Sector Insight

1. Vietnam’s Textile & Garment export performance in Q1/2026

In Q1/2026, Textile and garment exports in Q1/2026 are estimated at USD 8.8 billion (+1.9% YoY). Despite geopolitical fluctuations in the Middle East, the textile and garment industry recorded a slight increase thanks to the flexibility and proactive securing of orders early by businesses. Export values ​​to key markets are divergent: The two largest markets, the US and the EU, maintain slight growth thanks to stable demand, while Japan and South Korea experience significant declines due to competitive pressure from China and India.

2. Outlook for 2H2026 and Opportunities

With global textile and garment demand projected to slow down to a rate of 2-3% per year, export growth for each country will depend primarily on its ability to compete and gain market share from rivals. We believe that the core strategy of Vietnam's textile and garment industry in the coming period is no longer to expand production scale, but to improve core quality through (1) Promoting the production of niche products with high added value; (2) Investing in the use of solar power in factories to meet ESG standards and minimize capital costs; (3) Applying AI in production to shorten lead-time to meet customer requirements, enhance reputation and competitiveness.

3. Investment Opportunities in Textile & Garment Stocks

TNG, MSH