Vietnam’s textile-garment exports climb 9% through July, but challenges loom in H2

Vietnam’s textile and garment exports totaled US $26.33 billion in the first seven months of 2025, marking a 9% year-on-year increase, according to official trade data. To meet the government’s annual export target of US $47–48 billion, the industry will need to sustain monthly shipments above US $4 billion for the rest of the year—a demanding task given emerging market pressures. The United States remains Vietnam’s largest textile and garment buyer, but newly imposed tariffs—reaching up to 20% are threatening to erode its competitive advantage against other suppliers. This policy shift, combined with fluctuating global demand, is prompting concerns about a tougher second half of 2025. Industry experts are urging local manufacturers to accelerate technology adoption and production upgrades. Moving beyond the traditional cut-make-trim (CMT) model toward higher-value approaches like Free on Board (FOB), Original Design Manufacturing (ODM), and Original Brand Manufacturing (OBM) is seen as essential for maintaining export growth. Companies are also advised to invest in workforce training, enhance market intelligence, and take better advantage of trade agreements and payment policy flexibility to counter regulatory risks. While the sector’s solid performance in early 2025 highlights resilience, sustaining momentum will require strategic shifts in operations, product diversification, and stronger value-added capabilities. Without these adjustments, industry leaders warn that external headwinds could slow Vietnam’s export trajectory in the final months of the year.

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