Vietnam's textile and garment sector posts $10 bn trade surplus

Vietnam's textile and garment industry recorded a trade surplus of nearly US$10 billion in the first half of 2026, with total exports estimated at $22.2 billion, a 1.7% year‑on‑year increase. The United States remained the largest market, accounting for about 45% of exports with shipments worth $6.81 billion, while the European Union posted an 8.8% rise to $1.94 billion. Exports to Japan and South Korea fell 6.2% and 8.9% respectively, and garment shipments edged down 0.4% as demand in key markets stayed weak.

The sector faces ongoing challenges, including sluggish global demand, intense price competition, heavy reliance on imported raw materials (60‑70% of inputs), rising compliance costs tied to ESG standards and traceability, and uncertainty over trade policies. To sustain growth, the Vietnam Textile and Apparel Association (VITAS) aims to keep monthly exports above $4 billion in the second half of the year and reach an annual target of roughly $48 billion. Strategies focus on improving productivity, producing higher‑value products, expanding domestic raw‑material sources, diversifying markets, and accelerating digital and green transformation. VITAS has approved four specialised committees—covering fashion and domestic market development, international business and supply chains, sustainable development, and technology, innovation and digital transformation—to begin pilot operations in Q3 2026.