Vietnam or China for your next clothing run? TK Wang breaks down duty rates, costs, MOQs, lead times and quality differences — so UK fashion brands can source smarter in 2026.
In summary: For UK clothing brands in 2026, Vietnam offers a significant duty advantage over China — 0% under the UKVFTA versus 12% from China under the UK Global Tariff. But Vietnam comes with higher MOQs for complex garments, longer lead times, and narrower fabric sourcing options. The right choice depends on your product type, order volume, and brand stage. This guide breaks it all down.
Something has shifted in how UK fashion brands think about manufacturing. Five years ago, when someone said "source your clothing from Asia," almost everyone assumed China. Today, more and more of my conversations with UK clothing entrepreneurs start with: "TK — I've been looking at Vietnam. Is it worth it?"
The short answer: for the right brand, at the right stage, absolutely yes. Vietnam has matured dramatically as a garment manufacturing hub over the past decade. The country is now the world's third-largest clothing exporter, after China and Bangladesh, supplying major global brands including H&M, Zara, Nike, and Marks & Spencer. The factories have improved, the quality has risen — and critically for UK brands, the duty maths have shifted decisively in Vietnam's favour.
But Vietnam is not a straight swap for China. It has different strengths, different constraints, and different risks. Let me walk you through the comparison so you can make the right call for your brand in 2026.
This is where the numbers get interesting. When you import clothing from China into the UK, the standard UK Global Tariff rate is 12% on most garment categories. Since there is no UK-China Free Trade Agreement, this is unavoidable — it applies to every shipment, regardless of your volume or relationship with the factory.
When you import clothing from Vietnam, however, the UK-Vietnam Free Trade Agreement (UKVFTA) — in force since January 2021 — offers preferential tariff rates. For most garment categories that comply with Rules of Origin requirements, the duty rate is 0%. That is a 12 percentage point swing on your landed cost.
In real terms: importing 1,000 polo shirts with an FOB value of £8 per unit gives you a customs value (including freight) of roughly £9,500. At 12% duty from China, that’s £1,140 in customs duty. From Vietnam under UKVFTA, it’s £0. On a 5,000-unit order, that saving exceeds £5,700 — before you even count the import VAT differential on the duty element. This is real money, and it compounds over time.
Sourcing Hack #1:
The UKVFTA duty saving is only available if your goods meet the Rules of Origin requirements. For clothing, the key requirement is typically “double transformation” — meaning the fabric must be woven or knitted in Vietnam (or another qualifying country), not just cut and sewn there. If a Vietnamese factory imports fabric from China and manufactures your garments, your goods may not qualify for 0% duty. Always ask your factory: "Where does your fabric come from?" and request a Certificate of Origin before ordering. This single question could save you thousands of pounds per year.
The duty saving from Vietnam is real — but it does not always translate directly into a lower total landed cost. Why? Because manufacturing unit costs in Vietnam are not always cheaper than China, particularly for coastal Chinese provinces like Guangdong and Zhejiang where the full garment supply chain is deeply established.
Vietnam’s labour costs have historically been lower than coastal China, but they are higher than inland Chinese manufacturing hubs. For simple, high-volume garments — basic tees, polo shirts, plain hoodies, leggings — Vietnam is competitive on unit cost and the 0% duty makes it very attractive overall. For complex, technical garments — structured jackets, performance activewear with multiple panels, heavily embroidered pieces, or products requiring specialist fabric treatments — Chinese factories often offer better pricing because of the deeper vertical industrial ecosystem.
The rule of thumb: simpler products favour Vietnam (duty saving plus competitive labour). Complex or highly technical products may favour China (deeper manufacturing capability, lower unit cost for specialist work). A proper landed cost comparison needs to be done product by product. This is exactly the kind of analysis we run for clients at Epic Sourcing.
Sourcing Hack #2:
Do not just compare FOB prices — build the full landed cost model before making any decision. A Vietnamese factory quoting £10 FOB with 0% duty will often beat a Chinese factory quoting £8.50 FOB with 12% duty when you calculate the true landed cost. Add freight, insurance, import VAT, and 3PL handling to both, and the picture can shift significantly. See our guide on how small businesses cut costs through direct sourcing for a framework on running this comparison.
Minimum Order Quantities are often where Vietnam’s appeal runs into friction for emerging UK brands. Chinese clothing factories — particularly in Guangzhou, Dongguan, and the broader Pearl River Delta — have developed an extraordinarily competitive low-MOQ ecosystem over the past decade. You can genuinely find reputable factories in China willing to run 100–200 units per style, driven by intense competition between manufacturers.
Vietnamese clothing factories tend to require higher MOQs — typically 300–500 units per style as a starting point, with many quality factories preferring 1,000+ units. This reflects Vietnam’s manufacturing model: factories are often larger, more structured, and oriented toward medium-to-large brand orders rather than the flexible small-brand sampling culture Chinese factories have adapted to over years of Alibaba-driven demand.
For a UK brand launching its first run of 150 hoodies in three colourways, China is almost certainly more accessible. For a brand confidently ordering 1,000+ units per style and looking to reduce long-term duty costs, Vietnam becomes significantly more compelling.
Lead times in Vietnam are generally longer than equivalent orders from China. A typical production lead time in Vietnam runs 60–90 days from order confirmation to goods ready for shipment, compared to 30–60 days for most Chinese factories. Several factors contribute: Vietnam’s manufacturing base is less vertically integrated (greater reliance on imported fabric and trims), factory capacity is tighter, and logistics infrastructure — while improving rapidly — does not yet match the efficiency of major Chinese manufacturing hubs like Shenzhen-Guangzhou.
