It makes sense that so many foreign corporations would want to source garments from Vietnam as the country is one of the top producers of clothing and apparel in the world.
This article will assist you in developing a general grasp of the Vietnamese clothing sector and the best ways to source from there.
Overview of Vietnamese Garments Market
Vietnam, which is currently placed sixth on the global garments market, has recently emerged as one of the top exporters of textiles worldwide.
The value of Vietnam’s textile and garments exports in 2021 was 11 billion USD, higher than that of the Republic of Korea, China, and Pakistan (9 billion USD), according to Statista.
Vietnam has exported 47–50 distinct textile products to 66 different nations and territories.
Market Share of Vietnamese Garment Importers
The United States continues to represent the largest share of the Vietnamese textile and apparel export market with 42%, followed by China with 11%.
Together, South Korea and Japan represented 9%. 6% went to the ASEAN market, 1% to Russia, and the remainder went to other markets.
Particularly in Europe, they increased exports to additional EU nations rather than just concentrating on a small number of important export markets like Germany, France, Spain, and the UK as they had in the past.
What Kinds of Garment Products Does Vietnam Export?
In 2022, CLOTHING AND GARMENTS of all kinds will continue to make up a sizable share of the industry’s total export revenue, which might reach 29.1 billion USD.
Vietnam’s export markets of clothing and garments:
- The US : 13.9 billion USD
- The countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) : 4.733 billion USD
- The EU countries : 3.63 billion USD
- South Korea : $2.525 billion
- China : $925 million
The textile and apparel sector in Vietnam also exports fabric worth $ 2.13 billion, fibers worth $ 4.083 billion, sewing supplies worth $ 1.165 billion, and local fabric worth $ 747 million.
See the following list of Export Garment Products in Vietnam:
- Casual Wear
- Shirts/ tops
- Outerwear (Jackets, Coats, etc.)
- Formal Wear
- Technical Fabrics
- Children Clothing
- Home and Furniture Textiles
- Ready-Made Garments
- Woven goods
Cut and Sew items in Vietnam:
Advantages of Vietnam Clothing Manufacturing
One of the most affordable nations to produce garments, textiles, and apparel without compromising quality is Vietnam.
Quickly Reachable Location
Vietnam is a great country for international clothes and apparel importers since it is close to China and has a strong global supply chain.
Low Inflation and Increasing Wage Costs
Another excellent factor that makes Vietnamese garment manufacturers the ideal option is the slower pay rise and lower inflation rate in Vietnam as a result of competition.
High Production Standards
Vietnam is among the top 90% of countries in the world for the quality of finished apparel products.
Vietnam – An Emerging Manufacturing Hub as a China Alternative Following COVID-19 Changes
Manufacturing industries relocated their manufacturing facilities from Europe and the United States to other nations, such as China, Vietnam, and Mexico, as manufacturing countries grew expensive for in-country production.
Due to COVID19’s unexpected eruption, Vietnam is now receiving a lot of manufacturing businesses’ attention. This is due to the fact that China’s labor expenses are increasing more quickly than its manufacturing sector.
Vietnam is now the industry leader in the production of garments and apparel because of this.
Speed to Market, also known as Make to Market, is a term used in the fast fashion business to describe how quickly an item moves from the start of manufacturing to a retail location where it can be purchased.
Regarding fashion and clothing, Vietnam is one of the countries with the quickest growth rates. Vietnam is the biggest supplier to retailers like Uniqlo and Marks & Spencer as a result.
Benefits of Tariffs and Free Trade
All of Southeast Asia, which is a member of ASEAN, as well as Japan, South Korea, India, and Australia have free trade agreements with Vietnam.
Additionally, a new free trade agreement with the European Union (EVFTA) and a nearly free trade agreement with the United States should be signed this year.
Regulations When Importing Clothing into the U.S. and E.U.
You must be aware of a few rules and specifications before importing clothing, textiles, garments, and other cut-and-sew products into the US.
Chemicals and heavy metals are subject to regulations from both the U.S. and the EU, including:
- AZO dyes
REACH requirements must be followed while importing into the EU.
Additionally, you must be aware of Prop 65, which limits and mandates the labeling of known carcinogens, if you intend to sell in California.
