Vietnam’s Garment and Textile Industry in 2025: Growth, Opportunity, and Transition

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Vietnam’s garment and textile sector has long been a pillar of its economic ascent—and in 2025, it continues to demonstrate resilience and strong potential, despite global headwinds. For foreign investors and manufacturing firms, Vietnam remains one of Asia’s most compelling destinations for apparel production.

Industry Overview: A Key Economic Contributor

As one of Vietnam’s leading export sectors, garments and textiles generated an impressive US$44 billion in export revenue in 2024, representing an 11% increase year-over-year. In the first five months of 2025 alone, exports hit US$17.58 billion, up 9% from the same period in 2024, according to the Vietnam Textile and Apparel Association (VITAS).

Vietnam’s trade surplus in this sector reached US$6.95 billion during this period, with imports totaling US$10.63 billion. The country’s extensive network of free trade agreements (FTAs)—including the CPTPP and EVFTA—continues to give Vietnamese exports a competitive edge by reducing tariff barriers.

Resilience in a Shifting Global Landscape

Despite ongoing global challenges such as soft demand recovery and geopolitical uncertainties, Vietnamese textile and garment businesses have shown adaptability. They have improved operational efficiency, explored niche markets, and diversified export destinations—particularly in response to shifting U.S. tariff policies.

Industry Structure: From Fiber to Finished Garments

Vietnam’s textile industry is segmented into three main stages:

  • Upstream: Fiber production

  • Midstream: Fabric manufacturing and dyeing

  • Downstream: Garment production

Out of more than 3,800 textile companies, around 70% focus on garment manufacturing. However, just 6% produce yarn, 17% manufacture fabric, and 4% specialize in dyeing.

Sourcing Materials: A Key Bottleneck

Currently, only about 40% of raw material demand is met by domestic supply chains. Vietnamese manufacturers still heavily depend on imports from China, South Korea, India, and the U.S. For example, although Vietnam uses roughly 400,000 tons of cotton annually, just 3,000 tons are sourced locally—less than 1% of total demand.

Garment Production: Focused on CMT with Room to Grow

Most Vietnamese garment manufacturers operate under the cut-make-trim (CMT) model, which accounts for 70% of production. More advanced models like original equipment manufacturing (OEM) and original design manufacturing (ODM) make up the remaining 30%. Domestic fabric output is around 2.3 billion meters per year, covering just 25–30% of national demand.

Vietnam’s major export destinations include the U.S., Europe, Japan, and South Korea.

Challenges in Localization and Value Addition

Vietnam’s reliance on imported inputs limits local value addition, which hovers around 45–50% per exported garment. This dependence complicates compliance with rules of origin in FTAs and increases exposure to supply chain risks.

To address this, the country is focusing on developing its supporting industries, opening up new investment opportunities for both local and foreign players.

Future Trends: What’s Driving Growth?

Expanding Global Market Access

Vietnam’s extensive FTA network continues to open new doors for textile exporters. Agreements like the CPTPP and EVFTA provide access to high-value markets and encourage the development of more integrated supply chains within the country.

Embracing Sustainability

European buyers increasingly demand eco-friendly and ethically produced apparel. To remain competitive, many Vietnamese firms are pursuing internationally recognized certifications such as OEKO-TEX®, GOTS, GRS, and Fair Trade. Manufacturers are also adopting green technologies like solar energy, wastewater recycling, and waterless dyeing systems.

Upgrading Production Capabilities

The shift of production from China to Vietnam continues, driven by rising wages in China and trade tensions with the U.S. According to the U.S. Fashion Industry Association (USFIA), 80% of American fashion brands plan to reduce sourcing from China between 2024 and 2025. Vietnam has proactively negotiated with the U.S. to avoid steep tariffs and remains a preferred destination for American buyers.

However, future growth will require investment in automation, digital tools, and high-value production, such as electronics-integrated apparel and performance fabrics.

Key Manufacturing Regions

Southern Vietnam: A Strategic Hub

The southern region—including Ho Chi Minh City, Dong Nai, and Binh Duong—hosts a dense concentration of garment factories. This region benefits from world-class infrastructure, such as:

  • Saigon Port, which handles about 67% of Vietnam’s seaport throughput

  • Cai Mep–Thi Vai Port, a deep-water terminal supporting global shipping routes

  • A robust highway system connecting key industrial zones

Northern Vietnam: Emerging Clusters

In the North, provinces like Nam Dinh and Thanh Hoa have seen rapid industrialization in textiles:

  • Nam Dinh is home to over 6,000 textile facilities, including major projects like TOP Textile JSC’s US$203 million factory and Xielong Vietnam’s US$40 million facility.

  • Thanh Hoa boasts over 300 textile enterprises, producing 700 million items in 2024, with export volumes increasing 20% year-over-year.

These regions are attracting both domestic and foreign investment, creating jobs and strengthening Vietnam’s position in global textile supply chains.

Global Brands Operating in Vietnam

Many top-tier brands rely on Vietnam for their manufacturing needs:

Adidas

By 2021, 40% of Adidas’ global footwear was made in Vietnam, reflecting a strategic move away from China due to rising labor costs and supply chain disruptions. This trend has only accelerated post-COVID-19.

