Footwear and Garments: Vietnam, the World's Second-Largest Exporter
Vietnam is the world's second-largest exporter of both garments and footwear. Nike, Adidas and Puma have anchored the sector since the late 1990s.
Garments and footwear remain Vietnam's two most labour-intensive export sectors, employing around 4 million people between them. In 2025 they shipped roughly 45 billion US dollars of garments and 22 billion US dollars of footwear, making Vietnam the second-largest exporter of both worldwide, behind China and ahead of Bangladesh and Indonesia respectively.
What it is / Background
The sector grew out of the state-owned textile combine Vinatex in the early 1990s and exploded after the 2001 US to Vietnam Bilateral Trade Agreement removed quotas. Nike has produced in Vietnam since 1995 through contract manufacturers, and Adidas since 1996. By 2010, Vietnam had overtaken China as Nike's largest single-country source of footwear, and as of 2025 produces roughly half of all Nike-branded shoes.
The shift accelerated with the 2018 to 2024 supply-chain diversification trend, as buyers looked for hedges against China-specific tariff and political risk. CPTPP from 2018 and EVFTA from 2020 brought significant tariff preferences into Japan, Canada, the UK and the EU.
Current state
Garment exports in 2025 reached about 45 billion US dollars, with the US taking roughly 45 per cent, the EU 18 per cent, Japan 12 per cent, Korea 8 per cent and the UK 4 per cent. Footwear exports of around 22 billion US dollars follow a similar geographic mix.
Domestic value added in garments remains modest at roughly 50 to 55 per cent because most fabric is imported (mainly from China and Korea). Local textile production cannot yet meet EVFTA "yarn forward" or CPTPP "fabric forward" rules of origin for the full preference, which has spurred new fabric mills in Nam Dinh, Hai Duong and Tay Ninh.
Key players / Major firms
Contract manufacturers (mostly Taiwanese and Korean owned, with Vietnamese suppliers): Pou Chen, Feng Tay, Hong Fu and Chang Shin in footwear; Eclat Textile, Far Eastern New Century, Hansae, Hansoll, Youngone and Crystal Group in garments. Together these firms operate hundreds of plants across Binh Duong, Dong Nai, Long An, Thanh Hoa, Hai Phong and the Mekong delta provinces.
Brand buyers: Nike, Adidas, Puma, Under Armour, Skechers, New Balance, Decathlon and Asics in footwear. In garments, Uniqlo, H and M, Zara (Inditex), Gap, Levi's, Ralph Lauren, Lululemon, Patagonia, Marks and Spencer, Primark and Walmart private label.
Domestic firms: Vinatex (the listed holding for what was the state combine), TNG Investment, May 10, Garmex Saigon, Phong Phu and Thanh Cong Textile. Footwear-side domestic brands such as Biti's and Ananas serve mainly the domestic market.
What's coming / Outlook
Wage growth of 7 to 9 per cent per year is squeezing low-end orders toward Bangladesh, Cambodia and Indonesia, and buyers are responding by automating cutting and stitching where possible. The big strategic question is whether Vietnam can climb the value chain into branded design and own-label production.
Sustainability requirements from EU buyers, including the Corporate Sustainability Due Diligence Directive (CSDDD) and the Digital Product Passport from 2027, will require significant investment in traceability and lower-emission energy.
What this means for visitors and expats
Domestic factory outlet shopping is concentrated around Saigon Square in HCMC and the markets of Tan Binh and Hanh Thong Tay; deep cuts on branded surplus stock are available though authenticity varies. Tailored garments are still excellent value in Hoi An, with two- to three-day turnaround for shirts, suits and dresses.
For job seekers, foreign nationals are most often hired as sourcing-office managers, quality auditors and compliance officers for Western brands, with offices clustered around HCMC's district 7 and district 2.
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