VGT

Vietnam's Q1 exports grew strongly, but maintaining this momentum is challenging due to rising fuel, transport, and input costs caused by the Middle East conflict. This has led to higher selling prices, reduced new export orders, and calls for government support for affected businesses.

Vietnamese textile and garment businesses are facing significant challenges including weak global demand, rising logistics and raw material costs, shrinking profit margins, and increasing policy risks. The industry is urged to restructure, increase localization, invest in technology, and diversify markets to maintain its global position amidst 'dripping' orders.

Vietnamese textile and garment businesses are struggling with significantly increased raw material and shipping costs due to Middle East conflicts, compounded by weak global demand and intense competition. This major export sector faces unstable orders and reduced profitability, with these challenges projected to persist into 2026.