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.
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.
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.
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:
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.
Yes, Vietnam is an interesting market for Italian clothing. Per capita GDP has more than tripled between 2002 and 2022, to $4,087, and half the population is under 30 years old. Purchasing power and interest in Made in Italy are therefore growing, recognized for its prestige in fashion and design.
The free trade agreement between the European Union and Vietnam, in effect since 2020, simplifies trade exchanges and significantly reduces customs duties, starting at 65%. The duties will be eliminated gradually by 2030. For textile and clothing companies, this means lower entry costs and greater competitiveness in the Vietnamese market.
Yes, for direct sales to the final consumer a commercial license is required, which usually takes one to three months. Alternatively, it is possible to open a company locally. Those who do not want to form a company in Vietnam must contact local distributors, who help overcome regulatory, linguistic, and logistical barriers.
Goods undergo standard customs procedures regulated by Law No. 54/2014/QH13. Some categories, such as pharmaceuticals, require additional specific controls. Companies engaged in import-export must submit to customs authorities the certificate of registration of the business activity and the commercial code of import/export.
Priority customs clearance is an option offered to companies exporting to Vietnam, including clothing, to streamline border controls. Among the benefits are exemption from additional customs documentation checks and exemption from physical inspection of goods, saving time.
Vietnam is Italy’s main trading partner in the ASEAN region and sees an increase in demand for textile and clothing goods. The country is also an important manufacturing hub thanks to its low production costs and expertise in textiles. Leather and food products also see a net increase in exports.
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