Many, but not all, Vietnam-based vendors with prior experience producing goods for the US and EU are conversant with these rules. Buyers are responsible for checking the merchandise, nevertheless.
Requirements for Labeling
You must make sure that every piece of apparel is properly marked before importing it into the US. A thorough guidance on labeling requirements is available on Sewport.
- Country of origin (in this case, “Made in Vietnam”)
- Composition of Fibers
- ASTM care labels
How to Source for Reliable Vietnamese Garment Producers?
Website (Yellow Pages), Google, etc
There are plenty of clothing factories in Vietnam, mainly located at Ho Chi Minh city (economic city center) and Hanoi (the capital of Vietnam).
Top 5 Garments Factories in Vietnam
1. Thai Son S.P Sewing Factory
One of the leading manufacturers among the clothes and sewing companies located in Ho Chi Minh City is Thai Son S.P Sewing Factory.
Customers are drawn to the company because of the wide variety of clothing items it produces utilizing circular knit materials.
Sportswear, gowns, and a variety of other items are all part of their wardrobe.
They make over 250,000 pcs of T-shirts per month using about 1000 workers and 1203 machines.
Their customers in:
- Europe: warehouse, Oasis, and fever.
- Australia: OCC and Mr. Simple
- Los Angeles: Maxstudio
BSCL, SA 8000, a major ethical sourcing certificate from Target (one of their Australian clients).
2. Dony Garment Company
Another prominent company in Vietnam that is headquartered in Ho Chi Minh City is Dony.
Their services are widely accessible everywhere, and their goods are easily transportable around the globe.
Workwear, uniforms, business-related formal attire, and PPE like antibacterial safety reusable face masks and medical protective apparel are among the clothing items created.
Three sewing, printing, and embroidery companies owned by Dony produce between 100.000 and 250.000 high-quality items each month.
Their international customers: America, Europe, Australia, and Asian countries such as Japan.
Certifications: FDA, C.E, TUV, and ISO.
3. G & G II Garments Factory Vietnam
Another distinctive clothing manufacturer in Vietnam is G & G, which provides its services to both domestic and private clients.
They stand out because they give their services to both Vietnam and the United States, introducing new fashions every year.
Numerous dresses, sportswear pants, jackets, suits, T-shirts and shirts, scarves, and knitwear are some of their offerings.
Certifications: WRAP, C-TPAT, BSCI, and Macy’s code of conduct.
4. Thygesen Textile Vietnam Company Ltd
Thygesen Textile Company Ltd is based in Hanoi, Vietnam but is owned by a Danish company that was established in 1931. The head office is situated in Ikast, Denmark, and is owned by the Thygesen Textile Group.
It has many factories in the USA, China, Mexico, and Slovakia.
Their products include Kidswear, activewear, workwear, casual fashion, underwear, hospital wear, and knitted clothes.
Certifications: BSCI, SA 8000, WRAP, ISO, and OekoTex.
5. 9mode Clothing Manufacturer
Despite having its headquarters in Hanoi, Vietnam, Thygesen Textile Company Ltd. is owned by a Danish business that was founded in 1931. The Thygesen Textile Group owns and operates the corporate office, which is located in Ikast, Denmark.
It has numerous factories in Slovakia, Mexico, China, and the United States.
Kidswear, activewear, workwear, casual clothing, underwear, hospital wear, and knitted clothing are among their offerings.
Connecting with Sourcing Companies
Feel free to contact the VIEC team if you are interested in sourcing from Vietnam; we have assisted many foreign clients in doing so.
You can get assistance from VIEC’s sourcing service in your search for the ideal supplier. We are among the greatest businesses that can locate suppliers in Vietnam and let you choose the one you think is ideal because we are also well-established in that country.
Our sourcing services give you access to fresh manufacturers so you can avoid tariffs and expensive prices. The services offered by VIEC are created to take your idea, turn it into a product, and deliver it to its intended location.
You need to discover a sourcing company to be your partner if you’re starting a new business and need to find products and suppliers for your products.
You can concentrate on the other aspects of expanding your own business while VIEC takes care of every aspect of your operations in China and Vietnam.
We have assisted more than 20 businesses with their successful import and export operations.
Please don’t hesitate to get in touch with us and let us know how we can help you.