Revolutionizing Vietnam’s Garment Industry Through Digital Transformation
Vietnam’s garment and textile industry, a cornerstone of the nation’s export economy, is undergoing a transformative digital shift to meet modern challenges. Industry experts emphasize that embracing technology, green production, and enhanced trade promotion are key to securing a sustainable future.
Navigating Industry Challenges
Despite a promising recovery in early 2024—with export revenue rising by 7.5% to $12.5 billion from January to April—the sector faces persistent challenges. These include supply chain vulnerabilities, digital adoption, and the transition to a circular economy. The Vietnam National Textile and Garment Group has identified these areas as essential for long-term resilience.
Truong Van Cam, Vice Chairman of the Vietnam Textile and Apparel Association (VITAS), highlighted a decline in export performance from $44 billion in 2022 to $39.5 billion in 2023. To recover and exceed past figures, the industry is investing in sustainable growth strategies that integrate digital transformation and green production, with ambitious goals set for 2030.
Technology Driving Productivity and Sustainability
Pham Van Viet, Chairman and General Director of Viet Thang Jean Company Limited, stressed the critical role of technology in boosting productivity and product quality. European and US markets are imposing stricter sustainability requirements, prompting Vietnamese firms to adapt. Viet Thang Jean has invested $12.5 million in eco-friendly conveyor belt technology and adopted advanced techniques such as automatic fabric cutting, nano-dyeing, and Turkish washing. These initiatives have earned the company the Oeko-Tex certification, confirming its compliance with international safety and environmental standards.
The shift towards smart manufacturing is evident across the sector. Fadatech Fabric Dyeing and Printing JSC, for example, has implemented digital printing technology to reduce its environmental footprint. Director Nguyen Huu Phuc noted that transitioning to advanced systems requires significant investment, including international training programs. However, these efforts are essential for meeting global environmental standards and strengthening competitive positioning.
The Future of Vietnam’s Garment Industry
As economic pressures mount, Vietnamese textile companies recognize the necessity of continuous technological advancement. Investing in automation, AI-driven solutions, and green practices is not just a compliance strategy but a vital approach to enhancing efficiency and profitability. Digital transformation is enabling businesses to streamline production, reduce waste, and maintain a competitive edge in the global supply chain.
The push for modernization aligns with Vietnam’s broader digital growth. The country has seen remarkable e-commerce expansion, reinforcing the need for similar advancements in manufacturing. OpenGov Asia reports that Vietnam and Thailand are leading Southeast Asia’s e-commerce boom, with Vietnam ranking as the third-largest market in the region. The nation’s gross merchandise value (GMV) surged by 52.9% in 2023, showcasing rapid digital integration across industries.
Vietnam’s garment industry must continue embracing innovation to meet international standards and thrive in an increasingly competitive market. By leveraging digital transformation and sustainable practices, the sector is well-positioned to drive economic growth and reinforce Vietnam’s status as a global manufacturing hub.
