MOQ stands for minimum order quantity. For example, our MOQ is 200 pieces per style. What does this mean? It means that if you plan to order...
We produce over 200,000 garments per month. IF we entertain small quantity orders our merchandising team will not be able to manage all the orders successfully. The same amount of merchandising work goes into a 50 piece order as a 50,000 piece order yet a 50 piece order is done in one day whereas a 50,000 piece order can keep two lines busy for a month.
Size breakdown does not matter. Within the 2,000 you can have any quantity of any size you want.
Fabric matters. The fabric dyeing factories impose their minimums on us per colour, so if we order less fabric than their minimum they charge us extra which we have to pass on to our customers. Our customers are always price senstive so we are too - another reason why we have the 200 MOQ.
Artwork matter. The appliqué, screen print or embroidery also needs to meet the MOQ. We can be flexible here. For example, most screen printing factories have MOQ of 1,000.
In fact, 2,000 pieces MOQ is small for the Vietnam garment industry capacity. Any factory that does less is a mom and pop operation and you need to proceed with caution. I recommend you be in Vietnam during production and monitor production closely. Most reputable factories in Vietnam have MOQ greater than 200 pieces per style.
Vietnam has 90 million people whereas China has 1.3 billion. The Vietnam garment industry capacity is limited because the availability of workers compared to China is limited. Consequently, medium and large sized factories need to impose MOQ’s to survive.
Here is a statistic to show how small Vietnam garment industry capacity is compared to China:
“The most recent data of the US Office of Textiles and Apparel (OTEXA) records textile imports from Vietnam as having 8.38% share of the whole US market, still a far cry but continuously catching up with China’s 47.97%.” Source: Quality Inspection Org.
Here is an interesting article that will help you to understand more about Vietnam garment industry capacity.