Importing from Vietnam in 2026: costs, sectors and customs
When your Chinese supplier stops being the cheapest
You have been buying furniture or apparel from Guangdong for years, and your margin is thinning: Chinese wages keep climbing, US tariff policy keeps shifting, and suppliers are enforcing floor prices. A competitor mentions they now make the same range in Binh Duong, Vietnam, at a 12% lower landed cost. Should you move part of your sourcing?
Vietnam has become the most credible alternative to China for one simple reason: it is the biggest winner of the "China+1" strategy — the move to stop concentrating all production in a single Asian country. But Vietnam is not a cheaper clone of China. Its strengths (free-trade access to the UK and EU, competitive labour, deep industry clusters) come with specific constraints. This guide gives you the numbers to decide.
Why Vietnam is rising
Three forces combine. First, labour cost: Vietnamese industrial hourly rates typically run 30 to 50% below China's coastal provinces (2026 estimate, varies by sector). Second, the trade-agreement network: Vietnam is one of the few Asian countries holding the UKVFTA with Britain, the EVFTA with the EU, and membership of both the CPTPP and ASEAN. Third, the cluster effect: Samsung produces a major share of its smartphones there, and Nike and Adidas concentrate a slice of their footwear output in the country — the subcontractor ecosystem is already mature.
The catch: Vietnam's supply chain still depends heavily on components and fabrics imported from China. For many products, "made in Vietnam" means "assembled in Vietnam from Chinese inputs", which has direct consequences for rules of origin (more below).
The sectors where Vietnam excels
Vietnam is not a generalist; it dominates specific value chains. Targeting the right ones stops you paying a premium for something the country does not make efficiently.
| Sector | Vietnam's position | Note for the importer |
|---|---|---|
| Textiles / apparel | 2nd-largest exporter worldwide | Watch the fabric origin (rules of origin) |
| Footwear | 2nd-largest exporter worldwide | Nike/Adidas base, high quality |
| Furniture / wood | Top 3 worldwide | Mature cluster, reasonable MOQs |
| Electronics / smartphones | Major hub (Samsung) | Components often imported |
| Coffee (robusta) | 2nd-largest exporter worldwide | SPS checks on entry |
| Cashew, pepper, shrimp | World leader in cashew | Strict food-safety standards |
Source: Vietnam General Statistics Office and 2025 customs data. Coffee and agricultural goods are subject to sanitary checks on import into Western markets — budget time for phytosanitary certificates.
Duties: everything depends on your destination
The same container of Vietnamese footwear faces very different duty depending on where it lands. Free-trade agreements are the swing factor.
| Destination | Regime | Typical duty on textile/footwear |
|---|---|---|
| United Kingdom | UKVFTA (proof of origin) | 0% or reduced (phasing in) |
| European Union | EVFTA (proof of origin) | 0% or reduced (phasing in) |
| United States | MFN + 2025 reciprocal tariff | MFN + ~20% surcharge (confirm current) |
| India | AIFTA (Form AI) | Preferential rate where it qualifies |
For the US, the big 2026 story is policy risk: a 2025 arrangement layered a reciprocal tariff (reported around 20%) on Vietnamese imports, and a steeper rate (reported around 40%) on goods judged to be transshipped from China through Vietnam. Treat those figures as moving targets and confirm your HS line before committing. For UK and EU importers, the relief is conditional on valid proof of origin and meeting the rules of origin — for textiles, the fabric must typically be woven in Vietnam or the importing bloc. A jacket sewn in Vietnam from Chinese fabric will not qualify for the zero rate.
Logistics: ports, transit, pitfalls
The south (Ho Chi Minh City) concentrates apparel, footwear and furniture; the north (Hai Phong, near Hanoi) concentrates electronics. The main export ports are Cat Lai (river port, congested at peak) and especially Cai Mep, the deep-water port that handles the large vessels in the south, plus Hai Phong in the north.
On transit, budget roughly 18 to 30 days to the US West Coast and 28 to 38 days to Northern Europe — broadly comparable to a sailing from southern China, sometimes a day or two more because Vietnam offers fewer direct services. To decide between sea and air on small urgent volumes, see our air vs sea freight comparison, and to size your box, our container size guide.
