Vietnam’s Supply Chain Role Escalating as Tariffs Scare Looms, DataWeb Info Shows

November Census Bureau import data newly released through the International Trade Commission’s DataWeb tool documents Vietnam’s significant and growing role in the consumer tech supply chain. Vietnam as a sourcing country made substantial import share gains in product categories experiencing historic spikes in consumer demand during the COVID-19 pandemic, especially TVs with screen sizes under 35 inches, DataWeb shows. The Office of the U.S. Trade Representative is considering whether to impose Section 301 tariffs on goods from Vietnam (see 2101110035).

Nearly a quarter of January-November TV imports to the U.S. in that class of screens originated from Vietnam, up from only a 4.2% share in that segment a year earlier, DataWeb said. Other examples of Vietnamese supply-chain growth: (1) U.S. importers sourced about a fifth of all smartphones from Vietnam in the year through November, up slightly from a year earlier; (2) though Vietnam accounts for much lower volumes than China of laptop and tablet imports to the U.S., its roughly 5% share is steady and inching upward.

November TV imports to the U.S. in all screen sizes and from all countries retreated somewhat from their torrid October growth pace but were significantly higher than their 2019 comparisons, DataWeb said. U.S. importers sourced 5.03 million sets in November, 20.5% fewer than in October but 37.4% more than in November 2019. TV dollar-value imports were down 20% sequentially for the month but up 11% year on year.

The average November TV set, worth $262.57 in customs value, was marginally more expensive than in October but 20.4% cheaper than in November 2019, reflecting the bigger mix of smaller-screen TVs compared with a year earlier. TV imports for the first 11 months of 2020 totaled 48.44 million sets, 29.4% higher than the same 2019 period.

Mexico generated the clear majority of TV imports to the U.S. in November, DataWeb said. Its share held steady at 55.7%, unchanged from a year earlier, despite the 25.4% unit decline sequentially from October. About three in every 10 TVs imported to the U.S. came from China in November. The 1.52 million China-sourced sets for the month were 16.9% fewer than in October but up 52% year on year.

November smartphone imports to the U.S. from all countries reached 21.44 million handsets, up 22.6% from October and 1.6% higher than in 2019, DataWeb said. The iPhone 12's impact was plainly evident in China’s growing share as a country of origin and the shift upmarket in average customs value. Dollar imports were up 40.6% from October to $7.34 billion and 36.2% higher year on year. The average November smartphone import, worth $342.41, was 14.7% costlier than in October, 34.2% more expensive than in November 2019.

Chinese smartphone imports to the U.S. totaled 18.28 million in November, up 26% from October and 17.5% higher year on year, DataWeb said. The average Chinese phone, valued at $367.30, was 17.3% costlier than in October and 27.2% more expensive than in November 2019. China generated 85.3% of all November smartphone imports to the U.S., growing its share by 2.3 percentage points from October and by 11.6 points from November 2019. Apple is known to be sourcing the iPhone 12 from Foxconn's Zhengzhou factory in China's Henan province.

The influx of iPhone 12s to the U.S. from China put a dent in Vietnam’s smartphone output for November, DataWeb said. Vietnam shipped 2.6 million smartphones here in November, up 7.9% from October but 43% fewer year on year. The average Vietnamese phone, $187.87 in value each in November, was 16.6% cheaper than in October, but 23.8% more expensive than in 2019. Vietnam’s share of smartphone imports to the U.S. slipped to 12.1% in November, from 13.8% in October and 21.6% in November 2019. But Vietnam generated 19.3% of the 163.3 million smartphones imported January-November, up slightly from 19.1% in the same 2019 period.

Growth in laptops and tablets imported to the U.S. under tariff subheading 8471.30.01 slowed noticeably in November from the torrid pandemic pace in March-October, but it was still double digits ahead of 2019 comparisons, DataWeb said. U.S. importers sourced 13.33 million HTS 8471.30.01 goods in November, 15.1% fewer than in October but 20.4% more year on year. Dollar imports of $5 billion were down 12.3% from October but up 20% from November 2019. Their average value of $375.41 was steady, compared with $363.36 in October and $361.49 a year earlier.

China grew its share of laptop and tablet unit imports to 91.8% in November, from 90.4% a year earlier, via its 22.3% year-on-year increase to 12.24 million devices, DataWeb said. Vietnam shipped 643,500 units here in November, 16.8% fewer than in October but 4.9% higher than a year earlier. Its share slipped to 4.8% of all laptop and tablet imports, from 4.9% in October and 5.5% in November 2019.

Despite Vietnam’s November setback, the country accounted for 5.6% of the 111.3 million laptops and tablets imported to the U.S. from all countries in January-November, up from 5.1% in 2019, DataWeb said. Vietnam’s move upmarket was another noticeable November trend. The average Vietnamese device, worth $228.42, was nearly 36% more expensive than its November 2019 counterpart.