Vietnam is still growing, but the first-half figures show a sector increasingly dependent on upstream materials, productivity gains and market diversification.
Vietnam’s textile and garment exports reached an estimated $22.2 billion in the first half of 2026, up 1.7% year on year, according to the Vietnam Textile and Apparel Association. The gain was modest but important in a difficult demand environment, with fibres, fabrics, accessories and nonwoven materials growing between 5.6% and 10.6%. Garment exports, however, slipped 0.4%, showing that consumer-facing apparel demand remains the weakest link in the chain.
Materials outperform finished garments
The first-half pattern suggests that Vietnam’s textile sector is drawing more support from intermediate products than from cut-and-sew apparel. That matters commercially because higher material capability can strengthen Vietnam’s position in rules-of-origin compliance, shorter lead times and integrated sourcing.
Based on the first five months of 2026, the United States remained Vietnam’s largest textile and garment export market, with shipments worth $6.81 billion, up 1.3% and equal to about 45% of total exports. The EU was the strongest major market, rising 8.8% to $1.94 billion. Japan and South Korea weakened, falling 6.2% and 8.9%, respectively.
Trade surplus stays strong
Vietnam maintained a textile and garment trade surplus of nearly $10 billion in the first half. That surplus confirms the industry’s export strength, but it also sits beside persistent structural pressure: weak demand, price competition, imported raw-material dependence, rising ESG and traceability costs, and growing uncertainty over trade policy.
VITAS chairman Vu Duc Giang said the industry has limited room left to grow simply by expanding production volume. Future performance will depend on productivity, higher-value products, domestic raw-material development, market diversification, and digital and green transformation.
The $48bn test
Vietnam is targeting around $48 billion in textile and garment exports for 2026. After $22.2 billion in the first half, the sector would need roughly $25.8 billion in the second half, or about $4.3 billion per month.
The next signal will be whether apparel orders recover in the US, EU and Asia. Without stronger garment demand, Vietnam’s 2026 growth will depend heavily on upstream textile performance, automation and faster movement into higher-value categories.
