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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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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Custom Manufacturing in Vietnam: Bringing Your Product Ideas to Life

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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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Cost-Effective Sourcing from Vietnam: Maximizing Your Margins

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In the competitive global marketplace, every dollar saved on production directly impacts your bottom line. Cost-effective Vietnam sourcing is not just a buzzword; it’s a strategic imperative for businesses looking to enhance their profitability without compromising on quality. Vietnam offers a compelling blend of competitive labor costs, growing manufacturing capabilities, and favorable trade agreements, making it an ideal destination to reduce sourcing costs in Vietnam and achieve truly competitive pricing in Vietnam.

The Opportunity for Cost Savings in Vietnam

Vietnam has rapidly emerged as a preferred sourcing destination due to several inherent advantages that contribute to lower production costs:

  • Competitive Labor Costs: While rising, labor costs in Vietnam remain significantly lower than in many developed nations, offering a distinct advantage in labor-intensive industries.
  • Favorable Trade Agreements: Vietnam is a signatory to numerous free trade agreements (FTAs), including the CPTPP, EVFTA, and RCEP. These agreements often provide preferential tariffs or duty-free access to major markets, directly reducing import costs for buyers.
  • Developing Infrastructure: Ongoing investments in ports, roads, and industrial zones are improving logistics efficiency, further contributing to overall cost savings in the supply chain.
  • Diverse Manufacturing Base: The sheer breadth of industries, from textiles and furniture to electronics and plastics, allows for a wide array of options to find manufacturers that fit specific budget requirements.

However, simply choosing Vietnam doesn’t automatically guarantee the lowest price. Without local expertise, foreign businesses can miss out on significant savings due to a lack of negotiation power, insufficient market knowledge, or unforeseen logistical expenses.

Our Strategy for Cost-Effective Vietnam Sourcing

Our company specializes in helping international businesses truly reduce sourcing costs in Vietnam while maintaining high quality standards. We leverage our extensive network, local market insights, and negotiation prowess to ensure you achieve the most competitive pricing in Vietnam for your products.

Our approach to maximizing your margins includes:

  • Strategic Supplier Selection: We don’t just find the cheapest supplier; we identify manufacturers who offer the best value – a balance of competitive pricing, consistent quality, and reliable delivery. Our comprehensive vetting process ensures long-term cost-effectiveness by avoiding future quality issues or delays.
  • Expert Price Negotiation: Our experienced local team understands the Vietnamese market dynamics and factory costing structures. We engage in robust negotiations on your behalf, pushing for optimal pricing and favorable payment terms that directly contribute to your savings. We aim to secure the best possible deal without compromising supplier relationships.
  • Optimizing Production Efficiency: We work with manufacturers to identify areas for production efficiency, which can lead to lower per-unit costs. This might involve suggesting improvements in material utilization or assembly processes.
  • Consolidation and Logistics Optimization: For clients sourcing multiple components or products, we can explore options for consolidating shipments to reduce freight costs. Our expertise in Vietnam logistics ensures the most cost-effective and efficient shipping routes are chosen.
  • Tariff and Duty Minimization: By understanding the nuances of various free trade agreements, we help clients leverage preferential tariffs wherever possible, significantly lowering landed costs.
  • Risk Mitigation: Preventing quality defects, production delays, and shipping errors is a crucial part of cost-effectiveness. Our rigorous quality control and project management minimize costly rework or re-shipments.

Maximizing Your Profitability with Competitive Pricing in Vietnam

By partnering with us, you gain a powerful advantage in achieving cost-effective Vietnam sourcing. We act as your dedicated cost-saving department on the ground, meticulously analyzing every aspect of your sourcing process to identify and capitalize on opportunities for savings. Our commitment is to help you secure the competitive pricing in Vietnamthat elevates your profit margins and strengthens your market position.

Don’t leave potential savings on the table. Discover how our expertise can transform your sourcing strategy into a more profitable venture. Contact us today to discuss your needs and unlock the full potential of cost-effective Vietnam sourcing for your business.

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Top 5 Regions in Vietnam for Sourcing Clothes & Apparel

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Top 5 Apparel Sourcing Hubs in Vietnam

Vietnam continues to gain traction as a key apparel export hub, offering competitive pricing, improving quality, and streamlined supply chains. Choosing the right sourcing region is pivotal for international buyers—whether you need high-volume production, customizable lines, or sustainable manufacturing.


