Procurement intelligence

How buying from Vietnam actually works.

Independent, practical guidance for international buyers: where manufacturing is concentrated, which sectors are strongest, how to verify suppliers, and the trade, payment and shipping rules that decide your landed cost.

Read the guides Explore manufacturing hubs

Geography

Vietnam's manufacturing hubs

Production is concentrated in three regions, each with its own industrial base, labour pool and export gateway. Where your supplier sits affects lead times, freight options and cost. Province names follow the July 2025 reform that merged 63 provinces into 34; the former names are still widely used by suppliers.

South

Ho Chi Minh City and surrounds

Provinces: Ho Chi Minh City (now including former Binh Duong and Ba Ria Vung Tau), Dong Nai, Tay Ninh (including former Long An)
Strengths: Furniture, garments, footwear, plastics, packaging, ceramics, food processing
Ports: Cat Lai, Cai Mep Thi Vai (deep sea)

North

Hanoi and the Red River Delta

Provinces: Hanoi, Bac Ninh (including former Bac Giang), Hai Phong (including former Hai Duong), Phu Tho (including former Vinh Phuc), Hung Yen
Strengths: Electronics and components, machinery, metal fabrication, automotive parts, garments
Ports: Hai Phong, Lach Huyen (deep sea)

Central

Da Nang and the central coast

Provinces: Da Nang (including former Quang Nam and Hoi An), Hue, Gia Lai (including former Binh Dinh and Quy Nhon)
Strengths: Wood furniture, tailoring and garments, handicrafts, seafood
Ports: Da Nang (Tien Sa), Quy Nhon

Sectors

Where Vietnam is strongest

Vietnam is a mature exporter in some categories and still developing in others. Knowing the difference sets realistic expectations on quality, MOQ and price.

Furniture and wood

Indoor and outdoor furniture, solid wood and panel, upholstery. Deep export experience with EU and US buyers, FSC options widely available.

HCMC (former Binh Duong), Dong Nai, Quy Nhon

Garments and textiles

Cut, make and trim through to full package production, activewear and tailoring. Fabric is often imported, which affects lead times and rules of origin.

HCMC, Dong Nai, Hanoi, Hoi An

Footwear

Sports, casual and leather footwear at scale, from large export groups to smaller custom makers.

Dong Nai, HCMC (former Binh Duong), Hai Phong

Ceramics and homeware

Stoneware tableware, glazed pottery and decor, from craft villages to automated export factories.

HCMC (former Binh Duong), Dong Nai, Bat Trang (Hanoi)

Metal and machined parts

CNC machining, sheet metal, castings and fabrication to drawings. Capability varies widely, so verify equipment and QC.

HCMC (former Binh Duong), Bac Ninh, Hai Phong

Electronics

Assembly, components and wiring harnesses, led by large foreign-invested plants with a growing local supplier base.

Bac Ninh (incl. former Bac Giang), Thai Nguyen

Guides

Practical procurement guides

Short, answer-first guides to the questions buyers ask most before placing orders in Vietnam.

How to verify a Vietnamese supplier

Check the business registration and legal representative on the National Business Registration Portal.
Confirm it is a manufacturer, not a trading company, through a site visit or independent audit.
Ask for export references and recent export documents in your product category.
Review certifications against your market (for example CE, REACH, FSC, BSCI, ISO 9001).
Approve a golden sample before any production order and use it as the QC reference.

EVFTA: what EU importers need to know

The EU-Vietnam Free Trade Agreement entered into force on 1 August 2020 and removes or phases out duties on the vast majority of goods traded between the EU and Vietnam.

The preferential rate applies only if the product meets the EVFTA rules of origin.
You need valid proof of origin with the shipment to claim it.
Imported fabric or components can disqualify a product, so check origin early.

Always confirm the tariff line and origin rules for your specific product before pricing.

Payment terms and protecting your deposit

Telegraphic transfer is standard: a deposit before production, the balance before shipment or against documents.
Deposits of 30 to 50 percent are common, higher for custom tooling or first orders.
Letters of credit are used for larger orders with established exporters.
Tie the balance payment to a passed pre-shipment inspection.

Incoterms and shipping from Vietnam

FOB is the most common basis for buyers who control their own freight.
Main gateways: Cat Lai and Cai Mep in the south, Hai Phong in the north, Da Nang in the centre.
EXW shifts export clearance to you, so it suits buyers with a local partner.
Plan around Tet (Lunar New Year), when factories close for one to three weeks.

Process

A typical sourcing cycle

From brief to first container, a well-run project follows the same five stages. Skipping one is where most problems start.

Brief

Specifications, target price, volumes, certifications and timeline.

Supplier search

Long list, then a vetted shortlist of three to five capable manufacturers.

RFQ and samples

Comparable quotations, then a golden sample approved as the reference.

Production and QC

Deposit, production follow-up and pre-shipment inspection.

Export

Documents, proof of origin, booking and handover at the agreed Incoterm.

FAQ

Frequently asked questions

How do I verify a supplier in Vietnam?

Check the business registration on Vietnam's National Business Registration Portal, confirm the company actually manufactures (not trades) through a factory visit or independent audit, request export references and recent export documents, review certifications against your market's requirements, and approve a golden sample before any production order.

What payment terms are common with Vietnamese manufacturers?

Telegraphic transfer with a deposit before production and the balance against shipping documents or before shipment is the norm. Deposits of 30 to 50 percent are common; letters of credit are used for larger or first orders with established exporters.

Does the EVFTA mean zero import duty into the EU?

The EU-Vietnam Free Trade Agreement, in force since 1 August 2020, removes or phases out duties on the vast majority of goods, but the preferential rate only applies when the product meets the EVFTA rules of origin and the importer holds valid proof of origin. Always confirm the tariff line and origin rules for your product.

Which Incoterms are typical when buying from Vietnam?

FOB from Ho Chi Minh City (Cat Lai or Cai Mep), Hai Phong or Da Nang is the most common basis for international buyers who control their own freight. EXW and CIF are also used, and DAP or DDP are less common with factories that are new to exporting.

Where is manufacturing concentrated in Vietnam?

The south (Ho Chi Minh City including former Binh Duong, plus Dong Nai and Tay Ninh) leads in furniture, garments, footwear, plastics and ceramics. The north (Hanoi, Bac Ninh, Hai Phong) is the hub for electronics and heavier industry. Central Vietnam (Da Nang including Hoi An, and Quy Nhon) has growing furniture, garment and craft production.

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Vietnam Procurement is published by Saigon Sourcing, a Ho Chi Minh City based sourcing and procurement partner for international buyers.

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