Vietnam Textile Market

Vietnam Textile Market Size and Share:

The Vietnam textile market size was valued at USD 17.27 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 26.34 Billion by 2033, exhibiting a CAGR of 4.40% during 2025-2033. Southern currently dominates the market, holding a significant market share of around 43.2% in 2024. The market is driven by robust export demand, supported by preferential FTAs like the CPTPP and EVFTA, which enhance competitiveness in key markets such as the EU, US, and Japan. Foreign investment is further attracted by cost advantages, including lower labor expenses compared to China. Additionally, supply chain diversification, rising domestic consumption, and sustainability-focused innovations are strengthening production capabilities, further augmenting Vietnam textile market share.

The market is primarily driven by robust export demand, fueled by free trade agreements (FTAs) such as CPTPP and EVFTA. These agreements provide tariff advantages, making Vietnamese textiles more competitive in key markets such as the EU, US, and Japan. As per latest industry reports, Vietnam has signed 20 FTAs, of which 16 are already operational, and is currently negotiating with Qatar and Saudi Arabia to sign new ones. With a trade turnover of over USD 786 billion and an export surplus of USD 24.7 billion forecast for 2024, the country aims to increase its exports by 12% by 2025. These efforts are crucial to expanding the textile sector. Additionally, Vietnam benefits from low labor costs compared to regional competitors such as China, attracting foreign investment in manufacturing. The supportive policies of the government, which encompass tax incentives and the development of infrastructure, significantly contribute to the overall growth. Additionally, the increasing global demand for affordable, high-quality apparel establishes Vietnam as a favored sourcing hub for international brands, thereby strengthening its position within the global textile supply chain.

The shift in global supply chains, with manufacturers relocating production from China to Vietnam due to trade tensions and rising costs is also propelling the Vietnam textile market growth. This diversification trend enhances the industry, supported by a skilled workforce and improving production capabilities. Domestic consumption is also growing, driven by a rising middle class with increasing disposable income and fashion awareness. Sustainability is becoming a priority, with brands investing in eco-friendly materials and processes to meet global standards. Technological advancements, such as digitalization and automation, further enhance efficiency and productivity, ensuring Vietnam remains a leading textile exporter in the long term. Vietnam's textile manufacturing sector is shifting increasingly towards automation due to rising labor costs and heightened expectations for quality. With projected average monthly salaries reaching VND 7.7 Million (USD 308 Million) by 2024, combined with a 12% wage increase in the manufacturing sector, automation technologies are necessary for improving operational efficiency. The government's 2020-initiated National Digital Transformation Program promotes the implementation of Industry 4.0, thus increasing Vietnam's competitiveness in the global textile supply chain.

Vietnam Textile Market Trends:

Sustainability and Circular Fashion in Vietnam's Textile Industry

The growing emphasis on sustainability is a key driver in the expansion of Vietnam's textile market. As global awareness of environmental issues increases, there is a noticeable shift towards adopting eco-friendly production processes and using recycled materials. Circular fashion concepts, designed to extend the lifespan of textiles and reduce waste, are gaining significant traction. The Vietnam Textile and Apparel Association reports that the country’s textile and garment sector reached an impressive export turnover of USD 44 billion in 2024. This demonstrates strong growth and the increasing demand for sustainably produced goods. The rise in consumer interest for environmentally conscious products further propels brands to invest in green initiatives, such as recycling, eco-friendly dyes, and low-impact production techniques. This trend is reshaping how textiles are produced and consumed, driving the future of Vietnam textile industry.