1. Ho Chi Minh City (HCMC)

HCMC serves as the commercial nucleus of southern Vietnam and is a major center for clothing production and export logistics. It is home to a dense network of Vietnam apparel manufacturers, ranging from large contract facilities to boutique firms. The city’s proximity to major shipping infrastructure—including the Saigon Port and Tan Son Nhat International Airport—makes it a highly efficient base for fast turnaround sourcing. HCMC is especially ideal for buyers looking for scalable production combined with convenient logistics and access to Vietnam clothes suppliers in adjacent areas.


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2. Binh Duong & Dong Nai

The two provinces are located just north of HCMC, are recognized as Vietnam’s industrial powerhouses. These provinces host significant investments from major international brands, with Binh Duong accommodating key Nike and H&M production facilities. Đồng Nai, in particular, continues to attract high levels of foreign direct investment due to its favorable policies and access to skilled labor. For high-volume buyers in search of full-package manufacturing, OEM/ODM services, and efficient infrastructure, these areas offer some of the most advanced Vietnam clothing manufacturer networks in the country.


3. Da Nang & Central Vietnam

This area is emerging as strategic locations for brands focusing on sustainability and mid-volume production. The city’s rising industrial parks cater to clothing and accessories manufacturing, with a growing emphasis on green practices and risk-diversified sourcing. Da Nang also serves as a logistical midpoint between North and South Vietnam, making it attractive to companies aiming for regionally balanced production footprints. It’s an increasingly popular destination for international buyers seeking partnerships with Vietnam clothing manufacturers that prioritize sustainable development and flexible production capabilities.

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4. Hanoi & its surrounding provinces

Hanoi, as the capital of Vietnam, is a significant economic and industrial hub in the northern region, offering a diverse landscape for product sourcing and factory visits for new buyers.

Key Industries and Product Categories for Sourcing:

Hanoi and its surrounding areas are strong in various manufacturing sectors, including:

  • Electronics and Electrical Equipment
  • Textiles, Garments, and Footwear
  • Mechanical and Manufacturing
  • Furniture and Woodcrafts
  • Packaging Materials
  • Consumer Goods and Light Industry
  • Agricultural Products
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5. Thai Binh & Nam Dinh

Two northern provinces stand out as traditional textile strongholds. These provinces are known for their expertise in fabric production, weaving, and dyeing—foundational stages in the apparel supply chain. Nam Dinh, in particular, is advancing toward large-scale vertical way. Thai Binh is also home to WRAP-certified garment factories, further supporting ethical sourcing options. These regions are especially suitable for buyers interested in integrated supply chains—from fabric sourcing to final garment manufacturing—and traditional textile craftsmanship.integration, with projects like the $200 million Rang Dong Textile Industrial Park leading the

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Cost, Lead Time & Logistics

1. Geographic efficiency:

Southern regions (HCMC area, Binh Duong, Đồng Nai) provide easy access to ports like Phu My & HCMC—shorter shipping routes.

 

Northern textile centers require longer inland transport to Hai Phong port, impacting timelines.

2. Infrastructure quality:

HCMC and its satellites offer developed highways, railways, integrated logistics; northern investments are advancing but vary by province.

  

Vietnam offers a diverse, regionalized apparel sourcing ecosystem—from high-volume OEM regions in the South, to fabric-specialist hubs in the North, and sustainable niche centers in the Central region. Choosing the right region allows buyers to align capacity, cost, compliance, and brand strategy effectively. A strategically regional sourcing approach ensures stronger supplier partnerships, delivery efficiency, and long-term value from Vietnam clothing manufacturers and apparel suppliers.



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Vietnam’s Export Outlook Mid-2025: Key Opportunities for Global Buyers

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Vietnam’s Export Outlook Mid-2025: Key Opportunities for Global Buyers

Vietnam is emerging as a resilient and competitive export powerhouse in mid2025. Amid global supply chain realignments and shifting trade strategies, the country’s export performance has accelerated, making it an increasingly attractive sourcing destination for international buyers.

Multinational companies like Apple, Nike, and Intel are actively shifting their production to Vietnam. For example, Apple aims to produce two-thirds of its AirPods in Vietnam by the end of 2025, while Nike already manufactures over half of its global footwear output there. These developments highlight Vietnam’s growing depth in manufacturing capabilities and the rising credibility of Vietnam suppliers in global value chains.


