After seven months, Vietnam's textile and garment exports reached nearly US$24 billion, up 6% compared to the same period last year. Vietnam currently exports textiles and garments to 113 countries and territories, with major markets including the United States, the EU, Japan, South Korea and China.

Notably, Vietnam's textile and garment exports to the EU slightly recovered in the first half of this year, with total export turnover exceeding US$1.9 billion. The Dutch market recorded a recovery of 19.97%, while exports to the Czech Republic surged by 48.98%.

A key factor driving textile and garment exports is the effective control of inflation in major economies, which has helped boost consumer purchasing power. Most Vietnamese textile and garment enterprises have secured enough orders through the end of Q4 2024, including the peak seasons for Christmas and New Year.

A survey by the United States Fashion Industry Association (USFIA) indicated that Vietnam has a competitive advantage over China and Bangladesh. Fashion companies in the United States and nearby countries are seeking supply chains outside of China, leading to increased interest in products from Vietnam, particularly as the demand for sustainable products rises.

The USFIA survey also revealed that Vietnamese textile and garment enterprises benefit from a favorable geographic location, a well-developed port system, and the ability to produce diverse high-value products like suits, winter coats and swimwear. The diversity in product designs and the fast delivery further enhance the appeal of Vietnamese companies to international partners.

Moreover, Vietnam’s textile and garment industry had attracted over US$37 billion in foreign direct investment (FDI) by the end of May 2024. Investments in modern technologies and infrastructure have bolstered Vietnam’s production capabilities, enabling the country to meet the increasing demand from foreign markets.

In addition to traditional markets like the United States and the EU, Vietnamese textile and garment companies are actively expanding exports to new markets, including the Middle East, Africa, and notably Russia. According to the General Department of Vietnam Customs, textile and garment exports to Russia grew by 86% in the first half of 2024 compared to the same period last year.

Forecasting the textile and garment export situation from now until the end of 2024, Vietnamese textile and garment enterprises have proactively planned to cope with unpredictable global events such as the Russia-Ukraine military conflict and instability in the Black Sea and the Red Sea. These factors are no longer surprising, as businesses have actively managed risks and flexibly adjusted their plans. However, Vietnam’s textile industry still faces internal challenges, such as limited dyeing and weaving capacities, which affect its ability to expand exports.

To maintain growth and enhance long-term competitiveness, textile and garment exporters are investing in technology, optimizing production, engaging in Original Brand Manufacturing (OBM) and Original Design Manufacturing (ODM) value chains, and increasing output using abundant imported raw materials.

The increase in the import of raw materials for the textile and garment industry - US$2.41 billion in July 2024 and over US$15.83 billion in the first seven months - indicates significant export recovery. Currently, the average lending interest rates of banks are lower than last year, facilitating businesses' access to capital and proactively importing materials for production.

Textile and garment enterprises are aiming toward production models under OBM and ODM, which not only help increase the added value of their products but also create sustainable competitive advantages.

Additionally, companies are increasingly investing in new technologies, particularly automation and supply chain management technologies to enhance product quality, reduce costs, and shorten production time. With textile production up 12.4% and garment production up 6.2% in the first seven months of 2024, textile and garment enterprises are effectively seizing market opportunities to expand production and meet rising demand.

By year-end, Vietnam may have seven textile and garment export markets surpassing US$1 billion each, with the U.S. market potentially reaching US$15-16 billion. If exports maintain around US$4 billion per month from now until the end of the year, achieving the target of US$44 billion in total industry exports appears feasible.