Vietnam Textile and Garment Growth 2025: Which Way to Go Far?
Overcoming competition, Vietnam's textile and garment export turnover is estimated to reach $44 billion. With this result, Vietnam ranks second in the world after India, paving the way for future growth. The tide has "turned."
The Vietnam National Textile and Garment Group (Vinatex) recently reported on its business performance for 2024, expressing hopes that total export turnover will reach approximately $44 billion.
Vietnam ranks just behind India, which recorded nearly 7% growth. China’s total textile and garment export turnover stands at around $273.4 billion, increasing by only 2%. Meanwhile, Bangladesh experienced a decline in export growth, reaching $27.7 billion.
"Based on the global textile and garment demand growth scenario for 2025, estimated at around $850 billion, and the recovery potential of Bangladesh’s textile sector, Vinatex forecasts that Vietnam’s export turnover in 2025 will grow by 5%-6% compared to 2024, reaching approximately $45.5-$46 billion," said Hoang Manh Cam, Deputy Chief of Vinatex’s Office.
In the first half of 2024, Vietnam’s textile industry faced challenges carried over from 2023. However, the second half of the year witnessed unexpected shifts and significant improvements.
Political conflicts and changes in several regions worldwide have led to an influx of new projects and orders for Vietnam. Consolidated revenue for 2024 is estimated at VND 18.1 trillion, a 2.8% increase. Consolidated profit is projected at VND 740 billion, marking a 37.5% rise compared to 2023. The average monthly income of workers reached VND 10.3 million, an 8.9% increase. The industry and Vinatex have maintained growth momentum, with no units operating at a loss.
According to Cao Huu Hieu, CEO of Vinatex, the latter half of 2024 saw a "turnaround" in the textile market due to unexpected political instability in rival countries, prompting customers to shift their orders to Vietnam.
Additionally, the dedicated efforts of the entire Vinatex Group and manufacturing units played a crucial role. Notably, Vinatex secured agreements with COATS (UK) for specialized, high-tech products, such as fire-resistant fabrics and apparel.
Vinatex has focused on expanding into new markets and developing innovative core filament and blended fibers. It has also implemented initiatives to meet the growing demand for sustainability in the textile industry.
Aiming to establish a model green textile industrial park, Vinatex has invested in a second wastewater treatment plant with a capacity of 8,000 cubic meters per day, supplementing the first plant’s 10,000 cubic meters per day at the Phu Noi Textile Industrial Park in Hung Yen.
The group has restructured certain factories, conducted assessments of production systems and technological equipment, and seen initial positive results.
To enhance operational efficiency, Vinatex has revamped its management approach, strengthening its capital representatives’ roles across subsidiaries. This creates a network for market information sharing and managerial expertis.
What’s the Strategy to Achieve $46 Billion in 2025?
Hoang Manh Cam highlighted that the economic recovery in key import markets such as the U.S. and the EU, along with increasing consumer demand, presents significant growth opportunities for Vietnam’s textile sector.
Vinatex’s 2024 consolidated revenue is projected to reach VND 18.1 trillion, a 2.8% increase, with consolidated profit estimated at VND 740 billion, up 37.5% from 2023. The average worker’s income has risen to VND 10.3 million per month, an 8.9% increase compared to 2023.
According to Cam, the shift in orders from Bangladesh to Vietnam presents both opportunities and challenges.
He explained that Bangladesh’s labor costs are significantly lower—only 30% of Vietnam’s—ranging from $100 to $120 per month, compared to Vietnam’s $400 per month. Thus, while these orders primarily involve lower value-added products, they create opportunities for businesses specializing in basic apparel manufacturing. By capitalizing on a substantial influx of orders, Vietnam’s 2024 textile export revenue has reached $44 billion, reflecting an 11% growth.
Encouragingly, many enterprises have secured orders through Q1 2025, with some having contracts extending into April and May 2025.
Industry experts note that while political instability is affecting Bangladesh, the country is swiftly recovering its export orders.
As a result, Vietnam’s textile industry remains cautious about relying on orders diverted from Bangladesh. Moreover, many textile orders from that country are of relatively low value. Frequent market forecasting will be essential moving forward.
Labor market fluctuations are expected to continue in 2025 across both textile and yarn segments. In addition to traditional markets such as Taiwan, Japan, and South Korea, new textile markets are emerging, further dispersing the workforce.
To ensure stable production and high profitability, Vietnamese enterprises must proactively seek orders from a diverse range of markets.
The U.S. is expected to implement export tariffs ranging from 10%-20%, and Vietnam is not exempt from the possibility of facing an additional 10% tax on its exports to this market.
"Vietnam currently holds nearly a 20% share of the U.S. textile market, while China remains the leader with over 20%. If the U.S. imposes a 60% tariff on Chinese textile exports, Vietnam has a strong opportunity to capture additional market share—provided it ensures compliance with origin regulations and supply chain transparency," Cam explained.
Strategic Directions for 2025
Vinatex CEO Cao Huu Hieu emphasized that in 2025, the group will focus on six key management strategies to adapt to the evolving landscape:
Targeted production and business planning aligned with market realities.
Strengthening group-wide competitive capabilities in the new era.
Workforce training and development to enhance labor market competitiveness.
Commitment to the "One-Stop Destination – Comprehensive Green Fashion Solutions" vision.
Reinforcing risk management practices.
Further optimizing digital operations.
Beyond business performance, Vinatex remains committed to supporting its workforce. The company has provided financial and in-kind assistance to over 1,990 textile workers through its labor union. Additionally, 655 employees received travel subsidies to return home for the Lunar New Year, and over 129 subsidized shopping booths offered essential goods at discounted prices or for free. In total, these initiatives provided an estimated VND 4.5 billion in employee benefits. The company also plans to distribute a 13th-month salary and Tet bonuses averaging over VND 18 million per worker in 2025.
With a strong performance in 2024 and a clear roadmap for 2025, Vietnam’s textile and garment industry is well-positioned to navigate future challenges and capitalize on new growth opportunities. As the sector continues to evolve, Vietnam remains a formidable player in the global textile landscape.
Looking for producing garment in Vietnam?
VinMake is a tech-enabled factory network revolutionizing fashion production, connecting global brands with cutting-edge manufacturers in Vietnam. With a network of over 300 garment factories in Vietnam, VinMake has delivered millions of fashion products for global brands.
READ MORE
