The global fashion industry is increasingly turning towards Southeast Asia to meet the needs of its consumers. The country's long history in apparel manufacturing, combined with unique lifestyles, time-honed traditions, and cultural elements, makes Vietnam a desirable destination for fashion producers. Vietnamese apparel factories use high-quality fabrics and traditional techniques, combining both modern and age-old expertise. Vietnam apparel manufacturers have been producing high-quality clothing in the country for decades.

Free trade

Despite the potential for free trade to boost the Vietnamese apparel industry, there are several challenges that must be addressed before the process can be completed. First, the garment industry lacks specialized workers and high-level employees. For example, TCM's Tung is poised to launch his next dyeing operation, but he is unable to find a chemical engineer to head the new operation. Second, EVFTA brings with it new restrictions on the country of origin of products, creating an additional burden for Vietnamese textile and clothing manufacturers.

In 2019, Vietnam was the sixth-largest supplier of extra-regional apparel to the EU, contributing 4.3% of its market's value. While it competes with countries such as Bangladesh, India, and Cambodia under the Everything But Arms program, the EVFTA is expected to level the playing field. After the ratification of the EVFTA, Tung expects his business to grow 15%. The new agreement should also result in lower customs duties, as nearly half of Vietnam's garments will no longer be subject to these duties.

In the past, Vietnam mainly relied on imports for its finished products. Today, it relies on Chinese suppliers to source components, such as Velcro and buttons. While Vietnamese textile manufacturers offer lower prices than Chinese counterparts, the Chinese market is highly competitive and produces fabric in large volumes at low costs. While China may be less expensive, the lower labor cost in Vietnam's garment industry could help the country improve its quality and competitiveness.

In addition to the new deal, Vietnam also has free trade agreements with several developed countries, including the EU, Australia, and South Korea. Most recently, Vietnam signed the EU-Vietnam Free trade agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This means that the country can now attract international investors and clothing manufacturers. With this, the country is poised to become a world leader in textile production.

Tax incentives

A comprehensive outlook on the textile industry in Vietnam is provided by VIRAC researchers. They take into account the macroeconomic situation and related government policies, as well as the projected effect of free trade agreements (FTAs) and the industry's nature. Trade agreements like the TPP, the VKFTA, and the EVFTA are of particular importance in this regard. These agreements require Vietnam to deal with trade barriers such as labor standards and restricted rules of origin. Furthermore, Vietnam needs to enhance its domestic production capacity to achieve sustainable growth.

Although there are some legitimate concerns about textile pollution, the government should not be scared of losing domestic enterprises. Otherwise, Vietnam will have trouble mastering raw materials and enjoying preferential tariffs in many markets. Therefore, the current policy of the Vietnamese government is to plan projects according to the location. It is also crucial to ensure that the environment is carefully handled. In addition, modern technology is available to make clothing, as well as the fabric.

Moreover, Vietnam has free trade agreements with many countries, and the textile sector is likely to benefit most. With EVFTA, most Vietnamese textile products will be exempt from customs duties, while imports from China and the US face higher tariffs. As a result, the favorable tariffs should encourage the transfer of some manufacturing activities from China to Vietnam. In fact, Vietnam already enjoys the lower labor costs and better geographical advantages.

Despite the challenges faced by the industry, there is still hope for the future of the Vietnamese apparel sector. With the recent emergence of free trade agreements with the US and the EU, Vietnam has the potential to become a leading apparel producing country. However, this is dependent on a few key partners. The COVID-19 pandemic, which affected the supply chain of the Vietnamese apparel industry, has caused major disruptions and reduced profits.

Quality

When considering the production of custom products, Vietnam is a great option. Vietnam clothing manufacturers have advanced sewing capabilities, and have always aimed to provide high-quality products at reasonable prices. They also emphasize quality control, and their products are likely to be in the top 10% of the world's quality. But what factors should you consider when choosing a Vietnam clothing manufacturer? In this article, we will examine the best reasons to use this country as a production base.

A good place to start your search for a good clothing manufacturer in Vietnam is the association for garment manufacturers in the country. The association represents hundreds of Vietnam garment manufacturers, and is dedicated to spreading the word about Vietnamese clothing producers. It has a manufacturer directory, but it is only available to members. You can also check with other clothing manufacturers in the area if you need a specific style. Make sure to read the association's guidelines carefully before selecting a manufacturer.

