Vietnamese Manufacturers Exported Goods Linked to Sanctioned Firm
Three factories linked to the sanctioned Esquel Group exported cotton goods to the U.S. between 2024 and 2026.
Updated on Oct. 7, 2026 in Manufacturing
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Between November 2024 and June 2026, three Vietnamese manufacturers exported at least $5 million in cotton goods to the United States. These factories maintained corporate links to the Esquel Group, a Chinese company sanctioned by the U.S. in November 2024.
Why it matters
The exports raise concerns regarding compliance with trade restrictions following the 2024 sanctions placed on Esquel. These supply chains demonstrate how rebranded entities may continue to distribute goods while sharing ownership structures with sanctioned companies.
From November 2024 to June 2026, Esquel shipped $34 million of cotton from China, with roughly 70% sent to the three Vietnamese factories. During this same period, U.S. Customs and Border Protection inspected $2.6 million of the $28 billion in total Vietnamese apparel imports.
The players
Esquel Group
This Chinese textile and apparel company was sanctioned by the United States government in November 2024.
An Loi Apparel
This is one of three former Esquel Garment Manufacturing Vietnam factories currently operating in Vietnam.
Muji
This Japanese retail company is known for sourcing apparel products from international manufacturing partners.
U.S. Customs and Border Protection
This federal law enforcement agency is responsible for enforcing trade laws and inspecting goods arriving at U.S. borders.
The details
The factories, formerly known as Esquel Garment Manufacturing Vietnam, rebranded in 2022 and now operate as An Loi Apparel, Tessellation Binh Duong, and Tessellation Hoa Binh. They process blended cotton from various sources, including imports from China, and have supplied major brands like Muji and Rodd & Gunn.
Timeline
In 2022, three factories rebranded from Esquel Garment Manufacturing Vietnam.
The United States sanctioned the Chinese company Esquel Group in November 2024.
The export and customs inspection period for the Vietnamese apparel spanned from November 2024 to June 2026.
Market Landscape
This situation highlights the complexities of global supply chain transparency, particularly concerning the enforcement of the Uyghur Forced Labor Prevention Act. It reflects a broader industry challenge where firms attempt to maintain production volume through rebranded entities while facing strict international trade scrutiny.
Shoppers buying apparel from brands like Muji or Rodd & Gunn may be unknowingly purchasing goods with complex international supply chains. These regulatory issues can lead to product delays at the border or future inventory shortages as brands adjust their sourcing strategies to comply with trade laws.
The takeaway
Consumers should remain aware that complex manufacturing rebrandings can obscure the original source of textile materials. Ensuring supply chain integrity remains a significant hurdle for international retailers operating under strict U.S. trade policies.
Further reading
For more information on the evolving standards for global production, visit the Manufacturing section.
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