Beyond CMT: Why Modern Garment Manufacturing Only Speaks the Language of FOB

Posted on by Jennie

For decades, Cut, Make, and Trim (CMT) was the foundational model for global garment manufacturing. It was simple: the brand provided the materials, and the factory provided the labor. But the industry has matured. Today, relying on CMT pricing is not only inefficient but often impossible, as leading manufacturers have overwhelmingly transitioned to the Full Package (FP) model, priced exclusively as FOB.

Brands that still approach sourcing with a CMT mindset are missing out on favorable terms and struggling to secure reliable partners. PRIMO Sourcing guides businesses through this modern reality, ensuring your strategy aligns with today’s sophisticated global supply chain.

The Evolution: Why Factories Ditched CMT

To understand why the CMT model is obsolete, you must understand the risk it placed on the factory:

What CMT (Cut, Make, and Trim) Was

CMT meant the brand (buyer) handled the entire material supply chain—sourcing the fabric, zippers, buttons, labels, and thread—and shipped them to the factory. The factory’s price covered only the service: Cutting the fabric, Making the garment, and applying Trims.

The Problem for Modern Factories

Factories realized that CMT offered excessively narrow profit margins (only charging for labor/overhead) while exposing them to massive operational risks:

  1. Risk of Delay: If the brand’s materials arrived late, the factory floor sat idle, losing money. The factory, not the brand, absorbed the cost of downtime.
  2. No Purchasing Power: The factory had no incentive to source the best materials or negotiate bulk pricing since the brand handled procurement.
  3. Limited Growth: CMT limits the factory to being a low-margin labor provider rather than a full-service manufacturing partner.

As factories grew, gained global sourcing expertise, and secured better financing, they transitioned to the Full Package (FP) model, which incorporates the material supply chain and is priced using the FOB term.

Decoding the New Standard: What is FOB Price in Garment Manufacturing?

The modern standard for apparel sourcing is the FOB price.

FOB (Free On Board) Definition

FOB is a shipping term (Incoterm) that defines when the liability and ownership of goods transfer from the seller (factory) to the buyer (brand).

In garment manufacturing, the FOB price is the Full Package unit price that the buyer pays the factory for the completed product.

What the FOB Price Includes

The FOB price represents the total cost of the finished garment, delivered to the port of origin, and ready to be loaded onto the shipping vessel.

ComponentResponsibilityIncluded in FOB Price?
Material CostFactory sources and pays for all fabric, trims, and accessories.YES
CMT CostLabor, machinery, and production management.YES
Factory Profit & OverheadFactory’s margin and running expenses.YES
Local LogisticsTransport from factory to port, export documentation, and local loading fees.YES

Under FOB, the factory manages the entire supply chain risk up to the port. If a fabric shipment is late, the factory (seller) is financially penalized, ensuring they maintain tight control over the schedule.

The PRIMO Advantage: Mastering the Full Package Model

While FOB simplifies logistics and transfers risk to the factory, it introduces a new challenge for the brand: losing direct control over material quality.

This is where PRIMO Sourcing provides essential protection:

  1. Material Verification: We don’t assume the factory sources the correct fabric. We implement rigorous checks on their material suppliers, ensuring the raw goods meet your original quality and compliance specifications.
  2. Continuous Quality Control: We utilize real-time factory floor monitoring and stage-gate inspections (from pre-production to mid-production) to ensure the factory’s execution of the Cut, Make, and Trim process is flawless.
  3. Risk Mitigation: We ensure your Full Package agreement includes strong defect remediation and penalty clauses based on the FOB Incoterm, guaranteeing recourse if quality or deadlines are missed.

The future of apparel sourcing is the FOB Full Package model. Partner with PRIMO Sourcing to gain the expertise needed to manage this complexity, minimize risk, and secure a true competitive advantage.

Contact PRIMO Sourcing Today at Kelly@primovn.com to elevate your garment manufacturing strategy.

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The Definitive Guide to Sourcing Bedding Manufacturers in Vietnam: Quality, Cost, and Compliance in Home Textile Manufacturing

Posted on by Jennie

The global bedding and home textiles market demands a manufacturing partner who can deliver sophisticated products without compromising on cost or quality. Vietnam has rapidly evolved into that partner, solidifying its position as the world’s most strategic destination for bedding manufacturing.

