In short: Sourcing from Vietnam to Singapore is increasingly attractive for businesses looking to reduce reliance on Chinese manufacturing. Vietnam offers competitive labour costs, ASEAN trade agreement benefits, and growing manufacturing capability in textiles, footwear, furniture and electronics assembly. Sea freight from Ho Chi Minh City or Hai Phong to Singapore typically takes 3-5 days, much shorter than China routes, and goods moving under the ASEAN Trade in Goods Agreement (ATIGA) can qualify for preferential or zero tariffs into Singapore. On a typical SGD 15,000 order, freight and duty costs are usually lower than an equivalent China-sourced order once you factor in Singapore's favourable import regime for ASEAN-origin goods, but supplier vetting takes more legwork since Vietnam's manufacturing base is younger and less digitised than China's.

Last updated: 30 July 2026

Why Are Singapore Businesses Sourcing from Vietnam Instead of Just China?

Three forces are driving this shift. First, rising labour costs and geopolitical tariff exposure have pushed many global brands to diversify manufacturing beyond China, a strategy often called "China+1." Second, Vietnam's proximity to Singapore, just a few days by sea, makes it a practical secondary or primary sourcing base for SEA-based importers. Third, ASEAN membership means goods made in Vietnam can move into Singapore under preferential trade terms that don't apply to Chinese-origin goods.

None of this means Vietnam replaces China outright. Most Singapore importers we work with use Vietnam for specific categories, textiles, footwear, furniture, and increasingly electronics assembly, while keeping China for categories where its supply chain depth still wins on price or complexity.

What Can You Realistically Source from Vietnam?

Vietnam's manufacturing strengths are concentrated in a few categories:

• Apparel and footwear, where Vietnam is already a major global export base for brands like Nike and Adidas
• Furniture, particularly wooden and rattan furniture from craft villages around Hanoi and the Mekong Delta
• Electronics assembly, growing quickly as Samsung and other majors have shifted final assembly to Vietnam
• Agricultural and food products, including coffee, cashews and processed foods

Highly complex or heavily customised electronics, injection-moulded plastics with tight tolerances, and categories needing deep component supply chains (like advanced machinery) are still generally easier to source in China, at least for now.

How Do Tariffs Work Between Vietnam and Singapore?

Under ATIGA, goods that meet the required rules of origin, generally meaning a significant portion of value-add happens within ASEAN, can move between Vietnam and Singapore duty-free or at significantly reduced rates. Singapore itself has very low tariffs on most imported goods regardless of origin, since it operates largely as a free port, so the ASEAN preference mainly matters if your goods are then re-exported to another ASEAN market from Singapore.

You'll need a Certificate of Origin (Form D under ATIGA) from your Vietnamese supplier to claim preferential treatment, and your supplier needs to be able to demonstrate the required local content or transformation to qualify.

Worked Example: Freight and Cost on a SGD 15,000 Order

Here's an indicative breakdown for a SGD 15,000 (roughly USD 11,000) FOB order of general merchandise shipped from Ho Chi Minh City to Singapore:

Singapore charges import GST on most goods regardless of origin, but duty itself is 0% for the vast majority of product categories (excluding items like alcohol, tobacco, motor vehicles and petroleum products), which is a key reason many Singapore importers find total landed costs from Vietnam competitive even before ASEAN preferences are factored in.

How Do You Vet a Vietnamese Supplier from Singapore?

Vietnam's manufacturing sector is younger and less consolidated than China's, so supplier vetting needs more on-the-ground verification and less reliance on digital platforms alone. Look for:

• A physical factory visit or third-party audit before committing to a large order
• Export track record, ideally with existing shipments to Singapore, Australia, the EU or the US
• Clear English or bilingual communication, since fewer Vietnamese factories have dedicated export sales teams compared to China
• Realistic minimum order quantities, which tend to be less flexible than Chinese factories used to serving smaller trial orders

Frequently Asked Questions

Is it cheaper to source from Vietnam or China for a Singapore business?

It depends on the category. For apparel, footwear and furniture, Vietnam is often price-competitive once you factor in shorter freight times and ASEAN duty preferences. For complex electronics or highly customised products, China frequently remains more cost-effective due to its deeper supply chain.

Do I need a licence to import from Vietnam into Singapore?

Most general merchandise doesn't require a special import licence in Singapore, but you'll need to register for a Unique Entity Number (UEN) with Singapore Customs and activate Customs Account access if you're importing as a business.

How long does it take to set up a new Vietnamese supplier relationship?

Budget for 6-10 weeks from initial factory identification through sampling to a confirmed first production order, similar to or slightly longer than a comparable China timeline, largely due to fewer factories offering rapid digital sampling processes.

Can I combine Vietnam and China orders in one shipment to Singapore?

Yes, though they'll typically arrive as separate shipments or be consolidated at a freight forwarder's warehouse before final delivery, since they originate from different ports and countries.

What's the biggest mistake Singapore importers make when starting with Vietnam?

Assuming Vietnamese factories operate exactly like Chinese ones. MOQs are often less negotiable, English-language support is less consistent, and digital sourcing platforms are far less mature, so on-the-ground relationships and local support matter more.

How Epic Sourcing Helps

Epic Sourcing has bilingual teams on the ground in both China and Vietnam, giving Singapore and SEA businesses a single partner to manage diversified sourcing across both countries. We handle factory vetting, sample coordination, quality control and freight consolidation so you don't have to build separate playbooks for each market. Get in touch for a no-pressure, no-obligation chat about whether Vietnam sourcing fits your product line.

Related reading: for the China comparison, see our guide on sourcing from Vietnam and our blog on how to source products from Vietnam. If your business also imports from China, see how the same sourcing-agent-versus-trading-company decision plays out in our Singapore sourcing agent vs trading company comparison. For US-bound importers exploring similar diversification questions, our customs clearance from China to the USA guide covers the equivalent process for that market.

Learn more about our end-to-end sourcing service and quality control and factory audits.