Nike

Vietnam produces over half of Nike’s footwear, with the brand’s supplier base in the country growing from 138 to 155 factories between 2021 and late 2022. This expansion underscores Nike’s long-term commitment to Vietnam as a strategic production base.

Government Support and Incentives

The Vietnamese government continues to promote industrial parks, invest in R&D, and facilitate technology transferfor the textile sector. One of the most appealing incentives is the corporate income tax (CIT) regime, offering:

Preferential CIT Rates

  • 10% for life of project or first 15 years

  • 17% for life of project or first 10 years

Tax Holidays

  • 4-year tax exemption + 50% reduction for 5–9 years

  • 2-year exemption + 50% reduction for 4 years

These tax policies are especially attractive for companies investing in high-tech or supporting industries.

Outlook: A Sector Ready for the Next Phase

While Vietnam’s textile and garment industry faces challenges, it remains strategically positioned for long-term growth. With a vision to move up the value chain, improve sustainability, and expand its domestic supply capacity, Vietnam is poised to reinforce its role as a global textile manufacturing powerhouse.

For international firms seeking a cost-effective, reliable, and forward-looking production base, Vietnam continues to be an ideal destination.

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Identifying “Transhipments” Subject to 40% Tariff: A Guide for Businesses

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A new 40 percent tariff is slated for goods identified as “transhipments,” a measure widely believed to target Chinese-origin products undergoing minimal processing in Vietnam before re-export to the United States. While detailed guidelines are pending, businesses can currently rely on the existing U.S. Customs and Border Protection (USCBP) regulations concerning Country of Origin Marking to mitigate the risk of their goods being labeled as transshipments.

 

Country of Origin Marking: General Provisions

 

The fundamental principle of Country of Origin Marking, as enforced by USCBP, mandates that all foreign-origin articles entering the U.S. must be clearly and legibly marked with the English name of their country of origin. The primary objective is to inform the final U.S. consumer about the product’s manufacturing origin.

Effective marking methods often integrate directly with the product (e.g., branding, stenciling, molding). Other methods are acceptable provided they remain legible and visible until the product reaches the ultimate U.S. purchaser. The marking must be durable enough to resist accidental defacement, destruction, removal, alteration, obliteration, or obscuration.

 

Determining Country of Origin Under the Existing Regime

 

USCBP defines the country of origin as where an article is manufactured, produced, or grown. However, the country of origin can change in a secondary country under specific circumstances:

  • Substantial Transformation: If additional work or material is added in the second country, resulting in a “substantial transformation.” This occurs when a new article with a different name, character, and use is created.
  • NAFTA Marking Rules (19 CFR Part 102): For goods originating from a NAFTA country (Canada, Mexico, or the United States), if the second country is determined to be the country of origin under these specific rules.
  • Textile or Apparel Products (19 CFR 102.21): Regardless of NAFTA origin, if the country of origin for a textile or apparel product is determined to be the second country by the general rules outlined in 19 CFR Part 102.21. (Note: For textile or apparel products from Israel, specific rules in 19 CFR Part 12.130 apply.)

Businesses are advised to adhere to these established regulations while awaiting further official guidelines from both the U.S. and Vietnamese governments.

 

Anticipated Developments and Considerations

 

China’s Potential Response: China is expected to react to this new tariff, especially given its significant trade relationship with Vietnam. Any retaliatory measures from Beijing, a major source of inputs for Vietnamese manufacturing, could have a substantial impact on Vietnam’s economy. Bloomberg estimates a potential long-term loss of 25 percent of Vietnam’s US exports, possibly risking over 2 percent of its annual GDP.

 

Formal Content Threshold: Neither the U.S. nor Vietnam has specified a formal threshold for determining “transshipment” status. Trade analysts widely anticipate a near-zero tolerance policy from the U.S. government, potentially flagging goods with as little as one percent Chinese-origin content. While trade agreements typically define origin based on value-added or transformation criteria, no such thresholds have been officially announced for this specific agreement.

 

Further clarifications regarding the agreement’s rules of origin and “safe harbors” are expected. Businesses should stay informed about these impending guidelines to ensure compliance and avoid potential tariff implications.

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Vietnam’s Economy Soars in First Half of 2025 Amidst Global Headwinds

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Ho Chi Minh City, Vietnam – July 10, 2025 – Vietnam’s economy achieved a remarkable 7.52% growth in the first half of 2025, driven largely by robust performances in its services and manufacturing sectors. This impressive expansion comes despite persistent global trade tensions and the introduction of new US tariffs. This article offers an in-depth analysis of Vietnam’s economic trends, including inflation, trade, foreign direct investment (FDI), and business formation during this period.

 

Record-Breaking GDP Growth in H1 2025

 

Building on the strong momentum of 2024, which saw a GDP growth of 7.09%, Vietnam’s economy surged by 7.52% in the first six months of 2025. This marks the fastest first-half pace in 15 years, a significant achievement given the global challenges of high interest rates, subdued consumer demand, and ongoing trade disruptions. Vietnam continues to solidify its position as one of Southeast Asia’s fastest-growing economies while maintaining macroeconomic stability.

Key sectors contributing to this impressive growth include:

  • Agriculture, forestry, and fisheries expanded by 3.84%, providing a stable foundation amidst domestic and export demand.
  • Industrial production and construction collectively grew by 8.33%.
  • Services saw a significant rebound, growing by 8.14%—the highest first-half growth for the sector since 2020.

