Exporting clothing to Vietnam: discover the right strategy for you

More and more Italian companies are deciding to sell to Southeast Asian countries, especially it seems that exporting clothing to Vietnam either a decidedly interesting option.

There are several reasons for this: certainly underlying this is the significant economic development that has marked the country in recent years. Indeed, the annual per capita GDP has grown considerably between 2002 and 2022, rising to $4,087, or a value that has more than tripled.

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

These data translate into greater purchasing power, which significantly boosts export opportunities to Vietnam.

Why you should export to Vietnam?

When it comes to exports to Vietnam, one only has to look at the numbers to understand the numerous opportunities that by this market is able to offer.

According to the’Official Economic Observatory there are, in fact, of the commodity sectors that mark a net growth in exports: we are talking in particular about textile, leather and food products.

This trend was undoubtedly encouraged by the’free trade agreement entered into between the European Union and Vietnam, which came into force in 2020. This legislation provided for great simplification in trade and a major reduction in customs duties (starting with 65%), which will then be phased out by 2030. A decisive advantage, which has increased the interest by for all those companies that want to embark on internationalization in the country.

At the moment, therefore, Vietnam emerges as Italy's main interlocutor in the ASEAN area in terms of trade relations, thanks in part to the growing demand for goods such as those Of the textile and apparel industry. 

Why Italian clothing is heavily exported to Vietnam

The interest towards the Made in Italy is developing at Vietnam, abetted, as we have seen, by the greater purchasing power of the population. 

In particular, Italian clothing is strongly exported to the country because of Italy's prestige in the fields of fashion and design, in which it is a global excellence. In addition, it is worth mentioning that Vietnam has proved to be in the last period a relevant manufacturing hub due to its low production costs and textile prowess. 

The combination of these key factors has resulted in an increasing interest in the’apparel export Vietnam.

From the graph below, we see that apparel exports are part of the sector with the highest volumes as far as our country's exports are concerned.

Cothing 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 are the most important ones: 

• Getting Started to sell clothing in Vietnam, if the sale is direct to the end consumer, it is necessary to obtain a particular business license, so it usually takes one to three months to receive it. Basically we are saying that foreign companies intending to bring their products to Vietnam without establishing a company in that market will have to apply to the local distributors. This makes it easier to overcome regulatory, language, but also logistical barriers. It is also an excellent strategy for exploring the market.

• The alternative to licensing is to open a on-site company. The goods should then be subject to standard customs procedures, regulated by Law No. 54/2014/QH13. There are, however, a number of commodity categories, such as drugs, that require more specific controls. 

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

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

How we can help you export to Vietnam

In conclusion, we could see that as of today Vietnam can be an important opportunity if you are intent on your destination è expand business outside national borders; however, the procedures just listed, can prove complicated, and in such a case it is essential to rely on professionals experienced in internationalization in the country.

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