Vietnam’s textile and garment industry recorded export earnings of US$22.2 billion during the first six months of 2026, marking a 1.7% year-on-year increase, according to the Vietnam Textile and Apparel Association (VITAS).
While exports of fibres, fabrics, accessories and nonwoven materials posted healthy growth ranging between 5.6% and 10.6%, garment exports declined 0.4% due to continued weak consumer demand across key international markets.
US Remains Largest Market, EU Records Strongest Growth
Based on export data for the first five months of 2026, the United States remained Vietnam’s largest export destination, with shipments valued at US$6.81 billion, an increase of 1.3% year-on-year, representing around 45% of total textile and garment exports.
The European Union emerged as the fastest-growing market, with exports rising 8.8% to US$1.94 billion. Meanwhile, exports to Japan and the Republic of Korea declined by 6.2% and 8.9%, respectively.
The sector also maintained a trade surplus of nearly US$10 billion during the first half of the year.
Industry Faces Structural Challenges
Despite the overall export growth, VITAS highlighted several ongoing challenges, including weak demand in major export markets, intense pricing competition, dependence on imported raw materials, increasing compliance costs related to environmental, social and governance (ESG) standards and product traceability, as well as uncertainty surrounding global trade policies.
VITAS Chairman Vu Duc Giang said the industry has limited scope to expand solely through higher production volumes. Instead, future growth will depend on improving productivity, developing higher-value products, strengthening domestic raw material supply, diversifying export markets, and accelerating digital and green transformation.
New Committees to Drive Industry Transformation
To support the sector’s long-term development, VITAS has approved the formation of four specialised committees for the 2025–2030 term. These committees will focus on:
- Fashion and domestic market development
- International business and supply chains
- Sustainable development
- Technology, innovation and digital transformation
The committees are expected to begin pilot operations in the third quarter of 2026.
Full-Year Export Target
Following exports of US$22.2 billion in the first half of the year, Vietnam’s textile and garment industry is targeting approximately US$48 billion in exports for 2026.
To achieve this goal, the industry plans to maintain average monthly export revenues exceeding US$4 billion during the second half of the year, while prioritising market diversification, domestic raw material development, technology investments, automation, digital transformation, and preparedness for evolving global trade and regulatory risks.
