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China Plus One: Teemo’s Strategic Shift to Vietnam

China Plus One: Teemo’s Strategic Shift to Vietnam

In a time of fluctuating trade policies and global economic landscapes, adaptation and foresight are indispensable. At Teemo, we’ve embraced the “China Plus One” strategy, an approach aimed at diversifying supply chains to avoid over-reliance on any single country.

Our decision to shift a substantial part of our manufacturing from China to Vietnam and Indonesia wasn’t a small one. The move directly responded to the 25% import duty imposed on US goods from China. But it was more than just about circumventing tariffs; it was about leveraging the emerging opportunities that Vietnam and Indonesia presented while maintaining a strategic footprint in China.

Importing our high-quality furniture from Vietnam and, to a lesser extent Indonesia has allowed us to offer our US clients competitive prices, effectively avoiding the 25% import duty. This strategic move has led to considerable cost savings for our clients without compromising the quality we are known for at Teemo.

There’s a common notion that certain materials, such as steel, are predominantly available in China. However, our experiences in Vietnam and Indonesia have challenged this belief. We’ve been able to source everything we need from these countries, reinforcing their formidable manufacturing capabilities.

A critical element that sets Vietnam and Indonesia apart is their abundant natural environments. The high-quality natural solid wood available in these countries allows us to incorporate top-notch resources into our products, giving our furniture a favourable position in the market.

Behind every Teemo product manufactured in Vietnam and Indonesia is a team of dedicated production technicians and quality-control operatives. They ensure that every piece of furniture meets our stringent quality requirements and is ready for shipment on time.

Our strategic adoption of the “China Plus One” strategy, shifting focus to Vietnam and Indonesia while maintaining a smaller footprint in China, has not only been a successful response to the current trade environment but also highlighted the broader potential of these countries as significant players in the global manufacturing landscape. We’re proud to be part of this change and look forward to a future where we continue to adapt, innovate, and deliver the very best for our clients.