Growth Driven by New-Generation FTAs
The Rise of Vietnam in Global Trade
Since joining the World Trade Organization (WTO) in 2007, Vietnam has harnessed the power of new-generation Free Trade Agreements (FTAs) to significantly bolster its presence in international trade. By the end of 2025, Vietnam will have emerged as one of the world’s 15 largest trading economies. This impressive growth showcases the nation’s ability to forge trade links with over 230 markets globally. Notably, Vietnam has signed 17 FTAs with 65 countries and territories, establishing it as a leader in FTA participation.
Economists emphasize that these FTAs are not just formal agreements; they comprise deep and comprehensive commitments vital for Vietnam’s market access. They encourage institutional reform and enhance the country’s competitiveness on the global stage.
Sector Spotlight: Textile and Garment
A prime example of effective FTA utilization is Vietnam’s burgeoning textile and garment sector. According to Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS), agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union-Vietnam Free Trade Agreement (EVFTA) have unlocked new opportunities. These FTAs have propelled the industry’s reach to 138 countries and territories.
Thanks to this expansion, Vietnam’s textile and garment export turnover is projected to hit $46 billion by 2025—a year-on-year increase of 5.6%. Remarkably, the sector achieved a trade surplus of $21 billion, underscoring its pivotal role in maintaining the national trade balance.
Impressive Trade Milestones
Vietnam’s total trade value in 2025 is projected at $920 billion, marking a substantial increase of more than $133 billion or 16.9% compared to 2024. This remarkable achievement places Vietnam firmly among the world’s top trading nations, highlighting its adeptness in global integration and enhancing its export competitiveness.
Vietnam: A New Focal Point in Global Supply Chains
Emerging as a crucial player in global supply chains, Vietnam boasts advantages such as robust production capacity, a skilled workforce, investment stability, and swift integration into global markets. Its 17 bilateral and multilateral FTAs facilitate access to lucrative markets like the United States, Europe, Japan, and the Middle East. Global Sources, a leading sourcing platform, recognizes this shift, particularly highlighted at the “Global Sourcing Outlook 2025” forum in Ho Chi Minh City in November 2025.
Restructuring Exports for Sustainable Growth
As global trade undergoes significant restructuring, Vietnam is transitioning into a new growth phase. Traditional drivers such as low-cost labor and natural resources are nearing their limits, necessitating a fresh momentum to sustain integration, competitiveness, and high-quality growth.
Exports constitute one of the three core pillars of Vietnam’s economy, joined by domestic consumption and public investment. Dr. Tran Du Lich, Chairman of the Advisory Council for implementing the National Assembly’s Resolution 98/2023, notes that despite impressive growth of around 8% amid global challenges, Vietnam confronts longstanding structural issues, particularly the low localization rate in exports.
While Vietnam’s position as a major trading power is evident through its expanding production capacity and competitiveness of goods, experts stress the necessity for continuous upgrades in technology and product quality to enhance market access capabilities.
Shifting the Focus on Domestic Value Addition
The current goal for Vietnam isn’t merely to boost export turnover; it’s crucial to increase the domestic value-added share as well. Achieving a localization rate of 40-50% domestically sourced goods would significantly strengthen growth and bolster domestic enterprises.
The textile and garment industry has made strides in this direction, with the domestic value-added ratio climbing to approximately 52% by 2025. This reflects considerable progress in sourcing raw materials and components domestically. VITAS reports that businesses are increasingly focusing on utilizing domestic raw materials and investing in textile processes. This investment extends to renewable energy and the adoption of wastewater and chemical recycling technologies—all aligned with the origin requirements set forth in new-generation FTAs.
Strategic Goals for the Textile Industry
With a forward-looking strategy emphasizing “green transition and digital transformation,” Vietnam’s textile industry aims to elevate its localization rate to 60% and increase export value to between $64.5 billion and $65 billion by 2030. This vision positions Vietnam to sustain growth and remain a leading player among the world’s top textile and garment exporters.
By focusing on these strategic goals, Vietnam not only leverages its FTA network but also aims to ensure that its growth story continues in a sustainable manner, marking an exciting chapter in its economic journey.