The European Union (EU) is one of the most important markets for global trade, offering significant opportunities for Vietnamese businesses, especially in the textile and garment sector.
The EU is a top destination for exporters and currently ranks as the third-largest export market for Vietnam’s textile and garment industry. The EU accounts for 10.3% of Vietnam’s total textile and garment exports to major markets in 2024.
This indicates that the EU is an important market for Vietnam’s textile and garment industry. However, its share remains lower than that of the USA (40%) and Japan (15%). With the EVFTA agreement, Vietnamese businesses have the opportunity to further expand their market share in the EU, benefiting from tariff reductions and the increasing demand for high-quality, sustainable textile products.
However, this market is experiencing slow growth due to an incomplete recovery from global economic fluctuations, leading to reduced consumer demand. Export orders to the EU are often of smaller value but come with strict requirements for delivery time and product quality, posing challenges for businesses.
Additionally, fluctuating transportation costs and unstable international trade policies continue to exert pressure on exporters. However, this also presents an opportunity for Vietnamese businesses to increase their market share due to the shifting of orders from competitors such as Bangladesh. Although Europe’s economic recovery remains slow and fraught with challenges, this is still a crucial time for Vietnamese textile and garment enterprises to seize the opportunity to expand their market share. Investing in product quality, sustainable production, and modern technology will not only help businesses meet current demands but also establish a strong long-term position in the European market.
To succeed in the EU market, businesses need to thoroughly understand the rules of origin under the EVFTA and stay updated on new EU regulations. They must also ensure compliance with the EU’s increasingly stringent social and environmental standards, and proactively develop high-quality, eco-friendly domestic materials to reduce reliance on imports. Investing in supply chains, modern technology, and transitioning to clean energy are also crucial factors in meeting energy efficiency requirements. By focusing on sustainability, quality, and strategic partnerships, Vietnamese exporters can establish a strong presence in the European market.
As one of Vietnam’s leading garment manufacturers and exporters, TLD Apparel is committed to meeting the stringent standards of the EU market. With our team of seasoned experts, and a strong commitment to quality, and sustainability, we continuously innovate to deliver high-quality products, helping our clients succeed in this highly competitive market.
We understand that to thrive in the EU, businesses must comply with EVFTA rules of origin, adhere to strict social and environmental standards, and develop sustainable raw material sources. TLD Apparel has been actively investing in supply chain improvements, clean energy, and eco-friendly materials to meet the growing demands of the European market.