Vietnam has surpassed China as the top exporter of clothing to the US in the first seven months of 2025 due to changes in trade patterns brought about by US tariffs, according to fDi Intelligence.
Data from the US Office of Textiles and Apparel shows that between January and July 2025, the US imported almost US $9.5 billion worth of clothing from Vietnam, a 17.5% increase over the same period in 2024. In the same time frame, Chinese imports fell 21% to US $6.9 billion.
In the first seven months of 2025, Vietnam's share of US apparel imports increased to 20.6%, the highest percentage ever noted for a comparable time frame. China's share, on the other hand, has continued to drop, from its peak of 40% in 2010 to 15% now.
Low labor costs, enhanced US connectivity, and strategic foreign direct investment all contribute to Vietnam's competitive advantage.
More than any other country in the region, Vietnam has drawn 65 greenfield FDI projects worth over US $4.6 billion in textile manufacturing since 2018. However, Chinese-backed companies are largely responsible for Vietnam's textile capacity expansion.
A new US directive that threatens to restrict transshipment practices adds to the uncertainty. Sheng Lu, an associate professor at the University of Delaware, cautioned that Vietnam's exporters who rely on Chinese input may face significant difficulties if the US government were to tie transshipment regulations to origin requirements.
The demand for Vietnamese clothing is still high in spite of these obstacles. In the week ending September 28, bookings of 20-foot containers of knitted clothing from Vietnam to the US reached a record high of 9,027, according to data from Vizion TradeView.
Analysts predict that Vietnam's trend as a center for the export of clothing will continue, albeit with growing demands for supply-chain sustainability, resilience, and transparency.
More than 80% of respondents to a survey of 25 US fashion brands conducted between April and June 2025 said they plan to further reduce the amount of clothing they source from China by 2027.
Vietnam's rise in the US market highlights a larger realignment of global apparel supply chains as trade patterns change, influenced by trade policy, tariffs, and the need to reduce risk.
