Vietnam’s Textile Sector Shines at VTG 2024

VTG - The Vietnam International Textile and Garment Industry Exhibition, renowned as one of Southeast Asia's leading platforms for state-of-the-art textile & garment machinery, will take place at the Saigon Exhibition and Convention Center (SECC) from September 25th to 28th. This year, VTG will be joined by the Vietnam International Textile & Apparel Accessories Exhibition (VITATEX), the Vietnam International Dyeing & Chemical Industry Exhibition (DYECHEM), and the Vietnam International Footwear Machinery and Material Exhibition (VFM), creating a comprehensive showcase of the related industry supply chain.

The prestigious 4-in-1 exhibitions are a collaborative effort by Vinexad National Trade Fair & Advertising JSC and Yorkers Trade & Marketing Service Co., Ltd., co-hosted by the Guangdong Sewing Equipment Chamber of Commerce, Guangdong Shoe-Making Machinery Association, and Paper Communication Exhibition Services. The event is also supported by esteemed associations, including the Vietnam Cotton & Spinning Association (VCOSA), the Association of Garment-Textile-Embroidery-Knitting in HCM City (AGTEK), the Vietnam Association of Mechanical Industry (VAMI), and the Ho Chi Minh City Shoes and Leather Association (SLA).

Open up trade cooperation opportunities

More than 380 exhibitors from 10 countries and regions, including Chile, China, Hong Kong, India, Japan, Singapore, South Korea, Taiwan, Thailand, and Vietnam, will come together under one roof at VTG 2024. With a strong focus on factory digitalization and a diverse range of fabric offerings, the exhibition aims to propel Vietnam's textile industry towards digital transformation while meeting varied fabric demands. Industry professionals will have the unique opportunity to explore these innovations firsthand across 15,000 square meters of exhibition space.

This year, VTG will highlight key industry leaders across various machinery segments, including TAJIMA, SANSIN, EPSON (THN), HAPPY JAPAN, and VIET TIEN TUNG SHING. These notable participants will play a crucial role in global knowledge exchange, strengthening local industry expertise, and improving garment production efficiency, showcasing the latest trends and innovations.

VTG 2024 serves not only as an exhibition focused on the textile and garment supply chain but also as a pivotal platform for fostering trade and technological innovation. This event facilitates professional exchanges and acts as a catalyst for the transformation of the entire industry, propelling Vietnam further along its path of modernization and sustainable development. Ultimately, it plays a crucial role in advancing the growth of the Vietnamese textile and garment sector.

According to the Vietnam National Textile and Garment Group (VINATEX), Vietnam has been recognized as a market economy by 73 countries. This acknowledgment is significant, especially as Vietnam seeks further recognition from its trade partners, despite the United States announcing on August 2 that it has not granted such status to Vietnam. Leaders in the textile and garment industry have noted that political instability in Bangladesh has created opportunities for order shifting toward countries like Vietnam. This window of opportunity is expected to last until the end of 2024, after which the competitive landscape will return to focus on each country's unique strengths in production.

Furthermore, Vietnam's textile and garment export turnover has shown promising growth in August and over the first eight months of 2024. To capitalize on these opportunities, Vietnamese textile and garment enterprises must develop clear strategies to deepen their integration into the supply chain and enhance their position in the international market as reliable suppliers committed to product quality, flexibility, and timely delivery.

Textile and Garment Exports Flourish

In the past eight months, Vietnam's total textile and garment export turnover reached $28.32 billion, reflecting a 6.19% increase compared to the same period in 2023. Key markets such as the United States, Europe, Japan, South Korea, and China continue to show growth, while emerging markets like ASEAN, Russia, and Canada present promising opportunities for businesses to enhance production and export activities. Currently, domestic textile and garment enterprises are receiving positive order signals. Notably, Vietnam is the only country among the world's four largest textile and garment exporters that has seen an increase in market share. Specifically, the U.S. market share rose from 17.6% to 18.3%, solidifying Vietnam's position as a leading supplier. Despite a decline in textile imports to Europe by approximately 5.5%, Vietnam has managed to maintain a market share of about 4.4% in this region (Source: General Information Portal of the Central Economic Committee).

VITATEX will showcase the latest advancements in fabrics, yarns, and accessories, presenting a comprehensive array of textile solutions. With domestic production fulfilling only 25% of Vietnam's fabric demand, the industry continues to rely heavily on imports. This year's exhibition will feature leading international manufacturers such as MORIRIN, T&S, CELEB, KINGSAFE, JAY JAY, and TOP ONE, who will display a diverse selection of high-quality fabrics specifically tailored to meet the evolving needs of the industry.

According to the Ministry of Industry and Trade of Vietnam, the global footwear market was valued at approximately $384.2 billion in 2020 and is projected to grow to $440 billion by 2026, reflecting an average annual growth rate of 2.3% during this period. Vietnam currently ranks as the third-largest footwear producer in the world, following China and India, and is the second-largest exporter, with an export turnover of nearly $24 billion in 2023. The country is targeting an export goal of $26 to $27 billion for 2024 (Source: Vietnam Leather, Footwear and Handbag Association).

Information from the Ministry of Industry and Trade of Vietnam, the global footwear manufacturing machinery market, estimated valued at US$ 21.6 billion in 2023, is projected to reach US$ 31.0 billion by 2032, driven by rising footwear demand influenced by lifestyle and fashion trends. With a forecasted CAGR of 4% from 2024 to 2032, the demand for efficient production machinery is set to grow. In response to this positive outlook and anticipated economic recovery, VFM is making a strong return. This year, key industry players like XINGRUIGANG, ZENGYANG, LUXING, and others will showcase cutting-edge solutions—from footwear machinery to computer pattern sewing machines—focused on driving Industry 4.0 transformation in footwear manufacturing.

In 2024, the global dyes and chemicals market plays a critical role in fabric coloration across sectors like apparel, automotive, and protective clothing. With the rapid expansion of the textile industry, demand for dyes and pigments is soaring. Environmental sustainability, especially in dyeing processes, is a priority. DYECHEM will feature international exhibitors, including NANJING GOLDEN CHEMICAL, SHREE PUSHKAR, and ELKEM SILICONE, showcasing eco-friendly dyeing solutions to help Vietnam's textile industry meet stringent EU ESG standards.

From September 25th to 27th, seminars will feature industry leaders discussing crucial topics, including technological advancements, automation, and sustainability in Vietnam's textile industry. Key discussions will cover the circular economy, sustainable development, global supply chain integration, Vietnam’s economic outlook for footwear, and strategies to enhance industry value through high-impact fabric supply chains. These sessions will offer valuable insights to address current challenges and capitalize on future opportunities in the global market.

My Chau (Vietnam Business Forum)