Vietnam is fast becoming the go-to China-Plus-One destination for UK importers. Here's everything you need to know about sourcing from Vietnam — from UKVFTA duty savings to finding reliable manufacturers.
In summary: Vietnam has emerged as the China-Plus-One destination of choice for UK brands looking to diversify their supply chains. With a rapidly maturing manufacturing sector covering textiles, furniture, electronics, and footwear; competitive labour costs; and the UK–Vietnam Free Trade Agreement (UKVFTA) reducing duties on qualifying goods, sourcing from Vietnam offers a credible, cost-effective complement — or alternative — to Chinese production. This guide covers why UK importers are making the switch, what products Vietnam does well, how to find reliable manufacturers, and the common pitfalls to avoid.
Let me take you back to early 2018. A British entrepreneur I know — let's call her Sarah — was running a mid-sized activewear brand, sourcing 100% from a single factory in Guangdong province. Sales were climbing, margins were solid, and life was good.
Then the US–China trade war kicked off. Tariffs started flying. Factory wages crept upward year after year. COVID shut everything down. And Sarah — like thousands of UK business owners — suddenly realised she'd built her entire supply chain on a single foundation stone that could crack at any moment.
Sound familiar? It's a story I hear almost every week at Epic Sourcing.
The "China-Plus-One" strategy — adding a second Asian manufacturing country alongside China — isn't new. Large multinationals like Samsung, Apple, and Nike have been doing it for years. What is new is that UK SMEs, eCommerce brands, and Amazon FBA sellers are now doing it too. And Vietnam is the country most of them are choosing.
Why Vietnam specifically? Several forces are converging. Average factory wages in China have risen sharply over the past decade, making Vietnam significantly more competitive for labour-intensive production. Post-COVID supply chain diversification has become a board-level priority for brands of all sizes. Geopolitical uncertainty continues to make single-country sourcing feel uncomfortably exposed. And the UKVFTA trade agreement — in effect since 2021 — has given UK importers a concrete financial incentive to shift some production to Vietnam. When reduced import duties, lower labour costs, and supply chain resilience all point in the same direction, smart businesses pay attention.
Vietnam is not a jack-of-all-trades like China — it has clear strengths. If your product falls into one of these categories, Vietnam deserves serious consideration in your sourcing strategy.
Textiles, garments, and footwear. This is Vietnam's biggest manufacturing sector, and it's genuinely world-class. Everything from yoga leggings and hoodies to formal shirts, trainers, and leather goods. Quality is excellent, and Vietnamese factories are highly experienced in exporting to European and UK markets.
Furniture and home décor. Vietnam is one of the world's largest furniture exporters, with a strong tradition of woodworking. Solid wood, rattan, bamboo, and upholstered furniture are produced to a high standard at competitive prices.
Bags, luggage, and accessories. Leather goods, canvas bags, backpacks, and travel accessories are produced at scale with excellent quality across Vietnamese factories.
Electronics and technology components. Companies like Samsung, LG, and Intel have enormous manufacturing facilities in Vietnam. The supporting supplier ecosystem for consumer electronics has grown considerably around them.
Products that Vietnam does less well than China: highly complex electronics requiring intricate supply chains, precision machinery, very large-volume runs where China's scale remains unmatched, and chemical-intensive manufacturing. For many UK brands, the smart answer is to source some categories from Vietnam and others from China — a true China-Plus-One approach. For more on deciding which sourcing model fits your business, take a look at our guide.
Sourcing Hack #1: Split your sourcing strategically. Use Vietnamese manufacturers for textiles, garments, bags, and furniture. Stick with China for electronics, precision parts, and complex products requiring deep supplier ecosystems. This "best of both worlds" approach gives you supply chain resilience without sacrificing quality or adding unnecessary cost.
The UK–Vietnam Free Trade Agreement (UKVFTA) came into effect in January 2021. It's one of the most significant pieces of trade legislation for UK importers since Brexit, progressively eliminating duties on the vast majority of goods traded between the two countries.
For UK importers, goods manufactured in Vietnam — and meeting the relevant Rules of Origin — can attract reduced or zero import duties when entering the UK. The UKVFTA covers around 99% of all tariff lines over its staged reduction schedule.
In practical terms, this can make Vietnam-manufactured goods meaningfully cheaper to import than equivalent Chinese-made goods, which face standard UK tariff rates (and in some product categories, anti-dumping duties on top). The duty saving alone can be enough to tip the economics decisively in Vietnam's favour.
The important caveat: Rules of Origin requirements mean that products must be sufficiently manufactured in Vietnam to qualify for preferential duty rates. Simply finishing or assembling Chinese-made components in Vietnam typically won't qualify. Your products need to genuinely originate in Vietnam.
For a full breakdown of how UK import duties and customs work, our Complete Guide to Importing from China to the UK covers most of the same customs principles that apply to Vietnamese imports.
Sourcing Hack #2: Before finalising your Vietnam sourcing plan, ask your factory for their Certificate of Origin documentation and confirm your product qualifies under UKVFTA Rules of Origin. A small amount of due diligence upfront can save you thousands in import duties — and prevent a very nasty surprise at the UK border when HMRC comes knocking.
This is the question I get asked most often, and my honest answer is: it depends on the product and the factory.
For textiles and garments, Vietnamese quality is genuinely excellent — many factories produce for top European and American fashion brands. The attention to detail, finishing standards, and consistency are comparable to the best facilities in China's textile hubs.
For electronics and more complex manufacturing, China still holds the edge, largely because of its more mature and integrated supplier ecosystem. In Vietnam, certain raw materials or components may still need to be sourced from China before final assembly — which adds complexity and lead time to your supply chain.
