The effect of China's zero-Covid policy has pushed companies to seek alternative sources in Southeast Asia. According to Peter Sand of Xeneta, Vietnam has profited the most from the shift in US imports. "Vietnam is the clear winner of that game, with alternative Southeast Asia nations lagging behind in terms of US imports," Sand told the Journal of Commerce. Vietnam, the US's second-largest source of containerised imports, grew its share from 8.2% to 8.7% last year, according to S&P Global figures. In comparison, India's exports to the US rose just 0.1% from 3.8% to 3.9% in 2022. American companies are not the only ones considering Vietnam as an alternative. Recently, the European Chamber of Commerce in Vietnam surveyed 200 European companies. The results show the number of companies who have moved a part of their operations from China to Vietnam increased to 41% in the fourth quarter, compared to 13% in the third quarter of 2022. "In the past 40 years or so, China has established itself as the world's manufacturing powerhouse. The current trend of European businesses moving to Vietnam is significant because it indicates a clear shift in this narrative," said Alain Cany, chairman of the European Chamber of Commerce in Vietnam, reported China Macro Economy. In another survey conducted by Container xChange, 67% of 2,600 respondents said they were considering alternative sourcing countries. Once again, Vietnam was named one of the most attractive options. Carriers have responded to the increase in export volume by adding capacity to services calling Vietnam in Q4 2022. According to a report by MDS Transmodal, 2022 was the first time deep sea capacity outweighed feeder and regional capacity. The 2M Alliance (MSC and Maersk) had the largest deployed capacity to Vietnam, said Antonella Teodoro, MDS Transmodal senior consultant to the JOC. However, the non-alliance carriers added significant capacity in the fourth quarter. Zim and Wan Hai Lines increased their capacity for Vietnam in Q4 2022 compared to the previous year by 32% and 40%, respectively. Analysts believe the shift in sourcing and increase in capacity to Vietnam will continue into the near future. "This trend has prompted carriers to deploy larger vessels on Vietnam origin trade lanes. A tendency that Xeneta expects will continue, with the increased focus on geopolitics and friend-shoring in the coming years," said Peter Sands to the JOC. In January, Cosco Shipping Lines added extra port calls in Vietnam and dropped some Chinese ports on its America Asia Container service. It also launched a joint service with Orient Overseas Container Line, linking Southeast Asia, India and US East Coast via the Suez Canal. Eight 4,000 TEU vessels are deployed on this route with a 30-day transit time to New York. Despite this shift, China will continue to play a large role in manufacturing. Its ability to scale up production on demand, the high quality of its manufacturing, its proximity to components manufactured in its hubs, and its developed port and landside infrastructure hold huge advantages over less developed Southeast Asian countries.