Vietnam's textile and apparel industry exported about $33.02 billion in the first 8 months of 2026, up 6.7% year-on-year, but the growth structure is clearly divergent: yarn and textile exports surged 37.4%, while apparel exports rose only 1.6%. Data from the Vietnam National Textile and Garment Group (Vinatex) has been cited in multiple reports.

Key points

  • In the first 8 months of 2026, Vietnam's textile and apparel exports were about $33.02 billion, up 6.7% year-on-year; among them, textiles and yarn rose 37.4%, while apparel rose only 1.6%.
  • Over the same period, Vietnam imported more than $19.37 billion of textile and apparel raw materials, up about 4% year-on-year, with China still the main source of supply.
  • Over the same period, China's textile and apparel exports rose 2.4% (first 7 months), Bangladesh's rose 3% (first 8 months), and Indonesia's rose 3% (first 7 months), indicating a fragmented competitive landscape.

On the surface, the data still show positive growth, but the operating environment on the manufacturing side is tightening. The report lists multiple risks: fluctuations in cotton and chemical fiber prices, exchange rate changes, weakening demand in the US and Europe, rising logistics and raw material costs, stricter rules of origin and trade remedy requirements, and intensifying competition among peers. Apparel companies also face smaller orders, shorter delivery times, and fierce price wars. This means that capacity utilization or turnover alone can no longer be used to judge export quality; the profit margin of orders matters more than scale—fragmented short orders will increase pressure on production, inventory, and working capital, forcing companies to manage cash flow, inventory, and receivables more tightly and to rely on data and efficiency improvements to protect profitability.

The structural concern lies in dependence on imported raw materials. In the first 8 months of 2026, Vietnam imported more than $19.37 billion of textile and apparel raw materials, up about 4% year-on-year, with China as the main supplier, directly exposing Vietnamese factories to raw material price volatility, supply chain disruptions, and changes in trade policy. This dependence can also affect their ability to enjoy preferential rules of origin under free trade agreements. Take the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as an example: product-specific rules of origin apply to textile and apparel products, and many apparel products follow the "yarn-forward" standard, meaning that the specified textile production processes must be completed within CPTPP member countries; although the agreement provides exceptions, including limited tolerance for certain non-originating materials and a short supply list, compliance thresholds still exist.

Competition is also more complex. China maintains its advantage through a highly integrated textile supply chain, while Bangladesh and other Asian producers remain important rivals in the global apparel market. Data cited by Vietnam's Vinatex show that in the first 7 months of 2026, China's textile and apparel exports rose 2.4%, Bangladesh's rose 3% in the first 8 months, and Indonesia's rose 3% in the first 7 months—competitive performance varies by category and market, and is not moving in the same direction.

For Vietnam, competition is no longer just about production costs. Supply chain depth, rapid response to smaller and shorter orders, access to price-competitive raw materials, compliance capability with rules of origin and trade rules, and the ability to upgrade to higher-value-added products together determine manufacturers' competitiveness. Environmental performance and supply chain traceability are also becoming export thresholds, especially when customers and destination markets impose sustainability, due diligence, or traceability requirements; investment in energy efficiency, cleaner production, and digital traceability will bring both compliance and operational benefits. The key question for Vietnam's textile industry is no longer whether export volume can continue to grow, but whether it can turn growth into sustainable profit.

Source: Vietnam's textile sector faces a new growth test? - Fibre2Fashion · Originally published on 2026-10-03