Vietnam Sourcing Ultimate Guide: How to Find, Vet, and Work with Vietnamese Manufacturers
Whether you're sourcing from Vietnam for the first time, moving production out of China, or trying to figure out if Vietnam is the right fit for your product, this guide covers the full process: what Vietnam manufactures well, how to find and vet factories, what quality control looks like on the ground, and how to get your goods through customs and onto a ship. Along the way, we'll cover what makes Vietnam different from China as a sourcing destination, how to spot trading companies posing as factories, and the mistakes that cost first-time Vietnam buyers thousands of dollars in bad shipments.
We're Cosmo Sourcing, a Vietnam sourcing company based in Ho Chi Minh City. We've been on the ground here since 2014, helping thousands of clients source more than 10,000 products and visiting hundreds of factories across the country. Everything in this guide comes from that experience.
The short version: Vietnam is excellent for clothing, furniture, footwear, bags, and packaging, but it's not a drop-in replacement for China in every category. Vet your factory properly, get a physical sample before committing to production, check quality at multiple points during production (not just at the end), and figure out your tariff rates and compliance requirements before you place an order.
If you're weighing multiple countries and not just Vietnam, our low-cost country sourcing guide covers the broader landscape.
Table of Contents
All Photos on this page were taken by Cosmo Sourcing team members
Why Vietnam for Sourcing
Vietnam has become one of the most popular manufacturing destinations in the world, and for good reason. But it's worth understanding why, so you can decide if those advantages actually apply to your product.
Trade Agreements That Lower Your Costs
Vietnam has signed free trade agreements with dozens of countries and trading blocs. The two most impactful for importers are the EVFTA (EU-Vietnam Free Trade Agreement), which gives EU buyers significantly reduced or zero duties on qualifying goods, and the CPTPP, which benefits buyers in Canada, Australia, Japan, and other member countries. These agreements are a major reason Vietnam has become a preferred alternative to China for many product categories. For US buyers, there is no bilateral free trade agreement with Vietnam, but Vietnamese goods still face lower cumulative tariff rates than Chinese goods in most categories. Our guide to Vietnam's free trade agreements covers the details by country.
Important: tariff rates have changed multiple times recently and could change again. Always verify your current rate with a customs broker before committing to a purchase order. Tariff rates vary by product, destination country, and shifts in trade policy. Don't rely on rates you find in blog posts (including this one) when making purchasing decisions.
Lower Labor Costs for Hands-On Work
Vietnam's biggest cost advantage shows up in products that require a lot of manual labor: sewing, hand finishing, assembly, and woodworking. We've seen this play out most clearly with clothing, where a garment that costs $4.50 to make in coastal China might come in at $3.20 to $3.80 in Vietnam, depending on complexity and fabric. The gap is real, but it varies by product.
Supply Chain Diversification
A lot of our clients come to us because they've been told (by their customers, their investors, or their own risk assessments) that they need a backup to China. Vietnam is the most common "China+1" destination for textiles, furniture, and consumer goods.
Growing Factory Base
Ten years ago, Vietnam's manufacturing was mostly garments and footwear. Today, the factory base has expanded into furniture, packaging, building materials, electronics assembly, and more. That said, not every category is equally developed. We'll cover where Vietnam is strong and where you should be cautious in the next section.
| Factor | Vietnam | China |
|---|---|---|
| Labor cost | Lower, especially for sewing, assembly, and hand-finishing | Higher in coastal hubs, but competitive in inland provinces |
| Raw materials | Strong for textiles, wood, and rubber. Limited for electronics parts | Deep supply chains for almost everything |
| Minimum orders | Moderate. Often 300 to 2,000 units depending on the product | Wide range. Some factories go lower at scale |
| Production speed | Moderate. Expect 30 to 60 days for most products | Often faster, especially for repeat orders |
| English at the factory | Getting better, but still inconsistent | More trading companies that speak fluent English |
| Product range | Strong in textiles, furniture, footwear, bags, packaging | The broadest product range in the world |
| Quality | Good to excellent in established categories. Variable in newer ones | All over the map. Depends entirely on the factory |
| US tariffs | Lower cumulative rates than China in most categories (check latest rates with a broker) | Higher cumulative tariffs (Section 301 + reciprocal); significantly more expensive for most products |
| EU tariffs | EVFTA gives preferential rates on qualifying goods | Standard rates apply |
| IP protection | Improving but enforcement is still patchy | Better legal tools, but enforcement is also inconsistent |
Vietnam vs China: How to Decide
This is one of the questions we get asked most. The honest answer is: it depends on your product. Here's a practical comparison based on what we see across thousands of projects.
