Vietnam’s textile and garment sector is setting its sights on achieving approximately US$50 billion in export revenue in 2026, marking nearly a US$3 billion increase from estimated 2025 figures, as industry leaders restructure supply chains, deepen investment, and leverage new free trade agreements (FTAs).
The ambitious target announced on January 12 at a press briefing celebrating the 50th anniversary of Viet Tien Garment Corporation reflects rising confidence in Vietnam’s capacity to capture more value within global apparel value chains after significant pandemic-driven disruptions.
The Vietnam Textile and Apparel Association (VITAS), led by Chairman Vu Duc Giang, said export revenue in 2025 is projected at US$46 billion–US$47 billion, a solid performance despite trade headwinds such as global tariff volatility and cost pressures.
Apparel exports alone are expected to contribute about US$38 billion, underscoring the continued dominance of garment products in outbound shipments. Vietnam is now ranked among the top three garment exporters worldwide, competing closely with China and Bangladesh.
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According to Giang and VITAS, the industry’s strategic blueprint for sustainable expansion centers on Maximizing FTA Benefits, Supply Chain Resilience & Localization, Technology, Digitalization & Higher Value Orders.
New-generation FTAs including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP) are increasingly providing tariff advantages for qualified Vietnamese products.
Firms that meet strict rules of origin and sustainability standards are seizing these preferences to expand market access. A key thrust has been boosting domestic content in the production chain.
Enhanced upstream capacity from yarn and fabric production to finishing and logistics strengthens resilience and reduces reliance on imported inputs. Industry data shows the localization rate has recently climbed to over 50 per cent in some segments.
Vietnamese manufacturers are transitioning from high-volume, low-margin contract sewing to higher value-added segments, including specialized designs, smaller batch orders, and more technically complex products.
This shift is supported by investment in automation, digital workflows, and ESG (environmental, social, governance)-aligned production practices.
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Vietnamese exporters including major players like Viet Tien Garment Corporation — are moving beyond traditional contract manufacturing toward FOB (Free On Board) and ODM (Original Design Manufacturing) models, strengthening branding and market differentiation.
Viet Tien reported about US$800 million in export revenue and VND18.5 trillion in consolidated system revenue, with core markets in the U.S., EU, Japan, and South Korea.
However, industry leaders note that intense competition, particularly from China, rising logistics costs, and emerging regulatory demands in key markets (such as carbon taxes and traceability standards) remain key challenges.
Vietnamese firms must continue upgrading quality, sustainability performance, and production efficiency to maintain export momentum.
Beyond 2026, VITAS has outlined even broader strategic targets for the sector through 2030, including aims for annual export revenues to exceed US$60 billion and a further increase in global competitiveness through innovation and sustainability initiatives.