The services sector now accounts for 43.4% of GDP, with industrial production and construction at 36.9%, and agriculture and fisheries making up 11.2%. Taxes represent the remaining 8.3%. Services were also the largest contributor to GDP growth, adding over half of the total increase, followed by industrial and construction activities, and agriculture.

Image: vietnam-briefing

 

Inflation Remains Controlled Despite Uptick

 

Vietnam’s Consumer Price Index (CPI) rose by 3.22% year-on-year in the first quarter of 2025, according to the General Statistics Office (GSO). Core inflation, excluding volatile elements like food and energy, registered slightly lower at 3.01%. GSO officials attribute this increase to fluctuations in global commodity markets and ongoing geopolitical tensions that have disrupted supply chains and slowed global growth.

Major drivers of the CPI increase in the first half of 2025 include:

  • Food and food services: This category saw a 3.78% rise, contributing over one-third to the overall CPI increase. Pork prices, in particular, jumped over 12% due to supply shortages and holiday demand, while rice and poultry prices also saw increases.
  • Housing and utilities: Costs increased by 5.11%, driven by higher prices for construction materials like cement and steel, and an adjustment to retail electricity rates in late 2024.
  • Healthcare costs: These experienced one of the sharpest rises, with pharmaceutical products and medical services increasing by 14.4%, pushing CPI higher by nearly 0.8 percentage points.

Conversely, some sectors experienced downward trends:

  • Transport costs fell by 2.4% due to a nearly 10% drop in fuel prices and declining train fares.
  • Education costs slightly decreased due to tuition fee waivers in certain provinces.
  • Telecom prices also saw a marginal decline.

Core inflation remained below headline inflation, largely because it excludes the volatile food and energy components that were key price drivers during this period.

Image: vietnam-briefing

 

Strong Trade Performance Despite External Pressures

 

Vietnam’s trade performance in the first half of 2025 showcased a robust recovery, with import-export turnover reaching US$432 billion, a 16.1% increase from the same period last year. Exports grew by 14.4%, while imports rose by 17.9%, resulting in a trade surplus of US$7.63 billion.

Top export categories included:

  • Computers, electronics, and parts: US$38.41 billion
  • Telephones and components: US$22.4 billion
  • Machinery, textile products, footwear, and wood-based goods also contributed significantly.

Leading imports mirrored export categories, with electronics and computer parts at US$56.19 billion, followed by machinery, textile fabrics, plastics, and metals.

The agriculture sector continued its pivotal role in trade, with agro-forestry-fisheries exports rising 15.5% year-on-year to nearly US9.83 billion trade surplus. Agricultural exports, valued at US$5.16 billion and US$8.82 billion, respectively. Commodities such as coffee, pepper, and cashew nuts benefited from rising global prices, and rubber exports saw value gains despite lower shipment volumes. However, rice, fruit, and vegetable exports declined in value due to price drops and weaker demand in key markets.

Image: vietnam-briefing

 

FDI Surges, Signaling Investor Confidence

 

Foreign direct investment (FDI) into Vietnam reached an impressive US$21.51 billion in the first half of 2025, marking a 32.6% year-on-year increase, according to the Ministry of Finance. This strong performance was fueled by robust capital injections into existing projects and a sharp rise in capital contributions and share purchases.

While newly registered capital saw a 9.6% decline to US$9.3 billion, additional capital for ongoing projects surged by an astounding 122% to US$8.95 billion. Capital contributions and share purchases also rose significantly by 73.6%, totaling US$3.28 billion, indicating heightened investor interest in mergers, acquisitions, and strategic partnerships.

Disbursed FDI reached US$11.72 billion, up 8.1% year-on-year, representing the highest level recorded for a first-half period in five years. This reflects enhanced project implementation and improved operational efficiency across key sectors.

Vietnam continues to attract landmark investments, including:

  • Sweden’s SYRE with a US$1 billion circular textiles hub.
  • A US$1.5 billion project by the Trump Organization in Hung Yen.
  • Major expansions such as the Yen So Park US$1.1 billion project and LEGO’s US$1.3 billion factory in Binh Duong, all underscoring strong investor confidence in Vietnam’s long-term potential as a manufacturing and innovation hub.

 

Navigating Global Economic Headwinds and Business Trends

 

A newly signed trade agreement between Vietnam and the United States in July 2025 introduces both opportunities and complexities. While the deal provides Vietnam with preferential access to select U.S. markets, including large-engine vehicles and duty-free treatment for American imports, it also imposes new tariffs: a 20% duty on most Vietnamese goods and a 40% tariff on transshipped items from third countries.

Meanwhile, global demand has softened due to rising interest rates and geopolitical tensions, which was reflected in Vietnam’s April PMI falling to 45.6, indicating a contraction in manufacturing activity.

In the first half of 2025, Vietnam registered 91,200 newly established businesses, with a total capital of VND 820.9 trillion (approximately US$31.4 billion) and nearly 591,100 registered workers. This marks year-on-year growth of 11.8% in number, 9.9% in capital, and 13.9% in employment.

However, business exits also increased, with over 80,800 firms suspending operations, 34,000 halting business pending dissolution, and 12,300 fully dissolved, averaging 21,200 market exits monthly.

