China +1 Manufacture VS America +1 for Merch. Why Vietnam for ODM!

What Does China +1 and America +1 Mean?

“China +1” in manufacturing refers to a strategy where companies diversify their production and supply chains by establishing or increasing operations in countries beyond China, aiming to reduce reliance on a single location and mitigate risks. With the rising tariffs, trade wars, and political uncertainty surrounding America-China relations, businesses have been diversifying their production and sourcing to other countries. Southeast Asia, India, and even Latin America have emerged as viable alternatives to China’s once-dominant role in global manufacturing.

• Southeast Asia has emerged as a key beneficiary, with countries like Vietnam, Indonesia, and Thailand attracting foreign investments due to competitive labor costs and proximity to China. By 2025, Southeast Asia’s share of global manufacturing is expected to grow by 10-15%.
• A survey by the American Chamber of Commerce in China found that over 50% of America manufacturers were considering relocating their production outside of China to avoid tariffs. In fact, 25% of America companies have already relocated or plan to relocate manufacturing to countries like Vietnam, Mexico, and India.
• Brands like Nike and Adidas are looking beyond China to countries such as Vietnam and Bangladesh for manufacturing, where labor costs are significantly lower (around $100/month in Vietnam compared to $500/month in China).

America +1 Merchandise is a strategy in the context of global trade, where companies in America seek production and distribution solutions outside of the United States to minimize the impact of tariffs and economic uncertainties.

As America enters a trade war with many countries around the world, it is clear that avoiding shipping to and from USA wherever possible can remove serious costs.   In the past we have seen a lot of companies in USA managing global merchandise projects from there, shipping employee onboarding kits to their remote offices around the world for example.  This can be managed better remotely with non-USA sourced merchandise.

• For USA consumptions, on-shoring (Bringing production back to America): While manufacturing costs in America can be high, America companies are increasingly bringing production back home due to issues related to tariffs on imported goods. However, on-shoring production can be expensive, and companies therefore need to look for alternatives or supply sources from other countries.
• For US brands operating outside the US, finding off-shoring solutions has become essential to remain competitive in global markets. As tariffs and trade barriers increase, America companies need to source production from countries with lower tariffs or more favorable trade agreements. Integrating logistics solutions, such as 3PL (third-party logistics), into off-shoring strategies ensures efficient supply chain management, streamlining production, warehousing, and shipping processes.
• Sourcing from countries with low tariffs: Part of the America +1 strategy is finding countries with low tariffs or favorable trade agreements.   It is really important to note that most Economies around the world are lowering trade barriers.  A great example is the Free Trade Agreement between Vietnam and the EU.
• In particular, America brands looking to expand in emerging markets (such as India, Brazil, and Vietnam) may benefit from a +1 strategy where local production and marketing strategies will help offset tariff costs and improve market access.

Read more: Promotional Gifts in the USA: Your Go-to Source for Custom Logo Products

The Impact Of Tariffs & Trade Wars On Global Merchandise Campaigns

The current trade war and rising tariffs have fundamentally altered how businesses approach global merchandise campaigns. Running these campaigns from the U.S. has become increasingly complex due to growing paperwork, regulatory hurdles, and the looming threat of reciprocal tariffs. For companies reliant on sourcing products or materials from China or other high-tariff regions, this landscape has made it harder to stay competitive in global markets. The situation is particularly challenging for brands in industries like branded merchandise, where timely delivery and cost-efficiency are crucial.

With global tariffs expected to remain volatile, businesses are being forced to reconsider their approach. As China +1 and America +1 strategies gain traction, brands need to look beyond their traditional sourcing options and find solutions that can minimize the impact of these new trade policies.

Read more: Shipping Merchandise to USA: Vietnam Import Tariff Rates Vs. China

How To Manage This Uncertainty In Global Trade

Given the current volatility in global trade, brands must proactively build strategies to manage uncertainty. This is crucial for navigating the ever-changing landscape of tariffs, geopolitical tensions, and economic fluctuations. Here are some key strategies to consider:

1. Scenario Planning

It’s a good idea for brands to plan ahead for different trade situations, like rising tariffs, new trade deals, or unexpected political shifts. By having a backup plan for each scenario, businesses can stay flexible and ready to adjust when things change.

2. Currency Hedging:

Currency fluctuations can mess with the cost of goods, especially when dealing with multiple countries. Brands can avoid surprises by using currency hedging strategies, which help lock in exchange rates and reduce risks when moving products across borders.

3. Connect With Supply Chain Partners:

Building solid relationships with your suppliers is a smart way to handle uncertainty. By working with manufacturers or distributors in different regions, brands can spread their risk and avoid relying on just one partner. This can come in handy during political instability or trade restrictions.

4. Buffer Stock & Safety Inventory:

Keeping a little extra stock on hand is a great strategy. It helps you stay on track if there are sudden supply chain disruptions due to tariffs or global issues. Having that extra inventory means your campaigns won’t be delayed, even if there are hiccups in the supply chain.

