Why U.S. Brands Are Moving Flexible Packaging Production to Vietnam in 2025

Vietnam has quietly become one of the most competitive flexible packaging manufacturing destinations for North American buyers. Here's why the shift is accelerating — and what it means for your sourcing strategy.

The Tariff Landscape Has Changed

Since 2018, tariffs on Chinese-manufactured packaging have risen significantly — in some categories exceeding 25%. Vietnam-made packaging carries no China Section 301 tariffs. It does pay normal duty and the 12.5% Section 301 rate on Vietnam (since July 24, 2026), so compare full landed costs, but on most packaging codes the gap is still significant. For high-volume buyers, this tariff delta alone can represent hundreds of thousands of dollars annually.

Labor Cost Advantage Remains Real

Vietnamese manufacturing labor costs remain 30–40% lower than coastal China, and the productivity gap has closed substantially over the past decade as factories have invested in automation and workforce training. Dong A Corp's facilities in Ho Chi Minh City run modern multi-layer lamination and printing lines comparable to any facility in Guangdong.

The Supply Chain Risk Argument

COVID and its aftermath exposed the fragility of single-country sourcing. Brands that had diversified into Vietnam experienced far fewer disruptions. Building a Vietnam packaging relationship today is as much a risk management decision as a cost decision.

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