To counter this trend, the government is focusing on three strategic pillars: institutional reforms, infrastructure development, and workforce upskilling. Accelerated disbursement of public investment, particularly in national-scale projects like the Long Thanh International Airport and the North–South high-speed railway, is expected to stimulate economic activity and boost investor sentiment.

 

Outlook

 

The first half of 2025 saw Vietnam’s economic trajectory shaped by a complex interplay of external shocks and internal shifts. Rising trade tensions, especially with the US, and a turbulent global environment have put pressure on exports and industrial output. Despite these challenges, the country has managed to maintain steady GDP growth, moderate inflation, and a growing number of business registrations.

With global demand still fragile and geopolitical uncertainties lingering, Vietnam’s near-term focus will likely remain on boosting domestic consumption, fast-tracking public investment, and supporting enterprise resilience.

—

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Trump Escalates Trade War with New Tariffs on Allies and Developing Nations

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WASHINGTON/BRUSSELS, July 7 (Reuters) – U.S. President Donald Trump dramatically intensified his ongoing trade war on Monday, informing key allies like Japan and South Korea, as well as a host of developing nations, that they will face significantly higher tariffs starting August 1.

The new levies impose a 25% tariff on U.S. imports of all goods from Japan and South Korea, a move that initially rattled Wall Street, causing the S&P 500 Index to drop sharply. However, Asian markets appeared to absorb the news more calmly.

In letters dispatched to 14 countries so far, Trump hinted at the possibility of further negotiations while simultaneously warning of reciprocal actions if affected nations retaliate with their own tariff increases. “If, for any reason, you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added on to the 25% that we charge,” Trump explicitly stated to Japan and South Korea in letters released on his Truth Social platform.

These new, higher tariffs will take effect from August 1 and are distinct from previously announced sectoral tariffs, such as those on automobiles, steel, and aluminum. Trading partners have been under immense pressure to finalize deals with the U.S. since Trump initiated a global trade war in April, which has disrupted financial markets and prompted governments worldwide to devise protective economic measures.

A slight reprieve emerged as Trump signed an executive order on Monday, extending the deadline for negotiations from Wednesday to August 1. When asked about the firmness of this new deadline, Trump replied, “I would say firm, but not 100% firm. If they call up and they say we’d like to do something a different way, we’re going to be open to that.”

Former U.S. trade negotiator Wendy Cutler expressed disappointment over the tariffs imposed on close allies like Japan and South Korea but maintained optimism for a potential breakthrough. “While the news is disappointing, it does not mean the game is over,” stated Cutler, who serves as vice president of the Asia Society Policy Institute.

Global Impact and Responses

Beyond key allies, the U.S. will also impose a 25% tariff on goods from Tunisia, Malaysia, and Kazakhstan. Levies will climb to 30% for South Africa, Bosnia and Herzegovina, 32% for Indonesia, 35% for Serbia and Bangladesh, 36% for Cambodia and Thailand, and a substantial 40% for Laos and Myanmar. Trump also indicated that a deal with India was close to being finalized.

On Tuesday, Japanese Prime Minister Shigeru Ishiba reported some progress in avoiding even higher tariffs, which Trump had recently suggested could reach 35%. Ishiba confirmed that the U.S. proposed swiftly proceeding with negotiations towards the August 1 deadline, with the potential for revisions based on Japan’s response.

South Korea announced plans to intensify trade talks with the U.S., viewing Trump’s latest move as an effective extension of a grace period before reciprocal tariffs might be adopted. Thailand expressed confidence in securing competitive tariff rates, while Malaysia’s trade ministry acknowledged U.S. concerns on imbalances but stressed the importance of constructive dialogue. Indonesia’s officials believe there’s still room for negotiation, with their top negotiator set to meet U.S. trade representatives.

For Bangladesh, whose readymade garments industry relies heavily on the U.S. market, the news was “absolutely shocking.” Mahmud Hasan Khan, president of Bangladesh Garment Manufacturers and Exporters Association, stated that a 35% tariff would severely impact their industry. South African President Cyril Ramaphosa deemed the 30% U.S. tariff rate unjustified, citing that 77% of U.S. goods face no tariffs in his country, vowing to continue engagement with the U.S.

Market Reactions and Economic Outlook

Despite the initial drop, U.S. stocks showed resilience. The S&P 500 closed down about 0.8%, but Asian markets largely held firm, with Japan’s Nikkei recouping early losses and South Korean stocks jumping over 1%. Tapas Strickland, head of market economics at National Australia Bank, warned of impending volatility as more letters emerge and negotiations intensify ahead of the August 1 deadline.

Earlier on Monday, Treasury Secretary Scott Bessent had foreshadowed these announcements, noting his inbox was “full” of last-minute trade offers from countries. So far, only two deals have been struck with Britain and Vietnam, while Washington and Beijing reached a framework agreement on tariff rates in June. China, however, has until August 12 to finalize a deal to prevent Trump from reinstating additional import curbs. On Tuesday, China warned the U.S. against reinstating tariffs and threatened retaliation against countries that strike deals with the U.S. to exclude China from supply chains.

Broader Trade Blocs Targeted

The European Union, notably, will not be receiving a letter imposing higher tariffs, according to EU sources. A European Commission spokesperson confirmed that the EU still aims to finalize a trade deal by Wednesday following a “good exchange” between European Commission President Ursula von der Leyen and Trump. The EU itself has been internally debating whether to pursue a swift and light trade deal or leverage its economic power for a more favorable outcome.

