Walmart Taps Vietnam to Boost Manufacturing Supply Chain
Walmart is enhancing its international logistics capacity by extending its cross-border ocean freight services beyond China to include two critical ports in Vietnam.
This strategic move is designed to benefit Walmart marketplace sellers who manufacture or source their products in Vietnam.
They now have the option to book full-container shipments directly from Ho Chi Minh City or Hai Phong.
These shipments are seamlessly integrated into the Walmart Fulfilment Services (WFS) network, ensuring delivery to various facilities across the United States.
This initiative broadens Walmart's international freight network, which already encompasses key Chinese ports such as Shanghai, Ningbo, Yantian, Qingdao and Xiamen.
With the inclusion of Vietnam, sellers are now able to ship inventory from a total of seven Asian ports into the United States, enhancing the flexibility and efficiency of their supply chains.
Adam Aldrete, known for his role as Senior Programme Manager for the Walmart Imports Programme, communicated this significant development through LinkedIn, noting it as Walmart Cross Border's first expansion outside China's boundaries.
Logistical workflow
The process for utilising this service is structured to optimise efficiency.
Sellers prepare their full-container loads at a chosen port in Vietnam or China.
These containers then clear US customs, and the responsibility of logistics is transferred to Walmart's extensive network.
Typically, most shipments are directed to one of Walmart's four fulfilment centres located in Los Angeles, Dallas-Fort Worth, Topeka, Kansas and Sacramento, California, where they are further processed.
For standard-sized items, redistribution occurs based on proximity to the end customer, enhancing delivery times.
Oversized items, however, are dispatched directly from their entry facility.
Estimated transit durations can span from 35 to 60 days from cargo readiness to final delivery, with variation arising from factors such as initial port of departure, final destination and transport methodologies employed.
Walmart provides a detailed time estimate for shipments, citing averages of 44 days for arrivals on the West Coast, 50 for the Midwest and 55 for the East Coast.
For sellers aiming to meet holiday season demand, Walmart advises readiness of cargo by mid-August, ensuring it meets the inbound yard deadline of October 1.
Vietnam's ascending trade role
Walmart's decision to expand operations in Vietnam is strongly aligned with evolving global trade conditions.
The tariffs on goods originating from China, which can be as high as 55% partially due to a 25% duty linked to fentanyl trafficking, compel sellers to find cost-effective alternatives.
Comparatively, products made in Vietnam are subject to lower tariffs of around 20%, presenting a more favourable sourcing option.
Vietnam's growing importance in global trade is evidenced by its trade statistics; from January to July, exports to the US surged by 27.8% year-on-year, reaching US$85.1bn, as reported by Vietnamâs customs department.
July exports alone touched US$14.2bn, marking a 26% augmentation over the previous year, with U.S. imports also rising by 22.7% within the same timeframe, amassing $10.5 billion.
A trade agreement reached on July 2 is anticipated to further bolster this growth, with Vietnam consenting to reduce duties on certain US goods as part of the deal.
Walmart has been actively positioning itself in this emerging market scenario since September 2023, having participated in the Vietnam International Sourcing Expo to forge connections with local suppliers.
Enhancements for marketplace sellers
Scott Humanek, the Senior Director of Walmartâs Global Inbound Programme, shared insights into the evaluated pilot programme that set the foundation for this service.
He said: "Our pilot exceeded our expectations in terms of feedback and volumes, and we are excited to let the world know that WCB is ready to help all WFS #Commerce sellers grow your business in the Walmart Marketplace."
In tandem with this Vietnamese expansion, Walmart also unveiled a suite of seller incentives aimed at optimising readiness for peak seasons.
During the critical period from October to December 31, Walmart marketplace sellers will benefit from waived peak storage fees.
Traditionally, a charge of US$1.50 per cubic foot per month is levied for inventory exceeding 30 days, alongside the standard US$0.75 fee.
The waiver provides a cost-efficient buffer for sellers preparing for high seasonal demand.
Furthermore, a promotional 30% discount is available until October 1 on Walmart's Multichannel Solutions service, allowing businesses to seamlessly manage transactions across various platforms, including Walmart.com, Amazon, eBay, Shein and Temu via a unified system.
This initiative strengthens Walmartâs competitive stance against industry titans like Amazon, which offers its own Global Logistics service with freight routes from China to key markets.
