India vs. Vietnam: Where Should You Import From in 2025?

For years, the default answer to "Where should I source from?" was simple: China. But the global supply chain is evolving. The "China Plus One" strategy—diversifying sourcing to reduce reliance on a single country—is no longer just a buzzword; it's a critical business practice. And for many Indian businesses, Vietnam has emerged as a powerful contender.

So, for 2025, which is the smarter choice? The established powerhouse or the rising star? At Befach.com, we believe the answer isn't about which country is "better," but which is better for your specific product. This guide will give you a strategic comparison.

The Case for Sourcing from Vietnam

Vietnam has become a manufacturing hotspot, particularly for industries that are labor-intensive.

• Strengths: Competitive labor costs, a young workforce, and government incentives for foreign investment.
• Product Specializations: It's a world leader in textiles, apparel, footwear, and furniture. If you're in these industries, Vietnam is a top-tier choice.
• The Biggest Advantage for India: The ASEAN-India Free Trade Agreement (FTA). Importing eligible goods from Vietnam can result in significantly lower or even zero customs duties, providing a massive cost advantage. You can learn more about India's FTAs on the Department of Commerce website.

The Case for Sourcing from China

Don't count China out. It remains an unparalleled manufacturing ecosystem for a reason.

• Strengths: Unmatched scale, incredible infrastructure, high efficiency, and a deeply developed domestic supply chain for raw materials and components.
• Product Specializations: It is the undisputed king of electronics, machinery, high-tech components, and virtually any complex consumer good you can imagine. If your product has many parts or requires advanced manufacturing, China's ecosystem is hard to beat.
• The Biggest Advantage: Speed and scalability. The ability to go from prototype to mass production is faster in China than almost anywhere else.

How to Choose: Key Questions to Ask

1. What is my product? Simple, labor-intensive goods like t-shirts or wooden chairs? Lean towards Vietnam. Complex electronics with multiple components? Lean towards China.
2. What is my scale? Are you looking for massive volumes? China's mega-factories are built for this.
3. What is the customs duty? This is a critical calculation. The potential savings from the ASEAN-India FTA could make Vietnam the clear winner on landed cost, even if the factory price is similar. You can research standard duty rates on the CBIC portal.