Exporting clothing to Vietnam: discover the right strategy for you

More and more Italian companies are deciding to sell to South-East Asian countries, in particular it seems that export clothing to Vietnam is a very interesting option.

The reasons for this are various: certainly at the basis there is the important economic development that has characterized the country in recent years. The annual GDP per capita has in fact grown considerably between 2002 and 2022, reaching $4,087, or a more than tripled value.

This is accompanied by the demographic increase of the population (made up for 50% of individuals under the age of 30), which on average increases by 1% every year (source: AICS-Italian Agency for Cooperation and Development).

These data translate into greater purchasing power, which significantly incentivizes the possibility of exporting to Vietnam.

Why you should export to Vietnam?

When it comes to exports to Vietnam, just take a look at the numbers to understand the several opportunity that Of this market is able to offer.

According to theOfficial Economic Observatory There are, Indeed, of the product sectors that show a net growth in exports: we are talking in particular about textile, leather and food products.

This trend was undoubtedly favored byfree trade agreement stipulated between the European Union and Vietnam, which entered into force in 2020. This legislation provided for a great simplification in trade and a strong reduction in customs duties (starting from 65%) which will then be gradually eliminated by 2030. A decisive advantage, which has increased interest Of For all those companies that want to undertake an internationalization path in the country.

At the moment, therefore, Vietnam is Italy's main interlocutor in the ASEAN area with regards to trade relations, thanks also to the growing demand for goods like them of the textile and clothing sector. 

Because Italian clothing is heavily exported to Vietnam

The interest towards the Made in Italy it is developing in Vietnam, thanks, as we have seen, to the greater purchasing power of the population. 

In particular, Italian clothing is heavily exported to the country due to the prestige that Italy has in the field of fashion and design, in which it is a world-class excellence. Furthermore, it should be noted that Vietnam revealed itself in the last period a significant manufacturing hub, thanks to its low production costs and its ability in the textile sector. 

The sum of these key factors has led to an ever-increasing interest inexport of clothing in Vietnam.

From the graph below we see how clothing exports are part of the sector that records the highest volumes in terms of our country's exports.

cwhat you need to know to export clothing to Vietnam

There is some information that is essential to know for all those who show interest in exporting their products to Vietnam. Below we list the most important ones: 

• To start to sell clothing in Vietnam, if the sale is direct to the final consumer, it is necessary to obtain a particular commercial license, so it usually takes one to three months to receive it. In essence we are saying that foreign companies intending to bring their products to Vietnam without establishing a company in that market will have to turn to local distributors. In this way it is possible to more easily overcome regulatory, linguistic but also logistical barriers. It is also a great strategy to explore the market.

• The alternative to the license is to open one company on site. The goods must then be subject to standard customs procedures, rregulated by Law No. 54/2014/QH13. There are, however, a series of product categories, such as medicines, which require greater specific controls. 

• For the company that wants to export clothing to Vietnam, there is the possibility of obtaining a priority customs processing which entails a series of benefits, including not having to undergo a check of additional customs documentation and exemptions from physical inspection of goods. 

• Finally, all companies that are engaged in import-export activities with Vietnam must submit to the customs authorities a series of documents, including completing a business registration certificate and submitting an import/export trade code registration certificate.

How we can help you export to Vietnam

To conclude, we have been able to notice that today Vietnam can represent an important opportunity if you are willing to your destination And expand the business beyond national borders; However, the procedures just listed, can prove complicated and in this case it is essential to be able to count on expert professionals internationalization in the country.

Octagona is available to help your business expand in Vietnam: we are available to support you in every step necessary to make you land successfully in this extremely promising market.