Vietnam is quietly becoming one of the best sourcing markets for UK businesses. TK Wang explains what it’s good at, how the UKVFTA trade deal helps, and when to use it alongside China.
In summary: Vietnam has emerged as one of the most compelling alternatives to China for UK businesses sourcing manufactured goods. With lower labour costs, a maturing manufacturing sector, and a favourable trade agreement (UKVFTA), Vietnam offers strong value across textiles, furniture, electronics, and consumer goods. Epic Sourcing has an on-the-ground team in Vietnam to help UK businesses source there confidently.
For the past decade or so, if you were a UK entrepreneur looking to manufacture a product, the answer was almost always: "Go to China."
And China is still brilliant — don't let anyone tell you otherwise. We source the majority of our clients' products there, and we expect to continue doing so for a long time. But something has shifted. Rising wages, geopolitical uncertainty, and a global recalibration of supply chains have led many of our clients to ask a question I'm hearing more and more often: "What about Vietnam?"
It's a great question — and the answer is more interesting than most UK businesses realise. So let's talk about Vietnam: why it deserves your attention, what it's genuinely good at, and how to start sourcing there without the headaches of navigating a new market alone.
Vietnam's rise as a manufacturing hub isn't accidental. The Vietnamese government has actively courted foreign investment and export-oriented manufacturing for decades — building special economic zones, investing in port infrastructure, and negotiating favourable trade agreements. The UK-Vietnam Free Trade Agreement (UKVFTA) came into force in January 2021, progressively reducing tariffs on Vietnamese goods entering the UK.
Labour costs in Vietnam are meaningfully lower than in China, particularly in the Hanoi and Ho Chi Minh City corridors. For labour-intensive products like garments, bags, furniture, and footwear, that cost difference can be significant enough to change the economics of a product line.
Beyond cost, Vietnam is increasingly the go-to market for brands that care about ethical sourcing and supply chain transparency. Factory audit accessibility, worker conditions, and export standards have all improved substantially — making it easier to verify your supply chain in a way that satisfies UK retailers, investors, and consumers.
Vietnam has genuine manufacturing depth in several product categories. It's important to be realistic about where it excels versus where China still holds the advantage.
This is Vietnam's most established export category. From basic activewear to premium fashion, Vietnam's garment industry is sophisticated, well-organised, and highly competitive. Major global brands — Nike, Adidas, H&M — source heavily from Vietnam. For UK businesses looking at private label clothing or accessories, it's an excellent market.
Vietnamese furniture manufacturing has grown enormously over the past decade. Rattan, bamboo, and solid wood furniture is a particular strength — much of it destined for European markets. If you're sourcing home décor, lifestyle products, or furniture for the UK market, Vietnam deserves serious consideration alongside China.
Samsung manufactures a significant portion of its global smartphone output in Vietnam. Tech accessories, cables, wearables, and electronic components are all produced there at scale. The ecosystem is less developed than China's Shenzhen region, but quality and capability have improved markedly.
Bags, travel accessories, gifting products, kitchenware, and wellness products are all produced in Vietnam to strong quality standards. If you're building a white label product range in these categories, Vietnam is absolutely worth adding to your shortlist alongside China.
Sourcing Hack #1: Run a dual-sourcing feasibility check
Before committing to Vietnam sourcing, compare like-for-like quotes from both Chinese and Vietnamese suppliers for the same product. Factor in not just unit price but also shipping costs, lead times, minimum order quantities, and quality inspection costs. For labour-intensive products, Vietnam will often win on unit price. For highly technical products or those needing complex tooling, China still usually has the edge. The maths will tell you where to focus — and the answer might well be both markets.
I'd be doing you a disservice if I painted Vietnam as a frictionless alternative to China. There are genuine challenges you need to understand before diving in.
China has decades of manufacturing infrastructure advantage. For unusual products, highly technical components, or very large volumes, China simply has more options. Vietnam's supplier base is growing fast, but it's thinner in some categories — particularly for complex engineered goods or products requiring specialised tooling.
Vietnamese is the business language, and English proficiency is more variable than in China's major manufacturing hubs. For UK buyers going direct, communication can be trickier. This is one of the strongest arguments for working with someone who has a team on the ground in Vietnam — which is exactly why Epic built our Vietnam sourcing operation. Our guide on finding reliable manufacturers covers the due diligence process — the same principles apply equally in Vietnam.
Vietnam's port infrastructure is solid but less flexible than China's Pearl River Delta region. Sea freight from Ho Chi Minh City or Haiphong to UK ports typically takes 25–32 days — broadly comparable to China. However, air freight options are more limited, and for urgent orders the logistics ecosystem is less developed.
