Why Fashion Global Brands Are Moving Production to Vietnam? - Thygesen Textile Vietnam

Why Fashion Global Brands Are Moving Production to Vietnam?

  • Author: Thygesen Author
  • Publish date: May 7, 2025

Over the past decade, Vietnam has rapidly risen to become one of the world’s leading manufacturing hubs, especially in the textile and garment industry. A growing number of global fashion and apparel brands have strategically shifted their production to Vietnam, recognizing the country’s numerous advantages in terms of quality, cost, and operational efficiency. But what exactly is driving this movement?

1. Political Stability Creates a Safe Investment Environment

Political stability is a key reason why many global brands choose Vietnam for their production. Vietnam has maintained a stable political environment for decades, offering a sense of security and consistency for international investors. Unlike some regions where sudden policy changes or unrest may affect business operations, Vietnam provides a reliable and calm setting where companies can focus on growing their production smoothly.

2. Tariff Benefits from Free Trade Agreements

Vietnam has signed numerous free trade agreements with major markets around the world, including the EU-Vietnam Free Trade Agreement (EVFTA) and the UK-Vietnam Free Trade Agreement (UKVFTA). These FTAs reduce or eliminate import duties, ensuring a more favorable cost structure for your business and making Vietnam a cost-effective manufacturing destination.

3. Cost Efficiency Compared to Manufacturing in Western Markets

Vietnam offers a much more cost-effective production solution compared to manufacturing in high-cost regions like the U.S., Australia, or Europe. Thanks to competitive labor cost, lower overhead, affordable materials, and tax incentives, brands can significantly reduce their production expenses. Combined with free trade agreements, this cost advantage helps brands maintain healthy margins while delivering quality products.

tax benifit for apparel manufacturing

4. Certified and Reliable Supply Chain

Located in the heart of Southeast Asia, Vietnam is a growing textile hub with a strategic position in global supply chains. Thygesen takes full advantage of this strength with a strong supplier network. We offer materials sourcing both in Vietnam and globally such as: Taiwan, Korea, Japan, India, and China.

Our partners offer a wide range of readily available materials and accessories or can develop custom solutions based on specific requirements. Our network of trusted partners also has the capability to provide certified fabrics, such as GRS, OEKO-TEX Standard 100, and GOTS. 

5. Sustainability and Ethical Responsibility

Clothes made in Vietnam are becoming increasingly ethical due to significant improvements in labor practices and sustainability. 

In Vietnam, Better Work (a global program that aims to improve working conditions and promote fair labor practices in the garment and footwear industries) has been active since July 2009, collaborating with garment and footwear factories to improve labor standards, promote compliance with international labor rights, and enhance productivity.

According to Better Work, the program currently engages around 400 factories and nearly 700,000 workers, with a strong focus on empowering women, who make up 78% of the workforce in the garment sector.

Sustainability and Ethical Responsibility Thygesen

Several clothing manufacturers in Vietnam including Thygesen Vietnam are currently prioritizing ethical practices such as: fair wages, safe working environments, no child or forced labor, and sustainable manufacturing processes.

Thygesen prioritizes eco-friendly materials, waste reduction, and energy-efficient production while ensuring fair and safe working conditions. Our commitment is backed by globally recognized certifications such as SA8000 and WRAP, which guarantee compliance with labor rights, workplace safety, and ethical manufacturing standards.

6. Skilled Workforce and Trustworthy, Hardworking People

Vietnam’s garment and textile industry is supported by a highly skilled and well-trained workforce. Workers are known for their attention to detail, precision in craftsmanship, and deep experience in sewing, pattern making, and product finishing.

Beyond technical skills, international brands also value the work ethic and mindset of Vietnamese workers. Known for being honest, reliable, and diligent, they contribute to building long-term partnerships based on mutual trust and collaboration.

Thygesen sewimg worker

7. “Made in Vietnam” Enhances Brand Credibility

Today’s consumers are increasingly aware of ethical sourcing and product origin. The “Made in Vietnam” label has earned a global reputation for quality, transparency, and responsible production. It signals a commitment to craftsmanship and sustainability, qualities that resonate with modern buyers.

At Thygesen, we combine advanced technology and a highly skilled workforce to meet top-tier standards like ISO 9001:2015. This synergy ensures both precision and efficiency in every stage of apparel production.

Made in Vietnam clothing manufacturing

In conclusion, with advantages in skilled labor, strategic location, free trade agreements, Vietnam has become a top destination for many global fashion brands.

For those seeking a trusted partner in ethical manufacturing, Thygesen Textile Vietnam upholds a strong commitment to ethical manufacturing practices, focusing on fair wages, safe working conditions, and sustainable production. To explore potential collaboration, please reach out via [email protected] or visit thygesenapparel.com.

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