For brands seeking to diversify their supply chain, launch direct-to-consumer lines, or secure high thread count linens for the hospitality sector, understanding the Vietnamese landscape is essential.

PRIMO Sourcing has compiled this comprehensive guide to help you find and partner with the best bedding factories in Vietnam, ensuring quality, compliance, and competitive pricing.

The Vietnam Advantage: Why Bedding Sourcing is Shifting

Vietnam’s rise in the textile sector is no accident. It’s built on a strategic combination of economic advantages and deep industrial expertise, positioning it as a powerful alternative to traditional hubs like China and India.

Competitive EdgeImpact on Bedding Sourcing
Cost CompetitivenessLabor costs remain significantly lower than in China, offering substantial margin improvements for finished home textile manufacturing.
Textile ExpertiseGenerations of knowledge, particularly in techniques like quilting and embroidery, ensure meticulous detail and superior finishing quality.
Advanced Material ProcessingVietnam excels in working with specialized fibers, from premium long-staple cotton to sustainable options like Bamboo Fiber Bedding and Organic Cotton Bedding.
Strategic Trade AgreementsFavorable agreements (CPTPP, EU trade deals) reduce import duties, making Vietnamese-manufactured bedding highly competitive in key Western markets.
Commitment to SustainabilityMany Vietnam textile manufacturing facilities invest in eco-certifications and closed-loop systems, meeting growing consumer demand for ethical and green products.

Product Deep Dive: Types of Bedding Made in Vietnam

Vietnamese manufacturers boast a versatile production capability, catering to every segment from budget-friendly microfiber to bespoke luxury lines.

Core Bedding & Linens

  • Sheets & Pillowcases: Standard cotton (Percale, Sateen), specialized fabrics like Linen, Bamboo Fiber, Microfiber, and blended materials.
  • Comforters & Duvets: Natural fill (Down-filled), synthetic fibers, and Eco-friendly bedding options made from recycled materials.
  • Blankets & Quilts: Lightweight blankets, thermal/fleece, and traditionally crafted patchwork quilts.

Specialty & Hospitality Focus

  • Luxury & High-End: Custom branded collections and high thread count linens (400-1000+) designed for hotels and resorts.
  • Protection: Waterproof mattress protectors and dust-mite resistant covers.
  • Sleep Comfort: Standard pillows (cotton, foam) and orthopedic/ergonomic specialty pillows.

Strategic Sourcing: Navigating Vietnam’s Manufacturing Hubs

To successfully source, you must match your product requirements and volume needs to the correct geographic cluster.

1. Southern Vietnam (Ho Chi Minh City, Binh Duong, Dong Nai)

  • Specialty: High-Volume Production and large-scale manufacturing.
  • Why Source Here: This is Vietnam’s largest textile manufacturing cluster, featuring modern equipment and efficient logistics due to proximity to major ports. Ideal for international brands requiring vast quantities and reliable delivery schedules.

2. Northern Vietnam (Hanoi, Hai Phong, Thai Binh)

  • Specialty: Quilting and Craftsmanship.
  • Why Source Here: This region leverages traditional textile expertise, excelling in intricate comforter production, custom work, and smaller, specialized batches. Factories here often have strong capabilities in cotton processing and handling specialized down/feather components.

3. Central Vietnam (Da Nang, Hue)

  • Specialty: Sustainability and Innovation.
  • Why Source Here: The emerging hub, often featuring newer facilities built with advanced environmental controls. Manufacturers here frequently focus on niche markets and specialty materials, including advanced processing of organic cotton and bamboo textiles.

PRIMO’s Playbook: Mastering Sourcing Challenges

Success in Sourcing Bedding from Vietnam depends on anticipating and mitigating common supply chain risks.

ChallengePRIMO Sourcing Solution
High MOQs (Minimum Order Quantities)We negotiate MOQs by finding manufacturers who utilize standardized material platforms or by grouping production runs to achieve necessary efficiencies.
Lead Time ManagementWe enforce a rigorous production calendar, building in necessary buffers around peak seasons (especially Tet holiday) and managing material procurement deadlines to prevent costly delays.
Quality ConsistencyColor matching and fabric hand-feel are critical in bedding. We establish clear technical specifications (TDS) and implement mandatory third-party quality control inspections on all initial and large orders.
Communication & CultureOur local team bridges language gaps and understands the importance of building stable, long-term relationships with factory management—the key to smooth operations and favorable terms in Vietnam.

