Vietnam’s textile and garment industry is pressing ahead with expansion plans and market diversification despite global market volatility, targeting export revenue of $46 billion in 2025, up 5.6% from this year, industry officials said, though the figure falls short of an earlier $48 billion goal.
Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association, said the $2 billion shortfall reflects ongoing market fluctuations, geopolitical tensions and shifts in international trade policies that have weighed on global demand. Escalating U.S.-China trade frictions, higher tariffs on textile and garment products and broader geopolitical uncertainty have disrupted orders and dampened consumer spending in key markets.
Companies have been forced to accept smaller and more fragmented orders, shorter delivery times and tighter production schedules, squeezing profit margins and complicating production planning. At the same time, firms are increasing investment to meet stricter environmental, sustainability and traceability standards demanded by international buyers, Giang said, according to domestic media reports.
Cao Huu Hieu, chief executive of state-backed Vietnam National Textile and Garment Group, said the sector remains vulnerable due to its heavy dependence on imported raw materials, including full reliance on imported cotton and up to 95% dependence on imported fibres, dyes and chemicals. This exposure could become more acute if the United States raises tariffs on products with a high share of third-country inputs.
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As traditional export destinations become less predictable, the Middle East and Africa are emerging as promising new markets, VITAS said. Vietnamese textile and garment firms are also accelerating overseas expansion, with nearly 30 companies now operating production facilities in countries such as Indonesia, Myanmar, Bangladesh, Egypt and parts of Africa and Latin America.
Giang said the multi-country production model allows companies to spread political and trade risks, lower labour and logistics costs and strengthen credibility with global buyers, particularly as some host countries offer lower wages and preferential trade agreements that provide tariff advantages over Vietnam.