We've moved well over 100 products from China to Vietnam for clients across dozens of categories. Two recent examples: We moved production of orthotic shoes for a client who'd been manufacturing in China for years. The combination of rising Chinese labor costs and Section 301 tariffs made the landed cost unsustainable, and Vietnam's footwear expertise made the transition smooth. We ran a similar move for an athleisure brand, shifting their full line from Guangdong to factories outside Ho Chi Minh City. In both cases, unit costs dropped and quality held up after one round of sample revisions. Not every product story ends that way, but for sewn goods and footwear, Vietnam frequently wins on total cost.
For a full comparison including Mexico as a third option, see our Vietnam vs China vs Mexico sourcing guide.
What Vietnam Makes Well (and Where to Be Careful)
Clothing and Textiles
This is Vietnam's strongest category by far. The country is one of the world's largest garment exporters, and the workforce has decades of experience producing for brands like Nike, Uniqlo, Patagonia, and H&M. Whether you need basic t-shirts or technical performance wear, Vietnam can handle it. We've sourced everything from athleisure lines to workwear uniforms here and consistently find that Vietnamese garment factories deliver high quality at competitive prices, especially for items with complex stitching or multi-panel construction. See our guide to Vietnam's top clothing manufacturers.
Footwear
Vietnam is the world's second-largest footwear exporter, producing shoes for Nike, Adidas, Puma, and Skechers. Athletic, casual, and formal styles are all well-established here. We recently moved production of orthotic shoes from China to Vietnam for a client, and the transition was seamless because the factory workforce already had deep experience with technical footwear construction. If your product involves lasting, cementing, or injection molding, Vietnam has the skills. Our Vietnam shoe manufacturers guide covers the industry in detail.
Furniture and Home Goods
Vietnam is the world's second-largest furniture exporter after China. Solid wood, engineered wood, rattan, and wicker are all strong. We've sourced tables, shelving, outdoor furniture, and home decor items extensively here. One thing to know: Vietnamese furniture factories are often very good at working with alternative wood species that give you the look and durability you need at a better price than the species you originally specified. Don't be surprised if the factory suggests a substitution; always verify by obtaining a physical sample. Our Vietnam furniture guide goes deeper.
Bags, Backpacks, and Luggage
The same skilled sewing workforce that powers the garment industry also produces excellent bags and backpacks. Canvas, nylon, polyester, and leather are all common. We've sourced everything from tactical-style gear bags to fashion handbags, and the sewing quality is consistently strong.
Packaging
Paper, corrugated, and flexible packaging manufacturing has grown fast in Vietnam, both for domestic consumption and export. This includes custom retail packaging, shipping boxes, and food-safe packaging. The quality of printing and finishing has improved significantly over the past few years.
Building Materials
Ceramic tiles, stone, sanitary ware, and other construction materials are produced for export, though quality varies more by factory than across categories.
Rubber and Plastic Products
Vietnam has a growing plastics and rubber sector. Silicone kitchenware, rubber mats, plastic housewares, and injection-molded components are all sourced from Vietnam. The country is also one of the world's largest natural rubber producers, which gives local manufacturers a raw material advantage for rubber-based products.
Health, Beauty, and Personal Care
Cosmetics packaging, skincare tools, bamboo or wooden beauty accessories, and personal care items are increasingly manufactured in Vietnam. If your product combines materials (wood handles with metal components, for example), Vietnam's ability to coordinate multiple production steps in one facility can be an advantage.
Sporting Goods and Outdoor Equipment
Vietnam's strength in textiles and plastics makes it well-suited to produce items such as yoga mats, resistance bands, sports bags, protective gear, and outdoor accessories. If the product is sewn, molded, or assembled from multiple components, there's likely a factory here that can produce it.