Adoption of Industry 4.0 Technologies for Enhanced Efficiency

The industry is progressively embracing Industry 4.0 technologies, such as automation, data analytics, and the Internet of Things (IoT), to optimize operations and enhance production efficiency. These technological innovations allow manufacturers to enhance supply chain management, refine production processes, and meet the increasing demands for customization and personalization. By utilizing IoT and data analytics, businesses can gather valuable insights to improve product quality and minimize costs. Automation also helps speed up production while reducing human error. As a result, the adoption of these technologies is propelling the industry forward. In fact, a report from the Vietnam Textile and Apparel Association shows that around 20% of the textile companies in Vietnam had already implemented Industry 4.0 technologies by the end of 2023, with an expected increase to 40% by 2025. Additionally, digital transformation is fostering growth in Vietnam’s textile sector by increasing the flexibility of manufacturers in meeting market demands. This technology-driven shift is expected to continue its positive influence, creating a positive Vietnam textile market outlook.

Digital Platforms and E-Commerce Expanding Market Reach

E-commerce and digital platforms are revolutionizing the way textiles are marketed and sold in Vietnam. With the growing penetration of the internet and mobile devices, more consumers are purchasing textiles online, facilitating a broader global reach for brands. According to Vietnam Investment Review, the country’s e-commerce market is projected to grow to USD 63 billion by 2030, offering immense opportunities for the textile sector to expand its footprint. These digital platforms allow companies to showcase their products, engage with customers, and process orders more efficiently. The rise of social media also accelerates trends in the textile market, pushing brands to stay responsive to shifting consumer preferences. E-commerce platforms enhance sales and enhance the overall customer experience by offering a convenient and personalized shopping journey. This trend is critical to shaping the future growth of the industry.

Vietnam Textile Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Vietnam textile market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product, raw material, and application.

Analysis by Product:

• Natural Fibers
• Polyesters
• Nylon
• Others

Polyesters stand as the largest component in 2024, holding around 47.6% of the market. Their popularity stems from cost-effectiveness, durability, and versatility, making them ideal for mass-produced apparel, sportswear, and home textiles. The material’s adaptability to blends enhances functionality, catering to performance-driven and fast-fashion demand. According to the Vietnam textile market forecast, Vietnam’s expanding synthetic fiber manufacturing capacity, supported by foreign investments in petrochemical plants, ensures a steady polyester supply. Additionally, global brands sourcing from Vietnam favor polyester due to its affordability and ease of dyeing and printing, aligning with large-scale orders. While sustainability concerns push innovations in recycled polyester (rPET), conventional polyester remains dominant due to established infrastructure and lower production costs. As export demand grows and domestic fabric mills increase polyester-based output, the segment is poised to retain its leading position, reinforcing Vietnam’s role as a key player in the global synthetic textile trade.

Analysis by Raw Material:

• Cotton
• Chemical
• Wool
• Silk
• Others

Chemical leads the market with around 48.6% of market share in 2024, driven by their essential role in fiber production, dyeing, and fabric treatment. The country’s growing synthetic textile sector, particularly polyester manufacturing, relies heavily on petrochemical inputs such as PTA (purified terephthalic acid) and MEG (monoethylene glycol). Additionally, the demand for specialty chemicals including dyes, auxiliaries, and finishing agents has accelerated as global brands prioritize high-quality, colorfast, and functional fabrics. Vietnam’s dependence on imported chemicals, primarily from China, South Korea, and Thailand, underscores the segment’s dominance, with local production still limited to basic formulations. Government incentives for chemical industrial parks and foreign investments in integrated petrochemical complexes aim to reduce import reliance. As Vietnam’s textile exports expand, chemical consumption will continue to rise, reinforcing its position as the most critical raw material in the Vietnam textile industry.

Analysis by Application:

• Household
• Technical
• Fashion and Clothing
• Others

Fashion and clothing lead the market with around 63.2% of the market share in 2024, fueled by the country’s pivotal role as a global garment manufacturing hub. International brands increasingly source apparel from Vietnam due to its competitive labor costs, skilled workforce, and compliance with stringent quality standards. The segment spans fast fashion, sportswear, and luxury apparel, with polyester-based fabrics dominating due to their affordability and versatility. Rising disposable incomes and shifting consumer preferences domestically are also driving demand for trendy, high-quality clothing. According to the Vietnam textile market analysis, free trade agreements such as the EVFTA and CPTPP further bolster export opportunities, particularly to the EU, US, and Japan. Additionally, sustainability trends are prompting manufacturers to adopt eco-friendly materials and processes, catering to conscious consumers. As Vietnam strengthens its supply chain integration from fabric production to finished garments the fashion and clothing segment is poised for sustained growth, reinforcing the country’s position as a key player in the global apparel industry.