Beyond established trade partners, Trump also issued a threat to leaders of developing nations within the BRICS grouping (including Brazil, Russia, India, and China), warning of an additional 10% tariff if they adopt “anti-American” policies.

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The US-Vietnam Trade Landscape at a Glance

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The US-Vietnam Trade Landscape at a Glance

A complex relationship defined by strategic partnership and significant trade friction. Here are the key figures shaping the current policy environment.

20%

Agreed Reciprocal Tariff

The new standard tariff on most Vietnamese exports to the US under the July 2025 agreement.

40%

Transshipment Tariff

A higher rate targeting goods from other countries (e.g., China) routed through Vietnam.

$122B

US Trade Deficit

The 2024 bilateral trade deficit that serves as a primary driver for US tariff policies.

Anti-Dumping & Countervailing Duties (AD/CVD)

Separate from broad tariffs, AD/CVD orders target specific products deemed unfairly priced or subsidized. Vietnam’s designation as a Non-Market Economy (NME) is a critical factor that often results in higher, more unpredictable duties.

The Impact of Non-Market Economy (NME) Status

For Market Economies

The US uses the country’s own domestic prices and costs to calculate dumping margins.

For Non-Market Economies (like Vietnam)

The US disregards domestic data and uses prices from a “surrogate country,” which often leads to much higher duty rates.

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Vietnam Import Regulations: Simplified.

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Importing goods from any country involves navigating a maze of regulations, and Vietnam is no exception. For foreign businesses, understanding and complying with Vietnam import regulations is critical to ensuring a smooth, timely, and cost-effective journey for your products. A single misstep can lead to significant delays, unexpected costs, or even goods being held up at customs. This is where expert assistance in customs clearance in Vietnam and understanding import duties in Vietnam becomes invaluable.

The Complexity of Vietnamese Import Laws

Vietnam’s trade policies are continuously evolving, influenced by both domestic economic goals and international trade agreements. While these agreements often offer benefits, they also introduce layers of complexity. Key aspects of Vietnam import regulations include:

  • Tariffs and Duties: Understanding the specific import duties in Vietnam that apply to your product category, which can vary widely based on product type, origin, and any applicable free trade agreements (FTAs).
  • Required Documentation: A long list of documents, including commercial invoices, packing lists, bills of lading/airway bills, certificates of origin, quality certificates, and sometimes specific licenses or permits. Errors or omissions can cause immediate delays.
  • Product-Specific Regulations: Certain goods (e.g., food, pharmaceuticals, cosmetics, electronics) are subject to additional layers of inspection, certification, and licensing by specialized government agencies.
  • Valuation and Classification: Correctly classifying your goods under the Harmonized System (HS codes) is crucial for accurate duty calculation and compliance. Misclassification can lead to fines.
  • Customs Procedures: The process of submitting declarations, undergoing inspections, and obtaining release of goods requires precise adherence to local protocols.

Navigating these complexities without local expertise can be a major hurdle for foreign importers, leading to frustrations and financial losses.

Our Expertise in Vietnam Import Regulations and Customs Clearance

Our company specializes in simplifying the import process for our international clients. We act as your knowledgeable guide and on-the-ground team, ensuring full compliance with Vietnam import regulations and facilitating seamless customs clearance in Vietnam. Our goal is to make your goods’ journey as smooth and efficient as possible.

Our comprehensive services include:

  • Tariff and Duty Assessment: We help you accurately determine the applicable import duties in Vietnam for your products, leveraging our knowledge of HS codes and free trade agreements to minimize your costs legally.
  • Document Preparation and Review: We meticulously prepare and review all necessary import documentation, ensuring accuracy and completeness to prevent customs hold-ups. We stay updated on the latest requirements for various product types.
  • Customs Clearance Management: Our experienced team manages the entire customs clearance in Vietnamprocess. This includes submitting declarations, coordinating with customs officials, addressing any inquiries, and resolving potential issues promptly.
  • Product-Specific Compliance: For goods requiring special permits or certifications, we guide you through the process of obtaining these, connecting you with the relevant authorities and ensuring all conditions are met.
  • Logistics Coordination: Beyond customs, we integrate with your logistics plan to ensure timely transport from the port/airport to your final destination, including warehousing if needed.
  • Consultation and Advisory: We provide ongoing advice on changes in Vietnam import regulations, helping you adapt your sourcing strategies to maintain compliance and efficiency.

Ensuring a Hassle-Free Import Experience

By partnering with us, you gain a significant advantage in navigating the complexities of importing from Vietnam. We mitigate the risks associated with non-compliance, reduce unexpected costs, and accelerate the delivery of your goods. You can focus on your core business, confident that your products are moving smoothly through Vietnamese borders.

Don’t let complex Vietnam import regulations become a barrier to your sourcing success. Leverage our expertise to ensure a smooth, compliant, and cost-effective import journey for your products. Contact us today to discuss your import needs and learn how we can simplify customs clearance in Vietnam for your business.



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Navigating US Tariffs & Seizing Opportunities: Your Strategic Sourcing Partner in Vietnam

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The global trade landscape is buzzing with discussions about potential new US tariff policies impacting imports, and for businesses looking to source from Vietnam, these conversations are directly relevant. As your dedicated sourcing agent in Vietnam, we’re here to help you understand these shifts and turn potential challenges into strategic advantages for your supply chain.

