Business News

Vietnam’s textile and garment industry is aiming for around US$50 billion in export revenue in 2026, up nearly US$3 billion from 2025, as companies restructure supply chains, deepen investment and leverage free trade agreements (FTAs). The target was shared by Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (Vitas) and chairman of Viet Tien Garment Corporation, at a press briefing on January 12 marking Viet Tien’s 50th anniversary.

Vietnam’s manufacturing sector ended 2025 on a positive note, with business conditions improving for a sixth consecutive month, reinforcing growth expectations for 2026, according to the latest Purchasing Managers’ Index (PMI) released by S&P Global on January 2. The PMI for December stood at 53.0, down slightly from 53.8 in November but remaining firmly above the 50-point threshold that separates expansion from contraction. 

Việt Nam’s textile and garment industry is expected to achieve export revenues of US$46 billion in 2025, marking a 5.6 per cent increase compared to 2024. The Việt Nam Textile and Apparel Association (VITAS) announced these positive performances at a press conference held in Hà Nội on November 25 to introduce a meeting of the association’s seventh term during 2025-2030, and the industry review conference to be held in December.

According to Vũ Đức Giang, chairman of the Việt Nam Textile and Apparel Association (VITAS), the industry’s export turnover reached US$34.75 billion in the first nine months of 2025, an increase of 7.7 per cent year-on-year. This marks a robust comeback and highlights the resilience of Việt Nam’s textile exports in the global market.

Manufacturing firms were more optimistic regarding the 12-month outlook for output. Business sentiment strengthened to a 16-month-high amid confidence that new orders will continue to rise and alongside plans to expand production capacity. The increase in new orders and associated expansion of output requirements also resulted in a rise in employment in October, the first in just over a year.

Vietnam’s textile and garment sector is one of the economy’s key export industries, with about 7,000 enterprises and nearly 3 million workers. The country now ranks among the world’s top three textile and garment exporters, behind only China and Bangladesh. However, the industry faces a major challenge: heavy reliance on imported raw materials and accessories.

Talking to VIR, Pham Xuan Hong, chairman of Ho Chi Minh City Association of Garment Textile Embroidery-Knitting (AGTEK), noted that Vietnamese businesses still maintain a competitive edge thanks to product quality, delivery reliability, and a stable business environment. However, rising costs and a shortage of skilled labour in yarn production and design are major challenges.

Since the start of the year, the industry has received encouraging signals. Export turnover in the first seven months of 2025 reached more than $26.33 billion, up $5.3 billion, or 9 per cent, compared with the same period in 2024. Many enterprises have already secured orders through the end of the year, sustaining growth through to the year’s close.