Vietnam T-shirt Market Outlook to 2030

Vietnam T-shirt Market Overview

• The Vietnam T-shirt market is valued at USD 161 million, driven by multiple factors, including increased demand for affordable, casual apparel and a growing e-commerce sector. The market’s steady expansion is primarily attributed to the rise in disposable incomes and the younger population's preference for trendy, casual fashion. Government initiatives supporting the textile sector have also contributed to the growth of local manufacturing and exports.
• Key cities such as Ho Chi Minh City and Hanoi dominate the market due to their dense populations, higher purchasing power, and the presence of numerous retail outlets and international fashion brands. These cities are home to robust distribution networks, making them central hubs for both domestic and international T-shirt manufacturers.
• The Vietnamese government has laid out a comprehensive plan to boost its textile industry, focusing on modernizing production and improving labour conditions. The "Textile and Garment Industry Development Strategy to 2030" targets investments in technology upgrades, eco-friendly practices, and increased productivity. In 2023, the government allocated USD 1.5 billion to support the textile sector through infrastructure development and training programs for workers. This initiative aims to strengthen Vietnam’s position as a global hub for apparel manufacturing, including T-shirt production, by fostering both domestic and export growth.

Vietnam T-shirt Market Segmentation

• By Product Type: Vietnam’s T-shirt market is segmented by product type into Crew Neck T-shirts, V-Neck T-shirts, Polo T-shirts, and Henley T-shirts. Crew Neck T-shirts hold a dominant market share because of their universal appeal, comfort, and affordability. Popular among various age groups and both genders, Crew Neck T-shirts are favoured for their versatile nature, making them a wardrobe staple. The rise of casual wear across all social segments in urban areas further drives demand for this product type.

• By Material Type: The market is segmented by material type into Cotton, Polyester, Blended Fabric, and Organic Cotton. Cotton T-shirts dominate due to their breathability, comfort, and environmental appeal. Cotton’s natural fabric qualities make it the go-to choice for Vietnam’s tropical climate, especially during the summer months. Growing consumer preferences for eco-friendly materials and sustainability have also boosted the demand for organic cotton T-shirts, although their premium price keeps their market share limited.

Vietnam T-shirt Market Competitive Landscape

The Vietnam T-shirt market is dominated by a mix of domestic and international players, including established brands like Canifa and international retailers such as Uniqlo and Giordano. These companies leverage their strong retail presence and brand equity to maintain a competitive advantage. The rise of local e-commerce platforms has also allowed smaller players to gain traction.

Vietnam T-shirt Market Analysis

Vietnam T-shirt Market Growth Drivers

• Increasing Demand for Casual Wear: The demand for casual wear, including T-shirts, has surged in Vietnam due to lifestyle changes, urbanization, and a growing middle class. In 2022, Vietnam's urban population reached 38.2 million, with increasing disposable income leading to a shift toward comfortable clothing like T-shirts for everyday use. As the workforce expands, with 56 million people employed as of 2024, the demand for casual clothing continues to rise, driven by a younger demographic who prioritize comfort and style in their attire choices. The average annual income per capita is projected to be USD 3,900, contributing to higher spending on casual fashion items such as T-shirts.
• Rising Fashion Consciousness: Fashion consciousness among the Vietnamese youth has been on the rise, with around 55% of the population being under the age of 35. This younger demographic is increasingly influenced by global fashion trends. The expanding social media penetration rate, which stands at over 72.3% of the population, has amplified exposure to fashion influencers and global apparel trends. This is contributing to a substantial rise in demand for fashionable T-shirts in urban areas such as Ho Chi Minh City and Hanoi, where young consumers frequently seek out the latest styles.
• E-commerce Penetration: E-commerce has become a major growth driver in the Vietnam T-shirt market. The Ministry of Industry and Trade reports that Vietnam's e-commerce revenue in 2024 is expected to reach USD 24 billion, up from USD 16 billion in 2022. With around 74% of the population actively using the internet, online shopping for apparel, particularly T-shirts, has become more accessible and convenient. T-shirts are among the top-selling categories on platforms such as Shopee, Lazada, and Tiki, attracting both domestic and international brands looking to tap into the Vietnamese consumer market.

Vietnam T-shirt Market Challenges

• Volatile Raw Material Prices: Volatile prices of raw materials, especially cotton, are a major challenge for the T-shirt market in Vietnam. The global cotton price has fluctuated dramatically in recent years, with prices reaching up to USD 1.50 per pound in 2022 due to supply chain disruptions. Vietnam, which imports approximately 80% of its raw materials for textile production, faces considerable cost pressures, particularly for T-shirt manufacturers. These fluctuations are compounded by the reliance on imports from markets like China and India, affecting profit margins for local businesses.
• Competition from International Brands: The local T-shirt market is highly competitive, with a growing presence of international brands such as Zara, H&M, and Uniqlo. These global players leverage strong supply chains and brand recognition, offering products at competitive prices. In 2023, it was estimated that foreign apparel brands accounted for 45% of the total fashion retail market in Vietnam, intensifying competition for local T-shirt manufacturers and retailers. Local businesses must constantly innovate and differentiate their offerings to compete with these established brands.

Vietnam T-shirt Market Future Outlook

Over the next five years, the Vietnam T-shirt market is expected to experience growth driven by the rising popularity of fast fashion, increasing e-commerce penetration, and a shift towards eco-friendly clothing options. The country's strategic positioning as a textile manufacturing hub in Southeast Asia is anticipated to attract further foreign investment, leading to enhanced production capacity and innovation. Additionally, the growing influence of sustainability-conscious consumers is likely to increase demand for organic cotton and recycled materials in T-shirt production. The integration of technology, such as custom-tailored T-shirts through online platforms, could also create new opportunities for brands to differentiate themselves in a competitive landscape.

Vietnam T-shirt Market Opportunities

• Adoption of Sustainable Fabrics: The rising demand for eco-friendly apparel provides a strong growth opportunity for Vietnam's T-shirt market. With global awareness of sustainability increasing, Vietnam is witnessing a shift toward the production of organic cotton, bamboo, and recycled polyester fabrics. Vietnam has exported nearly USD 3.5 billion worth of sustainable textiles in 2023, and this trend is likely to continue as more brands commit to eco-friendly practices. The government’s recent "Green Industry Development Plan" also incentivizes companies to adopt sustainable manufacturing processes, positioning Vietnam’s T-shirt sector for future growth.
• Growth in Customization and Personalization: The demand for customized and personalized T-shirts is growing as consumers seek unique apparel that reflects their style. In 2023, Vietnam saw an increase in demand for custom T-shirts, with many online platforms offering personalized printing services. Small and medium-sized businesses (SMBs) in the textile industry are increasingly adopting digital printing technologies to cater to this demand. The growth in demand for customized apparel is further supported by the expanding e-commerce sector, which provides platforms for small businesses to reach a broader audience.