A rise in year-end demand along with favorable global economic trends have brightened the outlook for Vietnam’s textile and apparel sector which aims to achieve exports worth $47–48 billion in 2025.
In 2024, driven by a shift in orders from competitors like China and Bangladesh, and declining inventory levels in key markets such as the US, EU, and Japan, Vietnam’s textile and apparel exports increased by 11.2 per cent to $44 billion. However, despite this positive outlook, the sector continues to face challenges like the need for stricter sustainability standards in the EU and US and rising competition in Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) markets. To navigate these hurdles and capitalise on the emerging opportunites, the industry needs to accelerate investments in new technologies, opines Vu Duc Giang, Chairman, Vietnam Textile and Apparel Association (VITAS).
Textile and apparel companies in Vietnam also need to penetrate new markets like the Middle East and South America, adds Nguyen Xuan Duong, Chairman, Hung Yen Garment Corporation (Hugaco). They need to invest in automation besides accelerating digital transformation, adopting greener practices and reducing costs to improve product quality and competitiveness, he states.
Many firms in Vietnam have bagged confirmed orders through Q1 2025, with negotiations extending into the latter half of the year. This renewed consumer demand is being driven by recovering export markets, particularly in the US, notes Le Tien Truong, Chairman, Vietnam National Textile and Garment Group (Vinatex). Political instability in competing nations such as Bangladesh and Myanmar is also helping Vietnam capture shifting orders.
To sustain growth, Vietnam needs to manage input costs, optimise labor resources and respond to fluctuating exchange rates, adds Truong. Firms need to also embrace sustainability, digitalisation, and automation to meet evolving buyer expectations, he affirms.
