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Vietnam’s Yarn Manufacturing Industry: Overview 2024

Vietnam’s yarn manufacturing industry plays a crucial role in the country’s textile sector, which is a significant contributor to the economy. In 2024, the industry continues to expand, supported by growing demand from both domestic and international markets. As one of the top yarn producers in the world, Vietnam’s industry benefits from access to high-quality raw materials, an abundant labour force, and competitive production costs, making it a preferred supplier to major textile and apparel markets globally.

Driven by strong export growth, particularly to markets like China, South Korea, Japan, and the United States, Vietnam’s yarn industry has positioned itself as a vital link in the global textile supply chain. The country’s yarn exports, which include both synthetic and natural fibres, have seen steady increases in recent years. In response to global demand for sustainable and eco-friendly textiles, Vietnamese manufacturers are also adopting more sustainable practices, incorporating organic and recycled materials, and improving production efficiency to reduce environmental impact.

However, the industry faces several challenges, including fluctuating raw material prices, rising labour costs, and increasing competition from other Asian countries. Vietnam’s yarn manufacturers are addressing these challenges by investing in advanced machinery, digital technologies, and skilled labour training to improve productivity. With continued support, the yarn manufacturing industry in Vietnam is well-positioned for sustainable growth and remains a key component of the country’s broader economic development strategy.

Box 1: Getting clothing made in Vietnam

Getting clothes made in Vietnam for foreign firms and brands is not always easy. From finding the right supplier to ensuring the right materials are used, and ensuring intellectual property protection, there are a myriad of considerations that need to be made.

Understanding the nuances of manufacturing clothes in Vietnam including the country’s unique business environment and business practices can be key to ensuring a high-quality product is delivered on time.

For more information see: How to Manufacture Clothing in Vietnam

Yarn manufacturing in Vietnam in numbers

Vietnam’s yarn manufacturing industry is a significant segment of the country’s textile sector, supporting both domestic needs and export demands. 

Vietnam yarn imports-exports

Vietnam’s yarn industry is a critical part of the textile and garment sector, heavily involved in both imports and exports to meet domestic production needs and global demand.

Vietnam yarn imports September 2024

SeptemberMoM ChangeYear to date
TonsUS$TonsUS$TonsUS$
Total96,325218,101,911-15.73%-17.33%903,3792,003,077,868
China63,230137,967,756-21.74%-22.14%613,5291,280,905,373
Taiwan9,13722,480,83418.34%15.35%68,850168,445,964
Thailand9,46013,266,4103.81%0.05%73,240102,087,833
India4,24711,480,714-12.88%-20.27%49,282137,643,222
South Korea2,2307,104,324-15.50%-28.69%26,98791,746,338
Indonesia3,3046,733,493-40.18%-39.06%34,25367,497,438
Japan5604,257,27512.90%-11.21%5,47042,728,939
Austria8492,270,962-7.21%-8.91%6,26416,893,771
Malaysia9181,895,23717.69%-2.69%11,62323,559,171
Pakistan3271,567,98724.81%46.46%1,9968,855,513
Bangladesh143117,836-8.33%-2.72%2,6812,310,024
HongKong623,993-50.00%-63.43%2141,504,124
Netherlands120,190-92.86%-96.94%472,214,727

Source: Vietnam Imports Tracker

Box 2: Importing raw materials for clothing manufacturing in Vietnam 

Importing clothing materials into Vietnam for foreign firms can be tricky. Not only are there a number of technical and legal requirements that need to be met, but a myriad of free trade agreements has made navigating tariffs and trade restrictions complex.

Understanding the nuances of importing clothing materials into Vietnam, including how to find a distributor, establish a trading company, and customs procedures before attempting to access Vietnam’s 100 million-strong consumer market can make the difference between a foreign firm’s success or failure.

