Vietnam has overtaken China as the leading exporter of apparel to the United States in the first seven months of 2025, driven by shifting trade flows in response to US tariffs, reports fDi Intelligence.
According to data from the US Office of Textiles and Apparel, the United States imported nearly US $ 9.5 billion worth of apparel from Vietnam between January and July 2025, a rise of 17.5% compared to the same period in 2024. Meanwhile, imports from China declined by 21% to US $ 6.9 billion during the same interval.
Vietnam’s share of US apparel imports climbed to 20.6% in the first seven months of 2025 — the highest share ever recorded for a comparable period. In contrast, China’s share has continued to decline, falling to 15%, down from its 2010 peak of 40%.
Vietnam’s competitive edge is reinforced by a combination of low labour costs, improved connectivity with the US, and strategic foreign direct investment. Since 2018, Vietnam has attracted 65 greenfield FDI projects in textiles manufacturing, valued at over US $ 4.6 billion, more than any other country in the region. However, much of the expansion in Vietnam’s textile capacity is linked to Chinese-backed firms.
Compounding the uncertainty, a new US directive threatens to curb transshipment practices. Associate Professor Sheng Lu at the University of Delaware warned that should the US government link transshipment rules with origin requirements, substantial challenges could emerge for Vietnam’s exporters dependent on Chinese input.
Despite these headwinds, demand for Vietnamese apparel remains strong. Data from Vizion TradeView indicates that bookings of 20-foot containers of knitted apparel from Vietnam to the US surged to a record high of 9,027 in the week ending 28th September.
Looking ahead, observers believe that Vietnam’s trajectory as an apparel export hub will continue, but with increasing demands for supply-chain resilience, sustainability, and transparency.
A survey of 25 US fashion brands, conducted between April and June 2025, revealed that more than 80% of respondents intend to further reduce their apparel sourcing from China by 2027.
As trade patterns evolve, Vietnam’s ascent in the US market underscores a broader realignment of global apparel supply chains, shaped by tariffs, trade policy, and the imperative for risk mitigation.