Where to Be Careful
Electronics. Vietnam assembles electronics at scale (Samsung has huge operations here), but the landscape for small and medium-sized buyers is more nuanced than in Shenzhen. Custom electronics with deep component supply chains are still easier to source in China. That said, Vietnam can absolutely handle products that combine simple electronics with other manufacturing strengths. We sourced a waterproof Bluetooth-controlled propeller attachment for stand-up paddleboards here, a product that combined electronics assembly, injection-molded plastic housings, and waterproofing. The factory handled the full assembly because the electronics were relatively straightforward, and the rest of the product played to Vietnam's strengths. The rule of thumb: if your product needs a custom PCB design and a complex component ecosystem, start in Shenzhen. If it involves assembling imported electronic components into a product that's primarily mechanical, molded, or sewn, Vietnam can be a good fit.
Precision machining and specialty chemicals. The supply base in Vietnam is thinner for these. You'll find fewer options, and vetting takes longer.
The bottom line: Don't pick a country first and then try to make your product fit. Pick the country that has a mature factory base for your specific product. If you're weighing your options across multiple countries, our Vietnam vs China vs Mexico comparison is a good starting point.
Where Factories Are Located
Vietnam's manufacturing is concentrated in regional clusters, and knowing which region specializes in your product saves time when you're searching for factories.
Most sourcing for small and mid-sized importers happens in the south, within a few hours of Ho Chi Minh City. Northern Vietnam has a heavier concentration of electronics and some textiles. Our guide to Vietnam's top manufacturing cities maps these clusters in detail and covers factory density, wages, and port access by region.
| Product Category | Main Regions | Nearest Major Port |
|---|---|---|
| Clothing and textiles | Ho Chi Minh City, Binh Duong, Dong Nai, Long An (south); Hanoi, Hai Duong, Nam Dinh (north) | Cat Lai / Cai Mep (south); Haiphong (north) |
| Footwear | Binh Duong, Dong Nai, Ho Chi Minh City (south); Thanh Hoa, Hai Duong (north) | Cat Lai / Cai Mep (south); Haiphong (north) |
| Wood furniture | Binh Duong, Dong Nai, Binh Dinh (south/central); Quang Nam for craft furniture | Cat Lai / Cai Mep (south); Quy Nhon (central) |
| Bags and luggage | Ho Chi Minh City, Binh Duong, Long An | Cat Lai / Cai Mep |
| Packaging | Ho Chi Minh City, Binh Duong, Dong Nai, Hanoi | Cat Lai / Cai Mep (south); Haiphong (north) |
| Rubber and plastics | Binh Duong, Dong Nai, Long An, Ho Chi Minh City | Cat Lai / Cai Mep |
| Electronics assembly | Bac Ninh, Thai Nguyen, Vinh Phuc (north, driven by Samsung and Foxconn) | Haiphong |
The Sourcing Timeline: What to Expect
First-time importers almost always underestimate how long the process takes. Here's a realistic timeline based on what we see across most product types.
| Stage | Weeks | What Happens |
|---|---|---|
| 1. Specs and Factory Search | 1 to 3 | Write your product spec (materials, dimensions, tolerances, packaging, compliance, target price), then start reaching out to factories. |
| 2. Quotes | 2 to 4 | Send your spec to 5 to 10 factories. Compare pricing, MOQs, lead times, and communication quality. Narrow to 2 to 3 candidates. |
| 3. Samples | 3 to 7 | Expect to pay $50 to $500 per sample plus shipping. Vietnamese factories typically take two to four weeks, slightly slower than China. Always approve based on a physical sample in your hands, never photos. |
| 4. Production | 5 to 14 | Finalize pricing, issue a purchase order, and inspect quality at least twice during the run. |
| 5. Shipping | 10 to 16 | Ocean transit runs 14 to 35 days depending on destination, plus 5 to 14 days for customs and last-mile delivery. |
Total: 8 to 16 weeks from first factory contact to goods on the water. First orders run longer. One critical note: Tet (Vietnamese New Year, late January or early February) shuts down most factories for two to four weeks. Plan around it.
How to Find and Vet Factories
Finding factories is the easy part. Vetting them is where the real work happens, and where most problems are prevented.
Online Sourcing Platforms
Alibaba (filtered to Vietnam) is the most well-known starting point, but it's not the best for Vietnam specifically. Alibaba's Vietnam listings are thinner and less reliable than its China listings because fewer Vietnamese factories invest in maintaining Alibaba storefronts. Many of the "Vietnam" listings on Alibaba are actually Chinese trading companies sourcing from Vietnam on your behalf, which adds a middleman you don't need.
