In the first half of 2025, Vietnam’s textile and garment industry maintained a strong growth trajectory, recording nearly $22 billion in export revenue - an increase of $2.3 billion or 10% compared to the same period last year.

The United States remained the largest export market, generating $8.77 billion (up 17.1%), followed by the European Union with $2.36 billion (up 14.8%), and Japan with $2.24 billion (up 12.4%).

Sustained growth amid global volatility

This impressive outcome reflects the significant efforts of Vietnamese enterprises amid market volatility, including geopolitical tensions and escalating conflicts disrupting supply chains and increasing shipping costs.

Adding to the challenges, a looming threat hangs over global trade: U.S. President Donald Trump's administration is preparing to implement a 10% most-favored-nation (MFN) tariff. Though currently on hold pending negotiations and expected to be announced on August 1, the potential imposition of this tariff is already creating pressure for exporters, including those from Vietnam.

To stay ahead of these possible changes, exporters have accelerated production to capitalize on existing market opportunities before the new U.S. tariff measures come into force - an effort that could significantly reshape trade dynamics.

Recently, international partners and clients have lauded the resilience and adaptability of Vietnam’s textile industry, especially its proactive communication strategies and efforts to identify and resolve operational bottlenecks.

Global reach and strategic readiness

The industry’s ability to export to 132 countries and territories is a testament to its growing global stature. Many companies have secured orders through September and are actively negotiating for end-of-year deliveries.

Vietnamese textile firms have embraced a mindset of strategic readiness, gearing up for rapid production campaigns that ensure on-time delivery and maximize tariff advantages - efforts that help optimize profit margins and build contingency reserves for future operations.

With the current growth rate exceeding 10%, July’s export value is forecast to experience a significant leap. This will provide a strong foundation toward the year-end export target of $46–47 billion. To realize this goal, businesses must fully leverage the benefits of the 17 new-generation free trade agreements currently in effect and proactively adapt to shifting global economic and regulatory landscapes.

Investment and transformation for long-term competitiveness

To strengthen their market position, businesses are urged to invest in modern machinery, upskill the workforce, and transition from traditional CMT (cut-make-trim) methods to more value-added models like FOB (free on board), ODM (original design manufacturing), and OBM (original brand manufacturing). This shift will enhance product value and elevate Vietnam’s role within the global supply chain.

Beyond internal efforts, enterprises require better access to market intelligence, trade facilitation policies, and efficient payment systems to reduce risks and protect themselves from the negative impacts of regulatory changes in key markets.

Government support is equally critical. Favorable policies related to capital access, tax incentives, land use, and the development of modern industrial zones are needed to attract both domestic and foreign investment, accelerate vertical integration, and resolve raw material shortages.

PV