Vietnam Tariffs for Fashion Brands: How to Reduce Sourcing Costs in 2025
Vietnam has become one of the world’s top destinations for fashion sourcing, offering high-quality production, competitive labor costs, and access to major trade agreements. But for brands looking to manufacture in Vietnam, understanding tariffs and import duties is essential to controlling costs and maximizing profitability.
Are you paying too much in import taxes? Many brands unknowingly overpay due to misclassified goods or missed tariff exemptions. Others aren’t taking full advantage of Vietnam’s free trade agreements (FTAs) that could significantly lower their sourcing costs.
In this guide, we break down how Vietnam’s tariff structures impact fashion merchandising and how Pham Fashion House helps brands navigate them for the best possible pricing.
How Vietnam’s Trade Agreements Impact Apparel Tariffs
EVFTA (EU-Vietnam Free Trade Agreement)
Eliminates 99% of tariffs between Vietnam and the EU. European fashion brands sourcing from Vietnam can significantly lower costs.
CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership)
Offers duty-free access for many apparel products in Canada, Australia, Japan, and other Asia-Pacific markets.
Vietnam-USA Trade Relations
While there is no free trade agreement, Vietnam’s tariffs are generally lower than China’s. Proper classification of apparel can help reduce costs.
Understanding Vietnam’s Tariff Classifications for Apparel
Vietnam's import tariffs on fashion products depend on HS codes, which determine the duty rates for specific types of garments.
- Knitwear (HS Code 6109) – 5% to 20% tariffs depending on the fabric
- Woven Garments (HS Code 6203) – 10% to 25% depending on material
- Dresses and Skirts (HS Code 6204) – 12% to 20% depending on fiber content
- Footwear (HS Code 6403) – Can range from zero to 30% tariffs
Misclassification of products can increase import duties by 5% to 15% or more. Pham Fashion House ensures your products are properly classified to help you avoid overpaying on tariffs.
How to Optimize Your Sourcing Strategy to Reduce Tariffs
Source Materials Strategically
Many FTAs require garments to meet "rules of origin" criteria for duty-free benefits. Sourcing fabrics from Vietnam instead of China can help meet these requirements.
Work With Trade-Compliant Factories
Factories that do not follow FTA regulations can lead to unexpected tariffs. Pham Fashion House only works with pre-vetted factories that comply with trade agreements.
Leverage Duty Drawback & Trade Programs
If you pay tariffs on imported raw materials but later export the finished product, you may qualify for a duty drawback refund.
The Future of Tariffs in Vietnam: What to Expect in 2025
Trade agreements and tariff structures continue to evolve. Here’s what brands should watch:
- More tariff reductions under EVFTA
- CPTPP expansion, potentially adding more tariff-free apparel categories
- Growing discussions around U.S.-Vietnam trade incentives for apparel
Pham Fashion House stays ahead of these changes so that our clients are always sourcing with the most cost-effective strategy.
Why Work With Pham Fashion House?
Pham Fashion House helps fashion brands and retailers reduce sourcing costs, navigate tariffs, and optimize supply chains in Vietnam.
- Pre-vetted, trade-compliant factories
- Strategic sourcing to reduce import duties
- Tariff classification and compliance support
- Logistics and shipping assistance
Ready to Cut Your Sourcing Costs?
Don’t let tariffs eat into your profits. Learn how Pham Fashion House can help you optimize your sourcing strategy and reduce apparel import duties.
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