Read more: Outsourcing to China: The Strategic Advantage for Custom Promotional Merchandise

Unlocking The Potential Of Manufacturing In Vietnam

As businesses face the complexities of China +1 and America +1 strategies, Vietnam has emerged as a crucial partner for global manufacturing. With its strategic advantages, skilled workforce, and cost-effective solutions, Vietnam is becoming the go-to destination for brands seeking reliable and flexible production options. Here’s why Vietnam stands out in the world of custom manufacturing:

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1. Lower Tariffs for Cost Savings

The 10% tariff that the U.S. has placed on Vietnamese goods makes Vietnam an attractive destination for sourcing. This competitive tariff rate, compared to China’s higher tariffs, provides a significant advantage for American businesses aiming to minimize costs. By sourcing products from Vietnam, brands can avoid the high costs associated with Chinese imports, thus improving their bottom line and ensuring more competitive pricing in the global market.

2. Cost-Effective Labor For High-Quality Manufacturing

Vietnam boasts a young, skilled workforce with competitive wages, making it an ideal location for industries such as branded merchandise, apparel, electronics, and more. The labor cost in Vietnam is significantly lower than in China and the U.S., which results in cost-effective manufacturing solutions without compromising on product quality. This allows businesses to produce high-quality goods at a fraction of the cost, enhancing their profit margins and boosting production capacity.

3. A Growing Hub For Eco-Friendly Manufacturing

Vietnam is increasingly becoming a hub for sustainable manufacturing practices. Many local manufacturers are focusing on eco-friendly materials and innovative production processes, aligning with the growing global demand for sustainable products. This makes Vietnam an attractive option for companies looking to meet their environmental goals while maintaining high-quality manufacturing standards. Brands committed to sustainability can find reliable, eco-conscious partners in Vietnam to help them meet consumer expectations for sustainable products.

4. Strategic Location for Global Trade

Located in the heart of Southeast Asia, Vietnam’s geographic position provides easy access to key global markets, including the U.S., China, and other ASEAN countries. This proximity reduces shipping times and transportation costs, ensuring that products can be delivered efficiently and on time. The shorter supply chain is a key advantage for companies looking to streamline operations and maintain competitive lead times, especially in industries like branded merchandise and promotional products.

5. ODM Expert Team in Vietnam For Tailored Support

ODM has a dedicated expert team in Vietnam, offering comprehensive support to guide you through local manufacturing practices, supply chain logistics, and trade regulations. By working closely with local manufacturers, our experts ensure that your products are produced to the highest quality standards, all while navigating the complexities of global trade. Furthermore, you can visit our office at EBM Tower to explore product collections and discuss directly  with the team!

How ODM Can Help Global Brands With Branded Merchandise & Marketing Gift Solutions

ODM understands the challenges brands face in today’s trade environment. As businesses adapt to the realities of China +1 and America +1, ODM is in a unique position to provide comprehensive solutions for global merchandise and marketing gift campaigns. Here’s how we can support your brand: 

1. Diversified Manufacturing Solutions: With production capabilities in various regions, ODM can help you manage your +1 strategy by diversifying manufacturing locations. We work with countries where tariffs are lower, helping you avoid the burden of high costs associated with U.S.-based manufacturing while ensuring the quality and consistency of your products.
2. Customized Marketing Merchandise: Whether you need branded merchandise, POS displays, or corporate gifts, ODM can help you create and deliver high-quality promotional products tailored to your global marketing needs. We are experienced in producing items that resonate with consumers in different markets, from emerging economies to developed countries.
3. Navigating Tariffs and Compliance: With our global supply chain expertise, ODM helps your brand navigate the complexities of tariff controls and paperwork. We ensure that your merchandise and promotional products are compliant with local regulations, reducing the risk of delays or unexpected costs in the global market.
4. Cost-Effective Solutions: As U.S. businesses are faced with the reality of higher production costs, we provide cost-effective off-shoring solutions that allow your brand to stay competitive. By sourcing from countries with lower tariffs, we help you keep costs manageable while ensuring your products reach your target audience on time.
5. Sustainability and Innovation: As brands look to differentiate themselves, sustainability has become a key factor in global marketing campaigns. ODM is committed to using eco-friendly materials and innovative manufacturing processes to help you achieve your environmental goals while maintaining the highest standards of product quality.

Why Work With ODM For Custom Unique Bookmark?

With years of experience in promotional product design and manufacturing, ODM brings creativity and reliability to every project. We help you stand out with:

• Creative Concept & Sketching Phase: Our team of in-house designers begins by brainstorming and sketching custom concepts based on your brand identity, campaign goals, and target audience. We visualize how your bookmark will look, function, and feel that offers you mockups and creative directions before moving to production.
• Innovative product development: We create promotional experiences through marketing gifts. From smart tech integrations (like LED lights or USBs) to sustainable materials and packaging, our team works closely with you to push the boundaries of what’s possible.
  
• Custom packaging and design support: Our design support extends beyond the bookmark itself. Whether you need elegant gift boxes, eco-friendly sleeves, or full themed kits, we ensure your packaging is as creative and cohesive as the product inside.
• Global sourcing and manufacturing:  extensive network of trusted suppliers allows us to source quality materials and components efficiently. Whether you’re producing 500 or 50,000 units, we guarantee consistency, compliance, and competitive pricing.

Conclusion

By diversifying sourcing and integrating manufacturing in Vietnam with ODM services, businesses can reduce costs, adapt merchandise designs, and ensure high-quality production. Working with experienced partners like ODM allows brands to navigate trade complexities and thrive in an increasingly challenging global market.