Vietnam's Textile and Garment Industry Accelerates in Early 2025
Vietnam's textile and garment industry is entering 2025 with many positive signals. Many enterprises have signed production contracts until the end of Q1 2025 and are continuing negotiations for Q2. Thanks to market diversification strategies, technological innovation, and supply chain optimization, Vietnamese businesses are aiming for an export target of $48 billion this year.
Abundant Orders, Expanding Markets
Since December 2024, many textile and garment enterprises have ramped up production to meet the demand for Spring-Summer 2025 orders. Viet Thang Jean Co., Ltd. has seized small orders with diverse fashion products, ensuring work continuity until June 2025.
"Exports have recovered well, and businesses are proactively greening production to meet the most stringent import market requirements," emphasized Pham Van Viet, Chairman of Viet Thang Jean.
Besides Viet Thang Jean, major companies such as Viet Tien Garment Corporation, Thanh Thanh Cong Textile - Investment - Trading JSC, and Dony Garment Co., Ltd. have also secured abundant orders since late 2024. Notably, the trend of placing smaller orders with a wider variety of product codes is becoming increasingly popular, requiring businesses to be flexible in production and adopt technological advancements for quick adaptation.
Vietnamese textiles and garments are now present in over 100 countries, with traditional markets such as the U.S., EU, Japan, China, and CPTPP nations remaining as key pillars. Although Vietnam holds the second position in global textile and garment exports, it still faces fierce competition from Bangladesh, which is expected to make a strong recovery in Q2 2025.
Challenges and New Directions
Despite overcoming a difficult period, Vietnam’s textile and garment enterprises still face challenges such as low unit prices, rapid fluctuations in purchasing power, and strict rules of origin requirements. Changes in global trade policies, especially stringent sustainability requirements, also pose significant pressure on manufacturers.
Tran Nhu Tung, Chairman of Thanh Thanh Cong Textile - Investment - Trading JSC, stated that businesses must transition to green and digital production, but the high investment costs amid unstable orders remain a major obstacle. Some companies have opted to partner with sustainable fabric suppliers and reduce emissions in production to meet ESG requirements from customers.
Regarding the U.S. market, the potential increase in import tariffs may pose challenges but also create opportunities for Vietnam to level pricing competition with China.
“Businesses need to be agile in adaptation and comply with rules of origin regulations to maintain growth momentum.”
Strong Development Prospects
Experts predict that with flexible strategies, strategic investments, and proactive enterprise efforts, Vietnam's textile and garment industry is well-positioned to achieve its $48 billion export target in 2025. Expanding markets, enhancing production capabilities, and accelerating digital transformation will be key factors in maintaining Vietnam's competitive edge.
In the near future, textile and garment enterprises will intensify participation in international trade fairs, seek strategic partnerships, and develop environmentally friendly product lines. Additionally, investing in high-quality workforce training and adopting new technologies will enable Vietnam’s textile industry not only to grow in scale but also to solidify its position in the global market.
With a proactive approach, continuous innovation, and strategic investments, Vietnam’s textile and garment industry is well-positioned to thrive in 2025. By embracing sustainability, digital transformation, and market diversification, businesses can navigate challenges while capitalizing on emerging opportunities. The increasing demand for high-quality, responsibly produced apparel presents a golden opportunity for Vietnam to solidify its reputation as a leading textile hub.
Moreover, the shift towards eco-friendly production and compliance with international standards will not only enhance the competitiveness of Vietnamese enterprises but also open doors to premium markets. Expanding collaborations with global brands, investing in research and development, and upskilling the workforce will be key factors in driving long-term growth. As the industry continues to adapt and innovate, Vietnam’s textile sector is poised to maintain its strong export performance, further strengthening its position in the global supply chain and paving the way for a prosperous future.
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