Vietnam continues to shine in global apparel trade

Cao Huu Hieu, general director of Vietnam National Textile and Garment Group (Vinatex), acknowledged the challenges the industry faced from the outset of last year, including weak market demand and declining export prices. Nevertheless, a recovery in the latter half of the year enabled the sector to achieve its 11 per cent growth target.

Photo: baodautu.vn

"In the first half of 2024, our company struggled to meet targets due to sluggish market conditions," said Hieu. "However, a notable shift occurred in the second half of the year as political instability in markets such as Bangladesh redirected orders towards Vietnam, resulting in a substantial influx of new orders from July onwards."

Thanks to this recovery, Vinatex achieved significant improvements in business performance. The company’s consolidated revenue exceeded $754 million in 2024, reflecting a 2.8 per cent increase, while its consolidated profit surged to an estimated $30.8 million, up 37.5 per cent compared to 2023.

Pham Quang Anh, director of Dony Garment Co., Ltd. based in Ho Chi Minh City’s Binh Chanh district, believes that while market dynamics played a role, the company's impressive growth was primarily driven by its proactive market expansion strategies.

"Last year was significant for us, as we achieved a growth rate of over 70 per cent compared to 2023, far exceeding our initial target of 15 per cent set at the end of 2023," said Anh.

Dony’s success was driven by robust growth in markets such as the US and the Middle East, as well as the domestic market, which accounted for over 20 per cent of its growth last year. Success was also found in new markets, including Cambodia, Thailand, Malaysia, Singapore, and Russia. The company began exploring the African market mid-year and secured orders by year-end.

Experts anticipate sustained momentum for Vietnam’s apparel exports in 2025, underpinned by the sector’s ability to deliver high-quality products at competitive prices, bolstered by continued investments in advanced machinery and technology.

As a champion of integrated AI within the garment and textiles industry, Viet Thang Jean, a large southern-based fashion producer serving export markets, has made significant strides in digital transformation.

"The application of AI in areas such as production management and pattern-making has reduced data management workload by half, operational costs by 70 per cent, and improved data accuracy to 99 per cent," according to Pham Van Viet, chairman of Viet Thang Jean.

Amidst emerging trends and stringent standards for green production and raw material self-sufficiency, Tran Van Quy, general director of southern-based Trung Quy Textile Co., Ltd., emphasised the company’s focus on sustainable practices.

"Trung Quy is investing in green production, generating carbon credits, and remains on track to achieve net-zero emissions by the end of this year. We have allocated over $11.25 million to establish a 10,000 square-metre facility in the southern province of Long An, as part of its accelerated transition to green manufacturing," said Quy.

Advanced dyeing and weaving processes implemented at the facility enable water savings of 60-70 per cent compared to conventional methods.

These technologies ensure a closed production cycle and provide high-quality, internationally certified fabric to domestic garment manufacturers, with an annual capacity of 2 million metres of fabrics.

Trung Quy plans to expand its export footprint to major international markets, including the EU, the US, Japan, and Australia, later this year.

Global trade hub could be answer for textile segments With the leather, footwear, and textile industries mainly processing with low added value, the establishment of an international trade centre for the development of raw materials will help the industry develop sustainably.

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 to strengthen its role in global supply chains Countries like Vietnam and Malaysia are navigating the complexities of geopolitical tensions by maintaining neutrality between United States and China-aligned blocs, enabling them to attract diverse investments and strengthen their role in global supply chains.