By the end of November 2025, the economic outlook was mixed, both spread momentum and required confronting emerging risks, calling for better proactiveness and adaptive capacity. Vietnam’s Textile and Garment industry has continued to pursue strategic solutions to respond to market volatility and to deepen its participation in global supply chains. In this context, Vinatex Magazine held a discussion with Dr. Le Tien Truong, Chairman of the Board of Directors of the tải w88 (Vinatex)
*Against the context of global geopolitical uncertainty, how has Vietnam’s textile and garment industry adapted to maintain export performance?
The overall context this year has been marked by far greater market volatility than w88 link vao w88 the thao previous years, driven by new reciprocal tariff policies and the frequent adjustments of tariff rates across different countries, leading to repeated shifts w88 link vao w88 the thao trade flows. As a result, orders have become smaller w88 link vao w88 the thao size, shorter w88 link vao w88 the thao duration, and subject to continual fluctuation.
However, 2025 proved to be another year of effective adaptation for the textile and garment industry. Export turnover is estimated to reach USD 46 billion, up around 5% compared with 2024. Overall, the industry managed to keep global tariff volatility largely under control, thereby limiting negative impacts on performance. At present, Vietnamese textile and garment products are present w88 link vao w88 the thao 138 markets worldwide. Among these, the United States remains the principal market, with estimated exports of USD 18.6 billion (up 11.75% year on year), while apparel continues to be the dominant export category (approximately USD 38 billion / USD 46 billion w88 link vao w88 the thao total export value).
This outcome was the result of a flexible management approach throughout 2025, during which we were able to capitalize on the window of opportunity created by the waiting period before new tariff rates were applied w88 link vao w88 the thao the first 90 days. Accordingly, from April 2nd to August 8th, export turnover increased significantly during this period, achieving a growth rate of nearly 15%.
The management experience of 2025 offers an important lesson: amid heightened global geopolitical and geo-economic volatility, overall corporate governance, operational agility, rapid decision-making, and the willingness to take well-considered risks at the enterprise level are decisive factors for success or failure. These results were also made possible by a high degree of alignment and support from employees and relevant stakeholders across society.
Also w88 link vao w88 the thao 2025, w88 link vao w88 the thao addition to maintaining market share w88 link vao w88 the thao the U.S. market, we diversified our exports into a range of other markets, including Europe, Japan, and South Korea. The key lesson from this process was the ability to pursue market diversification while responding swiftly and making timely decisions amid frequent changes w88 link vao w88 the thao countries’ tariff policies, and to capitalize on very narrow windows of opportunity created by temporary delays w88 link vao w88 the thao the implementation of reciprocal tariffs.
*Amid multiple Free Trade Agreements and strict Rules of Origin requirements, Vietnam’s textile and garment industry has worked to build greater self-sufficiency w88 link vao w88 the thao raw material supply. How would you assess the progress achieved so far?
According to a report dated October 2nd by the Central Policy and Strategy Committee, among Vietnam’s export sectors, the textile and garment industry is one of those with the highest localization rates, reaching 45–48%, compared with only 15–18% w88 link vao w88 the thao the electronics sector. w88 link vao w88 the thao addition, the value added of Vietnam’s Textile and Garment industry is also among the highest w88 link vao w88 the thao the manufacturing and processing sectors, at approximately 40%. This demonstrates a steady process of scaling up production while substantially improving localization rates. Compared with the world’s five largest textile and garment exporters, Vietnam ranks third w88 link vao w88 the thao terms of raw material sourcing capability, behind China and India.
This process encompasses both investment activities by domestic enterprises and the ongoing reconfiguration of global supply chains, w88 link vao w88 the thao which large-scale FDI enterprises invest w88 link vao w88 the thao raw material production, forming closed loop supply chains w88 link vao w88 the thao Viet Nam. At the same time, we have deliberately chosen a segment that is not a low-cost, mass-market, we operate w88 link vao w88 the thao the mid-to-high segment. This segment requires a strict compliance with Rules of Origin. As a result, although we entered raw material production later, we moved directly into products that fully meet Rules of Origin requirements and are positioned w88 link vao w88 the thao the mid-to-high segment, with a strategic orientation toward the high-end markets that are less sensitive to price fluctuations and tax policy changes.
*With the tải w88, could you share the story of achieving self-reliance in raw material supply across the entire production chain of the system?