Elevate Your Supply Chain: Partner with PRIMO Sourcing for Manufacturing Excellence

Don’t let the complexity of international sourcing slow your business growth. PRIMO Sourcing specializes in connecting global brands with vetted bedding manufacturers in Vietnam, matching your specific needs for volume, quality, and material specialization.

From factory auditing and negotiation support to complete quality control and logistics, we manage the entire process, allowing you to focus on your brand’s success.

Ready to launch your next high-quality bedding line from Vietnam?

Contact PRIMO Sourcing Today at Alice@primovn.com for a tailored manufacturing partner search.

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Global Demand Trend for Furniture: Opportunities for Exporters

Posted on by PRIMO

In recent years, the global furniture market has witnessed strong growth, driven by changing lifestyles, evolving consumer preferences, and the rapid rise of e-commerce. For exporters, especially from countries like Vietnam, understanding these trends is essential to identify new opportunities and maintain competitiveness.

1. Growing Market Size

According to industry reports, the global furniture market is projected to reach over USD 700 billion by 2030, with a steady annual growth rate. The largest importing markets include the United States, European Union, Japan, and South Korea, which together account for the majority of global furniture consumption.

This increasing demand opens doors for exporters who can provide high-quality, well-designed, and competitively priced products.

2. Consumer Preferences and Lifestyle Shifts

  • Minimalism & Japandi Style: Clean lines, neutral colors, and functional design are highly popular in Western markets.

  • Sustainable Furniture: Eco-friendly, FSC-certified wood and recycled materials are becoming purchasing priorities.

  • Smart Furniture: Integration of technology and multifunctional features is rising in demand for urban living spaces.

Exporters should adapt product designs to these emerging styles to capture international buyers.

3. E-commerce as a Growth Driver

The rise of platforms like Amazon, Wayfair, and Alibaba has transformed the way consumers purchase furniture. Online furniture sales are expected to grow at double-digit rates in the coming years, creating opportunities for exporters who can build a strong digital presence and ensure efficient logistics.

4. Competitive Landscape

China remains the world’s largest furniture exporter, but buyers are increasingly diversifying their supply sources. Countries like Vietnam, Malaysia, Poland, and Indonesia are gaining stronger positions due to cost advantages, skilled labor, and improving supply chain infrastructure.

Vietnam, in particular, is the second-largest wood furniture exporter to the U.S., offering significant opportunities for local manufacturers.

5. Key Opportunities for Exporters

  • Focus on sustainable and certified materials to meet stricter import regulations.

  • Invest in design innovation aligned with global trends.

  • Strengthen e-commerce channels to reach international buyers directly.

  • Leverage free trade agreements (EVFTA, CPTPP, RCEP) to access high-demand markets with preferential tariffs.

The global demand for furniture is evolving rapidly, shaped by sustainability, lifestyle changes, and digital transformation. Exporters who can combine quality production, eco-friendly materials, and innovative design will capture a significant share of this growing market.

For Vietnam’s wood and furniture industry, this is not just an opportunity—it is a moment to strengthen its position as a global leader.

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Vietnam Furniture Exports: Complete Guide to Packaging and International Shipping

Posted on by PRIMO

Vietnam has emerged as a global leader in furniture manufacturing and exports, thanks to its exceptional craftsmanship, competitive pricing, and diverse product offerings. The industry is projected to generate approximately US$1.4 billion in revenue by 2025, with a compound annual growth rate (CAGR) of 2.64% from 2025 to 2029. As international demand continues to rise, proper packaging and shipping practices are essential to ensure furniture arrives at global destinations safely and in pristine condition.

This expert guide explores how to properly package and ship furniture from Vietnam, covering strategies to protect fragile goods and choosing the best shipping options to meet business needs.

Why Packaging Matters in Vietnam’s Furniture Export Industry

Vietnamese furniture, although beautifully made, often includes fragile materials such as glass, fabric, leather, and intricate woodwork. During long-distance international shipping, items can be exposed to various hazards—impact, vibration, moisture, and temperature fluctuations. Without proper packaging, these factors can cause irreversible damage.

