In-depth market research for 2026 paints a picture of a comprehensive restructuring for Vietnam's Textile and Fashion industry. No longer merely a “cheap processing factory”, Vietnam is entering a fierce transformation phase to move up to higher rungs of the Global Value Chain [2]. Below are detailed analyses based on consolidated data.

The fact that export turnover reached the mark of $48 billion (up 8.5% compared to 2024) amidst a global inflation that has only just cooled down is a remarkable feat. This recovery comes not only from the natural growth of global purchasing power, but largely from the model shifting efforts of domestic enterprises. Delving into the production structure, data from VITAS [1] shows a clear change:

In the European (EU) and North American markets, “Sustainability” is no longer just a PR marketing slogan. It has officially become a mandatory “passport” for goods to be allowed for import [2].

From 2026, the EU officially launches the Digital Product Passport regulation. Accordingly, each garment product exported to this region must be attached with a QR code or NFC chip. This code stores all transparent data about the product lifecycle: From proving the origin of cotton fiber (no forced labor), the amount of water and chemicals emitted during the fabric dyeing stage, to the Carbon Footprint index during customs transportation. Vietnamese textile factories that are slow to upgrade ESG-compliant machinery systems and Blockchain-based traceability systems are facing the risk of being completely eliminated from this billion-dollar market supply chain.

With an expected scale reaching 7.2 billion USD, Vietnam's domestic market is fertile ground where fierce competition takes place to win the attention of Gen Z and Millennials. According to an in-depth report on consumer behavior from NielsenIQ [4]:

Domestic fashion brands (Local Brands) such as Levents, DirtyCoins, or Coolmate have broken the monopoly of international Fast Fashion brands in Vietnam. Their core weapon advantage lies in the model of Agile Supply Chain (Agile Supply Chain). Instead of taking 3-6 months for a collection as traditional, Local Brands have the ability to catch a “Trend” on TikTok, create design drawings, produce small batches, and put products on Livestream shelves (Shopee/TikTok Shop) in just 10 to 14 days. The combination of superior speed, accessible pricing, and localized street-style design culture helped Local Brands capture 45% of the market share in 2026.

To meet the pressure of speed and user experience, the application of Artificial Intelligence (AI) and graphic technology at Vietnamese fashion companies has reached a tipping point. This is the biggest differentiator in operational performance [2].

In summary, the picture of Vietnam's fashion industry in 2026 no longer depends on cheap labor. The champions of the new decade are enterprises that possess supply chain flexibility, understand big data, are proficient in AI technology, and strictly comply with global sustainable circular economy standards.