Two Powerhouses in Fabric Supply
By 2026, Vietnam and China continue to dominate the global textile landscape. While China remains the largest fabric producer in the world, Vietnam is gaining momentum thanks to its improving infrastructure, competitive compliance, and commitment to ESG standards.
For global brands and sourcing managers, the question becomes: Which country offers a more strategic advantage for fabric sourcing in 2026? This article compares Vietnam and China across key criteria to help make informed sourcing decisions.
Overview: Fabric Export Profile
| Criteria | Vietnam | China |
| Export Volume (2023) | ~$4.4B in fabric exports | ~$128B in total textile & apparel exports |
| Key Markets | EU, US, Japan, South Korea | US, EU, ASEAN, Africa |
| Strengths | ESG readiness, free trade agreements (EVFTA…) | Capacity, scale, price flexibility |
| Challenges | Raw material dependence, scale limitations | Geo-political risks, ESG and labor scrutiny |
Comparison by Sourcing Criteria
Price & Scale Efficiency
China: Massive capacity, vertical integration, and price competitiveness, especially for commodity fabrics and mass production.
Vietnam: Slightly higher unit cost due to smaller scale, but becoming competitive in niche, mid- to high-end segments.
✅ Advantage: China, for bulk price and scale
✅ Advantage: Vietnam, for small-to-medium batch flexibility and value-added production
Lead Time & Flexibility
China: Still efficient for high-volume orders, but potential delays due to congestion, policy shifts, or geopolitical factors.
Vietnam: Faster turnaround for sampling, custom development, and made-to-order production with lower MOQs.
✅ Advantage: Vietnam, especially for agile brands and short-season cycles
Compliance & Sustainability (ESG)
Vietnam: Actively aligning with global ESG frameworks. Many factories are ISO 14001, OEKO-TEX®, GOTS, GRS-certified. Strong push for traceability, transparency, and green energy usage.
China: Significant improvements, but still faces buyer skepticism over traceability, forced labor concerns, and documentation transparency.
✅ Advantage: Vietnam, especially for brands subject to EU regulations (CSRD, ESPR, DPP)
Trade Agreements & Market Access
Vietnam: Member of EVFTA, CPTPP, RCEP. Benefits from reduced tariffs and preferential access to the EU and other markets.
China: Lacks direct FTAs with EU and some key Western markets. Subject to certain trade tensions and tariff barriers.
✅ Advantage: Vietnam, in terms of FTA coverage and geopolitical neutrality
Communication & Ease of Doing Business
China: Advanced in export processes but may face cultural or transparency gaps.
Vietnam: Growing English-proficient workforce, proactive customer service, more adaptable in collaborative product development.
✅ Slight Advantage: Vietnam, especially for newer or mid-sized buyers needing closer supplier engagement.
Vietnam’s Strategic Edge in 2026: A Closer Look
Vietnam is not trying to replace China, but rather positioning itself as a high-trust, ESG-aligned, mid-size sourcing alternative. Key drivers include:
Government support for green transformation and digital traceability
Growing number of suppliers with international certifications
Proximity to Southeast Asian consumer and manufacturing hubs
Stable political and regulatory environment compared to shifting global tensions
When to Choose Vietnam vs China
| Use Case | Recommended Country |
| Large-volume, low-cost commodity fabrics | China |
| Certified sustainable fabrics (GRS/GOTS) | Vietnam |
| Low MOQ, fast lead time, trend-driven | Vietnam |
| Industrial/technical fabrics at scale | China |
| Brands subject to EU ESG regulations | Vietnam |
| ODM/Design Collaboration projects | Vietnam |
The Right Sourcing Strategy Isn’t One-Size-Fits-All
Both Vietnam and China will remain essential fabric sourcing hubs in 2026 — the key is to align supplier strengths with your brand’s product and compliance strategy.
Vietnam is emerging as the trusted partner for brands focused on transparency, ESG alignment, and regional diversification. Meanwhile, China continues to dominate scale, price, and vertical integration.
Many global brands will choose dual sourcing models, leveraging China for base volume and Vietnam for flexibility, sustainability, and new product development.
The content reflects the personal perspective of the author and is intended for reference only.
This article was created with the support of AI and reviewed by our editorial team. For more information, please contact THTTEX.
