Short answer: There is no best country, only a best fit. Vietnam is strong for coffee, tea, nuts, dried fruit, seafood, spices, sauces and rice products, with an active export base and wide trade agreement coverage. Thailand has a more mature packaged-food and beverage industry with deep certification coverage, and generally higher costs. China has unmatched scale, ingredient breadth and packaging supply chains, but also the most exposure to tariff and policy changes depending on your market. Many brands use Vietnam as a “China plus one” option for part of the range.
Comparison table
| Vietnam | Thailand | China | |
|---|---|---|---|
| Strong categories | Coffee, tea, cashew and nuts, dried fruit, seafood, pepper and spices, sauces, rice products, tropical drinks | Packaged food and beverages, sauces and curry pastes, canned fruit and tuna, snacks, rice and noodles | Almost every category; large in tea, seasonings, frozen, snacks, ingredients |
| Scale and depth | Mid, growing | Mid–high, mature | Very high |
| Cost level | Generally lower than Thailand for labour-intensive products | Mid–higher | Varies widely by region and product; rising |
| MOQ pattern | Wide range; small runs possible for dry/manual categories | Often larger, more industrial | Very wide, from tiny to massive |
| Certification depth | Growing; major exporters have GFSI schemes | Deep, many GFSI-certified sites | Wide, but audit quality varies |
| Packaging and materials supply | Good in the south; some custom items imported | Strong | Strongest |
| Trade agreements | Japan EPA, CPTPP, EVFTA, RCEP | Japan EPA, RCEP | RCEP |
| Policy/tariff exposure | Lower for many markets, but depends on rules of origin and any US trade measures | Lower to mid | Higher exposure in the US; varies elsewhere |
How to choose
- By product. Match the country to the raw material and the factory’s specialisation. Coffee and cashew point to Vietnam. Tuna and curry pastes point to Thailand. Ingredients, specialised packaging or very large volumes point to China.
- By volume. Very small private label runs of dry products can work in Vietnam. Very large, price-driven programmes may favour Thailand or China.
- By market. Check tariffs and rules of origin for your destination. A product can qualify for a preferential rate in one country and not in another, and this often changes the total cost more than the factory price does.
- By certification need. If your buyers need GFSI-certified sites, shortlist accordingly; the share of certified sites differs by category.
- By risk. Diversifying across two countries reduces exposure to shocks, but adds management work. Many brands keep a main supplier and qualify a second one.
What “China plus one” means in food
It means keeping your existing supply base while adding a second source in another country, to reduce risk from tariffs, policy or disruption. In food, moving is not always simple: ingredients, line capabilities and labels must match, and regulations differ. Start with one or two SKUs that are easy to transfer, such as dry products, nuts, tea or seasonings, and compare a full landed cost including freight, duty, testing and packaging.
Landed cost beats ex-factory price
Compare costs on the same basis: ex-factory price, packaging, freight, insurance, duty, testing, and your inventory holding cost. A cheaper ex-factory price can be lost in duty or longer lead times.
Next steps
See the complete Vietnam OEM guide, the 20-point checklist, and our factory database.
Comments