2024 Textile and Garment Exports Poised to Reach $44 Billion
In 2024, Vietnam's textile and garment export turnover is projected to reach $44 billion, an increase of nearly 11.3% compared to last year, according to the Vietnam Textile and Apparel Association (Vitas). This marks a significant milestone, reflecting the strong growth of Vietnam’s textile and garment industry amid the global economic recovery.
This information was shared by Vitas Chairman Vu Duc Giang at a press conference on November 19.
“Textile and garment imports in 2024 are expected to reach $25 billion, an increase of nearly 14.8% compared to 2023”
As a result, Vietnam's textile and garment industry is expected to achieve a trade surplus of $19 billion, an increase of approximately 7% compared to the previous year.
The United States remains the largest consumer of Vietnamese textile and garment products, with an estimated turnover of over $16.7 billion, an increase of 12.3% compared to last year. The U.S. market accounts for nearly 38% of Vietnam's total textile and garment export turnover.
Following the U.S. are Japan with $4.57 billion, the European Union (EU) with $4.3 billion, South Korea with $3.93 billion, China with $3.65 billion, and Southeast Asia with $2.9 billion. These figures underscore the importance of key export markets for the growth of Vietnam’s textile and garment sector.
With such strong growth, the textile and garment industry not only makes a significant contribution to Vietnam's economy but also enhances the country’s position in the global textile market.
The Surge in Global Demand
Global consumer trends are shifting, and the demand for high-quality, sustainable, and fashionable garments is increasing. This shift is a significant opportunity for Vietnam, which has long been known for its diverse and cost-effective production capabilities.
As more consumers gravitate toward eco-conscious fashion, Vietnamese manufacturers are responding with innovative solutions that meet these new market expectations, including the use of sustainable fabrics, ethical labor practices, and eco-friendly production processes.
Additionally, with the world economy gradually recovering from the disruptions caused by the COVID-19 pandemic, international demand for fashion items has picked up speed. This revival in the global fashion market is driving growth in textile and garment exports, and Vietnam, with its established manufacturing infrastructure, is well-positioned to benefit from this trend
High demand, labor resources mean increased accordingly.
Strategic Location and Trade Agreements
Vietnam’s strategic location in Southeast Asia, coupled with its well-developed port infrastructure, makes it an attractive hub for textile and garment manufacturing. The country’s proximity to major global markets such as the United States, the European Union, Japan, and South Korea ensures that it can meet the demands of large-scale international brands quickly and efficiently.
Furthermore, Vietnam’s robust network of free trade agreements (FTAs) has greatly enhanced its export competitiveness. Agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) have provided favorable tariff reductions, creating more opportunities for Vietnamese manufacturers to access high-demand markets
Key Export Markets and Trade Growth
Vietnam’s textile and garment exports are predominantly directed toward some of the world’s largest and most lucrative markets. The United States remains one of Vietnam’s top export destinations, accounting for a significant share of the country’s textile and garment exports.
The European Union and Japan are also key markets, with both regions showing continued growth in demand for Vietnamese garments. The country’s membership in various trade agreements has further boosted its export competitiveness, as these agreements eliminate trade barriers and create new opportunities for local manufacturers.
In addition to traditional markets, Vietnam’s textile sector is also making inroads into emerging markets, such as those in Southeast Asia, Africa, and Latin America. These regions present significant growth potential, especially as local economies continue to develop and demand for fashion products increases.
As Vietnamese manufacturers continue to diversify their export markets, they are better positioned to mitigate risks associated with economic downturns or disruptions in specific regions.
Challenges and Opportunities Ahead
Despite the positive outlook, Vietnam’s textile and garment industry faces several challenges that could impact its export potential. One of the key challenges is global supply chain volatility. Disruptions caused by geopolitical tensions, natural disasters, and shifts in global trade policies can affect the cost and availability of raw materials.
Additionally, fluctuations in the price of textiles and labor could influence production costs, making it more challenging for manufacturers to remain competitive.
However, these challenges also present opportunities for growth and innovation. By investing in research and development, diversifying supply chains, and embracing advanced manufacturing technologies, Vietnam’s textile and garment industry can build resilience against external shocks. Furthermore, as global demand for high-quality, ethically produced apparel continues to rise, Vietnam’s focus on sustainability, innovation, and ethical practices positions it for long-term success.
Vietnam’s textile and garment industry is set to achieve remarkable growth in 2024, with exports expected to hit $44 billion. With a combination of strategic trade partnerships, cutting-edge manufacturing technologies, and a growing focus on sustainability, the country is well-positioned to meet the demands of the global market. While challenges remain, Vietnam’s commitment to innovation, quality, and ethical practices ensures that it will continue to thrive in the competitive world of textile and garment exports.
As the sector moves forward, Vietnam’s role as a global manufacturing powerhouse will only become more significant, contributing to the global fashion industry in meaningful and sustainable ways.
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