Import Yeti is more useful for finding real Vietnamese manufacturers. It pulls from US customs shipping records, so you can see which factories are actually exporting to the US, how often they ship, and who their buyers are. If you're trying to figure out which factory makes a competitor's product, Import Yeti is where you start.
Global Sources tends to list more verified factories than Alibaba and has a stronger presence among mid-sized Vietnamese manufacturers, particularly in electronics assembly and consumer goods.
Made-in-Vietnam.com and Vietnam Supplier are local directories worth checking. They won't have the polish of Alibaba, but they list factories that don't bother with international platforms, which is actually a decent chunk of the Vietnamese manufacturing base.
You can also search Vietnamese government export databases and customs records. Our guide to sourcing websites and Alibaba alternatives covers all of these platforms in detail, including how to use each one effectively.
Trade Shows
Trade shows are one of the best ways to find Vietnamese factories, and they're underused by foreign buyers. Walking a show floor for two days will give you more factory contacts than weeks of online searching, and you can see product samples, meet ownership, and compare quality across dozens of factories in one place.
The key Vietnam trade shows by category:
VIFA Expo (Ho Chi Minh City) — Vietnam's largest furniture show. If you're sourcing wood furniture, home goods, or outdoor furniture, this is the one to attend.
SaigonTex (Ho Chi Minh City) — The main textiles and garment show. Covers fabrics, trims, and finished garment manufacturers.
ProPak Vietnam (Ho Chi Minh City) — Packaging machinery and packaging manufacturers. Useful if you're sourcing custom retail packaging or food-safe packaging.
Vietnam Expo (Hanoi and Ho Chi Minh City) — A broader general trade show covering multiple industries.
VietnamWood (Ho Chi Minh City) — Focused on wood processing, machinery, and wood product manufacturers.
Our 2026 Vietnam trade show calendar lists dates, locations, and which shows are worth attending for each product category.
Industry Associations
Vietnam's industry associations maintain factory directories and can make introductions. They're particularly useful for categories where online platforms have thin coverage.
VITAS (Vietnam Textile and Apparel Association) — The main association for garment and textile manufacturers. Their member directory includes hundreds of factories.
VIFA (Vietnam Furniture Association) — Covers wood furniture manufacturers and hosts the VIFA Expo trade show.
VPA (Vietnam Plastics Association) — Useful if you're sourcing injection-molded parts, packaging, or rubber products.
LEFASO (Vietnam Leather, Footwear, and Handbag Association) — Covers footwear and bag manufacturers.
Our guide to finding Vietnam manufacturing companies covers how to use these associations and other resources in detail.
A Sourcing Company
A sourcing company like Cosmo Sourcing can shortlist vetted factories based on your product and volume. We handle the RFQ process, deliver 2 to 6 quotes with full factory background, and give you direct access to every supplier we recommend. This is especially helpful if you don't have someone on the ground in Vietnam, don't speak Vietnamese, or need to move fast.
The difference between a sourcing company and doing it yourself isn't just speed. It's the vetting. We've visited hundreds of factories across Vietnam, from Binh Duong to Thanh Hoa to Hai Phong. We know which ones actually produce what they claim, which ones are trading companies, and which ones have the capacity and quality systems to handle export orders. That kind of on-ground knowledge takes years to build, and it's the main reason buyers use a sourcing partner rather than cold-contacting factories from a platform.
What's Different About Vetting Factories in Vietnam
The basics of factory vetting are the same everywhere: verify the business license, get a sample, check references, and visit or audit the facility. What catches people off guard in Vietnam are the Vietnam-specific wrinkles.
Trading Companies Posing as Factories
This is more common in Vietnam than most buyers expect. A company will present itself as a manufacturer, but it's actually a middleman subcontracting to a workshop you've never seen. Always ask to visit the production floor. If they dodge that request or suggest meeting at an office instead, that's a red flag. Tools like Import Yeti can help here, as they let you view actual shipping records and verify whether the company is exporting directly.
Export License Verification
Not every Vietnamese factory has a direct export license. Some smaller operations rely on a third party to handle export paperwork, which adds a layer of complexity and cost. Ask early whether they export directly or through an intermediary.
