Vietnam’s textile and garment exports totaled US$3.19 billion in January 2025, reflecting a 5.81% month-on-month decline, according to the General Department of Customs. The United States remained the largest export market, accounting for 43.89% of total shipments, despite an 8.94% drop to US$1.40 billion. Meanwhile, exports to Japan reached US$378.63 million, down 3.34%, while South Korea showed robust demand with a 30.30% increase to US$297.86 million.

Exports to European markets saw mixed trends. Shipments to the Netherlands plunged 23.19% to US$83.90 million, while Germany recorded an 18.43% decrease to US$66.29 million. On the other hand, Spain’s imports from Vietnam grew by 12.13% to US$62.45 million, and Poland posted a 15.09% increase to US$13.48 million. This divergence highlights shifting demand patterns within the European market, as some countries reduce orders while others continue increasing their reliance on Vietnamese textile products.

Key Industry Developments

Vietnam’s textile and garment industry is seeing stable export growth in early 2025, fueled by strong demand from key markets such as the U.S., EU, and Japan. Despite economic uncertainties and fluctuating demand in certain regions, many leading companies have secured orders through the second quarter, with some extending into the third quarter.

Garment 10 Corporation has successfully booked significant orders for Q2 and is expanding its market reach, solidifying its presence in international markets. The company is also investing in production optimization to enhance efficiency and reduce costs amid rising logistical expenses.
TNG Investment and Trading JSC has also locked in Q2 orders, with 46% of its total exports directed to the U.S. market. Given the ongoing demand fluctuations in the U.S., the company is diversifying its product lines and strengthening partnerships with long-term clients to maintain stability in revenue streams.
Song Hong Garment JSC, which currently exports 70% of its products to the U.S., has announced plans to expand production by 25% this year. The company aims to capitalize on increasing demand for high-quality, sustainable apparel by integrating eco-friendly fabrics and innovative manufacturing processes into its production chain.
Meanwhile, Thanh Cong Textile Investment Trading JSC has filled its Q1 orders and is actively executing Q2 contracts. The firm is focusing on digital transformation initiatives to streamline production and improve supply chain efficiency.
Vietnam National Textile and Garment Group (Vinatex) has reported that it has already secured orders through Q3, signaling a strong outlook for the remainder of the year. Vinatex is leveraging its extensive production network and experience to navigate fluctuating raw material costs while maintaining competitive pricing for international buyers.

Challenges and Opportunities

The Vietnamese textile and garment sector is projected to grow at a compound annual growth rate (CAGR) of 13–15% in 2025, returning to pre-pandemic levels. However, rising shipping costs, which have surged by 10–15% year-on-year, pose a significant challenge to manufacturers, potentially squeezing profit margins. Global shipping disruptions and fluctuating fuel prices continue to impact freight rates, increasing overall production costs for Vietnamese exporters.

Despite these cost pressures, Vietnam continues to strengthen its position in the global textile market. The country surpassed Bangladesh in 2024 to become the world’s second-largest textile exporter, trailing only China. Vietnam also benefits from lower tariff rates—10–20% below those of China—along with significantly cheaper labor costs, making it an attractive sourcing destination for international buyers. As a result, the industry is poised for further expansion, leveraging cost advantages, efficient production, and strong global demand while navigating logistical cost challenges.

Additionally, Vietnam’s focus on sustainability is opening new growth avenues. International brands are increasingly prioritizing environmentally friendly and ethically produced textiles. Vietnamese manufacturers are responding by investing in green production technologies, water-efficient dyeing methods, and closed-loop recycling initiatives to meet the evolving demands of global buyers.

Vietnam International Textile Fair to Take Place This Month

The Vietnam International Trade Fair for Apparel, Textiles, and Textile Technologies (VIATT) will be held at the Saigon Exhibition and Convention Centre (SECC) in Ho Chi Minh City from February 26–28, 2025. This year’s event will feature over 400 exhibitors and 500 booths, showcasing a wide range of products, including fabrics, yarns, apparel, home textiles, textile machinery, and certification services.

VIATT 2025 will see strong international participation, with dedicated pavilions from India, Japan, South Korea, Pakistan, Taiwan, and Thailand. Notably, a European pavilion will debut, featuring exhibitors from Turkey, France, Germany, the UK, and Switzerland. The fair aims to establish itself as a key sourcing hub in the ASEAN region, attracting buyers from Malaysia, Myanmar, Thailand, and beyond. Additionally, the event will introduce an "Econogy Zone" focused on sustainable production and an Innovation Zone highlighting technological advancements in the industry. Industry seminars and fashion shows by global designers will also be featured.

Vietnam’s participation in global trade fairs such as VIATT underscores its commitment to maintaining a strong presence in the international textile industry. The fair presents a valuable opportunity for Vietnamese manufacturers to showcase their capabilities, form new partnerships, and stay updated on industry trends.

H&M Plans $1 Billion Investment to Transform Binh Dinh into a Circular Textile Hub

ninh-thuan-welcomes-58-million-faux-fur-fabric-project-20241104173550.jpg

Syre, a subsidiary of H&M, has unveiled ambitious plans to invest up to $1 billion in a high-tech fabric production complex in Binh Dinh province, positioning the region as a global center for circular textile manufacturing. The project will be developed at Nhon Hoi A Industrial Park, Nhon Hoi Economic Zone, with an estimated annual capacity of 250,000 tonnes.

According to Tim King, Senior Operations Director at Syre, the group is committed to integrating advanced technologies into its polyester fiber recycling project, ensuring compliance with global environmental standards. The investment aligns with Vietnam’s push for sustainable and high-value textile manufacturing, reinforcing the country’s reputation as a competitive and responsible player in the global textile industry.

The project is expected to generate thousands of jobs and contribute to Vietnam’s growing expertise in sustainable textile production. By leveraging cutting-edge technology, Syre aims to create a model for circular fashion manufacturing, reducing waste and promoting long-term environmental responsibility within the sector.

Conclusion

Vietnam’s textile and garment industry is navigating both opportunities and challenges in early 2025. While export growth remains steady and major manufacturers have secured significant orders, rising logistics costs and shifting global market dynamics present hurdles to overcome. The sector’s expansion is supported by strategic investments, trade fairs, and a growing reputation as a global textile hub.

The increasing emphasis on sustainability and high-tech production methods is setting Vietnam apart in the competitive textile industry. With large-scale investments from global brands, advancements in green manufacturing, and participation in international trade events, the country is well-positioned for continued growth. Moving forward, Vietnam’s ability to balance cost efficiency, sustainability, and technological innovation will be key to maintaining its competitive edge in the international market.