Vietnam’s textile and garment industry has continued to demonstrate strong resilience in 2025, achieving 8.5% year-on-year growth in exports between January and August, despite mounting global trade pressures and tariff challenges. The sector’s performance has been driven largely by demand from the United States, which remains Vietnam’s top export market, while China continues to serve as the leading supplier for yarn-related imports. Notably, yarn exports showed a decline in value but an increase in volume, reflecting shifts in international market dynamics. At the same time, cotton imports rose significantly, underlining the industry’s reliance on raw material inflows to meet growing production needs.
Encouraged by this performance, the Vietnam Textile and Apparel Association (VITAS) has revised upward its export targets for 2025, signaling optimism about the sector’s capacity to sustain momentum through the remainder of the year. Beyond textiles, Vietnam’s total exports across all sectors surged 14.8% year-on-year in the January–August period, reaching 5.
96 billion and securing a trade surplus of nearly $14 billion. However, the implementation of new U.S. tariffs—20% on imports and 40% on transshipments effective August 2025—poses a significant challenge. Interestingly, despite these measures, Vietnam’s exports to the U.S. grew by over 18% in August, underscoring the competitiveness of its textile and garment industry.
Looking ahead, the World Bank has trimmed Vietnam’s 2025 GDP growth forecast to 6.6%, well below the government’s ambitious 8.3–8.5% target. Still, the textile and garment sector remains a cornerstone of Vietnam’s export economy, showcasing adaptability, resilience, and a strong potential to navigate global trade uncertainties.
