Epic Guide · Vietnam Sourcing
Here's something most UK importers don't know: you can legally import many products from Vietnam with zero customs duty, saving thousands of pounds per shipment compared to equivalent products from China.
The UK-Vietnam Free Trade Agreement (UKVFTA) has been in force since January 2021. Yet the vast majority of UK businesses importing from Asia haven't taken advantage of it. This guide explains exactly how it works, what qualifies, and how much you can save.
The UK-Vietnam Free Trade Agreement came into force on 1 January 2021 as a direct continuity of the EU-Vietnam FTA post-Brexit. Under the UKVFTA, 65% of UK tariff lines on Vietnamese goods were eliminated immediately, rising to 99.2% over the phased implementation period. Many manufactured goods already qualify for 0% duty.
China does not have a UK FTA. UK importers face standard UK Global Tariff rates on Chinese goods — typically 5–12% for manufactured goods — while the same goods from Vietnam can be imported at 0%. For a business importing £100,000 annually, that's a direct saving of £5,000–£12,000 per year.
| Product category | China rate | Vietnam UKVFTA rate | Status |
|---|---|---|---|
| Wooden furniture | 5.6% | 0% | Immediate elimination |
| Footwear (leather) | 8% | 0% | Now zero |
| Sports goods | 4.7% | 0% | Immediate elimination |
| Luggage and bags | 3.7% | 0% | Immediate elimination |
| Clothing (woven) | 12% | Staged reduction | Phased — check current rate |
| Electronics (consumer) | 0–3.7% | 0% | Already low / eliminated |
| Pet products (accessories) | 3.7–5.8% | 0% | Immediate elimination |
£50,000 annual furniture imports
£50,000 annual furniture imports
To qualify for UKVFTA preferential rates, goods must meet the agreement's Rules of Origin. Goods must be genuinely manufactured or substantially processed in Vietnam — not merely transshipped or minimally processed from Chinese components.
Your Vietnamese supplier must provide either a Certificate of Origin (Form EUR.1) issued by Vietnamese customs authorities, or an origin declaration on the invoice for shipments under EUR 6,000. Your customs agent uses this when filing your UK import declaration to claim the preferential rate.
The UK's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) was completed in December 2024. Vietnam is a CPTPP member. UK membership provides additional preferential trade terms and cumulation benefits — meaning components from other CPTPP members (Japan, Australia, Canada) can potentially be used in Vietnamese manufacturing while still qualifying for preferential UK origin.
Vietnam's strongest export category. Major brands including Nike, Adidas, and H&M manufacture here. Strong capability across knitwear, woven, activewear, and workwear.
Vietnam is the world's 5th largest furniture exporter. Binh Duong province is a major hub. Strong capability in solid wood, rattan, and upholstered furniture. 0% UKVFTA duty.
Second only to China globally. Major footwear brands source from Vietnamese factories. Strong capability in athletic, casual, and leather footwear. 0% UKVFTA duty.
Samsung manufactures over 50% of its smartphones in Vietnam. Intel, LG, and other major tech companies have significant Vietnamese operations.
Epic Sourcing UK is one of the few UK-based sourcing agencies with established on-the-ground operations in both China and Vietnam. We manage dual-sourcing strategies — using China where it makes sense and Vietnam where the UKVFTA advantage and manufacturing capability are compelling.
Our Vietnam team identifies and vets manufacturers in Hanoi, Ho Chi Minh City, and Binh Duong Province — checking production capability and UKVFTA qualification.
We verify that suppliers can genuinely provide qualifying Certificates of Origin — checking actual manufacturing processes rather than just accepting claims.
We provide a genuine comparison for any product category — accounting for labour costs, quality, MOQs, freight, and the UKVFTA tariff difference.
We manage the full logistics chain from Vietnamese factories to UK ports — including Certificate of Origin documentation for UKVFTA customs declarations.
Yes, if goods were genuinely manufactured in Vietnam and shipped via China as a transshipment, they can still qualify — but you must document the Vietnamese origin. Direct shipment from Vietnam is simplest. Your supplier must provide a valid Certificate of Origin regardless of routing.
Use the UK Trade Tariff at gov.uk/trade-tariff. Search for your product's HS code, then check the "Tariff preferences" section for Vietnam. The current preferential rate and any staging schedule will be shown. Epic Sourcing can assist with HS code classification and rate verification.
Vietnam's manufacturing labour costs are generally 30–50% lower than coastal China. The cost advantage in finished goods price is typically 15–25% for labour-intensive products. The UKVFTA duty saving adds to this, making Vietnam increasingly compelling for textiles, footwear, and furniture.
Absolutely — and this is increasingly common among UK businesses. China excels at complex manufacturing and large-scale production. Vietnam excels at textiles, footwear, and furniture. A dual-sourcing strategy reduces supply chain risk and lets you optimise for UKVFTA benefits where they're greatest. Epic Sourcing operates in both countries.
You need either a Form EUR.1 Certificate of Origin issued by Vietnamese customs, or an origin declaration on the commercial invoice for shipments under EUR 6,000. Your UK customs agent uses this when filing your import declaration. Keep the documentation for at least 4 years in case of HMRC audit.
Epic Sourcing UK has on-ground teams in both China and Vietnam. Book a free consultation to find out whether the UKVFTA could deliver meaningful savings for your specific product categories.
71-75 Shelton Street, London WC2H 9JQ · hello@epicsourcing.co.uk · +44 7551 136406
