Jennie - PRIMO

Vietnam’s Textile Industry Recovery: Insights for International Buyers

Posted on June 13, 2025 by Jennie

Vietnam’s textile sector is experiencing a robust rebound in mid‑2025. As global demand recovers post-pandemic, the country has solidified its position as a leading source of apparel supply. With proven export performance, escalating factory modernization, and a growing focus on sustainability, Vietnam’s textile industry presents timely opportunities for international buyers searching for reliable, competitive sourcing partners.

Recovery Trends in Vietnam’s Textile Industry

Export Growth & Order Flow

In 2024, textile and garment exports surged to $44 billion (–11.3% YoY), securing Vietnam’s rank as the world’s second-largest apparel exporter after China.

The momentum continued into early 2025: many factories secured orders through Q1 and are negotiating for Q2 onward.

Vietnam is targeting $48 billion in exports by year-end (≈10–12% growth).

Regional Diversification & Buyer Shifts

With political unrest in Bangladesh in late 2024, buyers redirected orders to Vietnam—especially for spring and summer collections.

Vietnam’s strong trade ties—as secured through FTAs like CPTPP and EVFTA—continue to diversify export markets globally.

Factory Modernization & Sustainability

Major apparel groups (e.g., Vinatex, Hoa Tho, Phong Phu) report full 2024 order books and boosting automation, digital management, and green practices to reduce costs and meet compliance.

Notable projects include H&M/Syre investing $1 billion in a circular fiber facility in Binh Dinh, promoting high-tech sustainable manufacturing.

Key Challenges and Adaptations

Cost Pressures

Rising energy expenses and labor costs—electricity alone represents ~30% of yarn production costs—remain a challenge .

Competitive pressure from low-cost producers like Bangladesh (with wages ~⅓ of Vietnam’s) affects pricing strategy .

Raw Material Dependencies

Dependence on imported inputs from China limits local value addition. Suppliers are responding by integrating forward into polyester recycling or vertical dyeing/weaving .

Quality & Green Standards

Export buyers increasingly require sustainability certifications and traceability. Many Vietnamese firms are investing accordingly to maintain price stability and market access.

New Growth Drivers for Vietnam’s Textile Industry

Diversification Beyond China

Vietnam’s appeal as a supply base grows as brands seek alternatives to China—bolstered by strong FTA coverage and proven delivery stability .

High-Value & Green Fabrics

Demand is increasing for eco‑fabrics, sportswear, and customized clothing—segments where Vietnam’s factories are actively investing capacity and certification

Automation & Tech Advancements

Factories are adopting AI, lean processes, and specialty machinery (e.g., automated sewing machines, automated conveyor systems) to improve speed, precision, and flexibility.

Buyer’s Guide: Sourcing from Vietnam in 2025

Evaluating Vietnam Apparel Manufacturers

Assess production capacity, certifications (e.g., OEKO-TEX, GOTS), digital maturity, and green initiatives.

Prefer factories with integrated capabilities (yarn → fabric → garment).

Large-scale vs Boutique Choices

Large facilities (e.g., Vinatex, Hoa Tho) suit high-volume needs.

Smaller, niche manufacturers excel in flexible, custom, or sustainable products.

Finding the Right Partners

Use platforms like VITAS, Fibre2Fashion, VinMake; attend textile exhibitions in Ho Chi Minh City, Hanoi, and Binh Dinh.

Leverage local agents and sourcing offices to streamline vetting and negotiation.

Smart Sourcing Tips

Lock in orders early (many are filled into Q2 and beyond).

Build buffer into lead times for certification and sustainability compliance.

Stay agile to sector shifts (e.g., from China, Bangladesh).

Vietnam’s textile sector is firmly on a recovery trajectory—driven by expanding exports, modernization, and sustainable investments. For international buyers, this offers fertile ground to source from capable Vietnam apparel manufacturers and Vietnam clothing manufacturers. While cost competition and compliance remain, those who engage strategically can benefit from superior quality, compliance readiness, and long-term partnership in one of Asia’s fastest-growing textile powerhouses.

