Despite navigating complex global economic shifts and rigid technical requirements from primary consumer markets, the textile industry in Vietnam has maintained a positive trajectory. During the first seven months of 2026, the sector demonstrated resilience, with export turnover showing consistent growth fueled by a recovery in global demand and the adaptable nature of domestic enterprises.
In July 2026 alone, the total export turnover reached $4,672 million. This represents an 8.2% increase over June 2026 and a 4.3% rise compared to July 2025. This mid-year momentum was instrumental in pushing the cumulative export turnover for the first seven months of the year to $27,020 million, marking a 2.67% increase over the same period in the previous year. These figures underscore the industry’s focus on securing new orders and optimizing production to stabilize Vietnam’s role in the global supply chain.
Analysis of Export Categories and Sector Performance
Garments remain the primary driver of value within the sector. In July 2026, garment exports were estimated at $3,738 million, showing an 8.9% month-on-month improvement. For the seven-month duration, garment exports totaled $21,127 million, a marginal increase of 0.70% compared to 2025. This measured growth indicates that while major markets like the United States, Japan, and the European Union have moved past deep recessions, consumer sentiment remains cautious, favoring flexible order scales and rapid delivery times.
Growth in Raw Materials and Upstream Products
A significant trend observed this year is the robust performance of upstream products and raw materials. Exports of fibers and yarns reached an estimated $2,730 million, a sharp increase of 11.34% year-on-year. Additionally, textile accessories grew by 11.18%, contributing $929 million. Fabric exports reached $1,763 million, up 9.57%, while non-woven fabrics rose by 6.56% to $471 million. This surge in auxiliary materials suggests that the textile industry is successfully moving beyond simple assembly toward a more integrated role in the global supply chain.
On the import side, July 2026 saw $2,231 million in incoming materials, a 6% decrease from June but an 8% increase over July 2025. For the first seven months, total imports reached $15,255 million, a 3.27% increase. This included $8,936 million for fabrics and $1,885 million for cotton, reflecting the necessary inputs to sustain the current Vietnam textile export growth.
Operational Strategies and Future Outlook
Vinatex General Director Cao Huu Hieu noted that while production results remain positive, profit margins for both yarn and garments are narrowing. This pressure is attributed to fluctuating raw material costs, changing order structures, and logistics expenses. To navigate the remainder of 2026, leadership has emphasized the need for strict cost management, improved labor productivity, and close monitoring of exchange rates and market developments.
Tran Van Quy, General Director of Trung Quy Textile and Garment Company, indicated that their order books are currently full through October. He noted that maintaining market adaptability is feasible if companies effectively balance cost controls with high product quality.
Industry Restructuring and Green Initiatives
Truong Van Cam, Vice President of the Vietnam Textile and Garment Association (VITAS), observed that the increase in the value-added ratio is a result of intensive restructuring. He cautioned that the industry is entering a phase of heightened competition where major markets are implementing stricter rules regarding sustainable production, carbon reduction, and material traceability.
To achieve year-end targets, experts suggest that businesses must prioritize sustainable production and green transformation. Utilizing recycled fibers and investing in energy-saving technologies are becoming essential for accessing high-end market segments. Furthermore, VITAS continues to advocate for the development of specialized industrial zones equipped with advanced wastewater treatment to attract further investment into the dyeing and textile sectors, aiming to secure long-term Vietnam textile export growth.