Vietnam’s Export Highlights (First Half 2025)

Vietnam’s export sector has seen remarkable growth in the first half of 2025 (H1 2025):


May 2025 alone recorded a 17% year-on-year (YoY) increase in exports, reaching $39.6 billion, with imports at $39 billion, nearly achieving a balanced trade account.


From January to May, total export turnover rose by approximately $22 billion compared to the same period in 2024—an impressive 14% YoY growth, bringing the total to nearly $180 billion.

This surge is supported by improved industrial output (+9.4% YoY), and a 51% increase in foreign direct investment (FDI), amounting to $18.4 billion, particularly in high-tech manufacturing zones.


Key Sectors Offering Opportunity

FMCG & Agri-Products

Vietnam’s fast-moving consumer goods (FMCG) segment is booming, driven by rising domestic consumption and growing demand from major export partners like the U.S. and China. In Q2 2025, Vietnam signed over $2 billion in U.S. agricultural and FMCG deals, enhancing opportunities for FMCG Vietnam wholesale suppliers. Key products include packaged foods, beverages, rice, coffee, and processed seafood.

Apparel & Textiles

Vietnam’s textile and garment exports rebounded in early 2025:

 

– The sector reached $15 billion in exports (January–May), up 12% YoY.

 

– Major markets include the U.S., EU, and Japan, though upcoming U.S. tariff reviews may pose short-term challenges.
This sector remains critical for Vietnam manufacturing, supported by a wide range of Vietnam clothing manufacturers and fabric suppliers.


Buyer Insights: What to Watch in H2 2025

1. Trade Politics & Tariff Decisions

The U.S. is currently reviewing trade policies that could impose up to 46% tariffs on Vietnamese goods, with decisions expected by July. These negotiations reflect broader geopolitical concerns, including alleged transshipment of Chinese products via Vietnam. Buyers should monitor updates closely to assess the impact on cost structures.

2. Infrastructure & Financial Reforms

Vietnam is investing in transforming Ho Chi Minh City and Da Nang into international financial centers, aimed at attracting foreign capital and streamlining forex operations. This move will improve financing options for exporters and help international buyers engage more efficiently with Vietnam suppliers.

  1. Global Demand & Market Diversification

While global demand growth may slow in some sectors, Vietnam’s aggressive expansion of free trade agreements (FTAs) — including the CPTPP, EVFTA, and RCEP — is helping unlock new markets across Latin America, the Middle East, and South Asia. These deals give buyers access to tariff reductions and diversified sourcing channels.


How to Tap Into Vietnam’s Export Market

To leverage Vietnam’s export growth, international buyers should:

 

– Align with FTA-compliant Vietnam suppliers to access tariff savings.

 

– Vet supply chains carefully to ensure local value-added content and avoid regulatory risks tied to transshipment.

 

– Engage early with FMCG Vietnam wholesale providers and contract manufacturers to secure pricing and capacity.

 

– Stay informed on trade negotiations, FTA expansions, and infrastructure reforms that affect sourcing conditions.

 

 

Vietnam is rapidly rising as a preferred sourcing destination for global buyers across electronics, apparel, and FMCG sectors. Its robust export growth, supportive trade agreements, and increasing manufacturing capacity signal long-term promise. Whether you’re exploring Vietnam manufacturing for high-volume production or partnering with agile Vietnam suppliers in consumer goods, 2025 presents a timely window of opportunity to deepen supply chain ties with this fast-evolving market.


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Navigating the Vietnamese Sourcing Landscape: A Comprehensive Guide for International Buyers

Posted on by Jennie

Vietnam has rapidly emerged as a powerhouse in global manufacturing and a highly attractive destination for international sourcing. Beyond its impressive export growth across diverse sectors, as highlighted by recent figures showing seven key product categories exceeding 5 billion USD in export value in just five months (including electronics, textiles, footwear, and wood products), the country offers a dynamic environment for businesses seeking to diversify their supply chains. This article delves into the essential aspects of sourcing in Vietnam, from finding suppliers to mastering supply chain management and ensuring robust quality control.

Why Source in Vietnam?

The appeal of international sourcing in Vietnam is multifaceted:

  • Competitive Pricing: Lower labor and production costs compared to some other Asian manufacturing hubs make Vietnam a cost-effective choice.
  • Skilled Workforce: A young, dynamic, and adaptable labor force ensures a continuous supply of skilled workers.
  • Favorable Trade Agreements: Vietnam’s participation in agreements like the CPTPP and EVFTA provides preferential access to major global markets.
  • Strategic Location and Stability: Its geographical position and stable political environment contribute to a reliable business climate.
  • “China Plus One” Strategy: Many companies are increasingly looking to Vietnam to diversify their manufacturing bases, enhancing supply chain resilience.

