Vietnam's Textile Sector Faces EU Growth Potential with Focus on Sustainability and Compliance

Vietnam's potential to expand its textile exports to the EU has been valued at €4.5 billion in 2023. While the EU-Vietnam Free Trade Agreement (EVFTA) reduces import taxes, Vietnamese companies must meet strict EU sustainability regulations. European buyers are prioritizing transparency, carbon reduction, and labor conditions. To stay competitive, Vietnam must shift from fast growth to sustainable practices, invest in clean energy, improve domestic supply chains, and adapt to the EU’s evolving textile strategy.