Vietnam’s textile and garment sector generated $22.8 billion in export revenue during the January–July 2026 period. Driven by strong shipments of yarns, fabrics, and specialized materials, the country maintained a solid monthly export run rate despite macroeconomic volatility across major consumer markets. Strong order volume to North America and Europe offset sluggish consumer demand in North Asian markets.
Global competition and input costs
While Vietnamese manufacturers leveraged high operational efficiency to secure long-term buyer commitments, intense regional competition from India and Bangladesh continues to squeeze profit margins. High reliance on imported raw fabric—mostly sourced from East Asia—alongside fluctuating sea freight costs presented operational hurdles. However, automation investments and adherence to international environmental compliance standards helped Vietnamese exporters secure higher-value product contracts.
Strategic focus for full-year target
Maintaining steady production schedules while expanding domestic raw material integration remains central to the association’s strategy, states Vu Duc Giang, Chairman, Vietnam Textile and Apparel Association (VITAS). Exporters are optimizing input sourcing to protect margins and retain global trade share.
Scaling sustainability to meet revenue targets
A flagship state-backed textile group in Vietnam, Vietnam National Textile and Garment Group (Vinatex) operates integrated yarn, fabric, and apparel manufacturing units. It serves key consumer markets in the United States, Europe, and Asia. The group is scaling green production lines to meet full-year revenue targets.
