Podcast Summary: The My Wife Quit Her Job Podcast With Steve Chou

Episode 603: Why Vietnam May Be The Best Kept Secret In Sourcing With Jim Kennemer

Date: August 20, 2025
Host: Steve Chou
Guest: Jim Kennemer (Founder, Cosmos Sourcing & SourcingHub.io)

Episode Overview

In this episode, Steve Chou hosts seasoned sourcing expert Jim Kennemer to discuss the evolving landscape of global manufacturing, with a focus on why Vietnam is becoming an increasingly attractive sourcing destination—especially given recent tariff shifts affecting China, and the challenges with alternative countries like Mexico, Thailand, and Indonesia. Jim draws on deep on-the-ground experience in Vietnam and Southeast Asia to compare the realities, risks, and opportunities for ecommerce entrepreneurs and Amazon FBA sellers seeking to diversify beyond China.

Key Discussion Points & Insights

The Current Sourcing & Tariff Landscape

• Ongoing Uncertainty:
  • U.S. tariffs for imports from Vietnam are changing, with potential jumps from 10% to 20% (beginning August 1st, 2025), yet the rules remain in flux and are often driven by political commentary rather than concrete legislation ([05:12]).
  • China tariffs are "locked in" at around 55% for the short to medium term ([05:57]).
  • Recent updates suggest materials/components originating in China (even if finished in Vietnam) may be subject to a separate 40% tariff due to new anti-transshipment measures ([07:23]).

“We’ve got literally people making millions, tens of millions of dollars in purchase agreements based on a single Truth Social post. That is pretty uncertain.” – Jim Kennemer ([05:47])

Why Consider Vietnam for Sourcing?

• Strengths:
  • Apparel/textiles: Highly developed, with ~6,000 factories and 2M+ workers ([10:40]).
  • Furniture: Especially wooden products, leveraging local tropical wood ([13:39]).
  • Increasing capacity in plastics, metal goods, silicone, and now electronics ([14:45]).
• Competitiveness:
  • Costs are comparable to China for cut-and-sew items; tariffs, not base manufacturing costs, are now the real differentiator ([12:13]).
  • Apparel MOQs (minimum order quantities) have risen to around 1,000 units due to increased post-trade war demand ([10:03]).
• Limitations:
  • Private label/pre-branded “off-the-shelf” products are rare—Vietnamese factories mostly expect to create new/custom products per client ([33:38]).

“Apparel and textiles, cut and sew items in general, are better in Vietnam flat out without tariffs being factored in…from high-tech gear to cheap T-shirts.” – Jim Kennemer ([10:40])

Sourcing Process: China vs. Vietnam

• Similarities:
  • Shipping and logistics processes are “the same as China” ([18:23]).
  • Payment is typically via wire transfer, with standard international protocols ([32:24]).
• Differences:
  • Factories in Vietnam generally do not provide in-house product designers; clients need to supply detailed tech packs, drawings, or even 3D files ([17:10]).
  • Factories do not chase buyers as aggressively as in China; buyers must initiate and follow up ([30:11]).
  • Communication platforms differ: WhatsApp and Zalo are common (over WeChat) ([31:35]).
  • English is generally sufficient for sales/export staff, supported by translation apps ([31:48]).

“The big difference with Vietnam—you have to be the one who initiates that conversation and kind of follow up…They just don’t chase after you.” – Jim Kennemer ([30:11])

Other Countries in the Sourcing Mix

Mexico

• Challenges:
  • Significantly higher costs (1.5–2x China/Vietnam) and 30% tariffs ([19:33], [19:55]).
  • Supply chain lacks depth, contract manufacturing options limited; more viable for very large companies with own facilities ([20:06]).
• Logistics: “Fantastic” due to proximity, but offset by higher costs ([20:43]).

Southeast Asia (Thailand, Indonesia, Malaysia)

• Thailand:
  • Strong in advanced appliances and plastics; tariffs are steep (36%), making it less attractive for small to mid-sized ecommerce ([21:47], [22:57]).
• Indonesia:
  • Emerging as a low-cost option especially for wooden goods, shoes, some apparel ([23:27]).
  • Apparel pricing is comparable to Vietnam, with less developed industry ([24:03]).
• Malaysia:
  • Best for specific metal goods ([23:12]).

China

• Still the global hub, especially for electronics and R&D-driven products ([22:08]).
• Trade tensions and high tariffs (55%) drive search for alternatives.

Practical Sourcing Tips & Notable Process Insights

Finding and Vetting Vietnamese Suppliers

• Alibaba is only a fraction of the market; best results from trade shows, “Yellow Pages” (still active in Vietnam), and relationship-building ([28:10], [29:19]).
• Trade shows (Global Sources in Vietnam, FIFA for home goods, niche-specific events) are invaluable for contacts and credibility ([28:36]).
• RFQs: Factories respond best to serious, sizable inquiries—lead with your long-term intent, even if your sample order is small ([31:13]).

