Vietnam’s garment manufacturing industry increased by 50.3 percent in January compared to the 2019 baseline, according to Vietnam’s Industrial Production Index. However, this was lower than December 2024, when output stood at 67.8 percent above 2019 levels.
Month-on-month, production declined in January compared to December by 14 points. Despite this, the sector recorded a 6.1 percent year-on-year increase from January 2024, reflecting steady annual growth.
Of note, Vietnam’s garment manufacturing industry is one of the country’s largest export sectors, supplying clothing to major global markets, including the United States, Europe, and Japan. The industry has grown significantly due to strong foreign investment, competitive labor costs, and well-established supply chains.
The sector produces a wide range of garments, including sportswear, casual clothing, formal wear, and high-performance fabrics. Many international brands such as Nike, Adidas, Uniqlo, and H&M source their products from Vietnam, relying on the country’s extensive network of factories and skilled workforce. Local manufacturers also play a key role, producing garments for both domestic and export markets.
Vietnam has benefited from free trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), which have helped boost exports by reducing tariffs and improving market access. The country continues to attract foreign direct investment in textile and garment production, particularly in industrial zones dedicated to the sector.
Despite its success, the industry faces challenges, including increasing labor costs, environmental concerns related to textile waste and water usage, and competition from other manufacturing hubs such as Bangladesh and India. There is also a growing shift toward automation and digitalization in garment production to improve efficiency and meet evolving consumer demands.
See also: Garment Manufacturing in Vietnam