The Evolving Trade Landscape: What’s Happening, and Why Does It Matter to You?

Recent discussions in the U.S. revolve around the potential implementation of “reciprocal tariffs” or the expanded use of trade provisions like Section 301 and 232. For Vietnam, specific proposals have emerged, suggesting significant tariffs (e.g., a proposed 46% for textiles and furniture) on key exports. While negotiations are ongoing, the uncertainty can be unsettling for importers.

However, it’s crucial to remember the broader context: the ongoing global push to diversify supply chains away from China. This trend has already positioned Vietnam as a prime destination for manufacturing relocation and foreign direct investment. So, while potential tariffs present new hurdles, they also amplify Vietnam’s strategic importance as a supply base.

Unlocking Opportunities for Your Business in Vietnam: Our Sourcing Advantage

From our vantage point as a seasoned sourcing agency, we see immense opportunities for our clients in Vietnam, even amid these trade discussions:

  1. Strategic Supply Chain Diversification:
    • Many businesses no longer want all their eggs in one basket. We help you establish robust alternative supply chains in Vietnam, reducing reliance on single regions and mitigating geopolitical risks.
    • Whether you’re a startup seeking cost-effective solutions, a large brand demanding stringent quality, or an online retailer looking for unique, niche products in apparel, furniture, or agricultural goods, Vietnam offers a versatile production base.
  2. Accessing Upgraded Manufacturing Capabilities:
    • Significant foreign direct investment (FDI) has poured into Vietnam, driving local factories to upgrade their technology, processes, and quality control systems. This means access to increasingly modern facilities capable of meeting international standards.
    • We leverage our extensive network to connect you with these advanced factories, ensuring your products are made efficiently and to your exact specifications.
  3. Leveraging Vietnam’s Extensive FTA Network (Beyond the US):
    • While direct US-Vietnam FTA is not yet in place, Vietnam boasts a robust network of Free Trade Agreements with major markets like the EU (EVFTA), UK (UKVFTA), Canada (CPTPP), Japan, and others in the RCEP bloc.
    • We guide you in leveraging these FTAs to secure preferential tariffs, expanding your market reach beyond the US and adding flexibility to your global distribution strategy.

Navigating the Challenges: How We Mitigate Risks for Your Business

Potential US tariffs on Vietnamese goods present complexities, but this is where our expertise truly shines. Here’s how we help you mitigate risks and ensure smooth operations:

  1. Minimizing Direct Tariff Impact:
    • Should new tariffs be implemented, we work proactively to identify the most competitive suppliers, negotiate optimal pricing, and explore alternative sourcing solutions to offset increased costs. Our goal is to protect your bottom line.
  2. Combating Transshipment Risks & Ensuring Compliance:
    • The US Customs and Border Protection (CBP) is increasing scrutiny on rules of origin (ROO). We conduct rigorous factory due diligence and origin verification processes to ensure your products meet stringent ROO requirements. This protects your business from costly investigations, penalties, and potential retroactive tariffs related to alleged transshipment.
  3. Strict Adherence to Quality and Standards:
    • To meet the demanding standards of the US market and navigate non-tariff barriers, we partner with factories committed to international quality benchmarks. Our regular and unannounced Quality Control (QC) checks ensure your products consistently meet the highest specifications.
  4. Addressing Rising Costs and Capacity:
    • Increased demand can sometimes lead to higher labor and material costs. We continuously monitor market trends, identify factories with efficient production processes, and secure available capacity to meet your orders competitively.

Your Trusted Partner in Vietnam’s Sourcing Future

In today’s dynamic global trade environment, having a sourcing partner with deep local knowledge in Vietnam is invaluable. We don’t just find suppliers; we manage the entire sourcing lifecycle, from rigorous factory vetting and expert negotiation to stringent quality control, streamlined logistics, and navigating complex customs and origin rules.

Whether you’re a startup optimizing costs, a large brand upholding global standards, or an online retailer seeking unique apparel, furniture, or agricultural products, we’re equipped to support your unique needs.

Let us simplify the complexities, mitigate your risks, and help you unlock the full potential of sourcing from Vietnam.

Ready to explore smart sourcing solutions in Vietnam? Contact our expert team today for a tailored consultation!

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Textile Sourcing in Vietnam: A Hub for Apparel and Fabric Production

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For global fashion brands, retailers, and businesses in the garment industry, textile sourcing in Vietnam has become an increasingly attractive and strategic choice. Vietnam has solidified its position as a global powerhouse in the textile and apparel sector, offering a compelling combination of skilled labor, modern infrastructure, and a growing capacity for high-quality apparel manufacturing in Vietnam and diverse fabric suppliers in Vietnam.