The key, as always, is factory selection. A well-audited, professionally managed Vietnamese factory will consistently outperform a poorly run Chinese one. Quality comes from the factory, not the flag. This is why working with an experienced sourcing agent — one with genuine boots on the ground in Vietnam — matters so much.
Finding reputable manufacturers in Vietnam follows a broadly similar process to finding manufacturers in China — but with some important differences UK buyers should understand.
Trade fairs. The Vietnam International Trade Fair (VITF) and sector-specific expos are solid starting points. For textiles specifically, Texworld Vietnam is well-attended by international buyers.
Online directories. Platforms like Made-in-Vietnam.com list manufacturers, though due diligence is essential — directory listings alone prove nothing about quality or reliability.
Sourcing agents with Vietnam capability. If you're already working with a sourcing agent for China, ask whether they have an established Vietnam operation — not just a claim to cover Vietnam remotely from a China office. Genuine Vietnam capability means local staff, local factory relationships, and the ability to conduct in-person audits.
The honest truth is that finding and vetting Vietnamese manufacturers from the UK is considerably harder than doing the same for China. Vietnam's factory ecosystem is less digitised and less well-documented. Language barriers are more pronounced — Vietnamese factories typically have fewer English-fluent staff than Chinese ones. And the infrastructure for international buyers to conduct remote due diligence is less mature.
Our White Label, Private Label, and Secret Label packages all include full Vietnam sourcing capability, with a dedicated team based in Ho Chi Minh City.
Sourcing Hack #3: Never commit to a Vietnamese factory without an in-person audit conducted by someone with local knowledge and language capability. Ask for export records to other UK or European brands, ISO certifications, and a full facility walkthrough. Any factory that won't permit a thorough audit is a factory you shouldn't be working with — full stop.
I'd be doing you a disservice if I made Vietnam sound like a frictionless alternative to China. Here are the genuine challenges UK importers encounter.
Longer lead times on initial orders. Your first one or two orders from a new Vietnamese factory will almost always take longer than equivalent Chinese orders. Factories need to understand your quality standards, production processes need to be dialled in, and communication takes time to calibrate. Plan an extra 4–6 weeks for initial orders.
Less developed supply chains for complex products. Raw materials or components for certain product types may still need to be sourced from China before Vietnamese factories can begin production. This adds layers of complexity, cost, and lead time.
Smaller factories and lower capacity. Vietnamese factories are generally smaller than their Chinese counterparts. Very large-volume orders or highly complex products may exceed Vietnam's current capacity.
Communication challenges. English proficiency is improving rapidly in Vietnam's manufacturing centres, but it remains less consistent than in China. Having sourcing partners with Vietnamese-speaking staff on the ground is a genuine competitive advantage.
Sourcing Hack #4: Don't think of it as "Vietnam instead of China" — think "Vietnam and China." The most resilient supply chains for UK brands combine both countries strategically: Vietnam for textiles and furniture, China for electronics and complex products. You'll be better positioned for whatever trade disruption, tariff change, or geopolitical event comes next.
Ready to explore whether Vietnam sourcing is right for your UK business? The Epic team has a dedicated Vietnam sourcing operation and would love to talk through your options.
And while you're planning your Asia sourcing strategy, make sure you've read our guide on Chinese New Year 2027 factory deadlines — if you're sourcing from China or Vietnam, those dates will directly affect your production planning.
Start by confirming your product category is well-manufactured in Vietnam — textiles, garments, furniture, bags, and footwear are strong suits. Then either engage a sourcing agent with genuine Vietnam capability (such as Epic Sourcing), attend relevant trade fairs, or research factories through industry directories. Always conduct a factory audit before committing to production.
For labour-intensive products like garments, bags, and furniture, Vietnam's lower labour costs can make production cheaper than equivalent Chinese manufacturing. UKVFTA duty reductions can also lower the total landed cost of Vietnamese goods in the UK. However, for electronics and complex products, China remains more cost-competitive due to its mature supplier ecosystem.
Vietnam's manufacturing strengths are textiles and garments (it's the world's third-largest clothing exporter), footwear, furniture and wooden goods, bags and leather accessories, and electronics assembly. Samsung, LG, and Apple all have significant manufacturing operations in Vietnam.
Yes. The UK–Vietnam Free Trade Agreement (UKVFTA) came into effect in January 2021 and progressively reduces or eliminates import duties on the vast majority of goods traded between the two countries. UK importers sourcing goods that meet the Rules of Origin requirements can benefit from significantly reduced tariffs compared to equivalent Chinese-made goods.
Look for a sourcing agency with a genuine physical presence in Vietnam — local staff, established factory relationships, and the ability to conduct in-person audits. Be wary of agencies that claim Vietnam coverage but operate entirely from China. Epic Sourcing has a dedicated team in Ho Chi Minh City. Book a free strategy call to find out how we can help.
Lead times from Vietnamese factories are broadly comparable to China — typically 60–90 days from order confirmation to shipment. However, plan an extra 4–6 weeks of buffer time for your first one or two orders from a new Vietnamese factory, as both parties calibrate to each other's quality standards and communication processes.
Yes, many large Chinese manufacturers have established factories in Vietnam — partly for lower labour costs, partly to offer UKVFTA-qualifying production. Quality and reliability vary considerably. Your sourcing agent should audit any Vietnam-based factory with the same rigour as any other, regardless of who owns it.
Email us at hello@epicsourcing.co.uk or call 07551 136406 to speak with the Epic Sourcing UK team about your Vietnam sourcing options.
Written by TK Wang, Founder & Director @ Epic Sourcing