Vinatex is a textile and garment enterprise with the distinctive characteristic of having a relatively complete fiber–textile–garment supply chain, shaped by the long history of its member companies, which were established and structured to produce these product categories. Currently, within the tải w88, in addition to the Group’s overall operations and the independent production and business activities of each member enterprise, we manage our operations across two main production and business segments: yarn and garments. In this structure, yarn and fabric production are closely linked in supply with the garment sector, so that, in principle, most products use raw materials sourced within the system. However, in practice, the scale of raw material production remains much smaller than the scale of the Group’s garment sector, which necessitates further expansion of raw and auxiliary material manufacturing to support production.
Expanding the scale of raw and auxiliary material production requires 2 key factors. The first is approval from the global supply chain, w88 link vao w88 the thao which buyers and designers accept our materials for their supply chains. This is a lengthy process, starting with pilot production and small, fragmented orders, and gradually progressing to large-scale, long-term orders w88 link vao w88 the thao subsequent years. A key difference for Vietnamese enterprises is that we do not yet have an established position w88 link vao w88 the thao the supply chain from a raw material perspective. This contrasts with FDI enterprises, which relocate production from other countries to Viet Nam but already hold positions within the supply chains of Walmart, Target, Uniqlo, or other fashion systems. As a result, once they stabilize production and complete their investments, they can immediately operate at large scale and fully utilize their installed capacity. w88 link vao w88 the thao Viet Nam, and for Vinatex w88 link vao w88 the thao particular, the process must be undertaken step by step. Entry into the supply chain has to begin with small orders and sample collections offered for the following year, at a stage when concrete business and production outcomes may not yet be visible.
Second, financial considerations must also be carefully assessed when investing w88 link vao w88 the thao raw material production, as this is a sector that requires very large scale capital. Enterprises need to calculate and balance their financial health and generated profits against research and development costs, w88 link vao w88 the thao order to avoid a situation w88 link vao w88 the thao which a company has a sound strategic orientation and strong development potential, but due to an inappropriate investment scale and financial imbalance lacks the capacity to sustain long-term growth.
*And how is the trend toward greening and sustainability w88 link vao w88 the thao the textile and garment industry evolving at this point, sir?
w88 link vao w88 the thao practice, up to this point, green related regulations w88 link vao w88 the thao the largest market for Viet Nam’s Textile and Garment industry – the United States remain unclear. The U.S. has slowed several decisions related to the “green” development agenda and has taken certain steps back. w88 link vao w88 the thao Europe, given the nature of the market and the fact that European countries were among the initiators of the green production agenda, this direction continues to be maintained, although there have been delays w88 link vao w88 the thao implementation timelines. Overall, green development remains a long term trend, but at present it can be seen as not yet having a direct or immediate impact on production and business operations.
w88 link vao w88 the thao reality, over the past 2 years, as the market has faced significant challenges, green products have not recorded strong growth. From an industry wide perspective, growth w88 link vao w88 the thao green products may be seen at a small number of enterprises, but for the majority there has been little change. Even products such as yarn made from recycled materials and garments with a high recycled content have not shown growth, primarily because recycled products are currently priced significantly higher than conventional products. As a result, w88 link vao w88 the thao the context of ongoing economic difficulties and a demand recovery that has yet to fully materialize, green transformation trends and green products have not been pursued w88 link vao w88 the thao an aggressive manner.
We recognize that, sooner or later, the overall direction of the global economy will be toward green transformation. However, the transition must follow different roadmaps, with the objective of introducing new changes w88 link vao w88 the thao the textile and fashion industries to reduce environmental impacts. The green transition roadmap follows the 3R framework: Reduce – Reuse – Recycle. w88 link vao w88 the thao other words, the priority is first to reduce, then to reuse products that remain w88 link vao w88 the thao good condition, and only finally to recycle.
It can be said that a gradual reduction will have a significant impact on order volumes. Only textile and garment enterprises with strong capabilities and very high production quality will be able to remain competitive w88 link vao w88 the thao a context where the total number of global orders declines. The overarching goal of the 3R approach is to reduce emissions and minimize environmental harm. However, the first two solutions are clearly more cost-effective and directly target what will gradually take shape among consumers over the long term, that’s consumption styles, consumption culture, and the development of genuine saving habits w88 link vao w88 the thao order to protect the environment.
By contrast, the third solution – Recycle is the most expensive. Recycling involves using materials that are no longer w88 link vao w88 the thao use and have been discharged into the environment to create textile materials, which are then made into garments that meet aesthetic requirements while remaining environmentally friendly and safe for consumers’ health. This approach requires substantial efforts w88 link vao w88 the thao ideation, research, and the invention of technologies that can process waste into fibers without consuming excessive natural resources such as water and electricity.
For Vietnamese enterprises, the green transformation trend requires the development of eco-friendly materials, optimization of dyeing processes, reduction of emissions, and the application of circular design principles.
*Sincerely thank you, sir!
