Vietnam's textile and garment industry is experiencing a period of robust growth, setting ambitious export targets for 2025 while navigating a dynamic global landscape. Recent reports indicate a strong performance in 2024, with export revenue reaching approximately 44 billion USD, an impressive 11.26% increase compared to 2023. This performance positions Vietnam as the world's second-largest garment exporter, trailing only India. Building on this success, the industry has set its sights on achieving 47-48 billion USD in exports in 2025.
Several factors have contributed to this positive trajectory. A surge in orders in the latter half of 2024, partly due to political instability in competing nations like Bangladesh, provided a significant boost. Furthermore, positive growth signals from key import markets such as the US and EU, driven by economic recovery and increased consumer spending, have created a favorable environment. The industry is also capitalizing on 17 of 19 new-generation free trade agreements, facilitating market diversification and access to high-value-added opportunities.
Despite these tailwinds, the industry faces several challenges. Companies are grappling with demands for smaller order sizes, faster delivery times, and competitive pricing. Labor shortages remain a concern, with the workforce shrinking by 8% in 2024 despite increased productivity and worker incomes. This highlights the need for improved working conditions and stable housing to attract and retain talent. The yarn sector, while showing overall growth, has struggled with profitability, necessitating strategies to expand market reach and integrate further into global supply chains, particularly in key markets like China, India, and Bangladesh.
To achieve its ambitious goals, the industry is proactively adopting several key strategies:
Focus on Sustainability: Companies are increasingly prioritizing environmental, social, and governance (ESG) practices. This includes investments in sustainable facilities, renewable energy, eco-friendly materials, and advanced wastewater treatment plants. Vinatex, for example, is investing in a second wastewater treatment plant at the Pho Noi Textile and Garment Industrial Park to create a model green industrial park.
Digital Transformation and Automation: Companies are investing in automation, advanced software, and digital management systems to enhance efficiency, reduce reliance on labor, and optimize business resource management through Enterprise Resource Planning (ERP) systems. This includes the integration of automation technology and artificial intelligence.
Market Diversification and Product Innovation: The industry is exploring new and niche markets with specialized, high-tech products, such as fire-resistant fabrics and new types of yarns and blended fibers. This focus on high-value-added products differentiates Vietnamese offerings in the global market.
Workforce Development: Recognizing the importance of human capital, companies are focusing on improving labor skills, enhancing productivity, and implementing policies to attract and retain workers through improved wages and working conditions.
Individual companies like May 10 Corporation, Phong Phu Corporation, and Hoa Tho Textile and Garment Corporation have demonstrated strong performance in 2024 and have outlined specific strategies for continued growth in 2025. These include market expansion, increased exports, digital and green transformations, and investments in modern equipment and workforce training.
The Vietnam National Textile and Garment Group (Vinatex) has also played a crucial role, focusing on sustainable development, exploring new markets with specialized products, and optimizing resource management. Their success, with consolidated revenue estimated at 18.1 trillion VND and a 37.5% increase in consolidated profit, demonstrates the industry's overall positive trajectory.
By addressing challenges related to workforce development, sustainability, and global competition, while leveraging its competitive advantages and proactively adopting new technologies and strategies, Vietnam's textile and garment industry is well-positioned to achieve its ambitious export targets and solidify its position as a key player in the global market.
