How much does it cost to produce a shirt in Vietnam? This central question matters deeply for importers, fashion brands, sourcing managers, SMEs, and entrepreneurs alike. Understanding the real cost of production is essential to informed, profitable decisions and strategic comparisons with alternatives like China or Bangladesh. This blog post will guide you through a detailed cost breakdown, real-world examples, key factors that affect pricing, actionable insights for efficient sourcing, and a frank comparison of Vietnam versus other garment hubs.
Advantages of Producing Shirts in Vietnam
Vietnam has become a favored manufacturing destination due to several interlinked strengths. First, labor costs remain significantly below peers. Recent data shows garment labor in Vietnam averages around US $2.99 per hour, compared to around US $6.59 in China.
Second, the workforce is increasingly skilled and bolstered by vocational training initiatives. For you as a buyer, this translates into fewer quality issues and smoother production runs.
The country’s strong infrastructure is another advantage. With modern ports like Ho Chi Minh City and Cai Mep-Thi Vai, your shipments move faster and more reliably, helping you cut down lead times and reduce logistics costs.
Finally, trade agreements such as CPTPP and EVFTA can give your business tariff savings compared to sourcing from China. This improves your cost competitiveness and allows you to offer better pricing or higher margins in your target markets.
How Much Does It Cost to Product A Shirt in Vietnam?
For importers and fashion brands, the first question is often about the real production cost per shirt in Vietnam. To give a clear picture, let’s start with a sample order of 100 shirts. At this minimum scale, the unit cost is higher than for bulk runs, but it provides a realistic reference point.
On average, a basic cotton shirt made in Vietnam may cost between 6 and 12 USD per piece, depending on fabric, order size, and shipping method. Below, we break down the main cost components that shape this final price.
1. Fabric & Materials
Fabric is the largest contributor to shirt production cost, often accounting for 30-50% of the total. For a simple cotton shirt, material costs may range from 1.5 to 3 USD per piece. Polyester can reduce cost to 1-2 USD, while blended or premium fabrics (like organic cotton or performance textiles) may push this up to 4-5 USD per shirt. Trims such as buttons, zippers, labels, and packaging also add incremental cost. The choice of fabric not only drives the unit price but also determines quality, durability, and market positioning.
2. Labor
Vietnam’s competitive advantage lies in labor. The average garment worker’s wage is around 250-350 USD per month, which translates to 2.5-3 USD per shirt for standard sewing work.
Labor costs also vary depending on complexity, though. A simple button-down requires fewer minutes of work than a detailed design with embroidery or multiple panels. Skilled workers and advanced techniques naturally raise the labor portion, but they also improve quality consistency.
3. Overhead & Factory Margin
Beyond direct materials and labor, factories must cover utilities, administration, equipment, compliance, and quality control. These overhead costs, combined with the factory’s profit margin, usually add 0.8-1.5 USD per shirt.
Beyond this, factories working with international buyers may charge higher margins if audits, certifications, or stricter compliance are required. This layer is crucial because it ensures consistent standards and on-time delivery.
4. Shipping & Export Fees
Shipping is often underestimated but can significantly affect cost. For a 100-piece order, international air freight can add $5-6 per shirt (about $500 total), nearly doubling the landed cost. By contrast, sea freight is far cheaper per unit, but less practical at such small volumes because of minimum container charges. Export documentation, duties, and handling fees further increase expenses.
For larger orders of 500-1,000 pieces, per-shirt shipping falls sharply, often below $1-2 per shirt. This makes sea freight the most cost-effective choice.
5. MOQ and Economies of Scale
The minimum order quantity (MOQ) has a direct impact on price. Most factories in Vietnam prefer MOQs of 500-1,000 shirts to optimize efficiency. At this scale, fabric can be purchased in bulk, cutting costs, and labor is allocated more efficiently. For example:
- 100 shirts: $6-12 per shirt (higher overhead, higher shipping cost per unit).
- 1,000 shirts: $4-7 per shirt (savings from bulk fabric, lower per-unit shipping).
6. Quality Standards and Compliance
When you request certifications such as ISO, WRAP, BSCI, or OEKO-TEX, factories must cover audit and testing fees, which raise your unit cost. For small runs, this can add $0.30-0.80 per shirt, while for bulk orders the extra cost is spread thin to just a few cents. That said, such compliance costs are necessary if you are aiming for smoother customs clearance and guaranteed access to regulated markets like the EU or US.
