The latest data from the Vietnam Textile and Apparel Association (VITAS) shows that in the first half of 2026, Vietnam's textile and garment export value reached about US$22.2 billion, up 1.7% year on year, achieving a trade surplus of nearly US$10 billion and continuing to play an important role in the country's exports. The industry has set a full-year export target of about US$48 billion.

Based on this target, the average monthly export value in the second half needs to stay above US$4 billion to meet the goal. However, judging from the performance of garment exports in the first half, pressure is already evident: garment exports edged down 0.4%, which VITAS attributes to consumer demand not yet recovering strongly after major markets experienced inflation and slower economic growth, leaving orders unstable and price competition increasingly fierce.

What truly drove export growth was upstream raw materials. Exports of fiber and yarn, fabrics, accessories and nonwovens all grew, with increases ranging from 5.6% to 10.6%, reflecting still-stable international market demand and continuously expanding domestic production capacity in Vietnam.

Constraints are equally clear. VITAS points out that the industry still relies on imports for about 60% to 70% of its raw and auxiliary materials; at the same time, companies must cope with increasingly strict sustainability, product traceability and environmental, social and governance (ESG) standards, which push up production and compliance costs.

Association chairman Vu Duc Giang said the textile and garment industry has entered a new stage of development, where there is little room to drive growth through scale expansion, and the focus of the next stage should be on raising labor productivity, increasing product added value, proactively ensuring the supply of raw and auxiliary materials, expanding markets, and accelerating digital and green transformation.

According to company statements, in addition to production and operations, they will strengthen governance effectiveness and risk control, promote investment in the textile-dyeing industrial chain, accelerate green transformation, and gradually build a green, smart and circular production ecosystem.

Looking at the broader foreign trade picture, Vietnam's total goods imports and exports in more than seven months have exceeded US$712 billion, with major goods such as electronics, textiles and garments, wood and agricultural products all maintaining growth. But for textiles and garments, whether the US$48 billion annual target can be achieved and how much the structural bottleneck of "more than half of raw materials imported" can be eased are key to assessing the quality of its growth.

Source: Vietnam's textile and garment industry seeks new growth momentum · Originally published on 2026-09-15