When choosing a Vietnam garment manufacturer, you should check their Speed to Market rate. This measure measures how quickly a garment is made, and then displayed in a store. Most Vietnamese clothing manufacturers achieve this rate consistently. This is why many global brands have chosen Vietnam as a production base. If you're looking for a fast turnaround, Vietnam is the way to go. You can get a quotation within three to five days, and production plans within ten to twelve weeks.

A strong free trade policy has allowed Vietnamese garment manufacturers to manage low labour costs without sacrificing quality. Because of the country's low labour costs, a strong labor force, and government incentives, Vietnam clothing manufacturers are an excellent alternative to China, Cambodia, or Bangladesh garment manufacturers. Lastly, Vietnam is a strong supply chain and free trade agreements with ASEAN and other countries have helped Vietnam's textile industry grow. And in the wake of the recent pandemic, the garment-producing industry in Vietnam is poised for explosive growth.

Communication

Choosing your production partners in Vietnam is a complex process that is made easier with Sewport. Our secure payment system and platform protects users and can help new fashion labels find factories in Vietnam. We have the expertise and contacts to help you find the perfect partner for your next project. Below are some important tips for choosing the right production partners in Vietnam. Using Sewport, your first step to creating a successful fashion label in Vietnam is a breeze.

Communicate in English: Most clothing manufacturers in Vietnam are bilingual and speak English, so communicating with them is not difficult. Depending on your requirements, there are different types of factories, such as knit factories or woven factories. In addition to that, you should decide what category of clothing you need. For example, if you are a top clothing brand, you may only need knit fabric for t-shirts. For smaller brands, you can choose a factory that specializes in other categories, such as hats.

Speed to market: The speed at which an item can go from its production stage to a retail store is crucial. Vietnam boasts one of the highest rates in the world, and it is the leading supplier to brands such as Uniqlo and Marks & Spencer. However, because most Vietnamese textiles do not develop their own products, they expect their customers to create patterns, size tables, and material specifications. This is a major issue for small start-ups who are looking to save money and make a profit.

Another big issue when choosing a clothing manufacturer in Vietnam is trust. Although Vietnam has many clothing manufacturers, the trust factor can sometimes be a barrier. It is important to ensure transparency between suppliers and manufacturers. If you're looking for a trustworthy manufacturer in Vietnam, you should choose a top 3 result or two. Make sure to talk to the owner or the manager of the company to ask for their references and previous work history.

Capacity

There are several characteristics that make a garment manufacturing facility in Vietnam a good choice for your production needs. The first is capacity. Unlike in other countries, large producers don't necessarily lead the industry. Instead, they must be flexible and responsive to changing customer requirements. This is especially important in the garment manufacturing industry. Here are some tips for selecting the right Vietnam clothing manufacturer for your production needs. Listed below are some of the characteristics that you should look for in a clothing manufacturing company.

A growing population, an increasing number of skilled labors, and a thriving textile industry are among the characteristics that make Vietnam a good choice for apparel production. Its textile industry is the world's third largest, behind only China and Bangladesh, but it has shown great potential to surpass both of them. This could result in a shift of some international brands from China to Vietnam. Furthermore, rising labor costs and dissatisfaction with Chinese manufacturing may make many companies choose to move production from China to Vietnam.

One of the key advantages of doing business in Vietnam is the availability of cheap labor. With the low costs of labour and incentives from the government, Vietnam can offer highly competitive prices. In addition, Vietnam enjoys free trade agreements with many countries, including the USA, Japan, and Australia. This opens up a plethora of possibilities for garment manufacturing in Vietnam. And, of course, you can also benefit from Vietnam's strategic location and proximity to key markets.

A reliable manufacturer will meet delivery deadlines and provide great customer service. They should be able to provide you with useful information and tips on making your business successful. If you are a first-time brand, a reliable supplier will provide you with the right product specifications and ensure prompt delivery. In the case of larger orders, it will also be worth your while to look for clothing manufacturers in Vietnam that have good customer service and are responsive to your needs.