As the global textile and apparel trade landscape continues to be turbulent, Vietnam's textile and apparel industry has set an export target of about US$48 billion for 2026. Analyzing the current situation, Truong Van Cam, Vice Chairman of the Vietnam Textile and Apparel Association (VITAS), said the industry is being severely hit by trade policy adjustments and tariff barriers in major consumer markets, but will still focus on maintaining and improving growth quality and reducing production costs to adapt to external changes.

The tariff disadvantage against the United States is seen as a core concern

The tariff issue is the most direct challenge at present. According to Truong Van Cam, Vietnamese textile and apparel products must pay a 12.5% tariff when entering the United States, its largest export market, while similar products from some competing countries pay only 10%, a difference of 2.5 percentage points. Even more worrying is that some countries may enjoy tariff quota mechanisms, and if products use raw materials and components originating from the United States, tariffs may even fall to zero.

In Truong Van Cam's view, the problem is not only the 2.5 percentage point tax difference itself, but also the chain pressure that this rate gap, combined with rising production and logistics costs, places on sales prices, order acquisition capacity and export market share.

Raw material and supply chain bottlenecks also exert pressure

In addition to tariffs, prices of raw materials, accessories and components as well as transportation and logistics costs continue to rise, directly pushing up input costs. Delays in the delivery of fabrics and raw materials have also lengthened production cycles, making production scheduling difficult and affecting delivery rhythms.

Year-end order performance is mixed: some enterprises have already received orders for the end of September or the end of October, and some knitwear enterprises even have enough orders to last until the end of the year; but many apparel enterprises are finalizing fourth-quarter orders more slowly than expected, making it difficult to set year-end production plans.

Sustainability and compliance requirements are also tightening. Technical regulations in high-demand markets such as the European Union and the United States concerning labor standards, intellectual property rights, traceability of raw materials, ESG (environmental, social and governance) practices, green production, the circular economy and carbon reduction are constantly being strengthened, and are becoming preconditions for enterprises to retain old orders and sign new contracts.

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Judging from the performance in the first eight months, VITAS statistics show that in the first eight months of 2026, Vietnam's textile and apparel export value was close to US$31.7 billion, up 2.9% from the same period in 2025. This relatively moderate growth rate reflects that enterprises are digesting the pressure brought by multiple obstacles.

To this end, Vietnamese textile enterprises are stepping up trade promotion and actively participating in international exhibitions to develop new partners; digital transformation, investment in improving product quality, proactive procurement of raw materials and increasing the added value of each order are regarded as fundamental paths, rather than simply pursuing output expansion. Tran Van Quy, General Director of Trung Quy Textile and Garment Company (Ho Chi Minh City), said the company's orders are currently full through the end of the year, and as long as costs can be effectively controlled and quality ensured, its ability to adapt to the market remains intact.

Industry views hold that US$48 billion should not be treated merely as an export milestone, but should become an opportunity for Vietnam's textile industry to consolidate its foundations, raise productivity and added value, and build more sustainable competitiveness.

Source: Vietnam's textile and apparel industry aims for export value of US$48 billion. · Originally published on 2026-09-18