By Martina Kao    Photo：CANVA

In recent years, vinyl flooring products (Vinyl Flooring / LVT / SPC / WPC) have emerged as one of the most important categories in the global building materials market. Their waterproof, durable, and cost-effective characteristics have driven rapid adoption not only in the residential sector but also in shopping malls, offices, hotels, and large-scale commercial projects. Against the backdrop of growing global demand, Vietnam has steadily positioned itself—thanks to its cost and policy advantages—as a key production and export base, second only to China.

This article explores the competitiveness of Vietnam’s vinyl flooring exports from two perspectives: advantages and challenges, and provides practical recommendations for both exporters and importers.

I. Advantages of Vietnam’s Vinyl Flooring Exports

1. Tariff and Policy Benefits

Vietnam’s greatest advantage lies in its extensive free trade agreement (FTA) network. The EVFTA (EU–Vietnam Free Trade Agreement) enables Vietnamese plastic products to gradually enjoy zero tariffs when exported to the EU, significantly enhancing price competitiveness. Likewise, the CPTPP and RCEP have opened further access to Japan, Korea, Australia, and neighboring ASEAN markets.

At the same time, high U.S. tariffs on Chinese flooring products have made Vietnam an attractive alternative sourcing destination. Although the U.S. recently introduced a “reciprocal tariff” policy targeting Vietnamese goods, Vietnam still holds value for buyers seeking supply chain diversification.

2. Competitive Cost Structure

Vietnam’s labor costs remain lower than in China, Korea, and most Western countries, while land and energy expenses are also relatively favorable. Over the past few years, significant investments from Chinese, Taiwanese, and Western companies have established factories in Vietnam, bringing in advanced technology, capacity expansion, and modern management models. This has created strong industry clusters.

Looking ahead, international brands that require OEM/ODM services may find Vietnam particularly appealing, if meet local manufacturers can respond quickly to customization needs with a certain degree of flexibility.

3. Alignment with Market Demand

Global demand for vinyl flooring continues to rise, particularly for LVT (Luxury Vinyl Tile), SPC (Stone Plastic Composite), and WPC (Wood Plastic Composite). These products combine durability with appealing design, driving strong demand in North America, Latin America, and Europe.

Most Vietnamese products are positioned in the mid-to-lower and mid-to-upper market segments. This allows them to meet procurement requirements of large retail chains (such as home improvement stores) while also serving commercial projects. This positioning differentiates Vietnamese flooring from higher-end European and Korean products, while placing them in direct competition with Chinese suppliers.

4. Supply Chain and Logistics Advantages

Vietnam’s proximity to southern China and other ASEAN countries provides clear logistical advantages for both importing raw materials and exporting finished goods. Major factories are clustered in provinces such as Binh Duong, Dong Nai, and Bac Ninh, close to the key export gateways of Ho Chi Minh City and Hai Phong ports. Established routes to North America and Europe, combined with recent improvements in Vietnam’s customs processes, allow exporters to handle international orders more efficiently.

II. Challenges of Vietnam’s Vinyl Flooring Exports

1. U.S. Trade Policy Risks

Starting in 2025, the U.S. imposed a 20% reciprocal tariff on all Vietnamese exports. Once if with rates rising to as high as 40% for products deemed as “transshipment.” For export-driven sectors like vinyl flooring, this significantly erodes Vietnam’s previous cost advantage. Given that the U.S. is the world’s largest vinyl flooring importer, this policy shift creates major uncertainty for Vietnamese manufacturers.

2. Heavy Dependence on Imported Raw Materials

Although Vietnam has developed strong processing and manufacturing capabilities, the key raw materials—such as PVC resin, plasticizers, pigments, and certain additives—are still largely imported, primarily from China, Korea, and Taiwan. This dependence makes production costs highly sensitive to fluctuations in global oil prices and upstream supply chain disruptions.

3. Quality and Brand Limitations

Compared with premium flooring products from European brands, Vietnamese products still lag in terms of design sophistication, brand recognition, and long-term durability. The EU market, in particular, enforces strict requirements on product quality and sustainability, forcing Vietnamese manufacturers to invest more in advanced production technologies and certifications.

The EU also emphasizes environmental standards, including REACH regulations, low VOC emissions, and upcoming carbon and sustainable building material requirements. These factors demand additional investment in product formulations, production processes, and certifications, or else Vietnamese exporters risk losing market access.

4. International Compliance and Origin Rules

To benefit from zero tariffs under the EVFTA and other FTAs, exporters must strictly comply with rules of origin. If a large proportion of raw materials are sourced from non-member countries and do not meet value-add requirements, the product may lose preferential tariff eligibility. Furthermore, policies such as the EU’s Carbon Border Adjustment Mechanism (CBAM) may increase compliance costs in the future.

III. Recommendations for Exporters and Importers

• For Vietnamese Exporters:
  • Strengthen internal quality management and obtain more international certifications (e.g., FloorScore, GreenGuard).
  • Invest in sustainable and eco-friendly technologies to align with EU and North American market trends.
  • Maintain transparency in rules-of-origin documentation to secure preferential tariffs when exporting to the EU.

• For Importers (large retailers and contractors in the EU and U.S.):
  • Diversify sourcing to reduce reliance on a single country.
  • Assess Vietnamese products carefully for compliance with quality and environmental standards.
  • Work with professional freight forwarders to ensure smooth handling of origin certificates, customs clearance, and supply chain documentation.

IV. Logistics Observations and the Role of Freight Forwarders

Although vinyl flooring exports fall under the category of bulk building materials, logistics management presents several challenges:

1. Large volumes and long-distance shipping: Exports to the U.S. and Europe typically move via FCL ocean freight, while smaller orders often require LCL consolidation.

2. Tariff and documentation management: Under EVFTA, Certificates of Origin (C/O) are essential, and U.S.-bound shipments face stricter compliance. Mismanagement can directly affect duty rates and clearance times.

3. Warehousing and distribution: Importers in Europe and the U.S. often require temporary storage and re-distribution; freight forwarders with overseas warehouse and distribution networks can add value.

As a logistics and supply chain consultant, we can support exporters in designing the most suitable transportation solutions—balancing cost, lead time, and compliance. For importers, we help mitigate supply chain risks and ensure timely, secure delivery of orders.

V. Conclusion

Vietnam’s vinyl flooring export competitiveness is driven by FTA tariff advantages, a favorable cost structure, and the shift in global sourcing away from China. However, challenges remain, including new U.S. tariff policies, reliance on imported raw materials, gaps in quality and branding, and tightening international environmental compliance requirements.

In this environment, both exporters and importers must plan their supply chains more carefully. For exporters, upgrading product quality and compliance capabilities is key to entering Western markets. For importers, choosing the right logistics partner to manage documentation and ensure delivery efficiency will directly influence procurement decisions and cost control.

As the global building materials supply chain continues to restructure, Vietnam’s vinyl flooring has undoubtedly become a product line worth watching. Striking the right balance between advantages and challenges will require close collaboration between industry players and logistics partners to fully capture this market opportunity.

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