Vietnamese Textile & Garment Industry Shines As A Top Destination On The Global Map
Within the framework of the 2024 International Textile & Garment Industry Exhibition, focusing on machinery, materials, and fabrics, Le Tien Truong, Chairman of the Board of Directors of Vietnam National Textile and Garment Group (Vinatex), shared insights into positive trends from Vietnam’s three largest textile and garment export markets: the United States, the EU, and Japan.
Many textile and garment companies have orders extending through the second and third quarters of 2025.
In the current economic landscape, on September 19, the Federal Reserve (FED) reduced interest rates by 0.5%, bringing them to 4.75 - 5% after more than three years. There is a possibility that the FED will cut rates by another 0.5% during the remaining two meetings in 2024, 1% in 2025, and 0.5% in 2026 to stabilize rates around 3% in the following years.
Through these reductions, the FED aims for a soft landing of the U.S. economy, where inflation aligns with target levels without a recession. This environment is expected to improve consumer sentiment in the U.S. as borrowing costs decline, reducing credit card interest impacts and boosting economic confidence.
The Chairman of Vinatex stated that Vietnam’s textile and garment exports reached a record $4.66 billion in August 2024, with exports to the U.S. at $1.9 billion—the highest monthly level to date. Orders are expected to benefit from improved U.S. consumer demand during the holiday shopping season. Demand and prices are anticipated to increase steadily from 2025 in a favorable scenario. With these positive conditions, Vietnam’s textile and garment industry stands before significant market opportunities and reaffirms its status as a prime destination on the global textile map.
In the EU, inflation is trending downward, though Europe remains a “grey area” regarding economic recovery and medium-term consumption demand. In Japan, economic policy is shifting, as the country accepts inflation and yen depreciation to drive economic growth. These factors contribute to improved demand across Vietnam’s three largest textile export markets in the near future.
Additionally, due to political instability and policy issues in countries competing with Vietnam, such as Myanmar and Bangladesh, some textile orders are shifting to Vietnam, with some companies now fulfilling orders through Q2 and even Q3 of 2025.
Positive Signals for Vietnam's Textile Industry
During the first nine months of 2024, Vietnam’s textile and garment exports increased by 8.9% year-on-year, signaling strong export growth for the sector. Key export markets like the U.S., Japan, South Korea, and China continue to see growth, while ASEAN, Russia, and Canada show promising potential. However, exports to the EU remain slow.
Statistics show a decline in inventory levels among fashion brands, signaling positive order trends for the textile sector in the year-end months. Inflation in the U.S. is low, and the FED’s recent interest rate cut in September, with the potential for another cut by year-end, adds to this optimism. The U.K. also reduced rates on August 1 for the second time since March 2020 by 0.25%, likely increasing market demand.
Inventory reductions at major global fashion brands also indicate positive trends: Nike has seen an 11% reduction, Levi’s a 7% reduction and sustainable improvements in sales and profits across the sector. H&M and Uniqlo posted notable profit growth rates of 49% and 36%, respectively. Vietnamese textile enterprises are optimistic about price improvements and better profitability than the previous year.
In 2024, Vietnam’s textile industry aims to achieve $44 billion in exports. Despite positive market trends, the industry faces challenges due to fluctuating market demand and rising costs, including maritime freight and production expenses, which directly impact production and business efficiency.
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