For more sourcing tips:

Jennie

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Navigating the Vietnamese Sourcing Landscape: A Comprehensive Guide for International Buyers

Posted on June 8, 2025 by Jennie

Vietnam has rapidly emerged as a powerhouse in global manufacturing and a highly attractive destination for international sourcing. Beyond its impressive export growth across diverse sectors, as highlighted by recent figures showing seven key product categories exceeding 5 billion USD in export value in just five months (including electronics, textiles, footwear, and wood products), the country offers a dynamic environment for businesses seeking to diversify their supply chains. This article delves into the essential aspects of sourcing in Vietnam, from finding suppliers to mastering supply chain management and ensuring robust quality control.

Why Source in Vietnam?

The appeal of international sourcing in Vietnam is multifaceted:

Competitive Pricing: Lower labor and production costs compared to some other Asian manufacturing hubs make Vietnam a cost-effective choice.
Skilled Workforce: A young, dynamic, and adaptable labor force ensures a continuous supply of skilled workers.
Favorable Trade Agreements: Vietnam’s participation in agreements like the CPTPP and EVFTA provides preferential access to major global markets.
Strategic Location and Stability: Its geographical position and stable political environment contribute to a reliable business climate.
“China Plus One” Strategy: Many companies are increasingly looking to Vietnam to diversify their manufacturing bases, enhancing supply chain resilience.

Finding Suppliers in Vietnam

Finding suppliers in Vietnam requires a strategic approach, as not all Vietnamese factories have a robust online presence. Here are effective channels:

Online B2B Platforms: While primarily focused on Chinese manufacturers, platforms like Alibaba.com/vn and Globalsources.com/manufacturers/Vietnam list Vietnamese suppliers.
Sourcing Companies/Buying Offices: Engaging a local sourcing partner or buying office can be instrumental. These entities act as liaisons, providing on-the-ground support, navigating cultural nuances, and ensuring transparent transactions from sourcing to shipment. They can help define product specifications, evaluate suppliers, and manage the entire procurement process.
Trade Shows: Attending trade shows in major cities like Ho Chi Minh City and Hanoi is an excellent way to meet factory representatives face-to-face, assess capabilities, and gather quotations. Key events include Vietnam International Sourcing, Global Sourcing Fair Vietnam, and specialized shows for textiles, furniture, and electronics.
Government and Industry Associations: Official government databases, commercial chambers of commerce, and associations related to specific product types can provide lists of verified manufacturers.
Personal Referrals and Networking: Leveraging existing connections and participating in networking events can also lead to reliable partners.

When approaching potential suppliers, be clear and direct with product specifications, unit price, MOQ requirements, sample costs, production times, and factory location. Inquire about their acceptance of third-party quality inspections.

Supply Chain Management in Vietnam

Effective supply chain management in Vietnam is crucial for seamless operations. While the country’s infrastructure is developing, challenges can arise. Key aspects include:

Logistics and Infrastructure: The government is investing heavily in improving ports and transportation networks (e.g., North-South Expressway, Long Thanh Airport) to enhance connectivity and efficiency. However, careful planning is still needed, especially for complex supply chains.
Digital Transformation: The Vietnamese logistics sector is embracing technologies like AI-driven forecasting, blockchain for customs processes, and IoT tracking solutions to streamline operations, reduce clearance times, and improve transparency.
Optimizing Processes: Digitalization of information and work processes is essential for efficiency and waste reduction. Coordinating information between departments ensures smooth production stages.
Risk Management: Developing robust risk management strategies is vital to address potential disruptions, especially given regional manufacturing practice variations and an evolving regulatory landscape.
Local Partnerships: Collaborating with local logistics providers leverages their knowledge and networks to navigate the market effectively.

Quality Control in Vietnam

Maintaining high standards through stringent quality control is paramount for products destined for international markets. This is not just a regulatory requirement but a strategic imperative to build trust and reliability.

