Update (10/26/25): The U.S. and Vietnam announced a framework for a comprehensive trade agreement that could reduce tariffs to 0% on certain Vietnamese products listed in Annex III of Executive Order 14346. The final agreement is still being negotiated, with details expected to be finalized in the coming weeks. The framework includes commitments on digital trade, intellectual property, and supply chain resilience.
Update (8/7/25): The 20% tariff on Vietnamese apparel officially went into effect, along with the 40% rate on transshipped goods. From August to September 2025, Vietnamese footwear exports to the U.S. dropped by 27%, while apparel exports declined by 20%, reflecting the immediate impact of the tariff increase on the industry.
Update (7/2/25): The U.S. and Vietnam reached a trade agreement that reduced the tariff from 46% to 20% on Vietnamese goods, with a 40% rate on transshipped items (goods originating elsewhere but routed through Vietnam). Combined with standard apparel duties (0%-32% by product type), total costs from Vietnam vary significantly. Despite these tariffs, Vietnam remains highly competitive for technical apparel, activewear, and complex construction. For many small and mid-sized brands, Vietnam offers a strong China alternative—though brands should evaluate MOQs, lead times, and landed costs for their specific product categories.
Update (4/2/25): On April 2, 2025—"Liberation Day"—President Trump announced sweeping tariffs on U.S. trading partners, initially setting Vietnam's rate at 46%, one of the highest imposed. These tariffs were immediately suspended for 90 days to allow for negotiations.
What Vietnam Tariffs Mean for Your Brand
US tariffs on Vietnamese apparel imports are generally lower than those from China, making Vietnam an attractive sourcing alternative. However, these duties still represent a significant cost factor that directly impacts your bottom line. Understanding the tariff landscape for Vietnam is essential for apparel brands looking to optimize their supply chain costs while maintaining quality and reliability.
The Production Challenges You Face
- Variable Duty Rates: Vietnam tariffs on apparel range from 0% to 32% depending on product classification, fiber content, and garment construction.
- Complex Classification: Determining the correct Harmonized Tariff Schedule (HTS) code requires understanding fabric composition, garment type, and intended use.
- Competitive Market Pressure: While Vietnam offers lower tariffs than China, MOQs and lead times can be higher, requiring careful financial planning to maintain margins.
1. Understand Your Tariff Rates from Vietnam
Before finalizing your Vietnam production strategy, get clarity on your actual duty costs:
- Know Your HTS Codes: Cotton t-shirts (6109.10.00) carry 16.5% duties, while synthetic performance wear (6110.30.30) may face 32% rates.
- Leverage Trade Agreements: Vietnam has not yet signed a comprehensive free trade agreement with the US, but understanding existing trade frameworks can help you anticipate future opportunities.
- Factor in All Costs: Beyond base tariffs, account for merchandise processing fees (0.3464% of value), harbor maintenance fees, and potential Section 301 duties if applicable.
2. Optimize Your Product Line for Vietnam Production
- Focus on High-Value Items: Vietnam excels at technical apparel and complex construction, making it ideal for performance wear and outerwear that can absorb tariff costs.
- Consider Fabric Sourcing: Sourcing fabric locally in Vietnam or from regional partners can reduce lead times and simplify logistics, though it may affect tariff calculations.
- Streamline Your SKUs: Concentrate on core styles that justify Vietnam's higher MOQs while delivering quality that commands premium pricing.
3. Implement Strategic Financial Planning
- Calculate Landed Costs Accurately: Include Vietnam's 10-16.5% typical duty rates, shipping costs (longer transit than China), and potential delays in your financial models.
- Build in Tariff Buffers: Create pricing strategies that can absorb potential tariff increases without forcing immediate retail price adjustments.
- Plan for Currency Fluctuations: Monitor the Vietnamese Dong exchange rate and consider hedging strategies for large orders to protect margins.
4. Leverage MakeMine's Vietnam Factory Network
MakeMine's pre-vetted Vietnam manufacturers offer brands reliable alternatives with competitive advantages:
- Compare Vietnam vs. China costs: Upload your tech packs to analyze pricing, tariffs, MOQs, and lead times between our Vietnam manufacturers and China locations.
- Access specialized capabilities: Our Vietnam partners excel in activewear, technical fabrics, and complex garment construction—perfect for brands focusing on performance categories.
- Navigate compliance confidently: We help ensure your products meet US Customs requirements and are classified correctly to avoid penalties and delays.
Vietnam Tariff Rates by Product Category
Understanding typical duty rates helps you estimate landed costs:
- Cotton T-shirts & Knits: 16.5% (HTS 6109.10.00)
- Synthetic Performance Tops: 28%-32% (HTS 6110.30.30)
- Cotton Woven Shirts: 19.7% (HTS 6205.20.20)
- Pants & Bottoms: 16.6%-28.2% depending on fiber
- Outerwear & Jackets: 15%-27.7% based on construction
- Athletic Apparel: 16%-32% depending on materials
These rates are significantly lower than current China duties (30%-70% with additional tariffs), making Vietnam an attractive option for many product categories.
Final Thoughts
Vietnam has emerged as a leading alternative to China for apparel production, offering lower tariff rates, strong manufacturing capabilities, and improving infrastructure. While MOQs may be higher and lead times slightly longer, the cost savings on duties combined with quality production make Vietnam an excellent choice for growing apparel brands.
With MakeMine's platform and expert team, you can navigate Vietnam's tariff landscape confidently, access pre-vetted factories, and optimize your supply chain for both cost and quality. We've helped hundreds of brands successfully transition to or expand their Vietnam production—let us help you evaluate if Vietnam is the right fit for your collection.
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