Vietnam and India are the two largest beneficiaries of the China+1 supply chain diversification strategy. Both face only the 10% Section 122 global surcharge. Vietnam leads in consumer electronics assembly (Samsung phones, Intel ATP). India is accelerating through PLI-incentivized iPhone assembly (Foxconn, Tata) and broader electronics manufacturing. The tariff is equal — the difference is supply chain maturity, labor cost, and OEM ecosystem.
Both Vietnam and India face the same 10% effective duty rate. On a $100,000 BOM, both incur $10,000 in duty. The sourcing choice here is about product availability, lead times, and supplier relationships.
| Source | Duty Rate | Duty Amount | Landed Cost |
|---|---|---|---|
| 🇻🇳 Vietnam | 10% | $10,000 | $110,000 |
| 🇮🇳 India | 10% | $10,000 | $110,000 |
* Estimate for electronics HTS chapters 8541–8542. Actual duty depends on specific HTS code, MPF, HMF, and customs value.Calculate exact duty →
India's Production Linked Incentive (PLI) scheme offers cash incentives of 4–6% of incremental sales, making it one of the most generous electronics manufacturing incentive programs globally. Vietnam offers tax holidays and preferential land rates but the per-unit subsidy is generally lower than India's PLI. For large-volume OEMs, India's PLI can materially offset higher production costs.
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