Vietnam Textile Manufacturing - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the Vietnam textile manufacturing market size is expected to increase from USD 4.95 billion in 2025 to USD 5.27 billion in 2026 and reach USD 7.32 billion by 2031, growing at a CAGR of 6.79% over 2026-2031.

Vietnam Textile Manufacturing Market Trends and Insights

Supply-Chain Diversification Away from China-Centric Sourcing

Global apparel and home-textile buyers have continued to place more sourcing activity in Vietnam after tariff tensions and earlier supply disruptions exposed the risk of China-centered supply chains. Vietnam's share of United States garment imports rose to 21.1% in 2025 from 18.9% in 2024, while Chinese suppliers lost share in United States and Japanese import baskets. Buyers are moving product development, quality auditing, and supplier-management work closer to Vietnamese production facilities. This raises expectations for manufacturers in the Vietnam textile manufacturing market because the relationship extends beyond basic cut-make-trim orders. Exports to the Middle East reached USD 700 million in the first 7 months of 2025 after generating USD 1 billion in 2024. Higher order flows support spinning and knitting utilization, but they also place added pressure on dyeing and finishing capacity needed for origin-compliant fabric.

New-Generation Free Trade Agreement Access

Vietnam has 17 free trade agreements that provide differentiated tariff access to more than 60 export markets. The EVFTA allows qualifying woven and knitted products made from Vietnam-originating or EVFTA-originating fabric to enter the European Union tariff-free. This rule favors investment in weaving, knitting, and wet processing, which are still underdeveloped relative to garment assembly. CPTPP yarn-forward requirements place more emphasis on spinning and on links between fiber, fabric, and garments within member economies. Textile and garment exports to the Europe-America region increased 10.8% year over year in the first 9 months of 2025, while textile fiber and yarn exports to that corridor increased 13.3%. The Vietnam textile manufacturing market benefits most when producers can meet these origin requirements with local or qualifying inputs.

Imported Fabric, Cotton, Fiber, Chemicals, and Dyes Dependence

Dependence on imported raw materials remains the most persistent constraint on domestic value addition. Vietnam imported 100% of its cotton, consuming 400,000 tons annually against a domestic supply of less than 3,000 tons, and imported up to 95% of its synthetic fibers. Domestic fabric production covered only 25% to 30% of market needs, leaving manufacturers dependent on imported materials and accessories. Vietnam imported 1.71 million tons of cotton valued at USD 2.88 billion in 2025, and the United States supplied 45.6% of the import volume. Imported fabric had reached USD 11 billion in 2024, while China accounted for 59% of raw material and accessory sourcing. These dependencies limit the Vietnam textile manufacturing market's ability to use CPTPP preferences when input materials do not qualify under yarn-forward rules.

Other drivers and restraints analyzed in the detailed report include:

1. Green and Traceable Textile Procurement by Global Buyers
2. Rising FDI Inflows and Industrial Zone Expansion
3. Tariff, Rules of Origin, and Geopolitical Exposure

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Commodity synthetics held 49.5% market value in 2025, supported by demand from mass-market apparel and performance-wear exports. Polyester, nylon, polypropylene, acrylic, and elastane are the principal materials in this category. Polyester staple fiber and polyester filament yarn remain the highest-volume inputs for the domestic production base. identified synthetic-fiber integration as a priority for reducing import leakage and retaining more upstream value in Vietnam. Artificial cellulosic fibers such as viscose, lyocell, modal, and acetate are gaining interest from buyers seeking biodegradable alternatives to conventional synthetics. Natural cotton-based fibers also provide an option for suppliers that can demonstrate traceable, UFLPA-compliant sourcing.

Specialty and high-performance fibers are forecast to record an 8.2% CAGR through 2031, making them the fastest-growing raw-material category. Demand comes from transportation, protective equipment, medical devices, construction, and geotextile applications. This raises the importance of technical standards and controlled processing for suppliers entering the Vietnam textile manufacturing industry. Toray's Vietnam operations in polyester and nylon specialty fabrics show the FDI-led development of a more advanced raw-material base. ISO 9001 process management and international quality-system compliance are increasingly relevant to specialty-fiber procurement. These requirements favor larger certified manufacturers over fragmented processors. The category offers a path to higher-value output, but its development depends on consistent quality and customer qualification.

