Vietnam garment makers exercise caution over uncertainties despite enough orders

Most textile and garment businesses in Vietnam have enough orders to sustain production until Q2/2025, but they are still "holding their breath" to closely observe international market trends.

Data from the General Statistics Office shows that in January 2025, seven industries reached export revenue exceeding $1 billion, with textile-garment ranking fourth (nearly $3.2 billion, up 1.8% year-on-year).

Pham Quang Anh, director of Ho Chi Minh City-based Dony Garment Co., Ltd., said that the company's January export revenue surpassed 20% of its total revenue in 2024.

"Besides the increased purchasing power due to market demand recovery, the company's growth came from expanding its market base, including the domestic market, traditional markets like the U.S. and the Middle East, and new markets like Cambodia, Thailand, Malaysia, Singapore, and Russia," Anh said, adding that the firm recently signed contracts with customers in Africa.

However, despite having stable orders and favorable export conditions, there are many challenges, especially prices and rapid changes in market conditions.

Representatives from many companies said that while partners are ready to place orders for Q3 through to the end of 2025, they are choosing a wait-and-watch approach instead of rushing to sign contracts.

"The current situation is hard to predict. The price of raw materials imported from China could rise any time, and if raw material prices increase, product prices will also have to rise. But contracts signed now would still be based on old prices. We must be cautious and observe the market. However, being too slow might cause customers to lose patience and look for other partners," said a representative of a textile company.

Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (Vitas), said that in 2024, Vietnam is estimated to reap around $44 billion in textile-garment export revenue, up 11% from 2023, positioning the country as the second-largest exporter of these items.

Apart from traditional markets like the U.S., the EU, Japan, China, and the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) member countries, Vietnam’s textile and garment products have penetrated new markets like Africa and the Middle East.

"In the short term, from now until the end of Q2/2025, the textile-garment industry will continue the recovery trend that began in late 2024. Businesses are also receiving signals of growth as major markets like the U.S., the EU, and Japan continue to recover, with increasing consumer demand and decreasing inventory," Giang added.

Many textile and garment exporters have secured orders for delivery until May or June. However, they are still cautious in choosing partners and even hesitant to commit to long-term contracts due to concerns about rising prices.

Regarding recent developments in the international market, Giang commented that the Vietnamese textile-garment industry has many advantages and opportunities to increase exports to the U.S.

When President Donald Trump implements new tax policies for U.S. trade partners, there is possibility that Vietnam's textile-garment exports would face an additional 10% tax rate.

This would be a significant challenge, as the U.S. is currently the largest importer of textile and garment from Vietnam. However, on the positive side, this could help Vietnam narrow the price gap with China in the U.S. market, thus increasing its market share, according to Giang.

"Vietnam’s textile and garment in the U.S. will have many opportunities if we comply with regulations on origin and supply chain traceability," he added.