Three worked examples
Example 1: furniture container to the UK (UKVFTA importer)
Goods value = GBP 26,000 (40' FCL)
Wood furniture duty = 0% (UKVFTA, valid origin proof)
Duty without proof of origin = ~2.7% → GBP 702 lost
VAT = 20% on customs value, recoverable if registered
Lesson: the origin statement is worth GBP 702 on this container alone
The preferential rate is not automatic: without the origin statement, customs applies the MFN rate. Demand the document from your supplier before shipment.
Example 2: apparel to the US (post-2025 tariff)
Goods value = $40,000
MFN apparel duty (varies by HS) = ~16%
2025 reciprocal tariff = ~20% (confirm current)
Combined duty load → ~$14,400 (estimate)
Takeaway: model the surcharge before you commit volume
For US importers, the 2025 surcharge can erase the labour saving. The numbers above are an estimate based on reported rates — verify the live figure for your HS code, because policy here changes fast.
Example 3: the textile rules-of-origin trap
Jackets sewn in Vietnam, fabric imported from China
EVFTA/UKVFTA "fabric" rule = NOT met
Result = MFN duty applied (often 12%), not 0%
On GBP 40,000 → GBP 4,800 in duty instead of 0
This is the most expensive mistake. Before signing, ask your supplier where the fabric is woven: that single fact decides whether you pay 0% or 12%.
Compare Vietnam and China on your real product
Enter origin, destination, value and HS code: the calculator applies the relevant free-trade agreement and prices the full landed cost of both scenarios.
Run the calculation →Conclusion: a real edge, to validate product by product
Vietnam earns its reputation as a credible China alternative, but the gain is neither automatic nor uniform. For UK and EU importers, the free-trade agreements can turn a 12% duty into zero — provided you master proof of origin and the fabric rule. For US importers, the 2025 tariff shift can swallow the labour saving entirely. The right method stays the same: model the full landed cost of both origins on your specific product before moving any order.
To compare, read our guide to importing from India (another major alternative) and our analysis of sourcing from Morocco for nearshore flows.
Frequently asked questions
What duty does the US charge on Vietnamese goods in 2026?+
Vietnam does not have a free-trade agreement with the United States, so goods normally enter at the standard MFN tariff for their HS code. On top of that, a 2025 trade arrangement introduced an additional reciprocal tariff on Vietnamese imports (reported around 20%), with a higher rate (reported around 40%) on goods deemed to be transshipped through Vietnam to disguise Chinese origin. Rates have moved quickly — always confirm the current figure for your specific HS code before pricing, and budget for the surcharge as a real cost, not a rounding error.
Do Vietnamese goods enter the UK duty-free?+
Largely yes, thanks to the UK-Vietnam Free Trade Agreement (UKVFTA), which mirrors the EU-Vietnam deal and entered into force after Brexit. It progressively eliminates duties on the vast majority of tariff lines. As with the EU agreement, the relief is conditional: you need valid proof of origin and the goods must meet the rules of origin (for textiles, the fabric must typically be woven in Vietnam, the UK, or an approved cumulation partner). VAT still applies at 20% on the customs value.
Does India have a trade agreement with Vietnam?+
Yes — both are covered by the ASEAN-India Free Trade Agreement (AIFTA). An Indian importer can claim preferential duty on qualifying Vietnamese goods using a Form AI certificate of origin, provided the rules of origin are met. The preference does not cover every product and the margin versus India's MFN rate varies by HS code, so check your specific line. For Indian importers, Vietnam is attractive for electronics components and footwear that India does not yet produce at scale.
How long does a container take from Ho Chi Minh to the US?+
Typically 18 to 30 days to the US West Coast (Los Angeles/Long Beach) and 30 to 45 days to the East Coast via the Panama Canal or a transpacific-then-rail route, depending on the service and number of calls. That is broadly comparable to a sailing from southern China. Northern Vietnamese cargo (electronics from Hai Phong) often routes through a transshipment hub, adding a couple of days.
Is Vietnam genuinely cheaper than China?+
On labour, yes — Vietnamese industrial hourly cost typically runs 30 to 50% below China's coastal provinces in 2026. But the full landed-cost gap is narrower. Vietnam's supplier ecosystem is less dense, many components and fabrics are still imported from China (reintroducing cost and lead time), and minimum order quantities can be higher. The net saving on final unit cost is usually in the 5 to 15% range depending on the sector — real, but worth validating product by product rather than assuming.
Thomas Delaunay
Thomas focuses on landed-cost modeling and forwarder benchmarking. Previously a procurement lead at a mid-cap industrial importer, he builds the cost intelligence that powers TRADE-COST calculations.
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