Why Buyers Are Comparing Vietnam and China Right Now
For two decades, sourcing from China was the default answer for apparel brands and importers, and for many product categories it still is. That default is no longer automatic, though. Rising Chinese labor costs, tariff volatility on China-origin goods in the US and EU, and buyers’ growing interest in supply chain diversification have pushed Vietnam into serious contention as a primary sourcing destination rather than a backup option. At the same time, China still leads the world in export volume, fabric availability, and production infrastructure, and it is not going anywhere as a manufacturing power. Choosing between the two countries is not about which one is objectively better; it is about which one fits your specific product, order size, target market, and timeline. This guide walks through the factors that actually move the needle for buyers making that call in 2026.
Labor and Production Costs
Labor cost is usually the first thing buyers compare, and Vietnam wins on paper. Industry wage surveys commonly put average Vietnamese garment-worker monthly wages in the low-to-mid $300s, roughly 40-50% below typical Chinese coastal manufacturing wage benchmarks in cities like Guangzhou or Shenzhen. But labor is typically only 20-30% of a garment’s FOB (Free on Board) price, with fabric, trims, freight, duties, and factory overhead making up the rest, so the total landed-cost gap between the two countries is usually narrower than the headline wage difference suggests. This is especially true for fabric-intensive styles, where China’s domestic raw material advantage can offset a meaningful share of Vietnam’s labor savings. For labor-heavy, lower-fabric-cost styles like basic tees, polos, and simple wovens, Vietnam’s cost advantage tends to show up more clearly in the final FOB price.
Supply Chain Speed and Fabric Sourcing
China’s manufacturing edge is vertical integration: it produces more than 30% of the world’s textile and yarn output domestically, so fabric weaving, dyeing, printing, and finishing typically happen within the same industrial clusters as cutting and sewing. That proximity shortens fabric lead time and gives buyers access to an enormous range of ready-stock materials. Vietnam, by contrast, imports a significant share of its raw materials, commonly cited at 60-80% for many fabric categories, with China itself as one of Vietnam’s largest fiber and fabric suppliers. That import dependency can add days or weeks to lead time on fabric-intensive or highly technical styles that require specialty materials sourced from abroad. It matters far less for basics made with commodity fabrics, like standard cotton jersey or twill, that Vietnamese mills and importers already stock domestically in volume.
Trade Agreements and Tariff Access
This is where Vietnam has pulled ahead structurally, and it is often the deciding factor for brands selling outside the US. Vietnam is a member of the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), both of which phase in reduced or zero import duties on qualifying apparel entering the EU, UK, Canada, Australia, Japan, and other CPTPP markets, access that China simply does not have under comparable terms. For a brand selling into Europe or Canada, that duty differential alone can be worth several percentage points of landed cost on every unit. On the US side, both countries currently face meaningful tariff exposure, and rates on China-origin apparel have generally run higher than on Vietnam-origin apparel in recent trade policy, though tariff schedules shift with little notice. Buyers should always confirm current HS-code-specific rates with a licensed customs broker before finalizing a sourcing decision rather than relying on last year’s numbers.
Quality, Specialization, and Minimum Order Quantities
China remains the stronger choice for highly technical, fast-fashion, or fabric-complex categories such as performance outerwear, intricate prints, embellished garments, and rapid seasonal turnaround, thanks to its scale, automation, and tightly integrated supply base. Vietnam has built a strong reputation for reliable, well-made basics and mid-complexity garments, including t-shirts, polos, hoodies, sweatshirts, denim jeans and jackets, kaki jackets, uniforms, and structured wovens, which is exactly where most OEM, ODM, and private-label brands actually operate. On order size, Vietnamese export-focused factories, AT Garment Factory included at a standard MOQ of 2,000 pieces per style, generally run higher minimums than the smallest Chinese workshops, some of which can go well below 500 pieces on simple styles. For brands placing production-scale orders rather than one-off sample runs or micro-batches, this MOQ gap rarely ends up mattering in practice.
Vietnam vs China: The Numbers at a Glance
A few figures worth knowing before you decide, drawn from recent industry and trade reporting. These are general industry benchmarks, not AT Garment Factory-specific figures, and should be treated as directional rather than exact for your specific product and order:
- China exported roughly $38.1 billion in garments in the first half of 2025 alone, more than four times Vietnam’s export volume in the same period, reflecting its far larger overall production base.
- Vietnam’s textile and garment exports grew an estimated 12.3% year-on-year in H1 2025, reaching roughly $18.7 billion, and industry reporting suggests full-year 2025 exports crossed approximately $46 billion.
- The United States is Vietnam’s largest apparel export market, commonly reported at around 45% of total exports, or roughly $8.5 billion in H1 2025 alone.
- Average Vietnamese garment-sector wages are commonly reported in the low-to-mid $300s per month, notably below typical coastal Chinese manufacturing wage benchmarks, though labor is generally only 20-30% of total FOB garment cost.
- Vietnam is estimated to source 60-80% of certain raw materials from abroad, much of it from China, versus China’s largely domestic, vertically integrated textile supply chain.
- Standard export-scale MOQs in Vietnam commonly run 2,000+ pieces per style for full production runs, with some factories offering lower minimums on simpler basics.
- Vietnam holds preferential tariff access to the EU and CPTPP markets (Canada, UK, Australia, Japan, and others) under EVFTA and CPTPP, a structural advantage China does not currently have.
Taken together, these figures suggest China still wins on raw scale, fabric access, and speed for complex production, while Vietnam wins on cost efficiency for labor-heavy basics and on tariff access for buyers selling into the EU, UK, and CPTPP markets.
Which Country Is Right for Your Brand?
If you are a startup or boutique brand ordering under 500 pieces per style, need extremely fast fabric-complex turnarounds, or are sourcing highly technical performance wear with specialty materials, China’s ecosystem may still serve you better in the short term. If you are placing production-scale orders of 2,000 or more units per style, selling into the EU, UK, Canada, or other CPTPP markets where Vietnam’s trade agreements cut duties meaningfully, or building a long-term OEM, ODM, or private-label supply relationship around reliable basics and mid-complexity apparel, Vietnam is very often the stronger long-term partner. Many established brands ultimately run a dual-sourcing strategy, using China for complex or fast-turn styles and Vietnam for core, repeat, production-scale basics, which is exactly the segment AT Garment Factory is built to serve.
Get a Quote
Not sure which sourcing route fits your brand? Send us your tech pack, target quantities, and target markets, and AT Garment Factory will get back to you with a detailed quote and production timeline within 24-48 hours. AT Garment Factory manufactures polo shirts, cotton t-shirts, sportswear, kidswear, men’s and women’s apparel, denim jeans and jackets, kaki jackets, hoodies, sweatshirts, and uniforms as an OEM, ODM, and private-label partner from our factory in Binh Tan District, Ho Chi Minh City, with export experience to the United States, Canada, Australia, New Zealand, and markets across Southeast Asia, the Middle East, Africa, and Europe.