English Communication Gaps
Many Vietnamese factories, especially smaller and family-run ones, don't have dedicated English-speaking sales staff. Communication during the quoting phase might go through a translator or a junior staff member whose English is limited. This doesn't mean the factory is bad, but it does mean you need to be more explicit with your specs and confirm understanding at every step. Sending visual references, annotated drawings, and clear written specs matters more here than in China, where most export-facing factories have fluent English-speaking staff.
MOQs and Negotiations in Vietnam
Minimum Order Quantities
MOQ stands for minimum order quantity. It's the smallest order a factory will accept. In Vietnam, typical ranges look like this:
Clothing: 300 to 1,000 pieces per style and color
Furniture: 50 to 200 pieces per design
Bags: 200 to 500 pieces per style
Packaging: 5,000 to 20,000 units
General consumer goods: 500 to 2,000 units
These are starting points, not hard rules. Factories set MOQs based on how efficiently they can run production. If you're below their MOQ but can show you'll place repeat orders, many factories will work with you. Others will accept a smaller order at a slightly higher price per unit. It never hurts to ask. Our MOQ guide explains why factories set minimums and how to negotiate them down.
How to Negotiate
Negotiating with Vietnamese factories works best when you treat it as a conversation, not an arm-wrestling match.
Share your expected volumes over the next 6 to 12 months. Factories care about the relationship, not just a single order
Ask for a price breakdown showing material cost, labor, and overhead. This helps you see where there's room to move
Remember that price is only one variable. You can also negotiate on MOQ, lead time, payment terms, packaging, and shipping terms
Don't push the price so low that the factory has to cut corners to make it work. That's how quality problems start. If a quote seems too cheap, it probably is
Vietnamese Business Culture: What to Know
If you've sourced from China, expect a different dynamic in Vietnam. Vietnamese business culture is more relationship-driven. Factories want to know who they're working with before committing to their best work for you. Expect small talk before getting down to business, and don't rush straight to pricing on a first call. Hierarchy matters: when meeting a factory team, address the most senior person first and direct important decisions to them. Direct confrontation or aggressive negotiation tactics can backfire. Vietnamese suppliers may say "yes" to avoid conflict even when they mean "we'll try," so pay attention to hesitation and ask follow-up questions to confirm understanding.
English proficiency at the factory level varies widely. Some owners speak fluent English, others rely entirely on Google Translate. Confirm early that your factory contact can discuss technical details in English, not just exchange pleasantries. If they can't, a sourcing company or bilingual intermediary isn't optional; it's necessary.
Buyers who build genuine relationships with their factories, visit when they can, give positive feedback when things go well, and handle problems privately rather than publicly, consistently get better pricing, faster turnarounds, and priority treatment during peak season. This is not just a nice-to-have; it's a competitive advantage.
How Pace and Communication Differ from China
Having worked with Vietnamese factories for over a decade, we find that the biggest adjustment for buyers coming from China is the pace. In China, you can often get a quote straight away on a first call. In Vietnam, the factory wants to understand your business first: what you're making, who it's for, and whether this is a one-time order or a long-term relationship. That might feel like wasted time, but it's not. The factories that take the time to understand your product up front tend to deliver better results during production.
We've also found that when things go wrong (and they eventually do), the factories we have strong relationships with are far more willing to fix the problem at their own expense than those we've only dealt with transactionally.
Foreign-Owned Factories Change the Dynamic
A significant number of factories in Vietnam are foreign-owned or foreign-managed. We regularly work with Japanese, Korean, Danish, French, Thai, and Chinese-owned factories operating in Vietnam. This means the business culture at the factory level can vary significantly depending on who owns and manages the operation. A Japanese-owned garment factory in Binh Duong operates very differently from a Vietnamese family-run furniture workshop in Dong Nai. The management style, communication expectations, quality standards, and even payment terms can vary depending on ownership. It's worth asking about ownership and management structure early in the vetting process so you know what to expect.
Plan Around Tet or Miss Your Deadline
One timing issue every buyer needs to plan around: Tet (Lunar New Year) shuts the country down for one to three weeks, usually in late January or February. Production slows for two to three weeks on either side as workers travel home, and some don't return to the same factory. If you have a Q1 deadline, plan around Tet, or you will miss it. We start flagging Tet timelines with clients in October because by December, it's usually too late to adjust production schedules. This isn't just a Vietnam issue (China's Spring Festival causes the same disruption), but first-time Vietnam buyers are often caught off guard because they don't realize the shutdown is just as long and just as disruptive.