Why Vietnam Excels in Textile and Apparel Manufacturing

Vietnam’s rise in the global textile industry is due to several key factors:

  • Skilled Workforce: Decades of experience have cultivated a highly skilled and adaptable workforce in garment production, capable of producing a wide range of apparel, from intricate haute couture to high-volume casual wear.
  • Competitive Pricing: While labor costs are rising, Vietnam still offers competitive pricing compared to some traditional manufacturing hubs, making it an attractive option for cost-conscious buyers.
  • Free Trade Agreements (FTAs): Vietnam is a signatory to numerous FTAs, including the EVFTA (with Europe) and CPTPP (Trans-Pacific Partnership). These agreements provide preferential tariffs, often duty-free access, to major consumer markets, significantly enhancing cost-effectiveness for importers.
  • Vertical Integration: There’s a growing trend towards vertical integration, with increasing numbers of fabric suppliers in Vietnam and ancillary industries supporting local garment production, reducing reliance on imported materials and shortening lead times.
  • Commitment to Sustainability: Many Vietnamese textile factories are investing in sustainable practices, appealing to brands with strong ESG (Environmental, Social, Governance) commitments.
  • Diverse Product Range: From woven and knitted fabrics to technical textiles, activewear, denim, outerwear, and formal wear, Vietnam’s apparel manufacturing in Vietnam capabilities are incredibly diverse.

However, navigating this vast landscape to find the perfect manufacturing partner, ensuring quality, and managing production can be challenging without local expertise.

Our Expertise in Textile Sourcing in Vietnam

Our company specializes in connecting international buyers with the most suitable and reliable partners for textile sourcing in Vietnam. We understand the nuances of the apparel and fabric industry, and our on-the-ground team ensures a smooth, transparent, and successful sourcing journey from concept to delivery.

Our comprehensive services for apparel manufacturing in Vietnam include:

  • Supplier Identification & Vetting: We meticulously identify and vet fabric suppliers in Vietnam and garment factories based on your specific requirements (e.g., product type, fabric composition, quality standards, production capacity, certifications like BSCI, WRAP, OEKO-TEX). We ensure they meet international compliance and ethical standards.
  • Material Sourcing: We assist in sourcing specific fabrics, trims, and accessories, connecting you with reliable fabric suppliers in Vietnam or facilitating import if needed.
  • Sample Development & Approval: We manage the sampling process, ensuring prototypes and pre-production samples meet your design specifications and quality expectations before mass production.
  • Production Monitoring: Our team conducts regular factory visits and in-line inspections to monitor production progress, ensure quality consistency, and address any issues proactively. This is crucial for maintaining deadlines and quality for apparel manufacturing in Vietnam.
  • Quality Control & Assurance: We implement rigorous quality checks at various stages, from fabric inspection to final garment inspection, ensuring your products meet your standards and international benchmarks.
  • Logistics & Export Management: We handle all aspects of logistics, including local transportation, warehousing, customs clearance, and international shipping, ensuring timely and efficient delivery of your finished goods.
  • Ethical & Sustainable Practices: We prioritize working with factories that demonstrate a commitment to fair labor practices and environmental responsibility, helping you build an ethical and sustainable supply chain.

Unlock the Potential of Vietnamese Textiles

By partnering with us, you gain a strategic advantage in textile sourcing in Vietnam. We simplify the complexities, mitigate risks, and help you unlock the full potential of Vietnam’s thriving garment and fabric industry. Whether you’re a burgeoning fashion startup or an established global brand, we are committed to helping you produce high-quality apparel efficiently and ethically.

Explore the immense opportunities in apparel manufacturing in Vietnam and connect with trusted fabric suppliers in Vietnam. Contact us today to discuss your textile sourcing needs and discover how we can be your reliable partner in this dynamic market.


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Custom Manufacturing in Vietnam: Bringing Your Product Ideas to Life

Posted on by PRIMO

Do you have a unique product idea that requires specialized production? Custom manufacturing in Vietnam offers an exceptional pathway to transform your concepts into tangible, market-ready products. With a rapidly evolving industrial landscape, a skilled workforce, and increasing technological capabilities, Vietnam has become a prime destination for businesses seeking high-quality OEM manufacturing in Vietnam and robust product development in Vietnamsupport.

The Power of Custom Manufacturing

Unlike off-the-shelf sourcing, custom manufacturing allows you to have complete control over design, materials, and features, creating a product that perfectly aligns with your brand vision and market niche. Vietnam’s factories are increasingly equipped to handle complex and bespoke orders across a wide range of industries, including:

  • Fashion & Apparel: Custom garments, bags, and accessories.
  • Furniture & Home Goods: Bespoke designs, specific material requirements.
  • Electronics & Components: Custom PCBs, casings, and specialized assemblies.
  • Industrial Parts: Precision components manufactured to exact specifications.

However, engaging in custom manufacturing in Vietnam can be intricate. It requires clear communication, meticulous design adherence, rigorous quality control at every stage, and a deep understanding of manufacturing processes. Without a knowledgeable partner, challenges such as misinterpretations of design files, material inconsistencies, or production delays can easily arise.

Our Expertise in Custom Manufacturing Vietnam

Our company specializes in bridging the gap between your innovative product ideas and the manufacturing capabilities of Vietnam. We provide end-to-end support for custom manufacturing in Vietnam, guiding you through every phase from initial concept to final production, ensuring your vision is realized with precision and efficiency.

