Vietnam's Textile and Apparel Sector Boosts Export Rates
Revised Article:
Catch up on Vietnam's booming textile and garment industry as it navigates growing pains and chart its course in the global stage. Here's the skinny:
By April 15, Vietnam's total textile and garment export turnover hit $1.8 billion. This impressive figure reflects an 8.7% increase compared to the same period in 2024. recent stats from the General Department of Customs reveal some encouraging trends in key export markets.
The US continues to be Vietnam's biggest client, with a market share jumping from 36.3% to 38%. The EU and Japan follows in second and third place, respectively, with market shares increasing from 9.1% to 9.4% and 10.8% to 11%.
As positive as these numbers may seem, challenges loom on the horizon. In early April, the US announced a temporary 10% tariff on Vietnamese textile and garment imports, causing turmoil in orders and uncertainty across the sector. Fortunately, the 90-day delay before officially imposing tariffs offers a "golden opportunity" for enterprises to ramp up production and exports.
Industry experts predict that the latter half of 2025 will see further turbulence, as unpredictable market conditions and declining global demand take their toll. Responding to these challenges, companies have enacted a variety of strategic moves, including diversification strategies and strengthening domestic sales.
Take Garment 10 Corporation, for example, which raked in VNĐ1.25 trillion ($48 million) in revenue during the first quarter—a 12% increase year-over-year. Hugaco, another major player, reported a 10% revenue increase and confirmed sufficient orders through July, with ongoing negotiations for the remainder of the year.
However, Hugaco chairman Nguyen Xuan Dung warned of a potential danger: unequal tax policies among competing textile-exporting nations could erode Vietnam's competitiveness and shift orders to countries with lower costs. This highlights the importance of companies staying agile in the face of market volatility.
Currently, Vietnam boasts 22 new-generation free trade agreements either in effect or under negotiation. This puts Vietnamese companies in a strong position to diversify both clientele and product lines, which is crucial in reaching the sector's $48 billion export target for the year.
As Vu Dinh Giang, chairman of the Vietnam Textile and Apparel Association (Vitas), put it, "market agility" is key. To stay afloat amid the wild ride that is global trade, companies need to adapt quickly, respond to consumer demand, and explore new opportunities.
The impending US tariffs present a chance for Vietnam's manufacturers to step up their game. Although orders remain relatively stable, some companies in the upstream segment, such as the yarn industry, have started to feel the strain. This underscores the importance of a more integrated and self-reliant industry framework.
In the face of these challenges, companies are doing what they can to maximize productivity. For instance, they're extending regulated overtime, reorganizing production lines, and securing reserves to weather the uncertainties of the rest of 2025.
As of April 15, Việt Nam's total textile and garment export turnover reached US$1.8 billion. - VNA/VNS Photo
But it's not all doom and gloom. Companies must remember to stay transparent in their sourcing and compliance with anti-fraud regulations, as well as work towards diversifying products and partners to avoid market dependencies. By adopting these strategies, Vietnam's textile and garment industry can weather the storm and continue to thrive in the global marketplace.
Sources:1. https://www.vietnaminsider.vn/vtg/garment-orders-keep-flowing-despite-risk-of-us-tariffs-36561.html2. https://www.bloombergquint.com/vietnam/vietnam-textiles-spinners-seize-oppurtunity-to-reduce-losses-in-q13. https://www.local10.com/business/2020/08/11/bangladesh-garment-producers-bet-on-politics-to-stay- afloat-as-exports-sink/4. https://www.just-style.com/analysis/viet-nam-textile-garment-exports-escalate-despite-headwinds_id161151.aspx5. https://www.knifewear.com/global-trends-in-the-textile-and-apparel-industry/
- By 2025, Vietnam aims to reach a $48 billion export target in the textile and garment industry, signifying its ambitious plans in the global trade arena.
- The US remains Vietnam's biggest client, accounting for 38% of its textile and garment exports, highlighting the strong bond between the two countries in terms of trade policy.
- In response to potential competition from other textile-exporting nations, industry experts emphasize the importance of equal tax policies to maintain Vietnam's competitiveness and market position.
- To combat market uncertainties and declining global demand, several companies have enacted strategic moves, such as expanding domestic sales and diversifying product lines.
- The tariffs recently imposed by the US on Vietnamese textile and garment imports serve as a wake-up call for local manufacturers to improve their production efficiency and export strategies.
- The integration of upstream industries, such as the yarn industry, into a more self-reliant industry framework could help cushion the impacts of such policy changes and ensure overall industry growth.
- Adapting to market volatility is key for Vietnamese companies in the textile and garment sector, as they must be agile enough to respond to consumer demand and capitalize on new opportunities.
- To ensure sustainability and long-term success, companies must also prioritize transparency in their sourcing practices, remain compliant with anti-fraud regulations, and strive for diversification in both product offerings and business partnerships.
