Textile industry flies high on performance, sets sights on higher growth target

Illustrative image

In 2024, the industry experienced a mix of emotions, when the export market showed little positive momentum in the first half but a strong recovery in the second half, with unexpected orders beginning to flood in from July. By the end of the year, it raked in US$44 billion from exports, and Vietnam was recognized for achieving the best growth rate among the leading textile and apparel exporters.

Indeed, the industry overcame several challenges caused by unpredictable developments in the global economy to record impressive results last year, said Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS).

Giang cited statistics saying Vietnam outperformed Bangladesh to become the world’s second largest apparel and textile exporter, ranking behind only China.

In particular, the United States remained the country’s largest export market with an estimated turnover of US$16.71 billion, up 12.33% compared to 2023 and accounting for 37.98% of total export revenue.

It was followed by Japan with US$4.57 billion, up 6.18%, and the EU with U$4.3 billion, up 7.66%.

The VITAS leader revealed that most garment and textile firms have secured orders until the first quarter of 2025 and are negotiating orders for the second quarter.

These achievements can be attributed to the fact that local firms have taken full advantage of shifting export orders to the Vietnamese market, quickly adapting to the requirements set by foreign importers, as well as applying cutting-edge technologies and automated solutions to improve labour productivity.

Giang predicted that the industry would continue to maintain high growth momentum this year thanks to its standout performance in 2024.

Apart from improving product quality and investing in machinery, he underlined the need to enhance worker skills to ensure production activities and fulfill export orders.

According to Giang, the industry has enjoyed numerous advantages as 17 out of 19 new-generation free trade agreements (FTAs) have come into effect.

Furthermore, it has also absorbed automated technologies effectively and enhanced digital management to proactively adapt to the requirements of sustainable green standards by importers.

Meanwhile, a representative of the Vietnam National Textile and Garment Corporation (Vinatex) said that local firms are now preparing to welcome orders shifting from China in the coming time.

However, he warned that businesses are also facing new challenges ahead this year, including low-priced small orders and rising input costs, as well as major changes in purchasing practices by renowned brands and regulations related to payment.

He suggested that Vietnamese businesses continue to meet stringent criteria related to "greening" in production, as well as self-sufficiency in raw materials.

Moreover, amid fierce competition from various suppliers, local enterprises should to meet strict requirements relating to labour standards, origin traceability, and low carbon emissions from major export markets such as the EU.

Experts analysed that one of the difficulties for firms in recent times is a general shortage of labour that impacts production activities and the fulfilment of export target of US$48 billion this year.

Than Duc Viet, general director of Garment 10 Corporation, proposed mapping out a plan for human resource development for the industry to avoid any more recurrences of labour shortages.