Vietnam's textile and garment exports reached $32 billion during the first eight months of 2026, the Vietnam Textile and Apparel Association (VITAS) reported, with chairman Vu Duc Giang attributing the run to "flexible strategies, business acumen, and strong advancements in green transformation and comprehensive digitalisation."

By end-August, cumulative shipments had already carried the sector most of the way to a full-year export target of $47–47.5 billion, which VITAS said the industry is pursuing "confidently."

What is driving the eight-month figure?

Vietnamese mills now ship to 137 countries and territories, Giang said. The United States remains the single largest market at roughly 40% of exports — a concentration that exposes producers to any unilateral tariff or sourcing-policy shift in Washington.

Other significant destinations include the European Union, South Korea, Japan and China, alongside growing demand from Africa and the Middle East, according to VITAS data. The association credits a strategy of "comprehensive diversification" — new markets, new clients and wider product ranges — for cushioning the sector against volatility in any single destination.

How has the order book changed?

Giang said Vietnamese factories have absorbed a structural shift in buyer behaviour. International customers now place smaller, more frequent orders, demand tighter delivery windows and accept extended payment terms, including deferred payment arrangements of 30 to 60 days in some cases.

The acceptance of lengthier payment cycles is a notable concession, with implications for working-capital exposure at mill level. Many factories have nonetheless secured production slots through the end of 2026 and are now negotiating contracts that cover the first quarter of 2027.

Where is the capex going?

Industry leaders have identified digital and green transformation as "survival criteria" for the 2026–2030 period, extending through 2035. Vietnamese manufacturers are directing 65–68% of relevant capital expenditure toward infrastructure upgrades, with automation, robotics and AI applied across both management and production lines. The push targets productivity per worker and delivery reliability — two metrics buyers now score vendors on as closely as price.

Spending also covers Vietnam's net-zero commitment for 2050: rooftop solar installations, advanced wastewater treatment and substitution of environmentally friendly materials. VITAS is pressing local authorities to develop specialised industrial zones with centralised wastewater treatment to attract new investment in weaving and dyeing, segments where domestic capacity remains thin.

How does Vietnam position against Bangladesh and India?

Giang argued that Vietnam's mid- to high-end product focus and shorter delivery cycles distinguish it from Bangladesh and India. He also cited a stable business environment, a skilled manufacturing workforce and the country's engagement in 17 new-generation free trade agreements as supporting global competitiveness.

What risks does VITAS flag?

The association warned that tightening regulation and new sustainability standards from major importers will test the sector over the coming period. Persistent raw-material shortages — particularly in yarn, woven fabric and dyeing — remain the most cited bottleneck for capacity expansion and could push sourcing teams to qualify alternative upstream suppliers.

VITAS projects continued momentum into 2027, with the digital and green investment cycle now functioning as a baseline cost of doing business rather than discretionary capex for Vietnamese mills serving global brands. The next signal for sourcing teams will be whether the $47–47.5bn 2026 target is hit within the full calendar year — a marker that would cement Vietnam's mid- to high-end positioning ahead of the 2027 contract round.