The garment and textile sector of Vietnam, a global export powerhouse, is currently at a critical strategic crossroads. Facing rapid shifts in international policies, market volatility, and increasingly stringent sustainability demands, the industry has officially recalibrated its development strategy to ensure long-term competitiveness.
Speaking at a seminar on December 16 during the HanoiTex & HanoiFabric 2025 event, Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS), emphasized that strategic repositioning is no longer an option but a necessity. He noted that rising logistics costs and shifting purchasing policies in major markets are exerting significant pressure, forcing Vietnam to move beyond simple processing toward a high-value manufacturing model. To build resilience, the sector has successfully implemented three core pillars: diversifying export markets to reach 138 worldwide, expanding partner networks to reduce reliance on specific major brands, and shifting product focus toward high-value, specialized segments.
Chairman Giang underscored that new opportunities in the global value chain can only be realized if enterprises strengthen their capabilities in design, technology, advanced materials, and brand building. To support this transition, the industry is rolling out five key solution groups, with the "green transition" standing as the top priority. Sustainability is now regarded as a prerequisite for deep participation in global supply chains rather than a mere compliance checkbox. Furthermore, the sector is accelerating the adoption of science and technology, including automation, robotics, and artificial intelligence, to boost productivity amidst intensifying regional competition. Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade under the Ministry of Industry and Trade (MoIT), added that external pressures, such as reciprocal tariffs from the U.S., have actually served as a catalyst for local firms to restructure and upgrade their technical sophistication.
Despite this progress, Tran Thanh Hai warned that the sector still faces mounting challenges, particularly complex trade barriers and stringent requirements regarding carbon emissions, traceability, and circular economy practices. He highlighted a persistent weakness in the localization of raw materials—specifically in weaving, dyeing, and finishing—which continues to constrain the domestic value-added potential. Consequently, the MoIT is calling for a deeper restructuring of domestic supply chains to reduce dependency on imported inputs. Nevertheless, optimism remains high for 2025. Vietnam’s textile and garment exports are estimated to reach $46 billion, a 5.6% year-on-year increase. With a forecast trade surplus exceeding $20 billion, the industry remains a vital pillar of Vietnam’s economy, maintaining its position as one of the world’s top three exporters through a steadfast commitment to digital transformation and sustainable human resource development.