Communication & Negotiation

• Be proactive; follow up repeatedly for responses ([30:11]).
• WhatsApp and Zalo are the primary messaging platforms ([31:35]).
• English is fine, especially via email or messaging apps; sales staff often use translation tools ([31:48]).

Order Process & Payment

• Wire transfers are standard for established orders ([32:24]).
• Turnaround times similar to China, sometimes slightly slower:
  • Apparel/Textiles: 30–45 days
  • Furniture: up to 60 days ([40:32])

Intellectual Property & Business Risks

• IP protection is somewhat more enforceable in Vietnam compared to China, with access to Western law firms ([34:03]).
• IP theft and direct competition (factories selling on Amazon) is less prevalent in Vietnam ([34:43]).

“Private label is probably the hardest one to source. Anybody that just wants to have a pre-made product, slap their logo on—it’s very hard to do because none of the factories really maintain existing products or develop products.” – Jim Kennemer ([33:38])

Who Is/Is Not a Good Fit for Vietnam Sourcing?

Best for: Businesses needing apparel, textiles, bags, furniture, and certain plastics/metals with willingness to place higher MOQs.
Less optimal for: Those seeking off-the-shelf private label items or with complex, small-volume, niche manufacturing needs ([32:49], [33:38]).

Macro Trends & Industry Outlook

• Many ecommerce sellers are absorbing tariff costs instead of raising prices—“brinkmanship,” risking zero or negative profits to maintain market share ([27:04]).
• Vietnam’s industries are rapidly modernizing and automating; factories are adding advanced QC and automation to match demand ([36:36]).
• Movement to even lower-cost countries (Pakistan, Bangladesh) is happening, but mostly for large-scale, undifferentiated goods ([36:36]).

U.S. Manufacturing?

Unlikely to reshore low-value goods (T-shirts at $30 vs. $2–$3 Vietnam cost)—the domestic industry is more likely to focus on higher-value products (tech, cars, airplanes) ([38:09]).

Notable Quotes & Memorable Moments

• On Tariff Chaos:

  • “We got literally people making millions, tens of millions of dollars in purchase agreements based on a single Truth Social post. That is pretty uncertain.” – Jim Kennemer ([05:47])

• On Vietnamese Supplier Attitude:

  • “The big difference with Vietnam—you have to be the one who initiates that conversation and kind of follow up...They just don’t chase after you.” – Jim Kennemer ([30:11])

• On Comparative Production:

  • “There's no reason we need to make T-shirts and tennis shoes [in America]…You’re looking at a T-shirt from a factory for like 30 bucks in the United States versus literally one or two dollars from Vietnam.” – Jim Kennemer ([38:09])

• On Private Label Limits:

  • “Private label is probably the hardest one to source... None of the factories really maintain existing products or develop products. They just rely on the clients to make it for them.” – Jim Kennemer ([33:38])

Timestamps for Major Segments

• [05:12] – Current Vietnam tariffs, trade uncertainty explained
• [09:46] – Vietnam MOQs (apparel, furniture)
• [10:40] – What Vietnam does best: textiles, apparel, furniture, expansion into electronics
• [14:27] – Comparative costs, tariff impact in Vietnam
• [16:18] – Product design: differences in support from Chinese vs. Vietnamese factories
• [19:23], [19:55] – Mexico: cost structure, practicality, and tariffs
• [21:22] – Southeast Asia overview: Thailand, Indonesia, Malaysia
• [27:04] – Price pressure, tariff pass-through, sellers eating profits
• [30:11] – Finding suppliers in Vietnam: process differences
• [33:38] – Not suitable for “just add my logo” private label sourcing
• [34:03] – IP protection and enforcement in Vietnam
• [36:36] – Trend toward automation and modernization in Vietnam
• [38:09] – Real talk: “bringing manufacturing home”
• [40:05] – Typical MOQs and turnaround times
• [42:05] – Cosmos Sourcing: approach, transparency, and service structure

How to Get Started & Further Resources

• Jim Kennemer / Cosmos Sourcing:
  • Main site: cosmossourcing.com
  • Email: jim@cosmossourcing.com
• Steve’s content and mini-course:
  • mywifequitherjob.com/free

Bottom Line

Vietnam is emerging as the #1 alternative sourcing destination to China for many products, especially in textiles, apparel, and wood. Sellers willing to adapt to local expectations and process the slight procedural differences can find cost savings and diversification in the face of geopolitical turbulence and rapidly changing tariffs.