Vietnam and India pulling buyers away from China
Vietnam is continuing to pull US buyers away from China, a new report has found, with India also a top favorite as companies increasingly look for alternative sourcing locations.
43% of respondents cite Vietnam among their top three buying geographies
According to a recent Q2 Barometer report by supply chain compliance solutions provider Qima, as businesses hope to leave the challenges of the pandemic behind them, China sourcing is bouncing back strongly but is yet to return to pre-Covid levels. In the meantime, alternative sourcing locations such as Vietnam, India and Turkey are experiencing sustained levels of growth.
The report, which surveyed 700-plus US businesses with international supply chains, found Vietnam is fast becoming a first choice for buyers diversifying away from China. Qima data shows 16% year-on-year expansion in demand for inspections and audits in Vietnam in the first quarter of 2021, representing a third consecutive quarter of growth that had initially begun as a post-lockdown rebound in mid-2020.
What's more, first-quarter inspection demand has, on average, doubled compared to the first quarter of 2019.
The findings are in-line with Qima's global sourcing survey, which saw 43% of respondents cite Vietnam among their top three buying geographies as of early 2021. This is twice the percentage observed in 2019.
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