The following table shows a sample cost breakdown for an order of 100 basic cotton shirts produced in Vietnam.
| # | Cost Component | Estimated Cost per Shirt (USD) | Total for 100 Shirts (USD) |
| 1 | Fabric & Materials | $2.00-2.50 | $200-250 |
| 2 | Labor | $3.00 | $300 |
| 3 | Overhead & Factory Margin | $1.00 | $100 |
| 4 | Shipping & Export Fees | $5.13 | $513 |
| 5 | Quality Standards & Compliance | $0.50 | $50 |
| 6 | Total Estimated Cost | $11.50 | $1150 |
At this small scale, the per-shirt cost lands around $6.35 per shirt for 100 pieces in Ho Chi Minh City, production alone. Including shipping and compliance fees, the landed cost is closer to $11.50 per shirt. And when it comes to bulk order of between 500 or 1,000 units, the per-shirt cost can fall by 20-40%.
How Vietnam Compared to Other Countries in Shirt Manufacturing Cost?
So, how does Vietnam compare to other sourcing hubs? For most buyers, Vietnam gives you a balance of fair pricing, good quality, and reliable compliance. This comes from competitive labor costs, a skilled workforce, and factories that increasingly follow international standards such as OEKO-TEX, WRAP, and BSCI.
China still offers unmatched scale and speed but at higher labor costs. Meanwhile, China’s quality is very consistent and supported by a long-established supply chain, though you pay a premium for it. Bangladesh is cheaper, yet quality and lead times can be inconsistent. Other ASEAN countries compete on price but often lack Vietnam’s reliability and compliance track record.
Shirt Manufacturing Cost & Lead Time Comparison
| # | Country / Hub | Production Cost (100 pcs) | Shipping Cost (100 pcs) | Total per Shirt | Lead Time (Samples + Bulk) |
| 1 | Vietnam (Ho Chi Minh City) | $6.35 (production) | $5.13 (shipping) | $11.48 | 2-4 wks samples, 4-8 wks bulk |
| 2 | China (Guangdong / Shenzhen) | $9.10 | $4.04 | $13.14 | 1-2 wks samples, 3-5 wks bulk |
| 3 | Bangladesh (Dhaka / Chittagong) | $5.40 | $3.15 | $8.55 | 3-5 wks samples, 6-12 wks bulk |
| 4 | Indonesia (Jakarta / Tangerang) | $5.50-6.00 | $3.50-4.00 | $9-10 | 3-4 wks samples, 6-10 wks bulk |
| 5 | Cambodia (Phnom Penh) | $5.00-5.50 | $3.50-4.50 | $9-10 | 3-5 wks samples, 6-12 wks bulk |
Practical Insights for Importers and Fashion Brands
Overall, Vietnam is a solid choice for shirt production, with costs averaging $6-12 per unit and clear advantages in labor, sourcing, and trade agreements. That said, you still need to manage MOQ, lead time, and supplier capabilities carefully. Don’t focus only on the lowest price. Here are some tips:
- Know the MOQ: Aim for at least 500 pieces to reduce per-unit costs.
- Lead Time: Sample development may take 2–4 weeks; bulk runs often require 4–8 weeks, depending on capacity and complexity.
- Negotiate Smart: Bundle multiple styles to raise volume and lower unit cost; ask factory for bundled pricing.
- Supplier Fit: Visit facilities (or audit them) focusing on quality control, compliance, and sustainability certifications.
- Optimize Costs: Use stock fabric where possible, avoid complex trims unless necessary, and consolidate shipments.
Conclusion
That’s the answer to How much does it cost to produce a shirt in Vietnam? For most importers and fashion brands, producing 100 basic T-shirts in Vietnam costs around US $6012 per unit, depending on fabric, order size, and shipping. Compared with other hubs, the country offers a strong edge through lower labor costs, reliable sourcing, favorable trade agreements, and growing production capacity.
If you are ready to take the next step, VinaSources can connect you with vetted factories in Vietnam and guide you through pricing, negotiation, and sourcing strategies. Reach out today to secure accurate quotes and start building your production plan with confidence.