Vietnam's textile industry successfully "overcomes difficulties"

Although the textile and garment export turnover in 2025 has not reached the expected level, this is still considered a year of successful "overcoming difficulties" of the industry, especially in the context of an increasingly unpredictable market.

According to the Vietnam Textile and Apparel Association (Vitas), 2025 is forecast to be a year of successful "overcoming difficulties" for the textile and garment industry when export turnover is estimated to reach 46 billion USD, an increase of 5.6% compared to 2024. In particular, the impressive trade surplus of up to 21 billion USD continues to affirm the industry's pivotal role in the national trade balance. Notably, the rate of added domestic value has reached about 52%, showing increasing initiative in the supply of raw materials and accessories within the country.

Currently, Vietnamese textile and garment products are present in 138 markets around the world . Of which, the United States is still the main market with an estimated turnover of 18.6 billion USD (up 11.75%). The main export product is clothing (accounting for about 38/46 billion USD of expected export turnover). The international market's confidence in Vietnam is clearly demonstrated when many enterprises have full orders until the end of the first quarter of 2026 and are actively negotiating for the second quarter of 2026.

Mr. Truong Van Cam - Vice President and General Secretary of Vitas added that Vietnam continues to maintain its third position in the world in textile and garment exports, just behind China and Bangladesh. However, unlike Bangladesh which focuses its resources on exporting large quantities (accounting for 80 - 85% of the country's total export turnover), Vietnam chooses its own path, focusing on quality.

According to Vitas leaders, the expected turnover of 46 billion USD is actually lower than the initial expected target (48 billion USD), largely due to unpredictable variables from the US tariff policy and the complex geopolitical context. In addition, the decline in global purchasing power, consumers tightening spending along with pressure from the "green fashion" trend are creating great pressure on profit margins.

Mr. Vu Duc Giang - Chairman of Vitas affirmed that currently, Vietnamese enterprises are still facing a lot of pressure from the psychology of buyers and brands, leading to many different production methods. In addition, faster delivery times, pressure from the demand to use environmentally friendly materials to meet sustainable development requirements... cause production costs to increase. Not to mention, there are more small orders, the pressure on contract value is also large, causing the profit margin of enterprises to decrease. In addition, enterprises also have to pay more production costs to meet the certifications of brands and buyers; each brand requires different certifications...

Faced with this situation, Vietnamese enterprises are forced to come up with solutions to make profits to pay workers and organize production. And the measure that Vitas always recommends to enterprises is: "We will have to invest in robotization and AI. Currently, one worker can operate 3 machines, robots transporting semi-finished products can replace 5-6 people; especially software solutions to reduce unreasonable costs... If the total force can change these problems, enterprises will be able to cope in the current situation" - Mr. Giang said.

In addition, businesses also have to face the problem of increasing input costs from electricity, water, transportation prices to basic salary increases (expected to increase by 7.2% from the beginning of 2026); Payment methods are also changing in an unfavorable direction, when buyers switch from immediate payment (L/C) to deferred payment (T/T), forcing businesses to manage their own capital flow.

“The strategy set for the business community for many years now is to diversify the market; Promote robotic automation technology solutions and AI management software to promote transparency and manage production costs; At the same time, link the chain within the system of enterprises in the same industry. This will create motivation for textiles to take appropriate steps in the current context,” said Mr. Giang. The focus of textiles is to invest in building outside in a suitable way; Build a fashion industry to bring Vietnamese textile brands to the world as well as to the international fashion floor.

Chairman of the Board of Members of Vietnam Textile and Garment Group Le Tien Truong also said that, in the current difficult market context, enterprises need to have key solutions on management; Solve production and business "bottlenecks". In particular, for the manufacturing industry group, enterprises need to approach according to the 2026 target - "Total efficiency". Strong enterprises should focus on new products with better added value; Hand over common goods to average enterprises to help Vietnam's textile and garment production chain create new values.

Source: https://baophapluat.vn/det-may-viet-nam-vuot-kho-thanh-cong.html