About the factory
- The factory is a foreign direct investment (FDI) operation in central Vietnam specializing in ODM (Original Design Manufacturing) — producing ready-made designs that can be customized for private labels. Specific products include sportswear, casual wear, workwear, and uniforms.
- The factory hires about 500 workers, and it aims to increase the size to 700-1000 workers, which was the pre-COVID level. The monthly pay averaged about $400.
- The garment factory mainly exports to the U.S., Europe, and Brazil. The factory can do both full package sourcing (i.e., manages the entire production process, from procuring materials to manufacturing, quality control, and packaging—delivering finished goods ready for export) and CMT sourcing (i.e., cut make and trim–buyer provides the materials and designs, while the supplier only performs garment assembly, sewing, and finishing).
- The factory mostly uses woven fabrics, and they are mainly sourced from China and Europe. Other sources include Taiwan, Thailand, and Malaysia. Some fabrics are Oeko-Tex certified, given the growing importance of using sustainable materials.
- To meet the rules of origin requirements under free trade agreements (FTAs), such as the EU-Vietnam FTA, Vietnam is making efforts to enhance its local textile manufacturing capability.
- To meet the clients’ needs, the factory has received several certifications related to social compliance and sustainability, including WRAP, BSCI, and ISO 9000.
- Textile waste is partly sold or donated (e.g., blankets and jackets for local communities).
Discussion questions (for FASH455, please answer all of them):
- How does the video help you understand the complexity of apparel sourcing?
- Based on the video, what is your evaluation of the strengths of the factory as an apparel sourcing base for US fashion companies? Any specific area in which the factory can be improved?
- If you have the chance to visit a garment factory, what would you focus on evaluating and why?
Additional reading: Vietnam overtakes China as US’s top apparel supplier (FDi intelligence, Financial Times, October 8, 2025)
FASH455 Global Apparel & Textile Trade and Sourcing 
#1 How does the video help you understand the complexity of apparel sourcing?
The video helps me understand the complexity of apparel sourcing by showing all the behind the scenes that goes on in factory production and a company’s decision to source from a factory. From the start of the video, it was explained that although factories list things like certifications and product production capabilities on their websites, you need to visit the factory to see its production first-hand to understand its capabilities and how it fits the business’ needs. The video also showed how beyond choosing a factory with the right capabilities to produce your garments, you also need to understand where their materials are being sourced from and how that affects pricing and quality. Even after making a decision to source from a factory, continual monitoring for quality assurance and meeting standards is necessary to ensure that factory remains a good supplier for the business.
#2 Based on the video, what is your evaluation of the strengths of the factory as an apparel sourcing base for US fashion companies? Any specific area in which the factory can be improved?
This specific factory showed the strength that they can produce many different types of more technical garments, such as outerwear, sportswear, and workwear, making them a good apparel sourcing base for US fashion companies looking for more specialized production capabilities. The factory has many certifications geared towards quality, sustainability, and worker protections, which will allow US fashion companies to meet goals for their supply chain and products if they source from this factory. The factory is able to source some of its materials locally, which creates a strength in that it reduces production costs and lead times, making it more appealing to US fashion companies. One specific area the factory could improve on would be to reduce sourcing materials from China, because it could make their products less appealing to US fashion companies due to tariffs. However, this might be difficult to do, as China often offers the best quality and price for supplying textile materials. Another thing the factory could improve on is having more flexibility with MOQ for orders, so that they can get even more business from companies that might be smaller or starting out.
#3 If you have the chance to visit a garment factory, what would you focus on evaluating and why?
If I had the chance to visit a garment factory, I would focus on evaluating technology and production capabilities, quality, and working conditions. These would be the most important things because they ensure growth for the company, good quality products, and ensure workers’ rights. Evaluating the technology and production capabilities of a factory will show the opportunity for growth a company can have with producing their products there, and also find areas where the factory needs to improve. Quality assurance is important to evaluate so that a company can have confidence in the factory as a supplier and confidence in the products that will be sent to their customers. Lastly, I would want to ensure that workers are given good and fair treatment, pay, and working conditions, which is important to uphold standards for the company’s supply chain.