Implementing specialized packing techniques and choosing the right shipping solutions not only protects valuable goods but also enhances customer satisfaction and reduces return rates.

Understanding Furniture Fragility: What Are the Risks?

Furniture can vary widely in fragility depending on its materials:

  • Wooden furniture may be strong but is prone to scratches, dents, and moisture-related warping or cracking.

  • Upholstered items are sensitive to compression, stains, mold, and tears.

  • Glass and inlay components are at high risk of breaking or chipping if not properly cushioned.

Risks include:

  • Impact damage during loading and unloading

  • Vibration loosening joints over time

  • Exposure to temperature and humidity changes

  • Mold or mildew in improperly sealed packaging

Effective risk mitigation starts with recognizing these vulnerabilities and tailoring the packing approach accordingly.

Best Packaging Practices for Exporting Furniture from Vietnam

1. Wooden Furniture

  • Wrap individual parts (legs, drawers, arms) in foam or bubble wrap.

  • Use acid-free paper for the initial layer on delicate surfaces to prevent chemical reactions.

  • Reinforce corners with cardboard or foam protectors.

  • Seal the entire unit with stretch wrap to safeguard against dust and minor abrasions.

  • For premium protection, custom wooden crates are recommended—especially for long-haul shipping.

2. Upholstered Furniture

  • Start with a furniture blanket or heavy-duty padding to prevent fabric damage.

  • Cover with a plastic furniture bag to shield from moisture and dust.

  • Add extra padding to exposed features like armrests.

  • Ensure the item is secured in crates or containers without excessive pressure to prevent upholstery compression.

3. Glass-Topped and Delicate Furniture

  • Remove glass elements when possible and pack separately.

  • Wrap glass in multiple layers of bubble wrap and foam sheets, followed by a sturdy cardboard cover.

  • Clearly mark packages with labels like “FRAGILE” and “GLASS.”

  • Use custom foam inserts or wooden crates to prevent movement and collision.

  • For items with delicate inlays, apply additional foam padding over decorative areas.

Choosing the Right Shipping Method for Furniture Exports

Air Freight (Express Shipping)

International express couriers like DHL Express provide fast and secure shipping options ideal for high-value or time-sensitive orders.

Benefits:

  • Fastest delivery times to global markets

  • Minimal handling, reducing the risk of damage

  • Real-time tracking for full shipment visibility

  • More predictable schedules and fewer delays

Sea Freight

A cost-effective option for large or heavy furniture shipments, though it involves longer transit times and potentially more handling.

Key Factors to Consider When Exporting Furniture

When selecting a shipping method for your Vietnamese furniture exports, weigh the following:

  • Transit Time – Is speed or cost more important?

  • Budget – Factor in shipping rates based on size, weight, and urgency.

  • Handling Needs – Choose providers experienced with fragile or bulky items.

  • Destination – Consider the delivery location’s logistics infrastructure.

  • Volume of Goods – Larger shipments may benefit from container consolidation.

Why Partnering with an Expert Logistics Provider Matters

A reliable shipping partner is critical for successful furniture exports. Look for logistics companies that:

  • Specialize in fragile and oversized items

  • Offer custom packaging solutions

  • Navigate international customs and regulations

  • Provide door-to-door shipping with tracking

Professional partners ensure your furniture arrives safely, on time, and in excellent condition—boosting brand reputation and customer trust.

As Vietnam continues to thrive as a global hub for high-quality furniture exports, understanding how to expertly package and ship furniture internationally is more important than ever. With proper techniques, the right materials, and a trusted logistics partner, exporters can ensure their products make the journey overseas safely and efficiently.

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How to Import Furniture from Vietnam to the USA & Canada: A Step-by-Step Guide for Businesses

Posted on by PRIMO

Vietnam has become one of the top global sources for high-quality, competitively priced furniture. From sleek modern designs to handcrafted wooden pieces, Vietnamese furniture is in high demand across North America — especially in the United States and Canada. But for many small to medium-sized businesses (SMBs), the idea of importing internationally can feel overwhelming.

This guide will walk you through the complete process of importing furniture from Vietnam, highlighting key logistics, customs regulations, trade agreements, and how to simplify it all with the help of a digital freight forwarder.

Why Source Furniture from Vietnam?

