Holding the 2nd position in exports
In 2024, Vietnamese textile industry reach the finish line with about 44 billion USD, an increase of about 11% compared to 2023. With this result, in 2024, Vietnam rise to the 2nd position among countries exporting the most textiles in the world.
One of reasons that helped Vietnamese textiles achieve the above results is that businesses have received a flow of orders shifting from Bangladesh. However, according to Mr. Vu Duc Giang - Chairman of Vietnam Textile and Apparel Association, orders from Bangladesh are basic orders, large in quantity but not high in price. Therefore, not all businesses can receive flow of orders, especially those producing high-end and fashion products such as Hoa Tho, May 10.
Analyzing Vietnam's competitors in the world textile and garment export market last year, Mr. Hoang Manh Cam - Deputy Chief of Office of Board of Directors of Vietnam Textile and Garment Group, informed that in 2024, Vietnam reach 44 billion USD in export turnover, right after Vietnam is India, with an expected growth of 6.9-7% for the whole year. India produces similar products to Bangladesh, so it benefits the most from order shifting trend.
For China, in the 11 months of 2024, China exported only 273.4 billion USD of textiles and garments, an increase of only 0.2% compared to the same period in 2023. However, for item that is a direct competitor of Vietnam, which is garments, China exported 144 billion USD and decreased by about 2.8% compared to the same period.
For Bangladesh alone, due to political instability, in the 10 months of 2024, garment exports decreased by about 3.7% compared to the same period, with an average of about 2.8 - 3 billion USD per month, while at its peak, this figure reached about 4 billion USD/month.
“However, Bangladesh's export trend to the US and EU began to recover in terms of market share in September and October. As garment is the backbone of the Bangladesh economy, bringing in about 80-85% of foreign exchange earnings, the country quickly created conditions for recovery of textile and garment production,” said Mr. Cam.
Mr. Cam also commented that Bangladesh's textile and garment production is expected to recover to normal levels after the second quarter of 2025. At that time, there will be fierce competition with Vietnamese textile and garment enterprises because Bangladesh is enjoying preferential tariffs for underdeveloped countries, while Vietnam's labor costs are nearly three times higher than its competitors.
For other textile and garment exporting countries such as Sri Lanka and Türkiye, they also benefit from trend of shifting orders from Bangladesh, but growth rate is not high and scale is small, so there are not many concerns.
The market will have many complicated factors
Based on the Group's research, Mr. Cam also acknowledged that in the first half of 2025, garment industry will continue to recover from the end of 2024. At the same time, there are some signs of better growth when the industry's main import markets such as the US and EU have a more positive economic recovery. People's income and consumer spending will also improve after the interest rate cut roadmap continues.
However, from second half of the year onwards, importers will not close long orders but will have shorter and smaller orders. In particular, orders shifting from Bangladesh will gradually decrease, currently the country's exports have gradually stabilized. "According to some customers, many customers do not leave but still stay in Bangladesh even when conflicts occur," said a representative of Vietnam Textile and Garment Group.
In addition, when President Donald Trump takes office and implements a new tax policy on US trading partners, there is a possibility that Vietnam's textile and garment industry will be subject to an additional 10% tax. This is a big challenge because the US is currently the industry's largest import market.
"In misfortune there is fortune", if the US implements a new tax policy, Vietnam will be able to level gap in textile and garment prices with China in this market, which means possibility of expanding its market share.
Regarding internal factors, lack of supply of raw materials continues to be a bottleneck for textile and garment industry. This is also a factor that prevents businesses from taking full advantage of tariff incentives from free trade agreements.
In addition, labor fluctuations continue to be a challenge for textile and garment enterprises in 2025. To overcome this difficulty, the Group as well as domestic textile and garment enterprises continue to care for material and spiritual lives of workers to retain workers. Invest in appropriate technology to increase productivity, meeting new standard requirements.
At the same time, continue to develop input materials, but do not develop mass products but focus on "creating a difference" through difficult products, green products and recycled products.

Source: Vitic/ congthuong.vn