This matters enormously if your business is fast-moving or heavily seasonal. For fashion brands that plan collections 6–9 months ahead, Vietnam’s lead times are entirely workable. For brands that need to react quickly to trend shifts or restock fast-selling lines within 4–6 weeks, China’s shorter lead times remain a decisive advantage.
Sourcing Hack #3:
If you commit to Vietnam, build a lead time buffer into every production calendar — especially for your first two or three orders while the factory learns your standards and your quality requirements. Factories in Ho Chi Minh City (the primary clothing manufacturing hub) frequently run at capacity during peak seasons (January–March and September–November). Place your orders early, map your calendar backwards from your UK launch date, and always allow a week’s contingency. The brands that succeed in Vietnam plan ahead. The ones that struggle treat it like a Chinese factory with a different flag.
This is a factor that does not get enough attention. China has one of the most complete textile supply chains in the world — from raw fibre to finished fabric, nearly everything is available domestically, which means fast, flexible fabric development and access to thousands of fabric options within the same industrial zone. This gives Chinese factories enormous flexibility for custom fabric development, unusual finishes, and specialist treatments.
Vietnam’s textile supply chain is developing but still relies heavily on imported fabric — much of it from China, South Korea, and Taiwan. This creates two issues: first, a longer fabric lead time that extends overall production timelines; and second, the Rules of Origin issue mentioned above (Chinese-origin fabric may disqualify your goods from UKVFTA preferential rates). Vietnamese manufacturers are investing heavily in domestic fabric production, but for brands requiring custom fabric development, China remains more flexible in 2026.
At Epic Sourcing, we work with UK clothing brands across a spectrum of sourcing models. Our White Label package is ideal if you want to move fast — we source an existing product from a vetted factory, apply your branding, and deliver. Perfect for testing a category or launching a simple range quickly with minimal upfront investment. Our Private Label package gives you full customisation — your design, your spec, your label, developed from scratch with manufacturer partners in China or Vietnam. Ideal for brands building a differentiated product range.
Our Secret Label package is our premium end-to-end service for brands that want complete supply chain management — including multi-country sourcing across China and Vietnam for different parts of a range. Not sure which model suits your stage? Our guide on White Label vs Private Label is a good starting point. And if you’re wondering how a sourcing agent actually works in practice, see our overview of the role of sourcing agents.
Sourcing Hack #4:
Consider a dual-sourcing strategy. Source your hero products — high-volume, simple-construction SKUs with proven demand — from Vietnam to benefit from 0% duty under UKVFTA. Keep your complex, technical, or early-stage experimental styles in China where the manufacturing ecosystem is deeper and MOQs are more flexible. This is not either/or — it is smart supply chain architecture. Brands that manage supply chain risk most effectively spread their manufacturing across two or more countries. For context on the broader UK-China duty landscape, see our post on what changed for UK importers after the July 2026 JETCO meeting.
On duty alone, yes — Vietnam’s UKVFTA preferential rate (often 0%) significantly undercuts China’s 12% standard tariff for most garment categories. Whether total landed cost is lower depends on FOB price, freight, and MOQs. A full landed cost comparison is essential before deciding. For mid-to-high volume orders of simpler styles, Vietnam is frequently cheaper overall. For smaller test runs, China often wins on price and MOQ flexibility.
The UKVFTA requires that clothing undergoes "double transformation" to qualify for preferential duty rates. This means the fabric must be woven or knitted in Vietnam or another qualifying country — not imported from a third country like China and then cut and sewn in Vietnam. Always ask your Vietnamese factory where their fabric is sourced and request a Certificate of Origin. If the fabric is Chinese-origin, your garments may not qualify for 0% duty under UKVFTA.
Vietnamese clothing factories generally require MOQs of 300–500 units per style, with many quality factories preferring 1,000+ units. Chinese factories — particularly in the Pearl River Delta — are more flexible, with many accepting runs of 100–200 units per style. For small UK brands and startups, China is usually more accessible. For established brands placing larger orders, Vietnam’s MOQs are entirely workable and the duty saving is substantial.
Vietnam clothing orders typically take 60–90 days from order confirmation to shipment, compared to 30–60 days from Chinese factories. Vietnam’s longer lead times reflect a less vertically integrated manufacturing ecosystem and tighter factory capacity during peak seasons. UK brands sourcing from Vietnam should plan collections further in advance and build buffer time into their production calendars.
Absolutely — and for many UK clothing brands, a dual-sourcing strategy is the most cost-efficient and resilient approach. Simple, proven high-volume styles benefit from Vietnam’s 0% duty. Complex, technical, or lower-volume styles benefit from China’s deeper manufacturing capability and flexible MOQs. Managing two supply chains adds complexity, which is exactly why UK brands work with sourcing partners like Epic Sourcing to keep both running smoothly.
The UKVFTA covers most standard clothing categories under Chapters 61 and 62 of the UK Trade Tariff, with 0% or very low preferential rates for goods meeting Rules of Origin requirements. Some specialist items — such as technical performance fabrics with certain finishes or specific fibre compositions — may have different treatment. Always verify your specific Commodity Code on the UK Trade Tariff or ask your freight forwarder to confirm the preferential rate and Rules of Origin requirement for your specific product.
Whether you are launching your first UK clothing range or scaling an established brand, the team at Epic Sourcing can help you navigate the Vietnam vs China decision — including running the landed cost comparison, identifying and vetting the right factories, and managing the entire sourcing process from development to UK delivery.
📩 Get in touch: hello@epicsourcing.co.uk | 07551 136406 | Book a free Zoom strategy call
TK Wang, Founder & Director @ Epic Sourcing
