Opportunity for textile and garment eyes return to world’s second position

In 2020, Vietnam’s textile and garment industry rose to become the world’s second-largest exporter, just behind China. However, this position was short-lived due to the COVID-19 pandemic, global economic slowdown, and the challenges of transitioning to green production. By 2022 and 2023, Bangladesh had overtaken Vietnam, pushing it down to third place.

In recent years, Bangladesh has received high praise for investing heavily in green manufacturing, making it a preferred sourcing destination for many major international brands.

Meanwhile, Vietnam’s green transition in the textile sector has not progressed as expected, resulting in reduced competitiveness. In 2022, Vietnam’s textile and garment export turnover reached USD 42 billion, dropping to USD 40.3 billion in 2023. In the first seven months of 2024, the figure was USD 23.9 billion. Vietnamese textile products are now exported to 113 countries and territories, with key markets being the United States, South Korea, Japan, China, and Europe.

Recently, Bangladesh has faced significant political instability, which severely impacted its textile sector. Many factories were forced to shut down, and orders declined by 20–40%. A considerable volume of orders has since been redirected to other countries—including Vietnam.

This presents a golden opportunity for Vietnam to boost its textile production and exports to high-potential markets. However, according to economic experts, reclaiming the world’s second spot will require large-scale investments in technology and the development of low-emission, green factories for sustainable growth. In addition, beyond subcontracting for international brands, Vietnamese textile firms must invest in local sourcing of raw materials, diversify product design, and create full product chains with their own brands. Mastery over these stages will significantly enhance the industry’s added value.

In Dong Nai, textiles are a key manufacturing sector and currently the province’s third-largest export industry—following footwear and machinery. As such, local authorities actively encourage textile firms to adopt green and circular production models, build their own brands, and expand to global markets. However, most factories in Dong Nai still operate under outsourcing contracts for international labels, and few companies have developed their own export brands in this core industry.

Khanh Minh