Business News

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.

Research data shows that Vietnam's demand for PSF products is about 492,000 tons per year, most of which must be imported. Meanwhile, textile products exported to the U.S. account for 20% of the country's total textile export output. Therefore, localizing raw materials for Vietnam’s textile industry has become urgent, especially in light of U.S. tariff policies on imported textile products.

The Vietnam Leather, Footwear and Handbag Association (LEFASO) has proposed establishing an innovation, R&D and trading centre for fashion materials in Việt Nam to strengthen the domestic supply chain and enhance the competitiveness of the country’s leather, footwear, textile and garment industries. At a Government meeting on July 22, LEFASO Vice Chairwoman and Secretary General Nguyễn Thị Thanh Xuân said the leather and footwear sector still relies heavily on imported materials due to outsourcing.

Vietnam's leather and footwear industry posted more than $14 billion in total export value in the first six months of the year, reaffirming its resilience and strategic position in the global supply chain. According to data from the National Statistics Office, the leather and footwear industry witnessed over a 10 per cent jump on-year in export growth.

Việt Nam’s garment and textile exports exceeded US$17.58 billion in the first five months of 2025, up 9 per cent compared to the same period last year. Meanwhile, imports totalled $10.63 billion, resulting in a trade surplus of $6.95 billion for the sector, according to the Vietnam Textile and Apparel Association (VITAS).

In response to shifting global trade dynamics and tariff challenges, Việt Nam’s textile and footwear sectors are actively diversifying their export markets, with a strong focus on destinations that have signed free trade agreements (FTAs) with the country. Trương Văn Cẩm, Vice Chairman of the Việt Nam Textile and Apparel Association (VITAS), said many companies are currently prioritising the fulfilment of export orders.