Fabric manufacturing held 43.5% of the Vietnam textile manufacturing market size in 2025 and remained the leading process segment. The country had 121 operating cotton-yarn-containing spinning mills with 10.4 million spindle-equivalents in calendar year 2025. This spinning base supplies fabric production that feeds the country's garment export system. Yarn and thread manufacturing remains high volume, but cotton-yarn export unit values declined 5% in calendar year 2025 as global prices softened, even though export volumes rose 8%. Finishing activities such as pretreatment, bleaching, dyeing, and printing face the closest scrutiny from European environmental requirements. Digital textile printing is gaining relevance because it can lower water and chemical use in these activities.

Nonwoven and felt manufacturing is projected to grow at a 9.8% CAGR through 2031, the highest rate among process categories. Medical hygiene, industrial filtration, geotextiles, and automotive interiors support this demand. Investment in spunbond and meltblown lines has increased after post-pandemic demand confirmed the commercial depth of hygiene and medical applications. YKK began Phase 3 of its Nhon Trach facility in Dong Nai in January 2026, committing USD 83.6 million to expand accessories production and advanced product development. The project supports the components and accessories ecosystem around apparel production. It also reflects confidence in the broader mid-stream base that supports technical fabrics and nonwoven applications. Expansion in this category depends on reliable equipment, quality control, and access to specialized buyers.

Complete Report Scope:

• By Raw Material
  • Natural Fibers
    • Plant-Based Fibers
      • Cotton
      • Others (jute, flax, hemp, ramie, coir)
    • Animal-Based Fibers (wool, silk and other animal fibers)
  • Man-Made Cellulosic Fibers (viscose/rayon, lyocell, modal and acetate)
  • Commodity Synthetics (polyester, nylon/polyamide, polypropylene, acrylic and elastane)
  • Specialty and High-Performance Fibers (aramid, UHMWPE, etc.)
• By Manufacturing Process and Product Type
  • Yarn and Thread Manufacturing
  • Fabric Manufacturing
    • Weaving
    • Knitting and Crocheting
    • Nonwoven and Felt Manufacturing
    • Other Fabric-Formation Processes
  • Textile Finishing and Surface Treatment (Pretreatment, Bleaching, Dyeing, Printing, etc.)
• By End Use Industry
  • Apparel and Fashion
  • Home and Household Textiles
  • Technical and Industrial Textiles
    • Transportation and Mobility
    • Medical and Hygiene
    • Industrial Processing and Filtration
    • Construction and Geotextiles
    • Protective and Safety
    • Packaging
    • Other Technical Applications - Agriculture, etc.
• By Enterprise Scale
  • Large Organized Manufacturers
  • Micro, Small, and Medium Enterprises (MSMEs) and the unorganized sector

List of Companies Covered in this Report:

1. Vietnam National Textile and Garment Group (Vinatex)
2. Thanh Cong
3. Century Synthetic Fiber Corporation
4. Phong Phu Corporation
5. Hoa Tho Textile
6. Viet Thang Corporation
7. Nam Dinh Textile Garment Corporation
8. Phu Bai Spinning Mill Joint Stock Company
9. Duc Quan Investment and Development Joint Stock Company
10. Nha Trang Textile & Garment Joint Stock Company
11. Dong Phuong Knitting Company Limited
12. Sagotex Textile Joint Stock Company
13. Viet Phat Import Export Trading Investment Joint Stock Company
14. Tien Phong Textile Joint Stock Company
15. Duy Tan Textile and Garment Joint Stock Company
16. Maxport Limited Vietnam
17. Luen Thai Holdings Limited
18. Texhong Vietnam
19. Hyosung Vietnam Co., Ltd.
20. Toray Industries Vietnam Co., Ltd.
21. Far Eastern Polytex (Vietnam) Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support