Despite the escalating conflict in the Middle East disrupting global supply chains, Vietnam's textile and garment industry continues to show positive signs, with its export earnings surpassing $8.8 billion in the first quarter of 2026, a 1.9% increase compared to the same period in 2025. This serves as a testament to the agility of Vietnamese enterprises in proactively securing orders in advance.

Many business enterprises have already secured orders extending through the end of the third quarter of 2026. Free Trade Agreements (FTAs) such as the EVFTA and CPTPP continue to serve as a "launching pad," helping Vietnamese products maintain tariff advantages in traditional markets like the EU and Japan.

To achieve these figures, businesses have modified supply terms, shared transportation risks with partners, and diversified their transportation methods, including the use of intermodal rail in Europe. Furthermore, emphasis has been placed on increasing the proportion of domestically or regionally sourced raw materials to reduce reliance on external supply sources.

However, according to the Vietnam Textile and Garment Association (VITAS), despite positive growth figures, the textile and garment industry is under immense pressure due to rising transportation costs caused by conflicts in the Middle East and the situation in the Red Sea. Shipping companies are being forced to reroute their vessels around the Cape of Good Hope, resulting in transit times of 14 to 20 days for goods to reach the European Union and the United States. Container shipping rates to the U.S. East Coast have surged to between $2,000 and $4,000.

For this, the Vietnam Textile and Garment Association has recommended that business enterprises proactively adjust their strategies in light of the ongoing and complex conflict in the Middle East. Rather than placing excessive reliance on the Red Sea shipping lanes, businesses must diversify their markets and supply sources. To mitigate logistics costs, they should strengthen their utilization of intra-regional ASEAN markets and neighboring countries. The key to groundbreaking success lies in "greenification"; investing in sustainable standards (ESG) and traceability is no longer an optional choice, but rather a mandatory prerequisite for gaining access to high-standard markets such as the European Union.

Artificial Intelligence (AI) and automation are being implemented to boost productivity and mitigate rising transportation costs. The textile and garment industry is actively working to secure domestic raw materials; this includes increasing investment in centralized textile and dyeing industrial zones to boost localization rates, reduce reliance on imports, and mitigate geopolitical risks. Furthermore, flexibility is being demonstrated in negotiations to alleviate financial burdens, such as renegotiating shipping terms (shifting from CIF to FOB sales) or sharing freight-related risks with partners.

Regarding long-term strategy, Truong Van Cam, Vice Chairman of VITAS, noted that as global demand for textiles and garments grows at a modest annual rate of just 2–3%, competition among exporting nations is becoming increasingly intense. The Vietnamese textile and garment industry cannot sustain its current trajectory by prioritizing quantity over quality.

Consequently, rather than focusing solely on maintaining orders, Vietnam's textile and garment enterprises are shifting their strategies toward increasing product value-addition and investing in technology; a key solution in this regard is the vigorous development of domestic sources for raw materials and components. Reducing reliance on imported goods not only helps businesses optimize production costs but also serves as a prerequisite for meeting the stringent rules of origin requirements stipulated in new-generation free trade agreements, thereby enabling them to maximize tariff benefits and enhance their competitiveness in the international market.