Vietnam’s textile and garment industry has displayed remarkable resilience and growth, thriving amidst global economic challenges such as unpredictable market shifts, sluggish trade recovery, declining global investments, and volatile energy costs. In 2024, the industry achieved an impressive $44 billion in export turnover, solidifying Vietnam’s position as the world’s second-largest textile and garment exporter, surpassing Bangladesh and following only China. This achievement is seen as a stepping stone to even greater future successes, driven by the industry’s adaptability and strategic vision.
The first half of 2024 posed significant challenges for Vietnam’s textile and garment industry, including sluggish markets, volatile oil prices, and rising shipping costs. However, the situation improved dramatically in July, when orders surged. This adaptability led to an 11.26% increase in export turnover compared to 2023. The United States emerged as the largest market, contributing $16.71 billion, accounting for nearly 38% of total exports. Other markets also experienced notable growth, including Japan with $4.57 billion (up 6.18%) and ASEAN markets reaching $2.9 billion (up 4.84%). The industry’s diversification in market penetration was instrumental in its success, which included achieving a healthy trade surplus of $19 billion, an increase of 6.93% from the previous year.
The industry’s accomplishments are attributed not only to impressive figures but also to strategic positioning and innovation. Vietnam has leveraged new-generation free trade agreements to secure zero-tariff access to expansive markets. Companies such as Vinatex have embraced digital transformation and automation, achieving significant productivity enhancements. Vinatex surpassed its 2023 targets with consolidated revenue of VND18.1 trillion, while Hoa Tho Textile – Garment Corporation exceeded its annual target by 10%, generating VND4.95 trillion in revenue. Additionally, U.S.-China trade tensions have created opportunities for Vietnam to attract displaced orders, provided the industry adheres to strict origin requirements. The proactive adaptation of production plans and expansion of trade promotion efforts have been key contributors to this success.
Looking ahead to 2025, Vietnam’s textile and garment industry aims to reach $47-48 billion in exports, supported by robust fundamentals and strategic initiatives. Major industry players, including Vinatex, have already secured orders for the first half of 2025, with plans to increase revenue by 6% and profits by 10%. The industry is investing heavily in smart factories, automation, and workforce development. Hung Yen Garment is spearheading efforts in sustainable practices and digital integration, aiming to multiply its share of free-on-board orders by 2-3 times compared to 2024. Focused on reducing greenhouse gas emissions, conserving materials, and utilizing eco-friendly resources, the industry’s commitment to sustainability, combined with digital transformation, positions it for long-term competitiveness in the global market.
Vietnam’s textile and garment industry stands at a pivotal juncture, with its status as the world’s second-largest exporter representing not just a milestone but a launchpad for future endeavors. With secured orders, strategic market positioning, and dedication to innovation, the industry is not only a participant in the global textile market but a key contributor to shaping its future. Built on adaptability, technological advancement, and sustainable practices, this success story represents an exceptional opportunity for investors to join a resilient and growth-oriented industry. The accomplishments of 2024 lay the foundation for an even more vibrant and prosperous journey ahead.
Vietnam’s textile and garment industry has displayed remarkable resilience and growth, thriving amidst global economic challenges such as unpredictable market shifts, sluggish trade recovery, declining global investments, and volatile energy costs. In 2024, the industry achieved an impressive $44 billion in export turnover, solidifying Vietnam’s position as the world’s second-largest textile and garment exporter, surpassing Bangladesh and following only China. This achievement is seen as a stepping stone to even greater future successes, driven by the industry’s adaptability and strategic vision.