Sourcing Hack #2: Use Vietnam for labour-intensive products, China for technically complex ones
The most efficient sourcing strategies we design for clients use both markets strategically. China for electronic components, injection-moulded plastics, tooled products, and anything needing large manufacturing ecosystems. Vietnam for textiles, soft goods, furniture, and labour-intensive assembly. This dual-sourcing approach gives you cost efficiency where it matters without sacrificing capability where you need it. Check out our complete importing guide for context on how this fits together in practice.
This is where the UK-Vietnam Free Trade Agreement (UKVFTA) becomes genuinely useful. The agreement has progressively reduced tariffs on goods imported from Vietnam into the UK since 2021. Many product categories now attract reduced or zero tariff rates compared to what you'd pay on equivalent Chinese goods — a meaningful competitive advantage.
The important caveat is Rules of Origin. To qualify for UKVFTA preferential rates, goods must "originate" in Vietnam according to HMRC's rules. This means a specified percentage of the product must be made or substantially transformed in Vietnam. If fabric was woven in China and a garment was simply assembled in Vietnam, it may not qualify for the reduced rate.
Rules of Origin compliance is something Epic's team helps clients verify as part of the sourcing process. It's not complicated once you understand the rules for your product category, but it's critical to check before you get excited about tariff savings.
Sourcing Hack #3: Check the UKVFTA tariff rate before committing to a Vietnamese supplier
Look up your product's HS (Harmonised System) commodity code on HMRC's UK Trade Tariff tool. Then check the UKVFTA preferential rate for Vietnamese-origin goods and compare it with the standard MFN (Most Favoured Nation) rate you'd pay on Chinese-origin goods. If the saving is meaningful — say 5–12% on goods worth £50,000 per year — that alone can justify the switch to a Vietnamese supplier. Talk to us if you need help interpreting the Rules of Origin for your specific product.
We built our Vietnam operation specifically because we kept seeing clients miss out on a genuinely competitive market simply because they didn't know where to start. Our Vietnam-based team handles supplier discovery, factory visits, sample coordination, quality control inspections, and export documentation — all in Vietnamese, with the cultural fluency that makes a real difference.
The process mirrors our China sourcing service exactly. You brief us on your product, target price, and quality requirements. We identify and vet suitable factories, request samples, negotiate pricing and terms, and coordinate your order through to delivery. You get the benefits of on-the-ground expertise without the cost and complexity of building supplier relationships from scratch.
Whether you're looking for a white label product, a private label range, or a fully custom-manufactured product under our Secret Label package, Vietnam is increasingly part of the conversation. Our sourcing team assesses which market is the best fit for each specific product — because there's no one-size-fits-all answer.
If you're brand new to sourcing from Asia, our companion guide on understanding minimum order quantities (MOQs) is worth reading before your first supplier conversation — it'll save you a lot of confusion.
For labour-intensive products — garments, bags, footwear, furniture — Vietnam often offers lower unit costs than comparable Chinese factories, primarily due to lower wage rates. For technically complex products, electronic components, or items requiring specialist tooling, China is usually still more cost-effective and has more supplier options.
Many goods imported from Vietnam to the UK qualify for reduced or zero tariff rates under the UK-Vietnam Free Trade Agreement (UKVFTA), provided they meet the Rules of Origin requirements. Check the specific HS commodity code for your product and confirm Rules of Origin compliance. HMRC's UK Trade Tariff tool is the authoritative source.
Sea freight from Vietnam to UK ports (typically Felixstowe or Southampton) takes approximately 25–32 days, depending on the origin port and shipping line. Air freight is significantly faster at 5–7 days but substantially more expensive. Always build in buffer time for customs clearance at both ends.
Yes — and factory visits are highly recommended for significant orders. Epic Sourcing can arrange factory visits, accompany clients on site tours, or conduct third-party factory audits on your behalf. If you can't travel, a thorough video audit is a practical alternative for initial due diligence on a new supplier.
Yes — we have a dedicated sourcing team based in Vietnam who manage supplier relationships, factory audits, quality control, and order coordination on the ground. This is a core part of our service. Get in touch to find out if your product is a good candidate for Vietnam sourcing.
Vietnam isn't a replacement for China — it's a complement to it. The smartest UK sourcing strategies I've seen combine the best of both markets, using each where it has the natural advantage.
If you've been curious about Vietnam but weren't sure where to start, I hope this has given you a clearer picture. The opportunity is real, the trade deal helps, and with the right partner on the ground, it's much more accessible than it looks from the outside.
Ready to explore what Vietnam could do for your product range? Book a free strategy call or email us at hello@epicsourcing.co.uk.
TK Wang, Founder & Director @ Epic Sourcing
