Textile, garment, and footwear see export turnover of $71 billion

According to the Vietnam Textile and Apparel Association, the textile and garment sector achieved $44 billion in exports last year, an increase of 11 per cent on-year. The US remains Vietnam's largest export market, with turnover of $16.7 billion, up over 12 per cent against 2023 and making up for 38 per cent of total export turnover. It was followed by Japan, the EU, South Korea, and China.

Garment 10 Corporation, a member of Vietnam National Textile and Garment Group (Vinatex), also achieved its 2024 goals with a revenue of nearly $185 million and a profit of $5.2 million, up 10 per cent and 7 per cent on-year, respectively.

Another member company, Hoa Tho Textile and Garment JSC, also posted close to $195 million in revenue and more than $13 million in profit in 2024, up 10 per cent on-year and 53 per cent respectively compared to the year’s plan.

Meanwhile, the footwear and leather sector fetched a revenue of $27 billion, marking a 10 per cent rise from 2023. Last year’s figure stood at just $24 billion, down over 14 per cent from 2022.

According to the Vietnam Leather, Footwear, and Handbag Association, the sector has taken advantage of free trade agreements Vietnam has signed to boost exports, with activities involving China, the EU, South Korea, and ASEAN faring well over the past year.

"Large markets such as the US and the EU posted a growth rate of over 10 per cent. In particular, China remains the sector’s billion-dollar export market, trailing behind the US and EU and accounting for 9 per cent of export turnover," the association said.

Vietnam reaffirmed its position as the world's third-largest footwear producer (behind China and India) with a 1.4 billion-pair annual output and the second-largest footwear exporter globally (after China) with 1.3 billion pairs exported annually.

Major textile and footwear companies have so far received orders until April. However, challenges remain for businesses next year as order prices will not increase while input costs continue to rise. Companies have to adjust their production to adapt to major changes in brands’ purchasing patterns, alongside regulations related to payment. This is coupled with more stringent sustainability requirements and self-sufficiency in raw materials.

Andri Meier, deputy head of Cooperation at the Swiss Embassy, said, "Against the backdrop of the rapidly evolving international trade landscape, the sustainability requirements are no longer an option but an imperative. New regulations on sustainable trade from importers are pushing countries like Vietnam to accelerate the transformation of their production processes."

Le Tien Truong, chairman of the board at Vinatex, said, "With new US tariffs looming, the textile and garment orders from China will be more expensive than usual. This is a good opportunity for countries like Vietnam to welcome orders shifting from China if they ensure good compliance with the rule of origin," Truong said.

The textile and garment sector is targeting an export turnover of $48-49 billion in 2025, while the footwear and leather sector set a goal of $29-30 billion in export turnover next year. The main export markets for Vietnam's textile and garment sector remain the US, the EU, China, Japan, and South Korea.

John Goyer, executive director of Southeast Asia at the US Chamber of Commerce, said, "Bilateral trade between Vietnam and the US is on the rise, but businesses should pay more attention to the trade policies under the new US presidency. It is likely that tariff tools will be used more on imports."

According to a report released by HSBC on December 20, Vietnam has the highest exposure to the US market in ASEAN, led by textiles and garments, footwear, wooden furniture, and machinery. However, trade and tariff policy is likely a challenge for the short-term trade growth outlook.

"Whether end demand for goods improves further will be key in determining the strength of Vietnam’s recovery, as western markets make up close to half of the country's exports. The trajectory and pace of consumer spending in the west will therefore need to be closely watched," according to HSBC.

Garment industry poised for transformation amid global shifts A large-scale event on textiles and garments has taken place in Ho Chi Minh City, aiming to promote related investment and business activities.

Opportunities await textiles and apparel sector Increasing demand towards the year-end and global economic factors present significant opportunities for textiles and apparel businesses.

Vietnam becomes second biggest garment exporter globally Vietnam’s garment and textiles export is projected to hit nearly 44 billion USD this year, positioning the country as the world’s second biggest exporter, only behind India, said General Director of the Vietnam National Textile and Garment Group (Vinatex) Cao Huu Hieu.