Max HenryFounder & Executive Director, Global Supply Chain Council (GSCC) · Founder & Executive Director at Global Supply Chain Council (GSCC)

Is Offshoring to Vietnam REALLY Worth the Risk?

15 Mar 2025 · 1 min

Watch on YouTube

1:09

In this segment of the YouTube video, two speakers debate whether relocating manufacturing to Vietnam is a prudent strategy or an equally risky move. Speaker B frames the decision from multiple angles, beginning with tariff considerations and then expanding to broader geopolitical factors such as national‑security concerns and Vietnam’s growing trade surplus, which could make the country a future target for trade restrictions. The discussion emphasizes that basing offshoring solely on tariff avoidance is hazardous; instead, companies should evaluate overall supply‑chain resilience and pragmatic risk management. Speaker A concurs, noting the complexity and the need for a realistic, pragmatic approach.

Is shifting production to other countries like Vietnam worth it or just as risky? Vietnam, yeah.
Yeah, I know. So I think, well, I think it's from a few different points of view. So first of all, it's from the tariff point of view, right? And then that's why we would like to— you need to understand where it's coming from. Like, for example, what Xiaotong mentioned before, it's like national security, trade surplus, or different things, right? Of course, I think for Vietnam, the concern is because the trade surplus, it becomes so big right now that it might become the next target. So that's the thing. And of course, like moving the production is not really solely by the tariff, to be honest. If you really just based on that, it's actually very risky. So you should also consider, you know, other things like, as I said, maybe the supply chain or other things to move your production instead of Just solely based on tariff, because if you follow the tariff, it's very difficult to follow, I would say.
Yeah, this is, yeah, really difficult, very crazy as well. Yeah, so you have to be more pragmatic.