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Relocating from China to Vietnam: What Expats and Businesses Should Know in 2025

Posted by jeanseb on November 20, 2025
Cost of Living & Finances, Expat Life & Culture, Renting & Housing
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Vietnam is in the global spotlight: both individuals and large companies are choosing to relocate here from China. The reasons go far beyond just cost, spanning economic, lifestyle, and practical daily considerations. Here’s an up-to-date, plain-language guide on why this shift is happening, what to expect, and the main challenges to prepare for—whether you’re moving as an expat or shifting production as a business.

Why Are Businesses (and People) Moving from China to Vietnam?

Relocating from China to Vietnam: What Expats and Businesses Should Know in 2025 1

Manufacturing and Investment Trends:

  • Trade wars and high US tariffs on Chinese goods have pushed manufacturers to diversify, following a “China+1” strategy.

  • Vietnam offers lower labor costs—sometimes just a third of what you’d pay in China—especially in industries like garments and electronics.

  • Big companies like Apple and Samsung now produce in Vietnam to cut costs and avoid import barriers.

  • Northern and Central Vietnam are attracting factories for their proximity to China, cheap industrial land, and strong local workforce.

  • Political stability and friendly business policies help: Vietnam’s government offers tax benefits, streamlined approvals, and is welcoming to foreign direct investment.

Export & Market Access:

  • Vietnam’s involvement in multiple big trade deals (CPTPP, RCEP, Vietnam-US Bilateral Trade) makes exporting to the US, EU, and neighbors easier.

  • Its long coastline (over 3,200 km) means fast and cheap shipping to global markets.

  • Close to China’s manufacturing ecosystem, Vietnam can import raw materials easily—though full supply self-sufficiency is still developing.

Stable Diplomacy & Skilled Labor:

  • Vietnam enjoys stable relations with the US and EU and fewer geopolitical tensions than China.

  • While Vietnam’s skilled worker supply is rising fast, companies still face some shortages in high-tech and specialist roles.

Life as an Expat: China vs Vietnam

Cost, Lifestyle, and Daily Issues:

  • Cheaper Rent and Costs: Most expats report rent dropping by half or more; food, transport, and services are also much more affordable.

  • Language Barrier: Vietnamese uses a Latin script, so signage is easier than learning characters. Language tone and culture can take some getting used to, but for most, it’s less daunting than Mandarin.

  • Work Flexibility: Vietnam’s business culture is fast but casual, with less official paperwork and a strong “expat-friendly” scene in big cities.

  • Banking & Renting: Local bank accounts are easy to get with a visa and address, making rent, bills, and deposits simple—far less bureaucracy than in China.

  • Housing & Neighborhoods: Most apartments come furnished; contracts and payments are straightforward, with deposits usually 1–3 months.

Community Insights (based on expat forum posts):

  • Vietnam offers more freedom, lower stress, and an easier day-to-day than major Chinese cities, yet you’ll need to get used to traffic, tropical humidity, and a direct, friendly social culture.

  • Many European or foreign expats moving from China cite burnout from work stress, rising costs, and a desire for a slower, friendlier pace of life.

  • Internet is fast, restrictions far fewer, and most Western conveniences are available in urban areas.

Challenges to Watch Out For

Business/Production:

  • Legal processes and regulations can be complex and sometimes unclear for foreign firms, so investing in legal help is important.

  • Local business culture is more flexible with rules and timelines than in China or the West; patience and adaptability are needed.

  • Although Vietnam has a strong base of workers, advanced specialist talent is still tight—especially for high-tech and R&D roles.

Personal/Expat Life:

  • Adapting to Vietnam’s indirect communication style and local expectations can take time, especially for newcomers expecting rigid punctuality or directness.

  • Language remains a challenge for official documents and daily dealings; using a reliable translator or fixer will make life easier at first.

  • Expats should expect to pay several months’ rent upfront but will usually find refund policies are clear if contracts are followed.

Tips for a Smooth Transition

For Businesses:

  • Understand the legal and regulatory environment—don’t try to use “China playbooks” without adapting.

  • Audit and visit potential partners before signing; quality varies.

  • Plan for gradual expansion, invest in ongoing quality control, and build relationships with local authorities.

For Individual Expats:

  • Open a local bank account as soon as you have a rental contract—it makes all money matters easier.

  • Join expat groups on Facebook/Telegram for live updates, housing leads, and social support.

  • Download Grab or Be (ride apps) plus Google Translate; learn a few Vietnamese basics.

  • Don’t expect all processes to be as streamlined as in China—bring patience!

  • Rely on the expat community; most challenges can be solved with local advice.

Conclusion

There’s a clear shift: Vietnam is now a global manufacturing and expat hotspot, not just for savings but for a growing quality of life and opportunity. Practical, flexible, and affordable, Vietnam rewards those who plan ahead and invest in understanding the local culture and market. Whether you’re moving as a professional or relocating a factory, Vietnam’s doors are wide open—but success comes with preparation, patience, and openness to a new way of life.

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