Vietnam’s furniture industry has experienced tremendous growth thanks to:

  • Skilled craftsmanship and advanced production techniques
  • Abundant timber supply and competitive labor costs
  • Growing commitment to sustainability and certified wood sourcing (FSC)
  • A wide range of styles, including custom-made furniture options

Vietnam is especially known for its solid wood furniture made from rubberwood, acacia, teak, and oak, as well as bamboo and rattan pieces for indoor and outdoor use.

Who’s Involved in the Import Process?

To ensure a smooth import operation, it’s important to understand the main stakeholders involved:

  • You (The Buyer/Importer): A retailer, wholesaler, or designer sourcing goods for sale in the US or Canada.
  • Vietnamese Manufacturer: The factory or supplier producing your furniture.
  • Vietnam Customs: The agency ensuring compliance with export laws.
  • Customs in the US/Canada: National authorities that manage import regulations.
  • Freight Forwarder: Your logistics partner, especially if you choose a digital freight forwarder, who handles shipping, customs, and insurance in one platform.

A digital freight forwarder like Ship4wd can consolidate all logistics services, allowing you to stay focused on business growth.

Understanding Vietnam’s Export Requirements

While your Vietnamese supplier is typically responsible for compliance on the export side, you should ensure they:

  • Register with Vietnam’s Department of Planning and Investment
  • Have proper tax registration and business licenses
  • Provide all required documents such as the Customs Declaration and comply with standards like FSC (for wooden furniture)

Most furniture exports from Vietnam are exempt from export duties, and goods often qualify for 0% VAT when shipped internationally.

Key Trade Agreements

Vietnam has signed several trade agreements beneficial for North American importers:

  • Vietnam–U.S. Bilateral Trade Agreement (BTA)
  • Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

These agreements can offer reduced tariffs and simplified procedures — especially useful when importing furniture.

Choosing the Right Incoterms for Shipping

Incoterms determine who’s responsible for shipping, insurance, and customs duties at different stages of the shipment. Common terms used in furniture imports include:

  • FOB (Free on Board): Seller handles goods until loaded on the ship; buyer takes over from there.
  • EXW (Ex Works): Buyer is responsible from the seller’s factory.
  • DAP (Delivered at Place): Seller arranges everything until goods arrive at your location.
  • CIF (Cost, Insurance & Freight): Seller covers shipping and insurance until port arrival.

Choosing the right Incoterm impacts cost, convenience, and risk — your freight forwarder can help you decide based on your shipment size and timeline.

Shipping Furniture from Vietnam: Logistics Options

You’ll primarily choose between sea freight and air freight:

  • Sea Freight: Ideal for large, heavy, or bulk furniture orders.
    • FCL (Full Container Load): Best for big shipments — full control over packing and security.
    • LCL (Less than Container Load): Share container space if you’re shipping smaller volumes.
  • Air Freight: Faster but more expensive — used for urgent or high-value shipments.

Additional Considerations:

  • Door-to-door service simplifies the entire shipping process.
  • Proper packaging is essential for bulky, fragile items.
  • Cargo insurance protects your goods from damage or loss in transit.
  • Key documents like the Bill of Lading, Packing List, and Commercial Invoice are essential for customs clearance.

Importing Furniture into the USA & Canada: Regulations & Duties

Documents You’ll Need:

  • Commercial Invoice
  • Packing List
  • Bill of Lading
  • Certificate of Origin
  • Customs Declaration (Form B3 in Canada, CBP Form 3461 in the US)

USA-Specific Requirements:

  • Customs Bond
  • Merchandise Processing Fee (MPF)
  • Harbor Maintenance Fee (HMF)
  • Compliance with the Lacey Act (regulates imported wood products)

Canada-Specific Requirements:

  • GST (5%) on most imports
  • Canada Customs Invoice
  • Excise tax or duty on luxury goods (if applicable)

Tariff classification via HS Codes is essential for calculating the right duty rates. Your freight forwarder can assist in correctly classifying your products.

Why Work with a Digital Freight Forwarder?

Partnering with a digital freight forwarder offers many advantages for SMBs:

  • One-stop platform for quoting, booking, tracking, and insuring shipments
  • Expert support in handling documentation, Incoterms, customs clearance, and duty payments
  • Streamlined logistics from Vietnamese factories to your North American destination

This means fewer headaches, reduced risks, and faster go-to-market timelines for your products.

