Key Insights
Essential data points from our research
Vietnam's textile and garment industry exported goods worth USD 44 billion in 2022
The textile and garment sector employs around 2.5 million people in Vietnam
Vietnam is the third-largest textile and garment exporter in the world
In 2022, the United States was Vietnam’s largest export market for textiles and garments, accounting for around 42.5% of total exports
The EU accounted for about 12-13% of Vietnam's textile exports in 2022
Vietnam’s textile export value fell by 20% year-on-year in the first quarter of 2023
Vietnam's textile industry contributes around 16% to the country's total exports
Over 6,000 textile and garment companies operate in Vietnam
Private enterprises account for 87% of Vietnam’s textile and garment industry
The average export growth rate of Vietnam's textile industry was around 10% annually from 2015 to 2019
Vietnam’s labor cost in the textile industry is approximately one-third that of China
Vietnam’s textile industry consumed over 2 billion cubic meters of water annually by 2022
The textile industry is responsible for 28% of Vietnam’s industrial water pollution
Employment & Labor Market
- The textile and garment sector employs around 2.5 million people in Vietnam
- Vietnam’s labor cost in the textile industry is approximately one-third that of China
- The average monthly wage in Vietnam’s textile industry is around USD 280
- Over 60% of textile worker are women in Vietnam
Interpretation
While Vietnam’s textile industry stitches together economic opportunity for 2.5 million workers—most of them women—it does so with wages that reflect a cost advantage over China, not necessarily a fair valuation of labor.
Export & Trade Performance
- Vietnam's textile and garment industry exported goods worth USD 44 billion in 2022
- Vietnam is the third-largest textile and garment exporter in the world
- In 2022, the United States was Vietnam’s largest export market for textiles and garments, accounting for around 42.5% of total exports
- The EU accounted for about 12-13% of Vietnam's textile exports in 2022
- Vietnam’s textile export value fell by 20% year-on-year in the first quarter of 2023
- Vietnam's textile industry contributes around 16% to the country's total exports
- The average export growth rate of Vietnam's textile industry was around 10% annually from 2015 to 2019
- Vietnam imported USD 13.5 billion worth of textile materials in 2022
- Vietnam’s textile and garment exports to CPTPP countries totaled approximately USD 5.3 billion in 2022
- Vietnam expects textile exports to reach USD 68 billion by 2030
- Yarn exports from Vietnam reached USD 5.5 billion in 2022
- Vietnam exported about 1.8 million tons of yarn in 2022
- Vietnam’s apparel exports made up 72% of total textile exports in 2022
- The Vietnam-EU Free Trade Agreement (EVFTA) is expected to boost garment exports by 67% by 2025
- Vietnam’s textile industry faced a decline of 38% in new orders in early 2023
- Vietnam ranks 4th globally in terms of textile and garment exports by volume
- Vietnam generated over USD 4 billion from fabric exports in 2022
Interpretation
Despite a stitch in global demand unraveling growth in early 2023, Vietnam’s textile industry remains a heavyweight in the global fabric trade—spinning $44 billion in exports, threading 16% into the national economy, and setting its sights on a $68 billion fashion statement by 2030.
Investment & Global Integration
- Over 70% of Vietnam’s textile exports are from FDI enterprises
- The textile machinery import value of Vietnam was USD 1.8 billion in 2022
Interpretation
Vietnam's textile boom may be stitched with foreign threads, as over 70% of its exports are driven by FDI enterprises and a $1.8 billion machinery import bill signals it's still buying the needles to knit its industrial fabric.
Production & Industry Structure
- Over 6,000 textile and garment companies operate in Vietnam
- Private enterprises account for 87% of Vietnam’s textile and garment industry
- Over 55% of raw materials in Vietnam’s textile industry are imported, primarily from China
- Vietnam has over 10 key textile and garment industrial parks
- The Vietnam National Textile and Garment Group (Vinatex) is one of the largest state-owned enterprises in the sector
- The textile and garment industry accounts for 12% of Vietnam's industrial output
- The Vietnamese textile industry’s productivity is one-third that of developed countries
- The domestic market value of Vietnam’s textile and garment industry is approximately USD 8.5 billion
- Vietnam’s textile manufacturers operate at about 80% capacity on average
- Nearly 90% of Vietnam’s textile firms are SMEs
- Vietnamese textile companies are increasingly adopting automation technologies, with an estimated 20% penetration as of 2022
- The average production cost in Vietnam's textile industry is 15-20% lower than in China
Interpretation
Vietnam’s textile industry may stitch together 12% of the nation’s industrial output with low costs and a booming SME-driven private sector, but with heavy reliance on imported inputs and productivity lagging behind developed countries, it’s clear the fabric of success still needs some serious tailoring.
Sustainability & Environmental Impact
- Vietnam’s textile industry consumed over 2 billion cubic meters of water annually by 2022
- The textile industry is responsible for 28% of Vietnam’s industrial water pollution
- Vietnam aims to use 15% recycled materials in textile production by 2025
- Textile factories in Vietnam reported an average waste generation of 45 liters per kg of fabric dyed
- Vietnam's textile industry carbon emissions exceeded 13 million tons CO2 equivalent in 2021
Interpretation
Drenched in over 2 billion cubic meters of water and dyed with 45 liters of waste per kilogram of fabric, Vietnam’s textile industry weaves a high-carbon, pollution-heavy tapestry that it now hopes to stitch into a greener future with just 15% recycled thread by 2025.