Vietnam’s textile and garment industry continues to be one of the country’s key export industries, with impressive export turnover and important contributions to the economy. In 2024, Vietnam continues to maintain stability and growth in the textile and garment sector, as international markets increasingly pay more attention to Vietnamese products thanks to their good quality and high added value. According to the latest figures, Vietnam’s top 5 textile and garment export markets not only maintain their positions but also expand their potential, creating great opportunities for domestic enterprises. These markets include the US, Japan, South Korea, China and the EU, each with its own characteristics and opportunities, playing an important role in the long-term export strategy of Vietnam’s textile and garment industry. Let’s take a closer look at these markets and their potential for growth in 2024.
Overview of Vietnam’s textile and garment export industry in 2024
Vietnam’s textile and garment industry continues to maintain its position as one of the key export industries, with export turnover in the first 9 months of 2024 increasing by 8.9% over the same period last year. The total export value reached more than 35 billion USD, contributing greatly to the national economy. The trend of shifting supply chains from China, combined with free trade agreements (FTAs) such as EVFTA and CPTPP, has helped Vietnam increase its export market share in many major markets.
Outstanding potentials in Vietnam’s textile and garment exports
Shifting orders from China to Vietnam
Vietnam is benefiting greatly from changes in the global supply chain. In particular, the U.S. Uyghur Forced Labor Prevention Act (UFLPA) has significantly reduced orders from China, shifting to Vietnam. Global apparel companies are looking for partners in Vietnam due to strict regulations on the origin of raw materials and labor in China.
In addition, its geographical location close to China, along with increasingly modern production infrastructure, helps Vietnam ensure the supply of raw materials and the ability to meet large orders effectively. For example, Vietnam’s textile market share in the United States has increased from 17.6% in 2023 to 18.3% in 2024, clearly demonstrating this shift.
Investing in green and sustainable technology
With major markets such as the EU and the US setting high standards for environmental protection, Vietnamese textile and garment enterprises are increasing their investment in green production. Factories using technology to reduce water, energy and chemical consumption have become the new standard to meet the requirements of international importers.
Many enterprises have applied modern wastewater treatment technology, recycled waste fabrics, and used renewable energy such as solar power. This not only reduces long-term costs but also enhances the brand image in the eyes of international customers.
Focusing on sustainable production not only increases export value but also helps Vietnamese enterprises stand firm in the face of fierce competition in the global market.
Top 5 major export markets
United States: Largest export market
The United States is the most important market for Vietnam’s textile and garment industry, with a market share of 18.3% in 2024, up slightly from 2023 (17.6%). Stable demand from major retailers such as Walmart, Target, and Amazon, combined with lower inflation in the US, has created favorable conditions for Vietnamese enterprises to expand their market share.
In addition, the shift of orders from China to Vietnam thanks to US trade policies, such as UFLPA, has helped Vietnam affirm its position as the second largest textile and garment supplier to the US after China. Main products include ready-to-wear, denim, and sportswear.
Japan: Growth thanks to sustainable trade relations
Japan is Vietnam’s second largest export market thanks to stable trade relations and high demand for quality textile and garment products. As of the first 9 months of 2024, the export value to Japan reached 3.2 billion USD, an increase of more than 6% compared to the same period in 2023.
This market especially favors products that meet high quality and safety standards, such as those certified by Oeko-Tex or GOTS. In addition, the ASEAN-Japan Comprehensive Economic Partnership (AJCEP) continues to help reduce tariffs, promoting growth.
South Korea: A market with great potential
Exports to South Korea are recording good growth, especially in the second half of 2024. Export turnover reached nearly 2.5 billion USD in the first 9 months of the year, an increase of more than 10% compared to the same period in 2023.
South Korea imports a variety of textile products from Vietnam, including apparel, fabrics and garment accessories. With the strong presence of major brands such as Samsung C&T and Korean retailers, Vietnamese businesses have the opportunity to expand orders, especially for high-end fashion products.
China: Competitors and strategic partners
Despite being a major competitor, China is still one of Vietnam’s largest textile and garment import markets, especially for raw materials. Export turnover to China in the first 9 months of 2024 reached more than 2 billion USD, with stable growth.
Due to its close geographical location and long-standing trade relations, China continues to play a role as both a supplier of raw materials and an export market for Vietnam’s finished textile and garment products. Improving bilateral trade relations and taking advantage of regional FTAs are key strategies for growth in this market.
Europe (EU): Challenges and opportunities
Exports to the EU are facing many challenges due to high quality standards and weak demand. However, the EVFTA continues to bring great tariff advantages to Vietnamese textile and garment products. The market share in the EU in 2024 will remain at around 4.4%, although EU imports from foreign countries will decrease by 5.5%.
Countries such as Germany, France and the Netherlands are still key markets, especially for sustainable and environmentally friendly products. Vietnamese enterprises need to promote technological innovation and build green brands to maintain their position in this competitive market.
>>See more: Impact of Free trade agreements (FTAs) on Vietnam’s textile and garment industry
These leading export markets will not only maintain growth but also open up many long-term development opportunities for the Vietnamese textile and garment industry. Enterprises need to continue to innovate, improve quality and adapt to new trends to optimize the potential in these markets.
In general, with a sustainable development strategy and taking advantage of opportunities from FTAs, the Vietnamese textile and garment industry promises to maintain strong growth momentum in 2024 and the coming years.