AsemconnectVietnam - The goal of achieving double-digit economic growth in the 2026-2030 period requires the textile and garment industry to change its development approach, with the feasible path lying in in-depth growth.

From 2026, the Government aims for a minimum economic growth rate of 10% per year. This is an ambitious goal in the context of traditional drivers such as resource exploitation, cheap labor, and increased public investment gradually reaching their limits. For the textile and garment industry, which contributes approximately 11% of the country's export turnover, the challenge is particularly difficult. Speaking at the Vietnam Economic Growth Forum 2025, Mr. Le Tien Truong, Chairman of the Board of Directors of Vietnam Textile and Garment Group, once stated that if the industry continues to follow a growth trajectory based solely on increasing production and export turnover, the double-digit growth target will be almost impossible to achieve.
In reality, global demand for textiles and garments has only increased by an average of about 1.8% per year over the past decade. Domestically, the textile and garment industry has grown by around 6% over the past six years, and the workforce has no room for expansion. “If we aim for a continuous 10% annual growth rate for five years, the industry size would have to reach approximately $75 billion by 2030, a figure that is not consistent with current market demand and labor supply,” Mr. Truong observed.
More importantly, each 1% growth in the textile and garment industry only contributes about 0.03-0.05% to GDP. If the industry only maintains a 6% annual growth rate, the shortfall compared to the double-digit growth target of the economy will have to rely on other sectors to compensate. This shows that the pressure to innovate the industry's growth model is unavoidable.
Based on that experience, Vinatex leaders pointed out two key "leverages" that will enable the textile and garment industry to continue making substantial contributions to double-digit growth targets, even if export turnover only increases by 4-5% per year. "Firstly, significantly improving the trade balance through reducing imports of raw materials and components. Secondly, increasing labor productivity through automation and technological innovation," Mr. Le Tien Truong stated.
To realize this path, policy plays a crucial role. First and foremost is encouraging investment in domestic production of raw materials and components, especially in weaving, dyeing, and finishing. This is not just an investment for businesses, but should be seen as an investment in the sustainable development infrastructure of the entire industry. In the context of Vietnam having signed numerous free trade agreements, a high localization rate will help businesses better utilize tariff preferences and reduce risks from protectionist trade trends.
Furthermore, stronger policies are needed to encourage businesses to innovate technologically, effectively utilize science and technology funds, and reduce taxes for projects investing in modernization, robotization, and digitalization of production. Direct incentives linked to growth and increased worker income are also expected to create real motivation for businesses.
Another issue is green growth. Vietnam's textile and garment industry has produced many environmentally friendly products, but output remains limited due to high costs. To develop a circular economy, the industry needs to proactively secure recycled raw materials, including importing standard-compliant scrap materials to organize circular production domestically. Without solving the market and cost problems, green production will struggle to become a real growth driver.
Enhancing added value and building Vietnamese fashion brands
In the long-term picture of 2026-2030, the in-depth growth of the textile and garment industry lies not only in factories and production lines, but also in Vietnam's position in the global value chain. According to the Vietnam Textile and Garment Association, the goal by 2030 is to maintain Vietnam's position among the top 3 largest textile and garment exporting countries in the world, with an export value of approximately US$64.5 billion, while increasing the average added value of exported products from 51% to 65%.
To achieve this, Mr. Vu Duc Giang - Chairman of the Vietnam Textile and Garment Association - believes that the industry must shift from CMT (Cut, Make, Trim) to higher value-added models such as FOB (Free On Board), ODM (Original Brand Manufacturing), and OBM (Original Brand Manufacturer). Digital transformation plays a key role in this process, from 3D design and AI-powered trend forecasting to supply chain management using big data and blockchain, and digitized traceability as required by EU, US, and Japanese markets.
Alongside exports, the domestic market of over 100 million people should be considered the second pillar. It is projected that by 2030, domestic garment consumption could reach $8-9 billion. This is the "home turf" for Vietnamese brands to experiment with designs, build their image, and perfect their retail and e-commerce chains before expanding internationally.
Therefore, the development of Vietnam's fashion industry needs to be given the right perspective. It shouldn't just stop at production, but must form a creative ecosystem including design centers, fashion shows, connecting designers - businesses - digital platforms, and gradually building a national brand, "Vietnam Fashion." When brands become stronger, added value will no longer lie primarily in the cutting and sewing process, but in the ideas, designs, and sustainable stories associated with the products.
Overall, the goal of double-digit economic growth is not solely a pressure on the textile and garment industry, but it must change if it doesn't want to fall behind. In-depth growth based on technology, productivity, localization, and branding is a difficult path, requiring capital, knowledge, and long-term policies. However, this is also the only way for Vietnam's textile and garment industry to both make a substantial contribution to the overall goals of the economy and affirm its sustainable position in the new growth cycle of 2026-2030.
CK
Source: VITIC/congthuong.vn