The video helps me understand the complexity of apparel sourcing because Pietro stressed the importance of actually going to the factories and speaking to the employees in order to find out what they truly like to do. He explained that what they like to do can show what they will be the best and most competitive at, which is valuable information for the companies sourcing apparel Vietnam. For this particular factory, they mentioned liking to work with woven fabrics, which lead them to create mostly outerwear and workwear apparel.
One of the strengths of the factory as an apparel sourcing base for US fashion companies is their attention to detail in quality control. The factory ensures that the fabrics they are importing from countries like China are meeting the quality standards that the US fashion companies desire. This is an important step that can help ensure a good quality product is being made. Another strength that the factory possesses is their ability to create more complex products like outerwear. Many of the apparel factories outside of China mainly produce t-shirts because they are much less complex. This gives the factory an edge over their competition. An area that the factory could improve is their fabric sourcing locations. They mentioned sourcing many of their fabrics from China, which is not as good for US companies that export textiles. Using US textiles could help them be even more recognizable and stand out for US fashion companies.
I would focus on evaluating the product range that the factory is capable of producing because that is one of the key issues when sourcing apparel. The lack of variety in products offered by more developing countries is one of the main reasons why US fashion companies continue to source from China. This is because China is able to produce a wide range of apparel products due to their advanced machinery.
How does the video help you understand the complexity of apparel sourcing?
The video goes into depth about the behind the scenes of producing apparel. Not only do manufacturers have to strategize patterning and cutting to reduce waste and improve efficiency, but they also have to strategically source for the most cost-effective materials. One detail that stood out to me was that when producing military uniforms, they have to use fabrications that are silent. This aspect has never crossed my mind before, but it makes sense for the nature of the uniform. The complexity of apparel sourcing is highlighted by different perspectives that combine to create a functional garment.
Based on the video, what is your evaluation of the strengths of the factory as an apparel sourcing base for US fashion companies? Any specific area in which the factory can be improved?
The factory is a great choice for companies that value outdoor garments. The industrial quilting machines help the factory create quilted outerwear easily. They also value social sustainability, which is an aspect of growing importance among consumers in the fashion industry. The multiple stages of quality assurance are also a strength of the manufacturer. Reducing the amount of errors shipped to companies improves customer satisfaction and company retention. One area that could be improved is the breadth of textiles used. The manufacturer specializes in woven fabrics, so expanding their textile base could improve their reach as a supplier.
If you have the chance to visit a garment factory, what would you focus on evaluating and why?
If I were to visit a garment factory, I would focus on evaluating the capability, capacity, and internal quality control process. I recently had the pleasure of meeting a chief of supply chain and sustainability strategy of a quality assurance firm, and he stated that these are the three aspects to look for when inspecting a manufacturer. These factors ensure that the factory has the equipment to produce on a large scale, that they have the amount of employees necessary to complete large orders, and that their internal quality control actually works. This is done by checking quality control logs. He also said to check for labor and human rights standards. These factors give an general overview of the nature of the factory.
This video discussion and factory tour provide an exceptionally clear window into the complexity of apparel sourcing, and I appreciate how you, Professor Lu, present it with both depth and clarity. The tour of the Vietnam garment factory – an FDI-driven ODM facility in central Vietnam specializing in sportswear, casual wear, uniforms, and workwear – helps us understand what it means to build a modern sourcing base.
What I found especially valuable:
Good Work.
1. How does the video show the complexity of apparel sourcing?
The video shows that sourcing involves far more than picking a factory. Companies must consider labor skills, fabric availability, production models like ODM vs. CMT, trade rules, compliance standards, and logistics. It made it clear that sourcing requires coordinating many steps across multiple countries.
2. Strengths of the factory and areas for improvement
The factory’s strengths include flexible production (full package and CMT), ODM capabilities, solid social-compliance certifications, and experience exporting to major markets. Its use of Oeko-Tex fabrics and Vietnam’s improving textile industry also adds value. To improve, the factory could reduce reliance on Chinese fabrics, expand more sustainable material options, and rebuild its workforce to increase capacity and shorten lead times.
3. What I would focus on during a factory visit
I’d focus on worker conditions, safety, and wages. I’d also look at production efficiency, quality control, and how the factory handles waste and sustainability since these areas are crucial for responsible sourcing.