Business News

Many textile and garment firms in Việt Nam have secured production orders through the end of the first quarter of this year, but face mounting pressure from shrinking margins, rising costs and increasingly short-term contracts, industry insiders said. Market analysts said that although global demand remains relatively stable, the sector continues to struggle with higher input costs, including wages and logistics, while selling prices remain under pressure due to weak bargaining power.

Foreign-invested enterprises accounted for about 80% of footwear export revenue in 2025, as total shipments reached nearly US$29 billion, according to industry data. Export revenue of the footwear sector rose about 5% from a year earlier, data from the Vietnam Leather, Footwear and Handbag Association (Lefaso) showed.

The manufacturing sector continued to expand in January, supported by faster growth in output, new orders and employment, according to S&P Global. The Vietnam Manufacturing Purchasing Managers’ Index (PMI) slipped slightly to 52.5 in January from 53.0 in December 2025. The reading remained well above the 50 mark that separates expansion from contraction, signaling a seventh consecutive month of improving business conditions.

Vietnam’s textile and garment industry is aiming for around US$50 billion in export revenue in 2026, up nearly US$3 billion from 2025, as companies restructure supply chains, deepen investment and leverage free trade agreements (FTAs). The target was shared by Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (Vitas) and chairman of Viet Tien Garment Corporation, at a press briefing on January 12 marking Viet Tien’s 50th anniversary.

Vietnam’s manufacturing sector ended 2025 on a positive note, with business conditions improving for a sixth consecutive month, reinforcing growth expectations for 2026, according to the latest Purchasing Managers’ Index (PMI) released by S&P Global on January 2. The PMI for December stood at 53.0, down slightly from 53.8 in November but remaining firmly above the 50-point threshold that separates expansion from contraction. 

Việt Nam’s textile and garment industry is expected to achieve export revenues of US$46 billion in 2025, marking a 5.6 per cent increase compared to 2024. The Việt Nam Textile and Apparel Association (VITAS) announced these positive performances at a press conference held in Hà Nội on November 25 to introduce a meeting of the association’s seventh term during 2025-2030, and the industry review conference to be held in December.

According to Vũ Đức Giang, chairman of the Việt Nam Textile and Apparel Association (VITAS), the industry’s export turnover reached US$34.75 billion in the first nine months of 2025, an increase of 7.7 per cent year-on-year. This marks a robust comeback and highlights the resilience of Việt Nam’s textile exports in the global market.

Manufacturing firms were more optimistic regarding the 12-month outlook for output. Business sentiment strengthened to a 16-month-high amid confidence that new orders will continue to rise and alongside plans to expand production capacity. The increase in new orders and associated expansion of output requirements also resulted in a rise in employment in October, the first in just over a year.