Third-Party Inspection Services: Engaging independent quality control companies is highly recommended. These firms offer comprehensive services across all major production regions in Vietnam, including:
- Product Inspections:
  - Initial Production Check (IPC): Inspection of raw materials and initial production runs.
  - During Production Inspection (DUPRO): Checks performed when 30-50% of goods are produced to catch issues early.
  - Pre-Shipment Inspection (PSI): Final evaluation of product quality, packaging, and labeling before shipment.
  - Container Loading Check (CLC): Verification of count, proper loading, and container sealing.
- Supplier Audits: Assessing production capabilities, quality management systems (e.g., ISO 9001), ethical standards (e.g., SA 8000), environmental compliance, and structural integrity of factories.
- Lab Testing: Accredited labs offer testing services for various consumer products to ensure compliance with international safety and quality standards (e.g., CPSC for the U.S. market).
Compliance with International Standards: Adhering to international quality standards (like ISO certifications) ensures products meet global benchmarks for safety, quality, and performance.
Supplier Management: Establishing strong relationships with suppliers, providing training, and conducting regular performance evaluations are crucial to ensuring consistent quality.

Conclusion

Vietnam’s growing role in global trade, supported by strategic economic policies, technological advancements, and a focus on sustainability, makes it an increasingly vital player in the global supply chain. By understanding the intricacies of sourcing, diligently finding suppliers, implementing effective supply chain management, and prioritizing rigorous quality control, international businesses can unlock significant opportunities and build resilient, high-quality manufacturing operations in Vietnam.

Ready to streamline your sourcing and ensure product excellence? Contact PRIMO team today to get started with your sourcing requests in Vietnam and confidently navigate the global market.

By Primo team

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The export value of agricultural, forestry and fishery products increased sharply in the first two months of 2022

Posted on March 1, 2022 by Jennie

According to the Ministry of Agriculture and Rural Development Vietnam, in the first two months of 2022, the total export and import turnover of agricultural, forestry and fishery products is estimated at nearly 14.2 billion USD, up 15.8% over the same period of the last year; in which, export is estimated at 8 billion USD, up 20.9%; imports were estimated at over 6.2 billion USD, up 10%. Thus, the trade surplus of agriculture, forestry and fishery reached nearly 1.8 billion USD, up 86.7% over the same period last year.

Particularly in February, the export turnover of agricultural, forestry and fishery products was estimated at nearly 3.3 billion USD, up 21.8% compared to February 2021 but down 31.4% compared to January 2022.

In general, in 2 months, the export of main agricultural products is estimated at over 3.2 billion USD, up 10.2%; seafood reached nearly 1.5 billion USD, up 47.2%; main forest products reached nearly 2.9 billion USD, up 17%… Particularly, livestock products reached 54.1 million USD, down 3.5%.

Specifically, a number of products/product groups with increased export value such as: coffee increased by nearly 36%, rubber 6.6%, rice over 22%, pepper nearly 44%, milk and dairy products on 11.1%, over 83% pangasius, over 34% shrimp; wood and wood products 15.5%…

Items with a decrease in export value such as tea nearly 11%, vegetables and fruits over 12%, cassava and cassava products nearly 13%…

Regarding the export market, the export value of agricultural, forestry and fishery products to markets in Asia accounts for 39.5% of the market share; America 30.8%; Europe 13.9% remaining Oceania and Africa.

The United States continues to be the largest export market of Vietnam’s agricultural, forestry and fishery products with over 2.3 billion USD, accounting for 28.2% of the market share. Particularly, the export turnover of wood products and wood products accounts for nearly 70% of the proportion of export turnover of agriculture, forestry and fishery to this market.

China ranked second with nearly 1.3 billion USD, accounting for 16.2% market share; Particularly, the export value of rubber group accounts for 33.3% of the proportion of export value of agriculture, forestry and fishery to this market.

Thus, difficulties in exporting by road in recent years have led to a change in the ranking of Vietnamese agricultural products exported to China. Meanwhile, for many years, vegetables and fruits have always been the items that account for the largest proportion of exports to the Chinese market.

Japan ranked third with an export value of nearly 586 million USD, accounting for 7.3% and the export value of wood products accounted for the largest proportion with 44.8% of the total agricultural export value. forestry and fishery products to this market.

In order to boost exports, the Ministry of Agriculture and Rural Development said that the ministry continues to promote the opening of agricultural markets with Peru, Australia, Brazil, China and the United States. with ministries and sectors to organize Vietnam Agricultural Products Week at EXPO 2022 Dubai and work with a number of bilateral partners with India, Argentina, and UAE.

