Manufacturing in Vietnam: a guide for UK importers
Manufacturing in Vietnam is a common alternative or addition to China for UK buyers. This guide is for UK businesses considering Vietnamese suppliers. It covers the categories Vietnam is known for, capacity limits and trade terms with the UK, and how we compare Vietnam with other countries on landed cost.
By Matt Buckley · Updated
Where manufacturers in Vietnam are strongest
- Furniture and wooden products
- Textiles, apparel and footwear
- Electronics assembly and components
- Seafood, coffee and processed food
- Plastics and household goods
Finding Vietnam manufacturers
Vietnam manufacturers are concentrated in the north around Hanoi and Haiphong, strong in electronics and assembly, and in the south around Ho Chi Minh City, Binh Duong and Dong Nai, strong in furniture, footwear, apparel and consumer goods. Many factories are foreign-owned, so check who owns the site, where materials come from and whether the goods will meet the rules of origin before ordering.
The UK-Vietnam Free Trade Agreement
The UK-Vietnam Free Trade Agreement took effect on 1 January 2021 [1]. It reduces or removes duty on many goods, but only if they meet the rules of origin [2]. Goods mostly made from Chinese components and only assembled in Vietnam may not qualify. Check the commodity code and preference rate on the UK Global Tariff before building the business case.
Practical considerations
- Supply chains for some inputs still run through China, which affects cost and lead time
- Factories can be smaller than Chinese equivalents, so capacity checks matter
- Sea freight to the UK typically takes several weeks, similar to southern China
- Proof of origin documents must be correct to claim preference
Assessing Vietnam for your sourcing requirements
Vietnam suits many labour-intensive categories and is a common choice for a China plus one strategy. Compare it on landed cost, not unit price. Our product sourcing service runs that comparison and finds vetted Vietnam manufacturers.
If you want help finding and qualifying suppliers, an independent product sourcing agent can compare options on landed cost for you.
Frequently asked questions
Is importing from Vietnam cheaper than China?
Sometimes. Labour costs can be lower and duty may be reduced under the UK-Vietnam trade agreement, but input costs, capacity and lead times vary by category. Compare landed cost for your specific product.
Do goods from Vietnam pay UK import duty?
Many qualifying goods pay reduced or zero duty under the UK-Vietnam Free Trade Agreement, provided they meet the rules of origin. Import VAT still applies.
References
Numbered citations link to the sources below. Illustrative examples and calculations are identified separately in the article.
Further reading
Related insights
More practical reading on procurement, cost and supply chain.
An illustrative project from brief to first shipment, with a landed cost comparison of China, Turkey and Portugal.
Write the specification, search well, tell factories from traders and compare on landed cost.
Estimate landed cost per unit with freight, insurance and duty, and import VAT shown separately.
Discuss your procurement priorities
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