Regional Analysis:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

In 2024, Southern Vietnam accounted for the largest market share of over 43.2%. This leadership stems from Ho Chi Minh City’s role as a commercial hub and the surrounding provinces’ dense concentration of industrial parks, manufacturing facilities, and export-processing zones. The region benefits from superior infrastructure, including deep-sea ports such as Cat Lai, which streamline logistics for imported raw materials and exported finished goods. Therefore, this is positively influencing the textile industry in Vietnam. Major foreign investments from China, South Korea, and Taiwan have clustered in Binh Duong, Dong Nai, and Long An provinces, drawn by preferential policies and established supply chains. Southern Vietnam also hosts the highest number of textile-dyeing-finishing complexes, enabling vertical integration that reduces production lead times. While labor costs are slightly higher than in northern provinces, the region’s skilled workforce, mature ecosystem, and proximity to global shipping routes solidify its position as Vietnam’s textile powerhouse, attracting premium buyers from the EU and US markets.

Competitive Landscape:

The competitive landscape of the market is characterized by strategic vertical integration and technological modernization among key players. Leading manufacturers are investing heavily in automated production lines and smart factories to enhance efficiency while reducing labor dependency. Many are expanding into higher-value segments including technical textiles and sustainable fabrics to differentiate themselves in export markets. Forward-thinking players are establishing closed-loop production systems, incorporating recycled materials and water-saving technologies to meet stringent international sustainability standards. Several large conglomerates are pursuing backward integration into fiber production to secure raw material supplies and improve cost control. The textile market in Vietnam also sees increasing specialization, with some players focusing on niche premium segments while others optimize mass production capabilities. Strategic partnerships with global fashion brands are becoming crucial, as are compliance with changing international trade regulations and certification requirements.

The report provides a comprehensive analysis of the competitive landscape in the Vietnam textile market with detailed profiles of all major companies.

Latest News and Developments:

• April 2025: Syre, a subsidiary of Sweden-based fashion retailer H&M, signed an MoU with Binh Dinh authorities to establish its first giga-scale textile recycling facility in Vietnam. Backed by USD 100 million in Series A funding, the company chose Vietnam for its strong textile ecosystem, green energy access, and regional material sourcing, supporting Vietnam’s circular economy and sustainability goals.
• February 2025: The International Labor Organization (ILO) and the Viet Nam Textile and Apparel Association (VITAS) released two pivotal reports to guide Vietnam's textile and garment sector towards a sustainable, digital, and inclusive future. These reports, developed using the ILO's Skills for Trade and Economic Diversification (STED) methodology, identify priority skills needs and provide actionable recommendations. Key focus areas include enhancing productivity, fostering green practices, and promoting gender-responsive training policies to empower the predominantly female workforce.
• January 2025: CLO Virtual Fashion opened a new office in Ho Chi Minh City to meet the rising demand for 3D garment design solutions. This move highlights Vietnam's growing importance in digital fashion innovation. By establishing a presence in Vietnam, CLO aims to tap into the country's skilled textile workforce and strengthen its role in the global fashion technology landscape.
• September 2024: Vietnam's Ministry of Industry and Trade announced plans to launch a raw materials center for textiles and footwear in 2025 to reduce reliance on imports and strengthen domestic supply chains. The center aims to enhance traceability, ensure high-quality standards, and support sustainable practices. This initiative aligns with Vietnam's strategy to improve competitiveness and comply with international trade agreements.

Vietnam Textile Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Vietnam textile market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Vietnam textile market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Vietnam textile industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.