The Minister of Agriculture and Rural Development holds talks with the EU Executive Vice President’s delegation to promote cooperation in the field of climate change within the framework of implementing the results of the COP26 Conference and combating illegal fishing. Legal, undeclared and unregulated are regulations on anti-fishing (IUU), propose solutions and petition the EU to remove the “yellow card” for Vietnam’s seafood industry.

To avoid possible disruptions in agricultural exports due to China’s new regulations, the functional units of the Ministry will continue to guide units and businesses to implement the provisions of Orders 248 and 249 of the General Department of Agriculture and Rural Development. China Customs Department. Up to now, 1,763 product codes have been granted to Vietnamese enterprises by the General Administration of Customs of China

Besides, before more and more new requirements on food safety and frozen and plant quarantine (SPS) of other countries, units of the Ministry have compiled 119 draft notices on SPS regulations of the country. member countries of the World Trade Organization (WTO) may affect Vietnam’s agricultural exports; and send it to the concerned agencies for consideration and comments.

For the domestic market, the Ministry has implemented solutions to increase the consumption of agricultural products in the domestic market such as: regularly exchanging and providing quick information on prices, output and production situation, Supply of agricultural products may face difficulties in consumption due to the epidemic situation. The Government advises the Government on solutions to solve the congestion of agricultural products at the border gate.

The Ministry of Agriculture and Rural Development also said that,out of 6.2 billion USD of imports, the import value of main agricultural products was estimated at nearly 4 billion USD, up 17.6%; aquatic products also increased by 11%; production input group increased by 2.8%. Only the main livestock and forestry products group saw a decrease in imports with over 14% and over 3%, respectively.

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Vietnam’s wood and wood products exports in the first five months of the year 2021

Posted on July 8, 2021 by Jennie

According to the Import-Export Department – Ministry of Industry and Trade, the export of wood and wood products in May 2021 is estimated at 1.4 billion USD, up 80.3% compared to May 2020. In which, the export of wood products is estimated at 1.08 billion USD, up 95.8% compared to May 2020.

In the first 5 months of 2021, the export of wood and wood products is estimated at 6.6 billion USD, up 61.3% over the same period in 2020. In which, the export of wood products is estimated at 5.1 billion USD. , up 79.4% over the same period in 2020.

In the first 4 months of 2021, wooden furniture exports reached 3.68 billion USD, up 80.7% over the same period in 2020, accounting for 70.8% of the total export value of wood and wood products, increasing 9.4 percentage points over the same period in 2020. In which, wooden frame chairs, living room and dining room furniture, bedroom furniture are the main export items accounting for a high proportion.

In addition, in the first 4 months of 2021, there are a number of other exported wood products and wood products such as: wood chips, wood, planks and flooring, wooden doors, fine art furniture, etc. all achieved high growth rates, only wood chips increased slowly. The export value of wood chips in the first 4 months of 2021 reached US$623.3 million, up 6.6% over the same period in 2020.

Main export market

According to statistics of the General Department of Customs, the export value of wood and wood products in April 2021 reached 1.4 billion USD, up 100% compared to April 2020. In the first 4 months of 2021, the export value of wood and wood products reached 5.2 billion USD, up 56.8% over the same period in 2020.

The main export markets for wood and wood products in the first 4 months of 2021 are:

The US market led with a turnover of 3.12 billion USD, up 95.4% over the same period in 2021, accounting for 60%; followed by the Chinese market, with a turnover of 526.70 million USD, up 17.1% over the same period last year, accounting for 10.1%.

The third is the Japanese market, with 472.56 million USD, up 8% over the same period last year, accounting for 9.1%; South Korea was US$239.26 million, up 9.7% over the same period in 2020, accounting for 5.6% and the fifth was the UK market with a turnover of US$92,011 million, up 26.5% over the same period. term 2020…

The Import-Export Department said that most of the wood and wood products exported to the main markets increased in the first 4 months of 2021. In which, the export of wood and wood products to the US market increased very strongly, reaching 3 .12 billion USD, an increase of nearly 100% over the same period in 2020. The proportion of exports to the United States expanded by 11.8 percentage points over the same period in 2020.

Surpassing China, Vietnam became the largest supplier of wooden furniture in the US market.

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