For more information  see: How to Import Clothing Materials to Vietnam

Vietnam yarn exports September 2024

SeptemberMoM ChangeYear-to-date
TonsUS$TonsUS$TonsUS$
Total144,272336,563,237-11.60%-11.62%1,364,7233,255,726,501
China70,917163,816,682-7.60%-9.14%634,2881,572,116,706
South Korea11,19131,205,344-10.83%-11.54%116,444335,232,066
Bangladesh4,49315,581,381-23.56%-26.67%39,529141,040,553
USA9,54512,968,588-24.15%-26.85%107,547144,691,635
Pakistan4,49411,895,91959.08%51.28%25,90668,659,142
Taiwan3,8929,173,3826.22%-0.20%29,33674,731,809
Indonesia3,1188,821,3060.84%-1.39%28,38681,253,899
Japan3,3958,194,499-9.20%-10.13%29,23571,962,630
Philippines4,0558,117,3213.05%0.59%29,55260,868,952
Thailand2,1835,695,308-5.54%-8.59%19,90753,725,830
Other26,98961,093,507-24.77%-20.48%304,593651,443,279

Source: Vietnam Exports Tracker

Box 3: Exporting clothing from Vietnam

Vietnam clothing manufacturers count themselves as part of one of the biggest clothing manufacturing industries in the world.

In this light, there is a huge opportunity in buying and exporting Vietnamese clothing around the world. This can be very profitable but there are a few nuances to the process that foreign firms looking to export clothing from Vietnam should be mindful of. 

For more information see: How to Export Clothing from Vietnam 

Revenue of select listed yarn manufacturers in Vietnam, Q4 2023-Q2 2024, US$millions

Q4 2023Q1 2024Q2 2024
Total502.39446.29552.41
Vietnam Textile and Garment Group169.90156.32163.06
Thanh Cong Textile – Investment – Trading32.1836.9133.45
Song Hong Garment45.7030.4452.67
TNG Investment and Trading65.3353.4985.88
Century Fiber Corporation13.9210.5011.98
Phong Phu Joint Stock Corporation20.6819.3921.78
Binh Thanh Production, Trading and Import-Export9.108.755.73
Viet Tien Garment87.6172.32122.47
Hoa Tho Textile and Garment44.2746.6043.22
Saigon 3 Group Investment and Development13.7011.5712.16

Revenue of select listed yarn manufacturers in Vietnam, 2020-2023, US$millions

2020202120222023
Total1773.641932.012259.031980.72
Vietnam Textile and Garment Group549.54632.27721.95650.57
Thanh Cong Textile – Investment – Trading137.09139.68171.37131.36
Song Hong Garment150.67187.58218.13179.45
TNG Investment and Trading177.01215.08267.58280.33
Century Fiber Corporation69.7680.6983.5556.30
Phong Phu Joint Stock Corporation82.9465.2868.8869.12
Binh Thanh Production, Trading and Import-Export136.58163.98125.1237.00
Viet Tien Garment281.35237.39334.44340.02
Hoa Tho Textile and Garment128.66152.65203.26185.71
Saigon 3 Group Investment and Development60.0457.4164.7650.86

Key yarn manufacturing businesses in Vietnam

Vietnam is home to several key yarn manufacturing companies that contribute significantly to its textile and garment industry.

Domestic yarn manufacturing firms

Vietnam has a number of homegrown yarn manufacturing firms. These include:

Vietnam Textile and Garment Group (Vinatex)

Vinatex is Vietnam’s largest textile and garment conglomerate, overseeing numerous subsidiaries and involved in various stages of textile production, from yarn to finished garments. It plays a central role in Vietnam’s textile exports.

Thanh Cong Textile – Investment – Trading

Thanh Cong is a major textile and garment manufacturer in Vietnam, known for its integrated model covering spinning, knitting, dyeing, and garment production. It serves both local and international markets.

Song Hong Garment

Song Hong Garment produces and exports garments, specialising in bedding products and apparel. The company is one of Vietnam’s top garment exporters, known for its quality and strong relationships with global brands.

TNG Investment and Trading

TNG is a leading garment manufacturer that exports to global markets, producing apparel for brands in the US, Europe, and Japan. It focuses on sustainable practices and is expanding its manufacturing capacity.

Century Fiber Corporation

Century Fiber specialises in synthetic yarn, particularly polyester, with a focus on sustainable production, including recycled polyester. It supplies both domestic and international markets, primarily in the textile industry.

Phong Phu Joint Stock Corporation

Phong Phu is a comprehensive textile company involved in spinning, dyeing, weaving, and garment production. It’s a key player in Vietnam’s textile industry, known for its diverse product offerings and high production standards.

Binh Thanh Production, Trading and Import-Export

Binh Thanh operates in the textile and garment sectors, specialising in home textiles and apparel. The company exports to various markets and has a reputation for quality and reliability.

Viet Tien Garment

Viet Tien is one of Vietnam’s largest garment manufacturers, producing a range of high-quality apparel for domestic and international markets. It has partnerships with well-known global fashion brands.

