Garment production at May 10 Corporation. Vietnam emerges as key hub for textile manufacturers. (Source: VNA)

Vietnam’s strategic location, commitment to sustainability, and innovation have made it an attractive destination for international textile producers seeking to diversify global supply chains.

This trend was highlighted at industry seminars during the Vietnam International Trade Fair for Apparel, Textiles and Textile Technologies 2025 (VIATT 2025) in Ho Chi Minh City on February 27.

Experts noted that Vietnam’s textile industry enters 2025 with momentum from key milestones achieved in 2024. The country is expected to surpass Bangladesh as the world’s second-largest garment exporter after China.

Vietnam’s textile sector, comprising around 7,000 companies and over 3 million workers, dedicates 80% of its production capacity to exports and 20% to domestic consumption. The industry’s growth is supported by a well-developed logistics network, a skilled workforce, and a stable political environment.

Sustainability and technological advancement are driving the sector’s future. Many local companies have adopted eco-friendly materials like organic cotton, recycled polyester, and Tencel, while global brands manufacturing in Vietnam have committed to net-zero carbon emissions by 2050.

Advanced technologies are also reshaping design and production, with investors focusing on optimising capacity, streamlining supply chains, and enhancing product quality to stay competitive.

Vietnam’s home textile market is projected to grow at a compound annual growth rate (CAGR) of 2.4% from 2024 to 2032, fueled by rising demand for modern home textiles, e-commerce expansion, and favourable government policies.

Deputy Minister of Industry and Trade Phan Thi Thang underscored the sector’s strong development and its vital role in Vietnam’s economic growth. In 2024, textile and garment exports reached nearly 44 billion USD, up 11.26% from 2023, accounting for 12% to 16% of the nation’s total export revenue.

With the support of 17 next-generation free trade agreements (FTAs), the industry aims to achieve an export target of 48 billion USD in 2025. Plans include developing large-scale, fully integrated production chains, investing in automation, embracing digital transformation, and adopting real-time management and eco-friendly practices.

International trade agreements like the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the EU-Vietnam Free Trade Agreement (EVFTA) will drive further growth. Many manufacturers from Asia and Europe, including China, have already expanded their presence in Vietnam.

Foreign companies are actively seeking reliable local partners to strengthen trade ties and meet diverse market demands. This collaboration enhances Vietnamese manufacturers’ ability to meet FTA origin requirements, product value, and alignment with global sustainability trends.

Wendy Wen, Managing Director of Messe Frankfurt Hong Kong, said VIATT 2025 will showcase innovative digital solutions to boost efficiency and tailor products to market needs. The event will also feature a “Sustainable Production Zone,” providing a platform for eco-friendly service providers to share expertise and present cutting-edge innovations aimed at enhancing production efficiency and meeting new market demands.