Vietnam's Textile and Garment Exports to the EU Show Positive Recovery
The textile and garment industry is one of Vietnam's key economic sectors, contributing significantly to the nation’s export revenue. Amid global economic challenges, Vietnam’s textile and garment exports to the European Union (EU) have shown promising signs of recovery. This development not only opens growth opportunities for Vietnamese enterprises but also lays the foundation for the sustainable development of the sector in the future.
Recovery Context
From 2022 to 2023, the global textile and garment industry faced severe disruptions due to the pandemic, geopolitical tensions, and rising inflation in major economies. The EU market, one of Vietnam’s largest export destinations, experienced a sharp decline in consumer demand. Many businesses struggled with reduced orders, increased production costs, and supply chain disruptions.
However, by the second half of 2024, the EU market began to recover economically, particularly in countries like Germany, France, and the Netherlands. This resurgence has provided strong momentum for Vietnam’s textile and garment industry, helping businesses regain growth momentum. According to the Vietnam Textile and Apparel Association (VITAS), textile and garment export turnover to the EU in Q3 2024 grew by 15% compared to the same period last year, bringing total export revenue for the first nine months of the year to $3.2 billion.
The Crucial Role of EVFTA
The EU–Vietnam Free Trade Agreement (EVFTA), effective since August 2020, has been a significant driver of Vietnam’s textile and garment exports. Thanks to EVFTA, many Vietnamese textile products benefit from substantial tariff reductions, enhancing their competitiveness against exports from countries like China and Bangladesh.
Specifically, garments made from fabrics of Vietnamese or EU origin, meeting the double transformation rule, qualify for 0% tariffs. This creates an opportunity for Vietnamese businesses to expand their market share in EU countries, where consumers are known for high spending power and stringent quality requirements.
Furthermore, EVFTA has spurred investments in technology and infrastructure in Vietnam. Many businesses have invested in modern factories that meet international standards, improving product quality and compliance with labor and environmental regulations.
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.
Sustainable Consumption Trends in the EU
A significant factor shaping the EU market demand is the trend toward sustainable consumption. European consumers increasingly prioritize environmentally friendly products with transparent origins and sustainable production methods.
This trend poses both opportunities and challenges for Vietnam’s textile and garment industry. Businesses must upgrade their production processes to meet international standards like GOTS (Global Organic Textile Standard) or OEKO-TEX. Advanced production technologies such as waterless dyeing, recycled materials, and renewable energy usage need to be widely adopted.
Several leading Vietnamese companies have pioneered the transition to green production. For instance, Vietnam National Textile and Garment Group (Vinatex) and Garment 10 Corporation have invested in products made from organic and recycled fabrics, while also adopting energy-saving technologies. These efforts have been well-received in the EU, boosting the global value of Vietnamese brands.
Eco Fashion
Among export categories to the EU, products like shirts, jeans, sportswear, and technical fabrics are dominating. High-end fashion items made from recycled and eco-friendly materials are seeing particularly strong demand.
Additionally, children’s clothing and sportswear have recorded significant growth due to increasing consumer focus on health and sustainable living. Major EU fashion brands such as Zara, H&M, and Uniqlo have chosen Vietnam as a long-term production partner, recognizing its ability to meet quality and delivery requirements.
Vietnam’s textile and garment exports to the EU are projected to maintain robust growth, with a forecasted 20% increase in 2025. To sustain this momentum, businesses must prioritize several key areas.
First, adopting green production technologies and minimizing environmental impacts will be essential to meet the EU’s stringent sustainability standards.
Second, improving workforce quality through targeted skills training will help align with the market's high expectations.
Third, expanding partnerships with leading fashion brands and distributors in the EU will strengthen market penetration and enhance competitiveness.
Lastly, building a strong national brand for Vietnam’s textile and garment industry through international trade fairs and promotional campaigns will elevate its global reputation. By addressing these priorities, Vietnam can secure its position as a top supplier to the EU while advancing toward sustainable and long-term growth.
The positive recovery of Vietnam’s textile and garment exports to the EU highlights the industry's adaptability and immense growth potential. With the support of trade agreements like EVFTA and the persistent efforts of businesses, Vietnam is well-positioned to achieve greater success in the global market.
By focusing on sustainability, improving workforce quality, and building strong partnerships with major international brands, the industry can not only sustain its momentum in the EU but also expand its global reach. This marks a significant opportunity for Vietnam to solidify its position as a leading textile exporter, paving the way for a sustainable and prosperous future.
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