How to Pay Vietnam Suppleirs
The standard payment structure for a first order from a Vietnam factory is 30/70: you pay 30% as a deposit before production starts, and the remaining 70% after production is complete and you've inspected the goods (but before they ship).
T/T (telegraphic transfer), which is just a bank wire, is the most common payment method. Some larger orders use a Letter of Credit (L/C) for added security, though not every factory is set up to accept one.
Two important rules:
Never pay 100% upfront. Your deposit gives the factory working capital. The held balance gives you leverage if something goes wrong.
Don't release the final 70% until someone has physically inspected the finished goods.
Our guide on how to pay a Vietnamese supplier covers payment methods, transfer fees, currency conversion, and how to avoid common scams.
| Cost Component | Approximate Range |
|---|---|
| Unit price (FOB) | $5.50 to $7.00 per unit |
| Samples (2 rounds) | $150 to $300 total |
| Ocean freight (LCL, shared container) | $0.30 to $0.80 per unit |
| US customs duties | HTS base rate + reciprocal tariff; total varies by HS code (check latest rates with a customs broker) |
| Customs broker fee | $150 to $300 per shipment |
| Pre-shipment inspection | $250 to $400 (one day) |
| Inland delivery to warehouse | $200 to $500 depending on distance from port |
What Does a Vietnam Order Actually Cost? A Landed Cost Example
Factory price is not your real cost. Here's a breakdown based on a dual-sourcing project we ran in late 2025, where a client had us quote the same custom sportswear top from factories in both China and Vietnam for a 1,000-unit order shipping to the US (see Chart)
On a $6.00 FOB sportswear top, your total landed cost might be $8.50 to $10.50 per unit once you add freight, duties, inspection, and brokerage. The exact number depends on your product's HS code, your shipping volume, and current tariff rates.
Here's what made this project interesting: Vietnam's per-unit FOB price was actually slightly higher than the Chinese quote. But once we calculated landed cost including the tariff differential, Vietnam came out cheaper. That's the whole point of this exercise. Always calculate landed cost, not just factory price, when comparing suppliers or countries. The cheapest quote on paper is not always the cheapest product at your warehouse door.
Quality Control in Vietnam
Quality control in Vietnam requires more hands-on oversight than in China. The inspection infrastructure is thinner (most QC firms are concentrated in Ho Chi Minh City and Hanoi), and factories in smaller provinces need more scheduling lead time. The good news is that Vietnamese factories are generally more receptive to in-process inspections than some Chinese factories we've worked with.
Plan for three inspection checkpoints:
Check 1: Before Production Starts
Confirm raw materials match your approved sample. In Vietnam, material substitution is more common than buyers expect: factories sometimes swap in a different wood species, fabric blend, or hardware grade without telling you, not out of malice but because they found a supplier with better availability.
Check 2: During Production (Around 20% to 30% Complete)
This is the check most first-time importers skip, and it's the most valuable one. At this point the factory has produced enough goods to see whether the work matches your sample. Make sure your inspector is comparing against your approved physical sample, not just a written spec sheet. In Vietnam, spec misunderstandings caused by English communication gaps are more likely to surface here than during quoting.
Check 3: Before Shipment (Pre-Shipment Inspection)
Hire a third-party inspection company to verify quantities, quality, packaging, and labeling before you release your final payment. Expect to pay $250 to $400 per inspection day. At Cosmo Sourcing, we coordinate third-party inspections on our clients' behalf as an additional service. Our factory audits and quality control guide covers the full inspection process and lists the top QC companies operating in Vietnam.
Paperwork and Compliance: What US and EU Buyers Need
This section isn't the most exciting part of sourcing, but it's where many first-time importers get caught off guard. You are the importer of record, which means compliance is your responsibility, even if you're working with a sourcing agent.
If You're Importing to the US
Country of Origin Labels
Every product entering the US must be marked "Made in Vietnam" (or the appropriate country). This is a legal requirement, not optional.
HS Code
Your product is classified under a Harmonized System code, which determines your duty rate. Getting this wrong (even accidentally) can result in fines. Work with a customs broker to confirm your HS code before you order.
