Vietnam's textile and garment industry improves competitiveness under pressure of deep restructuring.

Export turnover in 2025 is estimated to reach 46 billion USD, maintaining its position in the top 3 in the world, a milestone for the textile and garment industry to complete its goals in the coming years under pressure of deep restructuring, meeting green standards.

Vietnam's textile and garment industry is accelerating strongly to reach the 2025 target with an estimated export turnover of 46 billion USD in the context of many difficulties in the world market.

Although this result is lower than the target of 48 billion USD, it still increased by 5.6% compared to last year, maintaining the position of "top 3" in the world.

This is a significant milestone that will help the industry achieve its goals in the coming years amidst the pressure of deep restructuring and meeting the green standards of export markets.

Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (Vitas), said that the industry's export turnover would fall by 2 billion USD, which is inevitable as the textile and garment industry has experienced market fluctuations and international policy fluctuations in 2025.

Specifically, escalating US-China trade tensions have led to tariffs being imposed on many textile products, coupled with a complex geopolitical landscape and reduced purchasing power in the US and EU.

Consumers tighten spending, forcing businesses to accept small orders, rush production and short delivery times, reducing profit margins, directly impacting key product groups, and traditional markets are under great pressure.

This context forces businesses to seek new markets, accept scattered orders, constantly adjust production plans, and meet green and traceability standards to maintain credibility with international customers.

"The EVFTA and other FTAs ​​will only become opportunities if businesses have the capacity to meet new standards and improve the localization of raw materials," Mr. Vu Duc Giang emphasized.

In addition, natural disasters in the Central and Northern regions in the last months of the year forced many factories to temporarily stop production.

Many garment factories in Hue, Quang Nam, Da Nang, and Thai Binh were flooded, machinery was damaged, and goods were delayed. Domestic logistics costs increased significantly due to road closures, container shipments being diverted or awaiting reopening, while international customers placed small, scattered orders to reduce risk.

Sewing goods for export to the EU market at Thai Nguyen Garment Company.

These factors, combined with slowing global consumer demand, have compressed export results and put increasing pressure on businesses.

Notably, amidst a fragmented geopolitical landscape and a host of new tariff barriers, from CBAM (Border Carbon Adjustment Mechanism) to stricter rules of origin, global supply chains are becoming increasingly vulnerable. Consequently, brands are forced to diversify their production locations to mitigate risk.

Cao Huu Hieu, General Director of Vietnam Textile and Garment Group (Vinatex), also analyzed that textiles and garments are a key export industry of Vietnam, ranking third in the country in terms of export turnover, but are facing many challenges in the context of increasingly fierce competition and strict requirements from major importing markets.

Furthermore, the tendency for customers to place short-term, small orders requiring fast delivery, along with intense competition leading to a sharp drop in processing prices and consequently reduced profit margins, are challenges that businesses continue to face.

Therefore, businesses must be proactive in responding to small orders, high technical requirements, short lead times, fast delivery as well as proactively sourcing raw materials for domestic production.

Currently, Vietnam's textile industry is heavily dependent on imported raw materials. For example, the yarn industry must import 100% of its cotton, 90-95% of its fiber, and various chemicals and dyes that are not produced domestically. This poses a significant risk to the industry if the US imposes tariffs on products with a high percentage of origin from third countries.

Furthermore, Vietnam's textile and garment industry is primarily involved in production and has not yet developed strongly in high value-added stages such as design, branding, or distribution. On the other hand, Vietnam no longer has a cost advantage in labor compared to many other exporting countries.

Large-volume, basic orders with low processing costs are shifting to countries with cheaper labor.

By 2030, with a focus on sustainable development and a circular economy, Vietnam's textile and garment industry aims to achieve export turnover of US$64.5 billion, with an average growth rate of 6.5-7% per year, and develop the domestic market to reach US$8-9 billion; with a strategic focus on "greening and digitalization," increasing the localization rate to over 60%, and building strong fashion brands.

To achieve this goal, Vitas Chairman Vu Duc Giang said that businesses must promote strategies to diversify markets, products, and customers, as well as promote the ability to call for investment in the supply shortage, build a strategy to develop resources in conjunction with science and technology, and especially build the aspiration to bring Vietnamese brands to the world market.

Dyed wool yarn products of Ninh Thuan Textile and Dyeing Company Limited at Du Long Industrial Park (Bac Phong commune, Thuan Bac district).

“Vietnam has researched and produced a number of unique, high-value products that meet the needs of industries, healthcare, aviation, etc. Currently, a number of factories are completing the final stages to put into operation in 2026. This is a breakthrough, increasing value and promoting industry development in the coming time,” Mr. Vu Duc Giang emphasized.

To overcome the challenges, textile and garment enterprises need two synchronous pillars: improving domestic production capacity with localization of raw materials, greening and upgrading equipment; at the same time, expanding investment abroad, choosing strategic markets with reasonable costs, tariff incentives, smooth logistics and cross-border management.

During the period 2026-2030, the industry will move along two parallel "railways": raising domestic competitiveness standards and expanding international presence. These two directions complement each other, reducing risks and increasing adaptability to global shocks.

The industry no longer relies on low cost advantages but on growth through quality, sustainability and risk management. Enterprises that are flexible, upgrade technology, and perfect domestic and international supply chains will become "winners."

With a focus on sustainability and the circular economy, the industry is strongly shifting towards FOB (Free On Board) and ODM (Original Design Manufacturer) models, taking control from design, materials, transportation, to warehouse management in importing countries, aiming to master production instead of just processing.

vietnamplus.vn

Source: https://baolaocai.vn/nganh-det-may-viet-nang-cao-nang-luc-canh-tranh-truoc-ap-luc-tai-cau-truc-sau-post888560.html