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Manufacturing in Vietnam: a guide for UK importers

Vietnam has become one of the main alternatives to China for UK importers. This guide covers where Vietnam manufacturers are strongest, how the UK-Vietnam trade agreement affects duty, and what to check when importing from Vietnam.

By Matt Buckley

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

The UK-Vietnam Free Trade Agreement

The UK-Vietnam Free Trade Agreement took effect on 1 January 2021. It reduces or removes duty on many goods, but only if they meet the rules of origin. 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

Is Vietnam right for you?

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 offshore sourcing service runs that comparison and finds vetted Vietnam manufacturers.

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.