Product Safety
Depending on what you're importing, you may need to comply with requirements from the CPSC (consumer product safety), FDA (food-contact items, cosmetics), FCC (electronics), or other agencies. Products for children have extra requirements under CPSIA.
Tariffs
Vietnamese goods entering the US are subject to standard HTS duty rates plus a reciprocal tariff that varies by product category. Some categories qualify for a reduced or 0% reciprocal rate, while goods deemed to have been transshipped through Vietnam face a higher rate. These rates have changed multiple times since early 2025 and could change again. Verify your specific rate with a customs broker before placing your order, and include the actual duty rate in your landed cost calculation.
ISF Filing
If you're shipping by ocean, an Importer Security Filing must be submitted at least 24 hours before your goods are loaded onto the ship.
If You're Importing to the EU
CE Marking
Many product categories require CE marking to be sold in the EU.
REACH
Products must comply with EU chemical regulations.
EVFTA Benefits
To qualify for reduced tariff rates under the EU-Vietnam Free Trade Agreement, your goods must meet specific rules of origin and be accompanied by the appropriate documentation (an EUR.1 certificate or an origin declaration from the exporter).
Documents You'll Need
Your factory or freight forwarder should provide these for a standard shipment (exact requirements depend on your product and destination):
Commercial invoice and packing list
Bill of lading (for ocean freight) or airway bill (for air freight)
Certificate of origin
Test reports or compliance certificates for your destination market
For wood products entering the US: fumigation certificates and documentation for Lacey Act compliance
For step-by-step import instructions, see our guides on importing from Vietnam to the US, to the EU, to the UK, to Canada, and to Australia.
Shipping from Vietnam
Use FOB for Most Vietnam Orders
Specifically, FOB Ho Chi Minh City or FOB Haiphong. This means the factory handles everything up to loading the goods onto the ship (including Vietnamese export customs and inland transport to the port), and you take over from there with your own freight forwarder. We don't recommend EXW for Vietnam because navigating Vietnamese export customs and inland logistics yourself is more difficult than in China, where more providers cater to foreign buyers at the factory gate. DDP (factory handles everything to your door) sounds convenient, but it means you lose control over shipping costs, and the factory adds a markup to duties and freight. Our Incoterms guide explains all the options in detail.
Which Port?
Most factories in southern Vietnam ship out of Ho Chi Minh City (Cat Lai or Cai Mep ports). Northern factories use Haiphong. Pick a factory, and the port follows. Our guide to Vietnam's manufacturing cities maps factory clusters to port access.
Ocean vs Air
Ocean freight is standard for most orders. You'll ship either a full container (FCL) or share container space with other shippers (LCL, for smaller orders). Air freight is 5 to 10 times more expensive but gets there in days instead of weeks. We use it for urgent shipments, samples, and high-value/low-weight products. For detailed freight guidance, see our shipping from Vietnam guide.
Approximate ocean transit times from Vietnam:
To the US West Coast: 14 to 21 days
To the US East Coast: 25 to 35 days
To Northern Europe: 25 to 35 days
To Australia: 10 to 18 days
Add 5 to 14 days on top for customs clearance and delivery to your warehouse.
Freight Forwarder
You'll need one. A freight forwarder handles booking, documentation, customs brokerage, and delivery coordination. Ask your sourcing partner or factory for recommendations. A good forwarder who knows Vietnam routes will save you time and money.
Common Vietnam Sourcing Mistakes (and How to Avoid Them)
The generic sourcing mistakes (vague specs, skipping samples, paying too much upfront) apply to any country. These four are the ones we see trip up Vietnam-specific projects most often.
