Vietnam’s textile, garment exports to reach target of US$47-48 billion in 2025

The textile and garment sector has set an export target of US$47-48 billion for 2025 – Photo: Ngoc Han

Vu Duc Giang, President of the Vietnam Textile and Apparel Association (VITAS), stated that in 2024, the export value of textiles and garments is expected to reach US$44 billion, an increase of 11.26 percent compared to 2023; the sector’s import value is expected to reach US$25 billion, up 14.79 percent, resulting in a trade surplus of US$19 billion, up 6.93 percent compared to 2023.

The US remains the largest export market, with the value estimated at US$16.71 billion, up 12.33 percent compared to 2023 and accounting for 37.98 percent of the total export value. Exports to Japan are expected to reach US$4.57 billion, up 6.18 percent, accounting for 10.39 percent of the total. Exports to the EU are estimated at US$4.3 billion, up 7.66 percent, making up 9.77 percent. Export value to the Republic of Korea is expected to reach US$3.93 billion, up 10.36 percent, accounting for 8.93 percent, and exports to China are estimated at US$3.65 billion, up 1.76 percent, making up 8.3 percent of the total.

Vu Duc Giang also noted that in 2024, the global textile and garment sector shows no significant growth. However, Vietnam has recorded growth thanks to order shifts. Vietnamese textile and garment companies have promoted exports to many new markets, such as the Middle East and Africa. They have flexibly transformed their production models and invested in machinery and equipment, accepting smaller but highly-technical orders.

Amid favorable trends and opportunities from free trade agreements, the Vietnamese textile and garment sector has set an export target of US$47-48 billion for 2025. The VITAS President said this target is based on thorough research on order trends. Most companies have received orders for the first quarter of 2025 and are negotiating orders for the second quarter.

2025 is forecast to be a challenging year for the textile and garment sector. The US will possibly impose additional tariffs, making orders from China more expensive than usual, creating opportunities for competing countries, including Vietnam, to capture the shifting of orders from China, provided they comply with rules of origin.

To seize opportunities and achieve the US$47-48 billion export target in 2025, garment companies are advised to swiftly respond to market demands. Strengthening the connection between the garment sector and textile-dyeing units is essential, with the garment industry acting as the driving force to guide production and investment in fiber and textiles. Additionally, businesses should prioritize investment in technology to enhance productivity and reduce labor-intensive reliance. They should also think of piloting investment in smart garment factories.

For the fiber sector, although losses in 2024 have significantly decreased compared to 2023, challenges remain substantial. Enterprises need to continue expanding their operational scope and cooperation in market development and material procurement. In-depth research on the material market is essential for accurate forecasting; efforts should focus on identifying and accessing major fiber supply chains. Additionally, companies should develop plans for deep innovation of technology and equipment to ensure fiber quality./.