardless of whether your product is made in Guangzhou or Ho Chi Minh City.
We also offer a dedicated Vietnam sourcing service with our team on the ground in Ho Chi Minh City.
The short answer: yes, if you haven't already.
The disruptions driving supply chain diversification in 2026 aren't going away. Geopolitical risk, tariff volatility, and climate-related logistics disruptions are structural features of global trade now, not temporary headwinds. Businesses that build resilience into their supply chain today will outcompete those that don't over the next five years.
Vietnam won't replace China for most Aussie importers. But it gives you something China alone can't: a backup, a bargaining chip, and a path to more sustainable, resilient sourcing as your business grows.
Ready to explore what Vietnam sourcing looks like for your specific products? Book a discovery call with the Epic Sourcing team and let's map it out together.
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