Finding Suppliers in Vietnam

Finding suppliers in Vietnam requires a strategic approach, as not all Vietnamese factories have a robust online presence. Here are effective channels:

  • Online B2B Platforms: While primarily focused on Chinese manufacturers, platforms like Alibaba.com/vn and Globalsources.com/manufacturers/Vietnam list Vietnamese suppliers.
  • Sourcing Companies/Buying Offices: Engaging a local sourcing partner or buying office can be instrumental. These entities act as liaisons, providing on-the-ground support, navigating cultural nuances, and ensuring transparent transactions from sourcing to shipment. They can help define product specifications, evaluate suppliers, and manage the entire procurement process.
  • Trade Shows: Attending trade shows in major cities like Ho Chi Minh City and Hanoi is an excellent way to meet factory representatives face-to-face, assess capabilities, and gather quotations. Key events include Vietnam International Sourcing, Global Sourcing Fair Vietnam, and specialized shows for textiles, furniture, and electronics.
  • Government and Industry Associations: Official government databases, commercial chambers of commerce, and associations related to specific product types can provide lists of verified manufacturers.
  • Personal Referrals and Networking: Leveraging existing connections and participating in networking events can also lead to reliable partners.

When approaching potential suppliers, be clear and direct with product specifications, unit price, MOQ requirements, sample costs, production times, and factory location. Inquire about their acceptance of third-party quality inspections.

Supply Chain Management in Vietnam

Effective supply chain management in Vietnam is crucial for seamless operations. While the country’s infrastructure is developing, challenges can arise. Key aspects include:

  • Logistics and Infrastructure: The government is investing heavily in improving ports and transportation networks (e.g., North-South Expressway, Long Thanh Airport) to enhance connectivity and efficiency. However, careful planning is still needed, especially for complex supply chains.
  • Digital Transformation: The Vietnamese logistics sector is embracing technologies like AI-driven forecasting, blockchain for customs processes, and IoT tracking solutions to streamline operations, reduce clearance times, and improve transparency.
  • Optimizing Processes: Digitalization of information and work processes is essential for efficiency and waste reduction. Coordinating information between departments ensures smooth production stages.
  • Risk Management: Developing robust risk management strategies is vital to address potential disruptions, especially given regional manufacturing practice variations and an evolving regulatory landscape.
  • Local Partnerships: Collaborating with local logistics providers leverages their knowledge and networks to navigate the market effectively.

Quality Control in Vietnam

Maintaining high standards through stringent quality control is paramount for products destined for international markets. This is not just a regulatory requirement but a strategic imperative to build trust and reliability.

  • Third-Party Inspection Services: Engaging independent quality control companies is highly recommended. These firms offer comprehensive services across all major production regions in Vietnam, including:
    • Product Inspections:
      • Initial Production Check (IPC): Inspection of raw materials and initial production runs.
      • During Production Inspection (DUPRO): Checks performed when 30-50% of goods are produced to catch issues early.
      • Pre-Shipment Inspection (PSI): Final evaluation of product quality, packaging, and labeling before shipment.
      • Container Loading Check (CLC): Verification of count, proper loading, and container sealing.
    • Supplier Audits: Assessing production capabilities, quality management systems (e.g., ISO 9001), ethical standards (e.g., SA 8000), environmental compliance, and structural integrity of factories.
    • Lab Testing: Accredited labs offer testing services for various consumer products to ensure compliance with international safety and quality standards (e.g., CPSC for the U.S. market).
  • Compliance with International Standards: Adhering to international quality standards (like ISO certifications) ensures products meet global benchmarks for safety, quality, and performance.
  • Supplier Management: Establishing strong relationships with suppliers, providing training, and conducting regular performance evaluations are crucial to ensuring consistent quality.

Conclusion

Vietnam’s growing role in global trade, supported by strategic economic policies, technological advancements, and a focus on sustainability, makes it an increasingly vital player in the global supply chain. By understanding the intricacies of sourcing, diligently finding suppliers, implementing effective supply chain management, and prioritizing rigorous quality control, international businesses can unlock significant opportunities and build resilient, high-quality manufacturing operations in Vietnam.

Ready to streamline your sourcing and ensure product excellence? Contact PRIMO team today to get started with your sourcing requests in Vietnam and confidently navigate the global market.

By Primo team

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