Vietnam’s textile and garment industry is entering a decisive new phase marked by strong export growth, expanding market reach, and structural transformation — even as supply chain dependence and logistics costs continue to pose major challenges.
The outlook and strategies for Vietnam’s textile sector were discussed during a recent Textile and Supply Chain Conference organized by the Asia Commercial Joint Stock Bank (ACB) in Ho Chi Minh City.
Strong Export Growth Signals Recovery
According to Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS), textile and garment exports reached US$34.75 billion between January and September 2025, representing a 7.7% increase compared to the same period last year.
The figures highlight a clear recovery following a period of global slowdown. However, Giang emphasized that Vietnam remains heavily dependent on imported materials, with raw material imports valued at US$16 billion, including US$11 billion in fabric purchases over the same period.
Despite this reliance, Vietnam has successfully positioned itself as the world’s third-largest textile exporter, transitioning from a low-cost manufacturing hub to a competitive supplier of value-added, design-driven products.
Expanding Market Reach Across 138 Countries
Vietnamese textile products are now exported to 138 markets worldwide, supported by the country’s extensive network of 16 free trade agreements, expected to rise to 22 by 2027.
A particularly promising development has been Vietnam’s increasing presence in the Middle East and Africa, where exports reached US$1 billion in 2024. In the first seven months of 2025, shipments to Islamic countries alone have already generated US$700 million, reflecting Vietnam’s growing appeal in emerging high-potential markets.
This expansion underscores a strategic shift toward premium product categories, with a focus on design, technology integration, and sustainability — key factors driving global competitiveness.
Logistics Costs Remain a Critical Challenge
While opportunities abound, logistics remains the sector’s most persistent challenge. Dang Minh Phuong, Chairwoman of the Ho Chi Minh City Logistics Association, warned that high logistics costs continue to erode profit margins, limiting the competitiveness of even the most efficient manufacturers.
“We are benefiting from order shifts from China and Bangladesh, but logistics costs remain the biggest challenge,” she said. “These costs reduce our competitiveness, forcing firms to accept lower profit margins despite strong demand.”
Financial Support and Currency Advantages
Huynh Duy Sang, Head of Financial Markets at ACB, highlighted a more positive financial perspective. Both textile and logistics exporters primarily earn in foreign currency, which, coupled with a 3–3.5% depreciation of the Vietnamese dong since the beginning of the year, has made Vietnamese goods more affordable for international buyers.
Sang added that expectations of U.S. Federal Reserve interest rate cuts could further ease exchange-rate pressures. “The bank is ready to offer hedging solutions to help businesses stabilize costs and focus on their core operations,” he stated.
Ngo Tan Long, Deputy CEO of ACB, reaffirmed the bank’s long-term commitment to the textile sector, noting that tariff levels remain competitive with regional peers such as Bangladesh and Indonesia.
“ACB will continue to support the textile industry and plans to expand its financing portfolio over the next two to three years,” Long said. “For the logistics sector, we are offering working capital loans of up to VND 8 billion (US$303,760) with terms of up to 10 years.”
A Critical Juncture for Sustainable Growth
As Vietnam cements its position among the world’s leading textile exporters, the industry’s next major breakthrough will depend on domestic raw material development, logistics optimization, and investment in technology-driven production.
With strong financial backing, favorable trade agreements, and growing market diversification, Vietnam’s textile and garment sector is on track to become a key global player in sustainable, high-value textile production.
