Vietnam’s textile and garment exports reached approximately $32 billion during the first eight months of 2026, keeping the industry on track to pursue its full-year export target of $47–47.5 billion.
Vietnam Textile and Apparel Association (VITAS) Chairman Vu Duc Giang attributed the sector’s performance to flexible business strategies, export diversification and stronger investment in green manufacturing and digitalisation.
The expansion has taken place despite unstable global demand, changing sourcing patterns and growing regulatory pressure across the international fashion industry.
Vietnam Expands Textile Exports Across 137 Markets
Vietnamese textile and garment products are currently exported to 137 countries and territories. The United States remains the industry’s largest individual market, representing approximately 40% of total exports.
The European Union, South Korea, Japan and China are also major destinations, while textile and apparel exports to emerging markets in Africa and the Middle East continue to gain importance.
According to VITAS, manufacturers have responded to changing global conditions by diversifying their markets, customers and product portfolios. This strategy is intended to reduce dependence on a limited number of large buyers while creating new opportunities in developing regions.
Vietnamese companies have also demonstrated greater flexibility in handling smaller and more frequent orders. International buyers are increasingly requesting shorter delivery times, wider product variety and more flexible payment conditions.
Some manufacturers are reportedly accepting deferred payment periods of between 30 and 60 days to maintain customer relationships and secure new orders.
Many companies have already received production orders covering the remainder of 2026 and have begun negotiating contracts for the first quarter of 2027.
Read more: Vietnam Textile Industry Attracts High-Tech FDI
Automation and AI Reshape Textile Production
Technology investment has become a central part of Vietnam’s textile manufacturing strategy.
Companies are expanding the use of automation, robotics and artificial intelligence in production and management. These technologies are expected to improve productivity, reduce operational inefficiencies and help factories respond more quickly to changing customer requirements.
VITAS indicated that manufacturers are allocating around 65–68% of related investment budgets to infrastructure improvements, particularly automation and AI-based applications.
Closer cooperation between companies is another priority. Textile and garment businesses are being encouraged to share knowledge and resources while building stronger connections across the supply chain.
Such cooperation could help manufacturers respond collectively to new export requirements, improve domestic sourcing and strengthen Vietnam’s position as an integrated textile and apparel production centre.
Green Transformation Becomes a Competitive Requirement
VITAS expects environmental regulations and new sourcing standards in major importing markets to become more demanding. Between 2026 and 2030—and increasingly toward 2035—green and digital transformation are expected to become essential conditions for remaining competitive.
Vietnam’s textile industry is also aligning with the government’s objective of achieving net-zero emissions by 2050.
Meeting this goal will require further investment in renewable energy, including rooftop solar systems, as well as advanced wastewater treatment, cleaner production processes and environmentally preferable raw materials.
Industry representatives have called on local authorities to support specialised textile industrial zones equipped with centralised wastewater treatment facilities. Such infrastructure could attract greater investment in weaving, dyeing and finishing, where environmental compliance requirements and capital costs can create significant barriers.
Expanding these upstream operations would also help Vietnam address its continuing dependence on imported fibres, yarns and fabrics.
Read more: Vietnam Textile Industry Faces New Green and Digital Competitiveness Test
Vietnam Targets Higher-Value Textile Manufacturing
Vietnam is positioning itself differently from other major Asian textile and garment exporters by focusing increasingly on mid- and high-value products, flexible production and rapid delivery.
According to Giang, the country’s skilled industrial workforce, relatively stable business environment and participation in 17 new-generation free trade agreements provide important competitive advantages.
However, maintaining export growth will depend on how effectively manufacturers respond to stricter environmental standards, supply chain traceability requirements and rapid technological change.
With exports reaching $32 billion in eight months, Vietnam appears well positioned to approach its 2026 target. The industry’s longer-term competitiveness, however, will increasingly be determined by its ability to combine manufacturing flexibility with automation, domestic supply chain development and measurable environmental performance.
