Short Report on Apparel Market in Vietnam

Apparel is a major industry, having long remained among the top three global clothing exporters. Exports in 2024 reached approximately 44 billion USD, with primary destinations being the United States, the EU, Japan, and South Korea. Factories are concentrated around major cities in the north, south, and central regions. However, the production process primarily consists of CMT (Cut, Make, Trim), heavily reliant on imported materials such as fabrics and cotton. To increase added value, challenges include domestic production of materials, environmental compliance in production processes, and technological advancement. Trade agreement rules of origin will also likely become a driving factor in this movement.

Basic Statistics

Regulations

The government welcomes investment in the textile and apparel sector. Textile manufacturing allows 100% foreign ownership. The textile industry is classified as a priority investment sector, eligible for support and tax incentives if certain criteria are met. For example, large-scale textile dyeing projects in industrial parks may receive corporate income tax reductions or exemptions from import duties on equipment. The Prime Minister’s Decision No. 1643/QĐ-TTg at the end of 2022, “Strategy for the Development of the Textile and Garment Industry 2030 – Vision 2035,” promotes sustainable growth and high value-added production. One goal is to reduce dependence on imported materials, aiming for 70% domestic production of fabrics and accessories by 2030. To achieve this, investment is required in textile production, high-quality yarn, fabric dyeing and finishing, and especially in businesses utilizing environmentally friendly technologies. 51 Raw Material Production 52 Production of Final Products (Garments) The government is also encouraging the establishment of textile industrial parks equipped with modern wastewater treatment facilities to attract dyeing and fabric-related businesses. Environmental regulations are becoming stricter for highly polluting processes. New dyeing and finishing factories must typically obtain an environmental impact assessment and be located in areas with centralized wastewater treatment facilities. Local authorities (such as Dong Nai Province and Nam Dinh Province) are also restricting or scrutinizing textile projects with potential pollution risks. This aligns with the national goal of pursuing clean production.

Market Overview

The textile and apparel industry is globally strong and a key driver of the country’s growth. Vietnam is currently the world’s third-largest textile and apparel exporter, following China and Bangladesh. Located at the crossroads of major maritime and economic corridors, Vietnam offers direct access to key international shipping routes, enabling efficient and low-cost transportation to major