Sector Insight

1. Vietnam’s Textiles and garment export performance in 1H/2025

In 1H/2025, textile and garment export turnover is estimated to reach 18.7 billion USD (+13.0% YoY). This is the highest export level recorded in the past 5 years, surpassing the same period in 2022 - a period of sudden growth after the Covid-19 pandemic. We believe that the positive growth momentum of the industry comes from (1) The situation of accelerating the import of "frontloading" goods due to changes in tariffs; (2) Early shopping demand for the back-to-school season; (3) The trend of shifting orders out of China is getting stronger.

2. Reciprocal tariff, Impacts and Opportunities

Textiles and garments are directly affected by US tariffs as this is the largest export market, accounting for 45% of the industry's total export turnover.

We assess that the impact of US tariffs on Vietnamese textiles and garments is not too negative as Vietnam has the same tax rate as other competitors and possesses competitive advantages that are difficult to replace in the short term.

In the medium and long term, investment in promoting localization and diversifying export markets is the foundation for Vietnamese textiles and garments to consolidate their position and enhance their long-term competitiveness in the international market.