INSIDE THE FASHION INDUSTRY - SHIFTING SUPPLY CHAINS - Why Vietnam Is Becoming a Go-To Fashion Manufacturing Hub

With rising U.S. tariffs on Chinese imports and increased geopolitical uncertainty, many fashion brands—especially small and mid-sized ones—are reevaluating their manufacturing strategies. As the global fashion supply chain diversifies, Vietnam fashion manufacturing is gaining traction as a smart and strategic alternative. Known for its growing infrastructure, skilled labor, and favorable trade agreements, Vietnam is quickly becoming one of the most competitive destinations for garment production outside of China.

Vietnam vs. China: A Strategic Comparison

Manufacturing in China has long been the gold standard for efficiency, volume capacity, and vertically integrated supply chains. However, it also comes with increasing costs, trade restrictions, and complexity for smaller brands trying to meet minimum order quantities (MOQs). In contrast, Vietnam offers more flexibility for independent labels and emerging designers who require smaller batch production, greater transparency, and lower risks associated with tariffs.

According to McKinsey’s “State of Fashion” report, Vietnam has benefited from its inclusion in free trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA). These deals significantly reduce import taxes, allowing for more competitive pricing—a crucial factor for brands operating on tighter margins.

Labor costs also play a critical role. While China’s manufacturing wages have risen substantially over the past decade, Vietnam remains more affordable. The average monthly wage for garment workers in Vietnam is approximately $270 USD compared to $400–600 USD in key Chinese provinces. This translates to significant cost savings without sacrificing quality, especially in cut-and-sew operations and textile processing.

Navigating the Supplier Landscape in Vietnam

Transitioning your production from China to Vietnam—or starting there—requires thorough vetting. Transparency, factory compliance, and production capabilities vary, and not all factories adhere to the same labor or environmental standards.

Here are a few critical steps to vet fashion manufacturers in Vietnam:

1. Request certifications: Look for globally recognized certifications like WRAP (Worldwide Responsible Accredited Production) and OEKO-TEX®. These ensure ethical and sustainable practices.

2. Ask for samples and client references: A reputable manufacturer will provide product samples and references from previous clients, ideally within your product category.

3. Check communication and timelines: Reliable partners communicate proactively and deliver on schedule. If timelines slip during sample production, it’s a red flag for bulk orders.

4. Visit (if possible) or hire a third-party sourcing agent to audit the factory on your behalf. This helps verify quality control standards, facility cleanliness, and employee conditions.

Partnering with the right manufacturer is not just about cost—it’s about aligning with your brand values and scaling your production intentionally. Vietnam offers a compelling blend of affordability, growing infrastructure, and improved access to global markets.

Final Thoughts: Build Your Supply Chain With Intention

Vietnam is not just a cost-saving option; it's a strategic choice for emerging fashion brands looking for agility, ethical practices, and long-term sustainability. As the global fashion supply chain continues to evolve, exploring alternative manufacturing hubs like Vietnam could be the competitive edge your brand needs.

If you're unsure how to make this transition, I help emerging designers find the best sourcing strategies tailored to their business model. Schedule a free 30-minute strategy call via the link below, and let’s build your supply chain with intention: https://go.oncehub.com/BarbaraSessim