After enduring several years of sluggish performance, Vietnam’s garment and textile industry is showing clear signs of revival in 2025, driven by strategic shifts toward sustainability, innovation, and value-added production. Industry experts say the recovery underscores Vietnam’s growing competitiveness in the global fashion supply chain, especially as brands look to diversify sourcing beyond China.
According to The Daily Star, Vietnam’s textile exports have started rising steadily since mid-2024, with several major manufacturers reporting stronger order books for the first half of 2025. The recovery has been largely attributed to a shift from pure contract manufacturing to the creation of higher-value products and in-house brands. Companies like TNG Investment & Trading JSC and Garco 10 are among those reorienting operations to focus on design, branding, and eco-friendly production.
However, industry leaders caution that the recovery comes with challenges. Rising logistics costs, increasing labor wages, and stricter environmental requirements under international trade agreements continue to pressure manufacturers. The industry is also being urged to “go green,” as global buyers are demanding cleaner production lines and verifiable sustainability practices. Vietnam’s Ministry of Industry and Trade has recently emphasized digital transformation and the use of recycled materials as part of its long-term competitiveness plan.
Despite these headwinds, experts believe Vietnam’s textile and garment industry is well-positioned to sustain growth. With a young workforce, competitive labor costs, and strong trade networks—including the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)—the country is poised to maintain its standing as one of the world’s top five apparel exporters.
As the global demand for ethical and sustainable fashion continues to rise, Vietnam’s shift toward innovation and responsible production may define its next chapter of industrial success.
