Year-end orders support the export outlook, but price pressure and more demanding products keep profitability under strain.
Vietnam’s textile and garment industry considers its $47–47.5 billion export target for 2026 achievable, with preliminary earnings reaching $33.66 billion by September 15. Industry representatives say exports could approach $48 billion if fourth-quarter market conditions improve.
Export reach widens
The sector earned $32 billion in the first eight months, up 3% year on year, according to the Vietnam Textile and Apparel Association (VITAS). Preliminary figures through September 15 included $28.4 billion in garment exports, $3.37 billion in yarns and $1.85 billion in raw materials and accessories.
Vietnamese textile and garment products now reach 137 countries and territories. The United States accounts for approximately 40% of overseas shipments, while the industry is also pursuing opportunities in Africa and the Middle East alongside established markets in Europe and Asia.
Investment shifts towards factory capability
VITAS chairman Vu Duc Giang identifies automation, artificial intelligence, robotics and stronger links across the value chain as priorities. The association reports that digital infrastructure, AI and robotics account for around 65–68% of investment at many enterprises, rather than across the entire industry.
Environmental investment includes rooftop solar, wastewater-treatment upgrades and more environmentally friendly materials. These measures accompany efforts to increase domestic sourcing of inputs and accessories.
VITAS is also encouraging manufacturers to move from cut-make-trim processing towards full-package production and original design manufacturing, seeking greater value from each order.
Full order books still face margin pressure
Vinatex members including Garment 10, Nha Be Garment and Hue Textile–Garment have secured orders through year-end. Garment 10 is negotiating contracts for early 2027.
However, Vinatex general director Cao Huu Hieu says buyers continue to press prices, request longer delivery periods and demand technically more complex products. The group’s priorities include productivity, cost control, cash-flow management and higher-value orders.
The remaining export requirement is substantial: approximately $13.3–13.8 billion after September 15, calculated against the target range. Fourth-quarter shipments and early-2027 contract terms will show whether secured orders deliver both export growth and acceptable margins.
