Vietnam’s textile and garment industry has reported good progress in the first seven months of 2025, with export turnover surpassing 26.33 billion USD, an increase of 5.3 billion USD, equivalent to 9%, compared to the same period last year.

Garment production for export to Japan at Hung Viet Garment Company in Hung Yen province.

To meet the ambitious annual target of 47–48 billion USD, the sector must now achieve monthly exports of over 4 billion USD during the remaining months of the year.

This will be no small feat, particularly as Vietnamese exports to the US continue to face tariffs of up to 20% - a significant disadvantage when compared to other competitors in the same market.

According to insiders, the latter part of the year is expected to be turbulent. As a result, maintaining a stable workforce has become a top priority. Companies are being urged to review and upgrade equipment to meet new orders efficiently.

Le Tien Truong, Chairman of the Vietnam National Textile and Garment Group (Vinatex), stressed the importance of adjusting production plans wisely in the coming months to secure jobs and incomes for workers.

Crucially, businesses must adopt flexible financial management strategies to remain competitive by absorbing rising costs and adapting pricing to retaining orders in a highly challenging market environment.

To reach their targets, firms must take full advantage of 17 new-generation free trade agreements currently in effect. Additionally, they must stay responsive to institutional and economic shifts, particularly as global powerhouses continue to diverge on key trade and economic policies.

Businesses are also encouraged to invest in modern machinery and equipment, improve workforce skills, and transition from traditional CMT (cut-make-trim) operations to more advanced production models like FOB (free on board), ODM (original design manufacturing), and OBM (original brand manufacturing).

These upgrades are essential to enhancing product value and strengthening Vietnam’s position in the global supply chain.

Equally important is external support. Companies need clearer market information and must leverage trade, export, and payment policies to better manage risks amid shifting regulations.

The Government is called on to introduce supportive policies on credit, tax, land, and infrastructure, particularly in developing modern industrial zones and clusters, to attract investment and reduce dependence on imported raw materials.

Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS), stressed the urgency of both defending traditional markets and forging new partnerships.

Each business must strengthen its supply chain links. After learning from tariff issues and Europe’s green product standards, they must proactively build more sustainable, resilient value chains, he stated.

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