Final Thoughts: Start Importing Furniture from Vietnam with Confidence

Importing furniture from Vietnam to the US or Canada can be a profitable opportunity — if you understand the process and have the right support. By working with reliable suppliers, understanding your shipping and customs responsibilities, and partnering with a knowledgeable digital freight forwarder, your business can successfully bring beautiful, high-quality Vietnamese furniture to your customers.

Ready to import? Start your sourcing journey with a logistics partner who makes international trade simple and stress-free.

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Vietnam Furniture Market Forecast (2025–2030): Growth, Trends & Opportunities

Posted on by PRIMO

The Vietnam furniture market is projected to grow from USD 9.62 billion in 2025 to USD 13.14 billion by 2030, with a steady CAGR of 6.43%. As a leading manufacturing hub in Southeast Asia, Vietnam is attracting global attention thanks to rising foreign investment, strategic trade deals, and a growing middle class.

Key Market Highlights

  • Home Furniture leads with 61% market share in 2024.

  • Hospitality Furniture is growing fastest at 7.35% CAGR, driven by hotel expansion.

  • Wood remains dominant (70% share), while plastic & polymer furniture sees a 7.9% CAGR due to sustainability trends.

  • Mid-range furniture leads by price, but the premium segment is gaining fast with a 6.82% CAGR.

  • B2C/Retail dominates with 72% share, growing at an impressive 8.3% CAGR as e-commerce and omnichannel retail expand.

Regional Breakdown

  • Southeast Vietnam (Ho Chi Minh City, Binh Duong) leads with 48% of the market and fastest growth.

  • Northern Vietnam sees demand from office and high-rise housing developments.

  • Central Vietnam benefits from hospitality-driven growth.

Growth Drivers

  • FDI surge as manufacturers shift from China to Vietnam

  • Rising urban middle class demanding smart, sustainable designs

  • Tariff-free exports under EVFTA and RCEP agreements

  • Hospitality construction boom fueling furniture demand

Challenges

  • High dependency on imported timber and freight costs

  • Stricter US trade audits increasing compliance expenses

—

With increasing demand for design-led, sustainable, and tech-integrated furniture, Vietnam is evolving from a low-cost manufacturing base to a premium producer and supplier for both global and domestic markets.

Find Your Ideal Vietnam Suppliers
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Vietnam’s Wood Industry in 2025: Transforming Challenges into Global Opportunity

Posted on by PRIMO

Vietnam’s wood industry continues to thrive in 2025, driven by sustainability, technology, and export diversification. Explore key data, market insights, and future opportunities.

Resilient Growth Amid Global Headwinds

Vietnam’s wood industry has solidified its role as a global manufacturing hub, consistently ranking among the world’s top wood exporters. As of 2025, the sector faces a shifting trade landscape—but it’s meeting the moment with sustainability, innovation, and smart market strategy.

In 2024, Vietnam’s wood exports hit an all-time high of US$17.3 billion, with US$16.25 billion from timber and wood products and US$1.05 billion from non-timber forest goods like bamboo and rattan. Wooden furniture alone accounted for US$3.1 billion, highlighting continued global demand for Vietnam-made furnishings.

A Greener, More Efficient Supply Chain

Vietnam’s forestry sector is now both productive and sustainable. In 2024, the country harvested 22.7 million cubic meters of domestic wood—an 8% increase year-on-year—driven by improved forest management and afforestation.

Approximately 600,000 people are employed in the wood processing and furniture sector, particularly in rural areas where forestry is a critical source of income.

Supporting this ecosystem is a growing commitment to sustainability:

  • Over 520,000 hectares of forest are FSC-certified.

  • The government aims to expand this to 1 million hectares by 2030, aligning with Vietnam’s long-term forestry strategy.

2024 Performance: Record-Breaking Exports and Surging Output

In 2024, Vietnam’s wood exports hit a historic high of US$17.3 billion, including:

  • US$16.25 billion from timber and wood products

  • US$1.05 billion from non-timber forest products (NTFPs), including bamboo and rattan

  • US$3.1 billion from wooden furniture exports alone

The forestry sector produced 22.7 million cubic meters of domestic wood—an 8% increase year-over-year—driven by reforestation programs and harvesting efficiency improvements.

With around 600,000 workers employed in wood processing and furniture manufacturing, the industry also plays a critical role in generating rural income.

