As of November 2024, Vietnam's textile and garment export turnover is projected to reach $44 billion, reflecting an 11.3% increase from the previous year. However, the industry faces significant challenges due to its heavy reliance on the U.S. market, which accounts for 38% of total exports. This dependence poses risks, prompting industry leaders to emphasize the need for market diversification [cf8d53a2].
In response to these challenges, the Vietnam Textile and Apparel Association (VITAS) has initiated efforts to seek buyers in alternative markets such as ASEAN countries, Canada, and Russia. VITAS president Vũ Đức Giang highlighted the importance of diversifying export markets to mitigate risks associated with over-reliance on a single market [cf8d53a2].
The textile sector has attracted significant foreign direct investment (FDI), with approximately 3,500 projects valued at $37 billion. Notable investments include a $30 million plant by Sanbang and a $203 million facility by Top Textiles. These investments are crucial as the industry adapts to higher international standards and environmental, social, and governance (ESG) requirements [cf8d53a2].
Moreover, Vietnam is working to reduce its reliance on imported raw materials, which is essential for enhancing the sustainability and competitiveness of its textile industry. The ongoing diversification efforts are expected to strengthen Vietnam's position in the global textile market, ensuring resilience against potential market fluctuations [cf8d53a2].
Overall, while Vietnam's textile exports are on an upward trajectory, the industry's future success will depend on its ability to diversify markets and adapt to evolving global standards, ensuring sustainable growth in the coming years.