According to data from the General Department of Customs, Vietnam is the 8th largest trading partner and 4th largest export market for the U.S. in ASEAN. Meanwhile, the U.S. is Vietnam’s second-largest trading partner and top export market. Key Vietnamese exports to the U.S. include apparel, wooden furniture, machinery, and optical equipment.
In overview, Vietnam has been one of the top 3 global exporters of apparel until 2025. Vietnam’s textile industry plays a key role in the export market economy, with exports estimated at $39 billion—$1 billion short of the $40 billion target due to the US-China trade war.
By 2030, exports are expected to reach $100 billion, according to Prime Minister Nguyen Xuan Phuc. Meanwhile, LEFASO highlights efforts to reduce imported materials and strengthen the local supply chain.
According to VN Economy, Vietnam-U.S. trade relations are expected to grow steadily in 2025, with total export turnover projected to reach approximately $125-130 billion. Key export items such as textiles, handicraft wood products, electronic machinery, and agricultural products are expected to maintain positive growth momentum.
However, Vietnam is facing significant challenges due to a trade surplus with the U.S. exceeding $100 billion, accounting for 29.5% of Vietnam’s total export turnover. This could lead to the U.S. imposing trade defense measures, requiring compliance with environmental, social, and governance (ESG) standards, and increasing competition from rivals such as China, Bangladesh, and India.
Prospects Of A Leading Apparel Manufacturer In Vietnam
To respond, Vietnamese businesses need to proactively prepare various business strategies, focusing on the origin of goods and raw materials for production. Importing raw materials from the U.S. could help balance the trade deficit. Additionally, businesses should invest in technology, improve product quality, and reduce production costs to maintain a competitive edge.
Inflow, as a leading apparel company in Vietnam, we are well-prepared for potential challenges ahead. With careful planning, Vietnam can sustain export growth and strengthen its position in the U.S. and global markets, driven by key growth factors:
-
Shifting Global Supply Chain
With rising labor costs and economic uncertainty in China and Bangladesh, global fashion brands are shifting to alternative supply chains for lower costs, more stable manufacturing destinations and large-scale production. Most importantly, Vietnam is known for its stable political environment and openness to foreign investment, and is benefiting from this shift, driving export growth.
Furthermore, the fashion industry requires a smarter supply chain management system to meet sustainability standards and ensure efficiency, transparency, and ethical sourcing. With Vietnam’s rapid technological advancement and rising living standards, the textile industry is evolving into a digital supply chain hub. This transformation not only ensures global compliance but also reinforces Vietnam’s role as a leading, eco-conscious manufacturing destination.
-
Expanding Market Access
Vietnam is entering a new era of global expansion, driven by a commitment to peace, stability, and rapid economic growth. With a focus on diverse market opportunities, we are actively exploring innovative solutions and partnerships with leading global companies.
First, creating a business-friendly environment by easing regulations for foreign investors and professionals would further enhance Vietnam company's competitiveness. Second, leveraging 17 Free Trade Agreements (FTAs), including duty-free access to the EU under the Everything But Arms (EBA) agreement and benefits from the Generalized Scheme of Preferences (GSP), to ensure the approaching possibility of more markets. Sooner, Vietnam garments will target markets in all Asia, Latin America, and Africa, to reduce reliance on traditional buyers in Europe and North America.
-
Digitalization and Technological Investment
In today’s fast-paced economy, Vietnam—the fastest-developing country—must embrace digitalization and technological advancements to remain a key player for major markets like the United States. The adoption of AI, automation, and data analytics is essential for the fashion industry in the era of Industry 4.0.
To reduce errors and control costs, companies must invest in upskilling their workforce, integrating AI at every stage of fashion production. Upgrading manufacturing facilities with modern equipment and training employees in advanced technologies will be crucial for maintaining Vietnam’s competitive edge in the global market.
This is also how Inflow addresses the challenges faced by major fashion brands worldwide. With our innovative manufacturing system and AI designing tools, which allow brands to seamlessly select suppliers and gain full control over the entire production process—no matter where they are.
-
Diversification of Products
As one of the central nations in SEA, Vietnam is renowned for diverse sources of raw materials and dynamic basic garment products such as t-shirts, trousers, shoes and outerwear. To respond to our commitment of hitting $100 billion exporting apparel, Vietnamese companies have to concentrate on diversifying the product lines with higher-value-added garments such as active wear, smart outerwear and high-tech textures.
Plus, investing in innovation, design aesthetics and product development capabilities, or applying AI-driven tools in the designing phase will be crucial at this time for more diverse product lines towards more complex and high-margin products. This helps avoid price-based competition and capture a larger market share of the global apparel market.
-
Workforce Development
In 2025, Vietnam will undergo major policy shifts to enhance education and expand job opportunities. With a predominantly young population, the country faces both challenges and opportunities for growth. To achieve the $100 billion export target by 2030, the President aims to equip this generation with cutting-edge technology, professional experience and knowledge, pushing Vietnam’s export potential beyond expectations, meeting the growing demands and global exporting standards.
Specialized skills and expertise are crucial, prompting many Vietnamese companies to invest in workforce development from head to toe, particularly in managerial and technical skills. Advancing up the value chain and producing higher-value products will require a skilled workforce capable of managing sophisticated manufacturing processes and technologies.
-
Sustainability and Compliance
Vietnam’s apparel sector is aligning with global market trends and high standards to enhance safety and sustainability. Most Vietnamese companies comply with government regulations and undergo rigorous industry testing to earn key certifications, such as labor safety, the Global Organic Textile Standard (GOTS), and the Business Social Compliance Initiative (BSCI).
Recently, the government has been working to designate suitable areas for social security and employment while also investing in modern public transportation systems like North-South express trains. Moreover, they are working to clarify all the domestic political issues to ensure ethnicity for citizens and laborers, ensuring the best conditions for growth. These efforts aim to boost labor productivity, ensure sustainability and ensure a safer, more efficient living and working environment.
Final Thoughts,
As one of the leading and pioneering tech-savvy fashion manufacturing companies in Vietnam, we genuinely see that Vietnam’s textile and garment industry is rapidly evolving, driven by technology, market expansion, and sustainability. Today, with the role of AI, automation, and strong government support, Vietnam is poised to strengthen its position in global fashion. To reach the $100 billion export target by 2030, continuous innovation and adaptation are key.
As a leading digital manufacturing company, Inflow is witnessing this transformation firsthand. By leveraging AI-driven analytics, automation in every corner of fashion production and a trusted supplier network, we empower brands with agile, luxury and sustainable production solutions. Committed to innovation, we are shaping a smarter, more efficient future for fashion manufacturing in Vietnam.
Related contents:
-
Virtual vs. Reality: Are AI Influencers Replacing Human Models?
-
Seasonless Fashion: Why Fashion Brands Are Ditching Seasonal Collections
-
The 2030 ‘Made-in-Vietnam’ Garment Industry: Targeting US$100 Billion
-
Fashion Giants vs. Indie Designers: Who Will Keep the Spotlight?