Vietnam Apparel Manufacturing Strategy: How Global Dynamics Are Shifting and Why AWP Is Investing in Vietnam
Global manufacturing strategies are evolving. As a result, recent shifts in trade policy and global dynamics are drawing more attention to Vietnam apparel manufacturing as a smart growth strategy.
Long before recent economic shifts and challenges, many had already started investing in markets outside of China, particularly, Vietnam. This expansion allows Active Wear Productions to broaden its manufacturing footprint within Southeast Asia, enhancing flexibility, reducing risk, and unlocking new capabilities as part of its long-term growth strategy.
And looking into the research it’s easy to see why. According to the Vietnam Textile and Apparel Association (VITAS), Vietnam’s apparel sector has shown consistent growth, positioning it as a global leader in activewear exports. (VITAS, 2024) This growth reflects Vietnam’s continued rise in garment manufacturing and global trade influence.
While the perception of Vietnam is cheaper labor than China, which may be the case in some instances, it is not to be expected as the norm. And here’s why:
Ethical Manufacturing and A Highly Skilled Workforce.
With government backed enforcements of strict safety regulations, workers have the right to join and create independent labor unions. This is further strengthened by the New Trade Union Law, effective July 1, 2025. It expands worker rights and union operations. Putting Vietnam ahead of its neighbors when it comes worker rights, fair wages and ethical manufacturing conditions.
To add to this, Vietnam’s workforce is young, highly skilled and trained in advanced sewing techniques, pattern making and quality control. This ensures production maintains high efficiency and low defect rates. These capabilities have positioned Vietnam as a leader in ethical apparel manufacturing in Southeast Asia.
A Commitment to Sustainable Production.
For Example, roughly 70% of Vietnamese factories have implemented lean manufacturing principles to minimize waste and boost efficiency, according to recent industry reports. (Source: Vietnam Briefing)
With government support, the industry is focused not only on reducing waste, but also on cutting carbon emissions. Newer facilities mean better equipment and lower water usage. This focus helps to reduce the overall carbon emissions that happen as a result of the manufacturing process. Vietnam’s commitment to sustainable garment manufacturing is setting new industry benchmarks across the region.
In addition, thanks to the push for sustainability within the activewear market, there is a strong focus overall for a more sustainable approach to textile sourcing and lean manufacturing with a reported 35% of textile exports focusing on using organic cotton and recycled fibers. (Source)
Transparency and Ethical Oversight in Vietnam’s Supply Chain
With third party audits and compliance rates 20% above average across the manufacturing sector, Vietnam’s apparel manufacturing sector is not only ethical, but increasingly transparent. Open communication along with transparency, and certifications by international standards such as Fair Trade, WRAP, BSCI, or GOTS, enable brands to have trust in the manufacturing partnerships.
Innovation in Vietnam Apparel Manufacturing.
Vietnam is responsible producing apparel for many of the world’s leading performance brands. With factories supporting everything from highly technical performance bras and tights to technical ski jackets. This means a lot of investment is going into the technologies and innovations around apparel manufacturing.
To drive innovation in technical performance and outdoor apparel, advanced machinery is required. It supports specialized constructions, resulting in more complex garments than the basic silhouettes seen in other markets. This level of technical apparel production is what separates Vietnam from lower-tier markets.
Prime Location
Vietnam’s textile and garment exports hit nearly $44 billion in 2024 (+11.3% YoY), making it the world’s second-largest exporter behind China.
In addition, Vietnam’s strategic location makes it an ideal location for importing and exporting to global markets. Its proximity to China, Taiwan, Korea and Japan enables faster transport time and lower material import costs for international brands. This strategic placement strengthens Vietnam’s role in the broader Southeast Asia apparel supply chain, offering faster lead times and easier access to key materials.
Vietnam’s trade deals, like the CPTPP and EVFTA, have only strengthened its appeal as a go-to hub for global apparel brands looking to scale efficiently.
Strategic Partners.
Looking to Vietnam as a partner in production, Active Wear Productions has strategically partnered with Vietnam based apparel manufacturers who are specialized in making technical performance apparel.
With many of the activewear manufacturers already looking towards the future of product development and manufacturing in Vietnam. Seeing the potential, and recognizing the stability of growth within Vietnam, they invested into the build of an innovative new manufacturing facility.
Our partners don’t consider themselves “just a factory”; but rather facilities designed to make a positive impact on both people and the planet. Our partners prioritize the welfare and empowerment of their employees ensuring safe working conditions, health and insurance benefits, opportunities for growth and development.
A Sustainability-Focused Production Model
The athletic clothing manufacturers we choose have a strong commitment to sustainability. One strategic partner has a newly built facility that is LEED Certified – part of the globally recognized Leadership in Energy and Environmental Design system. Working with LEED-certified clothing manufacturers helps reduce carbon emissions and waste across all stages. Through sustainable design, construction, and operations, LEED standards help buildings reduce carbon emissions, conserve energy and water, minimize waste, prioritize safer materials, and lower exposure to toxins.
Factory certifications include: LEED, RDS, and SMETA Pillar 4 certified; WRAP (Tentative Apr 2025)
Active Wear Productions have built strategic partnerships with leaders in manufacturing equipment. Collaborate with fabric and adhesive specialists in Japan and Europe to develop standout materials and constructions for our clients. This ensures high quality across all stages of product creation. Every solution is backed by decades of experience and technical excellence.
From next-to-skin layers to outerwear, Active Wear Productions are equipped to handle the most technical garments for the activewear and performance apparel market. This includes seam-taped sportswear, skiwear, padded jackets, rainwear, technical pants, and more.
Our investment in our partnerships is a reflection of the long-term potential for Active Wear Productions’ position in Vietnam apparel manufacturing, where innovation and sustainability go hand in hand.
To support development efficiency, our teams use partnerships with CLO software to create virtual 3D garment models, simulate fabric behavior, visualize garments and streamline the overall design and development process, ultimately reducing costs and time-to-market.
If you are exploring options around Vietnam based apparel manufacturing, connect with us to learn more about the partnership between Active Wear Productions and our partners to explore whether Vietnam is the right manufacturing destination for your brand.