| Mistake | What Goes Wrong | The Fix |
|---|---|---|
| Assuming Vietnam replaces China for everything | Buyer moves production to Vietnam without checking whether the supply chain exists for their product. Works for sewn goods, furniture, packaging. Falls apart for complex electronics, precision machining, or specialty raw materials. | Check whether Vietnam has a mature factory base for your specific product before you commit. |
| Discovering tariff or compliance issues after ordering | Container arrives at port. Customs flags wrong HS code, missing certification, incorrect labeling, or a higher tariff rate than budgeted. The tariff landscape has shifted multiple times since 2025. | Work with a customs broker at the quoting stage. Know your HS code, duty rate, and whether any reciprocal tariffs apply before you commit to a factory. |
| Treating the factory like a transaction, not a relationship | Buyer applies the China playbook: jump straight to pricing, negotiate aggressively, send short transactional emails. In Vietnam, the factory goes quiet and deprioritizes your orders. Vietnamese business culture is relationship-driven. | Slow down on the first interaction. Ask about capabilities, share context about your product. Visit when you can. Give positive feedback when things go well. |
| Skipping QC on smaller or first orders | Buyer decides a $250 to $400 inspection is not worth it on a small first order. Goods arrive with wrong measurements, mismatched colors, or damaged packaging. Fixing the order costs far more than the inspection would have. | Inspect every first order from a new factory, regardless of size. When a factory knows you inspect, they pay more attention. |
Every one of these is preventable with the right process. If you're sourcing from Vietnam for the first time, our complete guide to vetting Vietnamese factories covers the due diligence steps that keep most of these problems from happening in the first place.
FAQ
Is Vietnam actually cheaper than China?
For labor-intensive products like clothing, bags, and hand-finished goods, Vietnam is often cheaper on a per-unit basis. For products that need complex supply chains or heavy automation, China may still win on total cost. Always compare landed cost (unit price + shipping + duties) rather than just factory price. Our Vietnam vs China guide breaks this down.
Do I need a sourcing company?
Not always, but a sourcing company saves you significant time and risk, especially if you're new to Vietnam, don't have people on the ground, or need to vet multiple factories quickly. With Cosmo Sourcing, you send us your specs, and we deliver 2 to 6 vetted quotes within four to six weeks, with full supplier contact details so you own the relationship. Our guide on what a sourcing agent does explains the difference between agents and sourcing companies and when each makes sense.
What are the tariff rates from Vietnam to the US?
Vietnamese goods entering the US are subject to standard HTS duty rates plus a reciprocal tariff. The exact rate depends on your product's HS code, and some categories qualify for exemptions. These rates have shifted multiple times since 2025 and could change again, so always verify with a customs broker before ordering. See our importing from Vietnam to the US guide for a full breakdown.
What is OEM vs ODM?
OEM means the factory makes your product to your design. ODM means the factory provides the design, and you put your brand on it. Both exist in Vietnam, but ODM is much more limited than in China. Most Vietnamese factories expect you to bring your own design. Our OEM vs ODM guide covers this in detail.
How do I protect my designs?
Use NDAs adapted for Vietnamese law, register trademarks in Vietnam, and avoid shopping your design to many factories. Consider splitting component production across factories for sensitive IP. Enforcement remains inconsistent in Vietnam, so practical safeguards (limiting who can see your full design) matter more than legal documents alone.
Next Steps
Write your spec sheet. This is step one, no matter what. Materials, dimensions, colors, tolerances, packaging, compliance requirements, target price.
Decide how you want to find factories. You can search on your own, attend a trade show, or work with a sourcing company. Each has tradeoffs in time, cost, and risk. A sourcing company like Cosmo Sourcing handles the factory search, vetting, and quoting for you and delivers full supplier access so you can build the relationship directly.
Vet before you commit. Visit or audit the factory, get a sample, check references, and watch for the Vietnam-specific red flags covered in the vetting section above. Don't skip this.
Plan your quality checks. Decide now who will inspect your goods and at which stages. Don't wait until production is already running.
Talk to a customs broker. Know your HS code, duty rate, and compliance requirements before you place an order.
Line up a freight forwarder. Get quotes for shipping while the factory is still in production, so you're ready to move when the goods are done.
Or hire a sourcing company to do this all for you!
Work with Cosmo Sourcing
We're a sourcing company based in Ho Chi Minh City. Since 2012, we've helped thousands of clients source more than 10,000 products from Vietnam.
Here's how it works: you send us your product specs, and we find, vet, and quote 2 to 6 qualified factories for you, typically within four to six weeks. You get full access to every supplier we recommend, including direct contact information, so you own the relationship. Our pricing is a flat fee per project, not a commission on your order value.
We stay involved after introductions, too. Our team can coordinate samples, manage third-party quality inspections, and support you through production and shipping.
Ready to get started? Fill out our contact form or email us directly at info@cosmosourcing.com. Tell us what you're looking to source, your estimated quantities, and the deadline. We'll get back to you with an honest assessment of whether Vietnam is the right fit and a clear outline of next steps.
See how our process works · View our pricing · Contact us