Vietnam's Garment Sector Shifts Focus to Value-Added Growth Amidst Export Slump

Vietnam's garment sector is pivoting towards value-added growth, seeking to overcome a slight export decline attributed to weak consumer demand in key markets. While exports of fibres, fabrics, accessories, and nonwoven materials saw solid growth of 5.6% to 10.6% in the early part of the year, garment exports slipped by 0.4%. Amidst these shifts, industry stakeholders are convening a seminar themed "Smart Manufacturing for the Future." This event serves as a platform for policymakers, industry experts, and businesses to discuss technological breakthroughs in a global textile and apparel market facing significant changes and challenges. Market analysts note that despite relatively stable global demand, the sector continues to grapple with rising input costs, including wages and logistics, while selling prices remain under pressure due to weak bargaining power. Consequently, there is a pressing need to shift focus from increasing cargo volumes to expanding services, reducing costs, and retaining more value locally. Vietnam's economy, overall, is demonstrating continued positive performance from the first half of the year, with growth drivers gaining momentum, according to Standard Chartered's latest economic outlook. However, for an export-driven economy like Vietnam, the performance of key sectors such as textiles has significant implications for the national economy. Furthermore, Vietnamese businesses are accelerating the adoption of circular economy practices to enhance competitiveness, reduce emissions, and meet increasingly stringent sustainability standards. New regulations are also being introduced, such as Decree 284/2026, effective September 1, which imposes penalties on domestic investors trading crypto assets outside licensed service providers. This signals Vietnam's attempt to balance the development of its digital economy with risk management. With geopolitical uncertainties expected to persist, experts advise Vietnam to strengthen exporters' capacity to meet international standards and optimize logistics and distribution networks to safeguard its position in markets like the Middle East. This is a critical challenge as Vietnam seeks to diversify its supply chains and explore new market opportunities. Information Source: VietnamPlus English