Top Export Markets: Shifting Trends and Emerging Demand

The United States remains Vietnam’s largest export destination, purchasing over US$8.17 billion in Vietnamese wood products in 2024—more than half the country’s total exports. However, this heavy reliance has exposed the industry to new risks.

Key trends:

  • China: Imports surged to over US$1 billion, fueled by rising demand for semi-finished goods.

  • Japan & South Korea: Consistent buyers valuing minimalistic design and sustainable sourcing.

  • Spain: A standout market, with exports up 63% year-over-year, reflecting European buyers’ move to diversify supply chains.

Product Diversification and Sustainable Development

Vietnam’s product portfolio is rapidly expanding beyond traditional offerings. Key trends include:

1. Value-Added Products

  • Wooden furniture remains dominant (≈60% of export value)

  • Growth in MDF and plywood boards, construction materials, and modular designs

2. Bioenergy and Eco-Friendly Exports

  • 14.42 million tons of wood chips exported in 2023 (US$2.22 billion)

  • Wood pellets, chips, and biofuels gaining ground amid global energy shifts

3. Sustainable Forest Certification

  • Over 520,000 hectares FSC-certified (13% of Vietnam’s planted forest)

  • Target: 1 million hectares certified by 2030 (Vietnam Forestry Strategy 2021–2030)

4. Innovation with Alternative Materials

  • Rising use of bamboo, rattan, and recycled wood

  • Responding to consumer demand for circular economy products

Geographic Hubs and Regional Strengths

  • Southern Vietnam (Ho Chi Minh City, Binh Duong, Dong Nai): Advanced manufacturing, export hubs near Cat Lai and Cai Mep–Thi Vai ports
  • North-Central Provinces (Nghe An, Thanh Hoa): Growing timber zones fueled by FSC-certified plantations and afforestation programs

Trade Challenges: U.S. Tariffs and the Need for Transparency

A major obstacle arrived in 2025 with the U.S. imposing a 46% tariff on selected Vietnamese wood products. The tariff was enacted over concerns about transshipped Chinese-origin goods.

Vietnam’s response has been swift and strategic:

  • Deployment of blockchain traceability systems

  • Increased timber imports from the U.S. (up 32.9% YoY to US$316.36 million) to validate origin

  • Active diplomacy to maintain trade relationships and Lacey Act compliance

Despite the disruption, Vietnam’s reputation as a reliable, compliant exporter remains intact, thanks to coordinated action between government and industry.

Strategic Diversification: New Markets and Products

To reduce dependency on the U.S., Vietnam is actively targeting:

Emerging Export Markets:

  • India: Growing demand for furniture and wood-based interiors

  • Middle East: Opportunities in hospitality and infrastructure sectors

  • ASEAN Nations: Trade facilitation under RCEP agreements

New Product Categories:

  • FSC-certified toys, kitchenware, and home goods for European buyers

  • Modular, flat-pack furniture for urban markets

  • Low-emission construction materials, including engineered wood and composites

Digital Transformation in the Wood Sector

Vietnamese wood exporters are embracing digitization to stay competitive:

  • Virtual showrooms for global B2B sales

  • AR customization tools for interior design clients

  • Blockchain logistics platforms for supply chain transparency

  • Smart manufacturing to optimize production efficiency

These innovations enhance the industry’s value chain and align with international buyer expectations.

Future Outlook: A Sustainable Global Player

Vietnam’s wood industry in 2025 is at a defining moment. It’s no longer just a manufacturing base for low-cost goods—but an emerging leader in sustainable forestry, ethical sourcing, and digitally driven production.

Key success factors moving forward:

  • Adopting traceable, transparent supply chains

  • Expanding certified forest areas and responsible sourcing

  • Investing in automation and export tech

  • Entering fast-growing markets with value-added, eco-conscious products

With a clear strategy and strong government-industry coordination, Vietnam’s wood sector is well-positioned to transition from the “world’s workshop” to a global benchmark for green wood manufacturing.

Vietnam is on track to become a top-tier global supplier of green, high-value wood products.

Looking to source sustainable wood products from Vietnam?
📩 Contact us today for sourcing insights, industry updates, and partnership opportunities.

 

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

Posted on by PRIMO

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

Posted on by PRIMO

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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