Vietnam’s textile and apparel (T&A) exports to Canada are projected to surpass $1.3 billion in 2025, marking a robust 10 per cent Y-o-Y growth. This growth is underpinned by a structural shift toward ‘closed-loop’ production models that satisfy the strict ‘yarn-forward’ rules of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). By securing raw materials from member states - including cotton from Brazil and Australia - Vietnamese manufacturers are successfully neutralizing the 17–18 per cent import duties that previously hindered competitiveness, effectively doubling export value since 2018.
Industrial expansion and direct partnership models
To capitalize on this trajectory, major players like Viet Hong Textile Dyeing JSC are aggressively scaling operations. The firm is expanding its denim production capacity from 1.2 million to 2 million meters per month to meet North American demand. Simultaneously, Bao Minh Textile JSC is leveraging its fully integrated manufacturing chain to penetrate the high-end woven fabric segment. Industry leaders are now moving beyond the traditional OEM model, seeking direct partnerships with Canadian retailers to eliminate third-party branding costs and deepen vertical integration within the global value chain.
Infrastructure hubs and regional logistics
The sector’s growth is further bolstered by Canadian capital flowing into Vietnamese manufacturing hubs. Investors are increasingly utilizing Vietnam as a strategic distribution base for the Asia-Pacific region, rather than just a low-cost sourcing site. Despite logistical hurdles and rising transportation costs, the recognized compliance and high technical standards of Vietnamese facilities have solidified the nation's position as a reliable, high-margin partner in a diversifying global supply ecosystem.
Vietnam’s textile sector specializes in high-standard denim, yarn, and woven fabrics, primarily serving North American and EU markets. Growth plans center on maximizing CPTPP tariff exemptions through domestic material sourcing and technological upgrades. With 2026 export targets aiming for a 12 per ecnt increase, the industry is transitioning from a commodity supplier to a sustainable, high-value global manufacturing hub.