Our comprehensive services for product development in Vietnam and custom manufacturing include:

  • Design & Engineering Review: We meticulously review your CAD files, blueprints, and specifications to ensure they are production-ready. We can provide feedback on design for manufacturability (DFM) to optimize the production process and reduce costs.
  • Material Sourcing & Prototyping: We identify and source the exact materials you need, ensuring quality and compliance. We then facilitate the creation of prototypes, allowing you to test and refine your product before mass production. This is a critical step in product development in Vietnam.
  • Factory Selection & Auditing: Based on your custom requirements, we identify and audit specialized factories with proven experience in your specific product type and manufacturing process (e.g., injection molding, CNC machining, cut-and-sew). We verify their equipment, expertise, and quality control systems for OEM manufacturing in Vietnam.
  • Production Management: Our on-the-ground team closely monitors every stage of production, from tool creation and material procurement to assembly and finishing. We ensure that your specifications are strictly followed and production schedules are met.
  • Quality Control & Inspection: For custom products, quality control is paramount. We implement multi-stage inspections (pre-production, in-line, pre-shipment) to ensure every unit meets your exact design and quality standards.
  • Intellectual Property Protection: We help implement measures to protect your design and intellectual property throughout the manufacturing process.
  • Logistics & Fulfillment: We manage the entire logistics process, from factory to your warehouse, handling customs, shipping, and delivery efficiently.

Your Partner in Innovation and Production

By partnering with us for custom manufacturing in Vietnam, you gain a dedicated team that understands the nuances of bespoke production. We transform complex ideas into high-quality, market-ready products, minimizing risks and maximizing efficiency. Whether you require OEM manufacturing in Vietnam for an existing product or full-scale product development in Vietnam for a new invention, we are your trusted guide.

Don’t let the complexities of custom manufacturing hold back your innovation. Let us help you bring your unique product ideas to life with precision and reliability. Contact us today to discuss your custom manufacturing project and discover how we can be your strategic partner in Vietnam.


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Sustainable Sourcing in Vietnam: Building Ethical Supply Chains

Posted on by PRIMO

As global consumers and regulations increasingly demand accountability, sustainable sourcing in Vietnam is no longer just a trend – it’s a fundamental business imperative. Companies worldwide are recognizing the importance of establishing supply chains that are not only efficient and cost-effective but also ethical and environmentally responsible. Vietnam, with its rapidly expanding manufacturing sector, offers immense opportunities for businesses committed to building ethical supply chains that align with global sustainability standards.

The Growing Importance of Ethical Manufacturing in Vietnam

The focus on sustainability encompasses various aspects, from fair labor practices and safe working conditions to environmental protection and resource management. For foreign companies sourcing from Vietnam, embracing ethical manufacturing in Vietnam means:

  • Enhanced Brand Reputation: Demonstrating a commitment to social and environmental responsibility resonates positively with consumers and stakeholders.
  • Risk Mitigation: Avoiding issues like forced labor, child labor, or environmental violations, which can lead to severe reputational damage, legal penalties, and boycotts.
  • Regulatory Compliance: Meeting increasingly stringent international and local regulations concerning labor, safety, and environmental impact.
  • Investor Confidence: Attracting environmentally and socially conscious investors who prioritize sustainable business practices.
  • Improved Employee Morale: Workers are more productive and loyal in ethical and safe working environments.

While many Vietnamese factories are adopting sustainable practices, identifying and verifying their commitment can be challenging for foreign buyers without a local presence.

Our Commitment to Sustainable Sourcing in Vietnam

Our company is deeply committed to fostering sustainable sourcing in Vietnam. We believe that profitability and responsibility can, and should, go hand in hand. Our services are designed to help you build ethical supply chains that not only meet your business objectives but also uphold the highest standards of social and environmental integrity.

Our comprehensive approach to ethical manufacturing in Vietnam includes:

  • Supplier Vetting for Compliance: Beyond production capabilities and quality, we meticulously vet potential suppliers for their adherence to ethical labor practices (e.g., no child labor, fair wages, reasonable working hours, safe conditions) and environmental standards. We look for factories with relevant certifications (e.g., BSCI, SEDEX, WRAP, SA8000).
  • Environmental Impact Assessment: We work with factories to understand their environmental footprint, including energy consumption, water usage, waste management, and pollution control measures. We encourage the adoption of greener manufacturing processes and technologies.
  • Code of Conduct Implementation: We help establish and enforce a clear Supplier Code of Conduct that outlines your expectations regarding social, ethical, and environmental performance.
  • Regular Audits and Monitoring: Our local team conducts unannounced and announced audits to ensure ongoing compliance with your code of conduct and international sustainability benchmarks. We provide transparent reports on factory performance and identify areas for improvement.
  • Promoting Eco-Friendly Sourcing: We actively seek out manufacturers utilizing sustainable materials (e.g., organic cotton, recycled plastics, bamboo), renewable energy sources, and environmentally friendly production techniques to facilitate eco-friendly sourcing in Vietnam.
  • Capacity Building: Where necessary, we work with factories to identify gaps in their sustainability practices and recommend resources or training to help them improve.

Partnering for a Responsible Future

By partnering with us for sustainable sourcing in Vietnam, you gain more than just a service provider; you gain a dedicated advocate for responsible manufacturing. We empower you to make informed decisions that benefit your business, your customers, and the planet. Our expertise in navigating the nuances of ethical manufacturing in Vietnamallows you to build a supply chain that reflects your values and reinforces your brand’s commitment to a better future.

Join us in building ethical supply chains in Vietnam. Contact us today to learn how our comprehensive sustainable sourcing solutions can help your business achieve its environmental and social responsibility goals while delivering high-quality products.


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