Hoa Tho Textile and Garment

Hoa Tho produces textiles and garments, focusing on workwear and high-quality garments for export. The company is known for its expertise in manufacturing durable, functional clothing.

Saigon 3 Group Investment and Development

Saigon 3 is a garment manufacturer producing for well-known international brands. It focuses on high-end apparel, emphasising quality and sustainable production methods.

Foreign yarn manufacturing firms in Vietnam

Several foreign yarn manufacturing firms operate in Vietnam, leveraging the country’s competitive labour costs, favourable trade agreements, and proximity to key export markets. 

Toray Industries (Japan)

Toray operates in Vietnam through subsidiaries and partnerships, producing polyester and other synthetic fibres. The company is known for its advanced textile technologies and supplies both domestic and international markets.

Texhong Textile Group (China)

Texhong is one of China’s largest textile groups and has invested heavily in yarn production facilities in Vietnam. It focuses on high-quality cotton and blended yarns, primarily for export to global markets.

Far Eastern New Century (Taiwan)

Far Eastern New Century operates in Vietnam with a focus on polyester yarn production, using advanced, eco-friendly production techniques. The company supplies textile manufacturers across Southeast Asia and beyond.

Eclat Textile Co., Ltd. (Taiwan)

Eclat is a Taiwanese textile company that produces synthetic fibres and fabrics in Vietnam. Known for its sustainable practices, it supplies global sportswear and apparel brands from its Vietnamese facilities.

Formosa Industries Corporation (Taiwan)

Part of the larger Formosa Plastics Group, Formosa Industries in Vietnam produces synthetic fibres, particularly polyester, for use in textiles and garments. The company operates extensive production facilities and serves markets globally.

Huntsman Textile Effects (USA)

While primarily a chemical company, Huntsman Textile Effects operates in Vietnam, producing dyes and chemicals for yarn and textile manufacturers. These products support local and foreign yarn firms in Vietnam’s growing industry.

Kyungbang (South Korea)

Kyungbang is a South Korean yarn producer with facilities in Vietnam, focusing on cotton and blended yarn. The company supplies a variety of yarn types to Vietnam’s garment industry and exports to markets worldwide.

Vietnam’s main yarn products

Vietnam produces a diverse range of yarn products to meet both domestic and international demands, catering to various applications in the textile and garment industries. Here are the main types:

Cotton Yarn

Cotton yarn is one of Vietnam’s largest and most exported yarn types. Produced in various thicknesses and qualities, cotton yarn is widely used in apparel manufacturing and is highly sought after in markets such as China, South Korea, and Japan.

Polyester Yarn

Polyester yarn, including recycled variants, is popular in Vietnam due to its durability and versatility. This type of yarn is widely used in sportswear, casual clothing, and home textiles and is commonly exported to international markets.

Blended Yarn

Blended yarns, such as cotton-polyester and cotton-viscose blends, are also commonly produced in Vietnam. These yarns combine the qualities of both fibres, providing comfort and strength, making them suitable for a variety of textile applications.

Viscose Yarn

Viscose yarn, a type of rayon, is increasingly popular in Vietnam as it offers a soft and breathable alternative to cotton. This yarn is often used in high-quality fabrics for fashion and home textiles.

Spun Yarn

Spun yarns, made from both synthetic and natural fibres, are widely used in apparel and home textiles. Vietnam produces large volumes of spun yarns for both domestic use and export, catering to a broad range of manufacturing needs.

What’s next?

Vietnam’s yarn industry is a cornerstone of the country’s textile sector, playing a crucial role in both domestic production and global supply chains. With a strong export base, Vietnam is a major supplier of yarn to markets like China, South Korea, and Japan, particularly in cotton, polyester, and blended yarns. The industry’s continuous investment in modern machinery, sustainable practices, and workforce training has enhanced its competitiveness, enabling it to meet the growing global demand for eco-friendly and high-quality yarns. 

Despite challenges like fluctuating raw material costs and regional competition, Vietnam’s yarn industry is well-positioned for steady growth, supported by favourable trade agreements. As the textile industry worldwide shifts towards sustainability and innovation, Vietnam’s yarn sector is set to strengthen its role as a key supplier in the international market.

With this in mind, foreign firms looking to track the development of Vietnam’s Yarn industry should make sure to subscribe to the-shiv.

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