Exporting clothing to Vietnam: discover the right strategy for you

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

The reasons for this are diverse: certainly at the root is the significant economic development that has characterized the country in recent years. The annual per capita GDP has indeed grown considerably between 2002 and 2022, reaching $4,087, a more than threefold increase.

This is accompanied by population growth (with 50% of the population consisting of individuals under the age of 30), which is increasing by an average of 11% each year (source: AICS—Italian Agency for Cooperation and Development).

This data translates to greater purchasing power, which significantly boosts export opportunities to Vietnam.

Why you should export to Vietnam?

When talking about exports to Vietnam, you just need to look at the numbers to understand numerous opportunities that by this market can 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 favored by the’free trade agreement concluded between the European Union and Vietnam, which entered into force in 2020. This legislation has led to a significant simplification of trade and a sharp reduction in customs duties (starting in 65%), which will then be phased out by 2030. This is a decisive advantage that has increased interest by for all those companies that want to embark on internationalization in the country.

At present, Vietnam is therefore Italy's main partner in the ASEAN region regarding trade relations, thanks also to the growing demand for goods such as those in the textile and clothing sector. 

Why is Italian clothing heavily exported to Vietnam?

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 heavily exported to the country due to the prestige that Italy holds in the field of fashion and design, where it is a world-class excellence. Furthermore, it should be noted that Vietnam has proven to be in the last period a relevant manufacturing hub, thanks to its low production costs and its textile sector expertise. 

The accumulation of these key factors has led to a growing interest in’apparel export Vietnam.

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

Cothing you need to know to export clothing to Vietnam

There is some information that is essential for everyone interested in exporting their products to Vietnam. Below we list the most important points: 

• Getting Started to sell clothing in Vietnam, if the sale is directly 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 setting up a company in that market will have to turn to local distributors. This way, it is easier to overcome regulatory, linguistic, and logistical barriers. Furthermore, it is an excellent strategy for exploring the market.

• The alternative to the license is to open a company on site. 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 a company that wants to export clothing to Vietnam, is there a possibility of obtaining a priority customs treatment which has a number of benefits, including not having to undergo the check of supplementary customs documentation and exemptions from physical inspection of goods. 

• Finally, all companies engaged in import-export activities with Vietnam must submit a series of [documents/reports/forms] to the customs authorities. documents, among which is the compilation of a business activity registration certificate and the submission of an import/export business code registration certificate.

How we can help you export to Vietnam

To conclude, we have been able to note that today Vietnam can represent an important opportunity if you are interested in your destination è expand business outside national borders; however, the procedures just listed, they can prove complicated and in such cases it is essential to be able to rely on expert professionals internationalization in the country.

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