VIETNAM’S TEXTILE AND GARMENT INDUSTRY TARGETS US$50 BILLION IN EXPORTS IN 2026

Employees work at a garment factory in Vietnam - PHOTO: DUC HOA

HCMC – 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.

Giang said 2025 is considered a pivotal year for the industry, with export revenue estimated at US$46–47 billion. The planned increase is not a sudden leap, but the outcome of a long restructuring process covering supply chains, markets and growth models.

Vitas noted that Vietnam’s textile and garment exports are now approaching the US$50 billion threshold, prompting the association to define three strategic pillars for the next development phase.

The first pillar is the impact of new-generation FTAs. In 2025, several product lines have begun to benefit more effectively from tariff preferences, creating additional room for export growth. Market segmentation is becoming clearer between traditional and emerging destinations, while China remains a key reference point in both production and consumption.

The second pillar is the global geopolitical and geo-economic environment. Strategic adjustments among major economies are creating challenges but also accelerating investment relocation. Vietnam is emerging as a destination for new capital flows, especially in product segments where domestic firms previously lacked capabilities.

Giang said from 2025 onward, and more clearly in 2026–2027, Vietnam will begin producing items that were previously unavailable or only aspirational. Several investment projects have already started, enabling the industry to upgrade its position in global value chains.

In 2025, garment exports alone are estimated at about US$38 billion, contributing to total textile and garment exports of US$46–47 billion. Vietnam continues to rank among the world’s top three garment exporters, alongside China and Bangladesh.

The industry’s three core growth drivers are FTAs, a more synchronized domestic supply chain that improves self-reliance in materials and logistics, and deeper investment in technology, digitalization and automation. Based on these factors, Vitas views the US$50 billion export target for 2026 as achievable but cautious.

Within this broader picture, Viet Tien is cited as a representative example of industry restructuring. The company reported nearly US$800 million in export revenue and consolidated system-wide revenue of about VND18.5 trillion. Its main markets include the U.S., the EU, Japan, and South Korea.

Viet Tien operates an ecosystem of member companies and industrial clusters, with more than 500,000 square meters of factory space and over 30,000 employees. The group plans to maintain stable growth, increase automation, strengthen governance transparency, and shift from contract manufacturing to FOB and ODM, while gradually building brand capacity.

Giang said Viet Tien remains committed to becoming a diversified group, with garments as its core business, while expanding into textile materials, industrial real estate, trading, consumer services, finance, hospitality, tourism, maritime transport, education and healthcare.

Source: The Saigon Times