Vietnam’s Textile and Garment Exports in the First Half of 2025: Growth, Challenges, and Outlook

Vietnam’s Textile and Garment Exports in the First Half of 2025: Growth, Challenges, and Outlook

Vietnam’s textile and garment industry recorded notable growth in the first half of 2025, despite facing global economic uncertainties, shifting trade policies, and supply chain disruptions. According to data from the Vietnam Customs Department, the sector achieved USD 18.668 billion in export turnover between January and June 2025, up 12.3%compared to the same period in 2024. While this growth trajectory is encouraging, the industry remains behind its ambitious annual target of USD 46–47 billion, requiring strong performance in the remaining months of the year.

Export Performance and Market Overview

In June 2025, textile and garment exports reached USD 3.59 billion, an increase of 9.5% compared to May and 13.5% year-on-year compared to June 2024. This rebound highlights positive momentum going into the second half of the year. The U.S. market remains the primary destination, accounting for 45.4% of total exports with USD 8.47 billion, marking a 17.1% increase over the same period last year.

Other significant markets include CPTPP countries (USD 3.3 billion, +9.9%), with Japan leading the group at USD 2.11 billion (+12.5%). Exports to the EU also grew strongly by 15.8%, while the UK (+24.1%), China (+8%), and Cambodia (+6.5%) contributed to the overall upward trend.

Some markets, however, experienced declines. Singapore dropped sharply by -21.8% year-on-year, while Malaysia saw a slight contraction of -3.7%. On the other hand, emerging markets such as Mexico (+10.6%), Chile (+19.5%), Australia (+14.2%), and Peru (+21.1%) demonstrated impressive growth. Mexico’s remarkable 38.5% month-on-month surge in June reflects growing demand for Vietnamese garments.

Top 10 Exporters: Leading the Industry

Vietnam’s textile and garment exports are heavily driven by a mix of foreign-invested enterprises (FIEs) and strong local players. The top 10 exporters for the first five months of 2025 include:

1. Gain Lucky (Vietnam) Co., Ltd. – USD 325.2 million
2. Tinh Loi Garment Co., Ltd. – USD 289.2 million
3. Worldon (Vietnam) Co., Ltd. – USD 288.5 million
4. Regina Miracle International Vietnam Co., Ltd. – USD 278.0 million
5. Viet Tien Garment Corporation (VGG) – USD 216.0 million
6. Ha Phong Export Garment JSC – USD 154.7 million
7. Sakurai Vietnam Co., Ltd. – USD 150.9 million
8. Song Hong Garment JSC – USD 135.2 million
9. TNG Investment & Trading JSC – USD 129.8 million
10. Youngone Nam Dinh Co., Ltd. – USD 115.6 million

These top 10 companies contribute more than 60% of the total export value among the top 30 exporters. Foreign-invested firms such as Gain Lucky, Worldon, Regina Miracle, and Hanesbrands dominate the industry, thanks to their advanced production capacity, access to international buyers, and integration into global supply chains. Meanwhile, domestic firms like Viet Tien, TNG, and Song Hong remain competitive but must expand into higher-value segments, such as ODM (Original Design Manufacturing) and OBM (Original Brand Manufacturing), to improve profit margins.

Payment Methods: Risks and Preferences

Export transactions in May 2025 reveal that Vietnamese textile exporters predominantly use KC (Others), TTR (Telegraphic Transfer Reimbursement), and LC (Letter of Credit).

• KC (Others): This method accounts for USD 1.85 billion, nearly double the combined total of TTR and LC. It is widely used for markets like the U.S. (USD 827M), Japan (USD 194.5M), and Canada (USD 78.3M). “Others” often includes open account transactions, advanced payments, or D/P and D/A methods. While faster and less costly, this method poses higher risks if buyers default.
• TTR: With USD 988.4 million, TTR represents a common choice for U.S. buyers (USD 496.6M) and Japanese partners. It is valued for its speed but still involves some payment risk.
• LC: Representing only USD 59.6 million, LC is less popular due to higher banking fees and procedural complexity. However, it remains the most secure option for ensuring payment.

The heavy reliance on KC methods suggests exporters prioritize speed and cost-efficiency, particularly when dealing with trusted long-term partners. Nevertheless, a more balanced approach incorporating LC and secure TTR agreementscould reduce financial risks in times of market volatility.

Challenges and Outlook for H2 2025

While the first half of 2025 brought positive results, the industry faces significant headwinds in the coming months. The U.S. is expected to impose an additional 10% MFN tariff on imports (pending announcement on August 1), which could affect Vietnam’s competitive pricing. Coupled with rising shipping costs and ongoing geopolitical tensions, exporters must adapt quickly to sustain growth.

Business strategies are focused on accelerating production, securing orders through September, and preparing for the year-end holiday season. The industry’s presence in 132 countries and territories provides diversification, but achieving the USD 46–47 billion target will require aggressive measures, including:

• Leveraging 17 free trade agreements (FTAs) to access tariff advantages.
• Investing in modern equipment, automation, and workforce training.
• Transitioning from CMT (Cut-Make-Trim) to value-added FOB, ODM, and OBM models.
• Enhancing risk management and market intelligence to counter trade policy shifts.

Conclusion

Vietnam’s textile and garment exports in the first half of 2025 paint a promising but challenging picture. Growth of 12.3% year-on-year is impressive, with the leading demand for the U.S., CPTPP, and EU markets. The top 10 exporters, particularly foreign-invested enterprises, continue to dominate, while local companies must innovate to remain competitive.

Payment practices reveal a preference for faster but riskier methods, suggesting the need for improved financial safeguards. Looking ahead, overcoming the 10% U.S. MFN tariff, optimizing supply chains, and boosting high-value production will be critical for meeting annual export targets and securing Vietnam’s position as a global textile powerhouse.