(Bloomberg) -- Vietnam’s garment industry is set for continued growth next year but is looking to diversify its key export markets as it waits to see what steps US President-elect Donald Trump will take when it comes to tariffs.
The Textile and Apparel Association forecasts 2025 garment exports to reach $47-$48 billion, the group’s chairman Vu Duc Giang said in a briefing Tuesday. Apparel exports will reach an estimated $44 billion this year, up 11.3% from 2023, the association said.
“We will push for diversification. Diversifying our export markets, diversifying our products and diversifying clients,” Giang said when asked about the potential impact of the Trump administration’s trade policies.
Garments from Vietnam are exported to about 104 markets, but the US remains its biggest market, accounting for about 38% of the country’s apparel shipments this year. The Southeast Asian nation is the second-largest supplier of clothes and shoes to the U.S., according to the American Apparel & Footwear Association, which represents more than 1,000 brands.
The association is watching developments in “big markets, including the US, to make suitable moves,” Giang added. “I think the impact may not be seen clearly in the first two years of the Trump term.”
Exports account for about 85% of Vietnam’s economy, and the US is its largest market. Vietnam had a surplus of around $100 billion with the US last year, making it a potential target for Trump’s policies to rebalance trade.
Vietnam is the world’s third largest apparel producer and exporter after China and Bangladesh, according to the Vietnamese association. The trade group sees positive momentum for exports next year as many garment companies have already received orders for the first quarter, Giang added.
“We’ve seen a shift in orders into Vietnam from other countries.”
©2024 Bloomberg L.P.
