Investing in Vietnam’s Textile and Garment Industry: 2025 Overview and Outlook
Vietnam’s textile and garment industry is very important for the country’s economic growth, showing strength despite global challenges.
By 2025, this sector is expected to reach export earnings of US$46 billion, supported by a strong trade surplus and a high domestic value-added rate.
The textile and garment sector continues to significantly boost Vietnam’s economy.
The industry is recovering well, with export revenues projected to hit US$46 billion in 2025, which is a 5.6 percent increase from 2024.
Investing in Vietnam Textile and Garment Industry
According to the Vietnam Textile and Apparel Association (VITAS), there is a significant trade surplus of US$21 billion, emphasizing how important this sector is for the country’s trade balance.
The industry has achieved a domestic value-added rate of about 52 percent, showing that it is becoming more self-sufficient in terms of raw materials and components.
These impressive figures come from various factors.
While the traditional benefit of low labor costs is diminishing, Vietnam still has an advantage due to its strong network of free trade agreements (FTAs), which lower tariffs on its products.
At the same time, Vietnamese businesses have shown their flexibility in dealing with current challenges, including slow global demand recovery and geopolitical tensions in different areas.
They have kept production steady, gradually improved their operations, and explored niche markets for new growth opportunities.
Thanks to these accomplishments, Vietnam is now the third-largest exporter of textiles and apparel in the world, following China and Bangladesh.
Vietnamese textile and garment products can now be found in 138 markets worldwide.
Vietnam’s apparel exports to the United States: 2025 Snapshot
In 2025, the United States remained Vietnam’s biggest export market for textiles and garments, with apparel export revenues expected to be US$18.6 billion, which is an 11.75 percent increase from the previous year.
Apparel continued to make up the majority of industry earnings, contributing to the projected US$38 billion in total exports. There was strong order visibility, with many Vietnamese manufacturers securing contracts through the first quarter of 2026 and negotiating for later delivery dates.
Vietnam’s position in the US apparel market improved significantly during the year.
From January to July 2025, Vietnam became the largest supplier of apparel to the US, surpassing China for the first time. During this time, US apparel imports from Vietnam reached nearly US$9.5 billion, marking a 17.5 percent increase compared to the previous year, while imports from China declined. Vietnam’s share of US apparel imports rose to 20.6 percent, the highest recorded level.
Even with a 20 percent US tariff on Vietnamese apparel starting in August 2025, trade dynamics still favored Vietnam, as the higher tariffs on Chinese products encouraged companies to diversify their sources.
However, the dependence on imported fabrics remains a structural risk.
