Vietnam Engineered Fabrics Market Report: Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025-2030

Vietnam Engineered Fabrics Market valued at USD 1.3 Bn, driven by demand in automotive, healthcare, and construction, with trends in sustainable and high-performance textiles.

The Vietnam Engineered Fabrics Market is valued at USD 1.3 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for high-performance textiles across industries such as automotive, healthcare, and construction. Recent trends highlight a surge in sustainable textile production, digital transformation in manufacturing, and the integration of advanced technologies to improve efficiency and product quality. The focus on eco-friendly fabrics and circular manufacturing models is further accelerating market expansion.

Key cities such as Ho Chi Minh City and Hanoi continue to dominate the Vietnam Engineered Fabrics Market due to their robust industrial infrastructure and proximity to major manufacturing hubs. These cities benefit from a skilled workforce and favorable government policies that encourage investment in textile production. Recent large-scale investments, such as the development of high-tech and circular textile complexes in Binh Dinh province, further reinforce Vietnam’s position as a leading textile manufacturing destination.

The Circular Economy Development Strategy under Decision No. 687/QD-TTg issued by the Prime Minister in 2022 mandates the adoption of eco-friendly materials and sustainable practices in Vietnam’s textile industry. This regulation requires textile manufacturers to implement waste management, resource conservation, and environmental standards, with compliance monitored through periodic reporting and certification. The policy aims to reduce the ecological footprint of textile operations and promote green growth in the sector.

Vietnam Engineered Fabrics Market Segmentation

By Type:

The engineered fabrics market is segmented into non-woven fabrics, woven fabrics, knitted fabrics, coated fabrics, laminated fabrics, specialty fabrics, composite fabrics, smart/functional fabrics, and others. Non-woven fabrics are currently leading the market, driven by their versatility and widespread applications in hygiene products, medical textiles, and geotextiles. The demand for non-woven fabrics is supported by their cost-effectiveness, rapid production cycles, and the growing need for disposable products in healthcare and consumer goods. The adoption of sustainable and recycled materials in non-woven production is also gaining traction among manufacturers.

By End-User:

The end-user segmentation of the engineered fabrics market includes automotive, construction & infrastructure, healthcare & medical, consumer goods & apparel, industrial (filtration, packaging, etc.), aerospace & defense, agriculture, and others. The healthcare & medical segment is the dominant end-user, driven by sustained demand for medical textiles such as surgical gowns, masks, and protective equipment. The pandemic accelerated this trend, and ongoing investments in healthcare infrastructure and hygiene standards continue to support high consumption of engineered fabrics in this segment. The automotive and construction sectors are also expanding their use of advanced fabrics for lightweighting, safety, and durability.

Vietnam Engineered Fabrics Market Competitive Landscape

The Vietnam Engineered Fabrics Market is characterized by a dynamic mix of regional and international players. Leading participants such as Vietnam National Textile and Garment Group (Vinatex), Garment 10 Corporation JSC (Garco 10), Dong Phu Rubber Joint Stock Company, An Phat Holdings, Tien Son Thanh Hoa Textile and Garment JSC, Binh Minh Plastic Joint Stock Company, Phu Bai Spinning JSC, Nam Dinh Textile Garment Joint Stock Corporation (Natexco), Saigon 3 Garment Joint Stock Company, Hoa Tho Textile and Garment JSC, Viet Tien Garment Corporation, Thanh Cong Textile Garment Investment Trading JSC, Binh Duong Textile & Garment JSC, Huu Nghi Textile Joint Stock Company, Dinh Vu Industrial Zone Investment JSC contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam Engineered Fabrics Market Industry Analysis

Growth Drivers

Increasing Demand for Sustainable Materials:

The Vietnamese engineered fabrics market is witnessing a surge in demand for sustainable materials, driven by a global shift towards eco-friendly products. In future, the market for sustainable textiles is projected to reach approximately $1.5 billion, reflecting a 20% increase from the previous year. This growth is supported by government initiatives promoting sustainable practices, with the Ministry of Industry and Trade allocating $200 million for green technology investments in the textile sector, enhancing the appeal of eco-friendly fabrics.

Expansion of the Textile Industry:

Vietnam's textile industry is projected to grow significantly, with an expected output of $45 billion in future, up from $40 billion in the previous year. This expansion is fueled by increased foreign direct investment, which reached $3.5 billion in the previous year, as companies seek to capitalize on Vietnam's competitive labor costs and favorable trade agreements. The growth of the textile sector directly boosts the demand for engineered fabrics, creating a robust market environment.

Government Support for Manufacturing:

The Vietnamese government is actively supporting the manufacturing sector, particularly textiles, through various incentives. In future, the government plans to invest $500 million in infrastructure improvements, including transportation and logistics, to enhance manufacturing efficiency. Additionally, tax incentives for textile manufacturers are projected to save the industry approximately $150 million annually, fostering a conducive environment for the growth of engineered fabrics.

Market Challenges

Intense Competition:

The engineered fabrics market in Vietnam faces intense competition, with over 1,200 registered textile manufacturers vying for market share. This saturation leads to price wars, reducing profit margins for companies. In future, the average profit margin in the textile sector is expected to decline to 5%, down from 7% in the previous year, as companies struggle to differentiate their products in a crowded marketplace, impacting overall market stability.

Fluctuating Raw Material Prices:

The volatility of raw material prices poses a significant challenge for the engineered fabrics market. In future, cotton prices are projected to fluctuate between $1.20 and $1.50 per pound, influenced by global supply chain disruptions and climate change impacts. This unpredictability can lead to increased production costs, forcing manufacturers to either absorb losses or pass them onto consumers, which may hinder market growth and competitiveness.

Vietnam Engineered Fabrics Market Future Outlook

The future of the Vietnam engineered fabrics market appears promising, driven by a growing emphasis on sustainability and technological advancements. As consumer preferences shift towards eco-friendly products, manufacturers are likely to invest in innovative fabric technologies. Additionally, the expansion of e-commerce platforms is expected to facilitate market access, allowing companies to reach a broader customer base. These trends indicate a dynamic market landscape, with opportunities for growth and adaptation in response to evolving consumer demands and technological advancements.

Market Opportunities

Growth in E-commerce:

The rise of e-commerce in Vietnam presents a significant opportunity for engineered fabrics. In future, online retail sales are projected to reach $16 billion, up from $14 billion in the previous year. This growth allows manufacturers to directly reach consumers, enhancing brand visibility and sales potential, particularly for niche eco-friendly products that cater to environmentally conscious buyers.

Innovations in Fabric Technology:

Advancements in fabric technology, such as smart textiles and moisture-wicking materials, are creating new market opportunities. In future, the smart textiles segment is expected to grow by 15%, driven by increasing demand in sectors like sports and healthcare. This innovation not only enhances product offerings but also positions manufacturers to meet the evolving needs of diverse industries, driving overall market growth.