Vietnam’s textile and garment industry is setting its sights on a historic milestone as it enters 2026. Following a record-breaking performance in 2025, where the sector generated $46 billion in export turnover, the Ministry of Industry and Trade has officially raised the stakes, setting an ambitious target of $50 billion for the coming year. This surge is part of a broader national momentum; after achieving a total export value of $475 billion in 2025—a 17 percent year-on-year increase—Vietnam is now looking to add nearly $38 billion more to its national export tally this year.
However, the path to the $50 billion mark is fraught with complex international pressures that test the resilience of Southeast Asia’s manufacturing powerhouse. Global trade is no longer just about price and speed; it is now defined by "technical barriers" and "green protectionism." Vietnamese exporters are currently grappling with reciprocal tariffs on goods headed to the United States, their largest market, as well as the rigorous implementation of the European Union’s Carbon Border Adjustment Mechanism (CBAM). These environmental regulations require manufacturers to document their carbon footprint, effectively forcing a rapid transition toward sustainable energy and eco-friendly production cycles.
To stay ahead of these shifts, the industry has initiated a deep structural overhaul. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS), emphasized that the secret to hitting the 2026 target lies in self-sufficiency. "The sector is focusing on strengthening domestic supply chains, raising localization rates, and making more effective use of our vast network of free trade agreements (FTAs)," Giang stated. By increasing the localization rate of raw materials, which reached 52 percent last year, Vietnam aims to shield itself from global supply chain disruptions and meet the "rules of origin" required to enjoy zero-tariff benefits under various FTAs.
Market analysts remain bullish despite the headwinds. According to the MB Securities’ Vietnam Outlook 2026 report, exports in this sector are projected to grow by 15 to 16 percent this year. This optimism is driven by a strategic pivot toward higher-value products, such as technical textiles and functional apparel, rather than just basic garments. By combining digital manufacturing with a commitment to "green" fabrication, Vietnam is not only defending its territory in the $100 billion US fashion market but is actively redefining itself as a high-tech, sustainable alternative to traditional South Asian manufacturing hubs.
