Vietnam's Towel Market 2026: Scale, Production Clusters and Opportunities for Importers

Vietnam's Towel Market 2026: Scale, Production Clusters and Opportunities for Importers

2026-09-08 ANODA 2 min read

Vietnam is now one of the largest sources of cotton towels in Southeast Asia. According to CRI's 2025 research report on Vietnam's towel exports, total cotton towel export turnover reached roughly USD 280 million in 2024, within a textile and garment industry whose total exports exceeded USD 44 billion the same year. Key export markets include the United States, Japan, South Korea and China — with Japan and South Korea being the two largest destinations for Vietnamese towels.

In the first half of 2025, Vietnam's textile and garment exports reached nearly USD 22 billion, up about 10% year-on-year (Vinatex data). Despite the tariff shock of April 2025 — when the US announced reciprocal tariffs of up to 46% (later paused for 90 days and settled at 20%) — textile orders recovered, and the full-year target of roughly USD 450 billion in total industry exports underscores Vietnam's growing position.

In terms of production structure, Vietnamese towels concentrate in two main clusters. The northern cluster: the Phuong La craft village (Hung Yen, formerly part of Thai Binh) with over 100 years of towel-weaving history, home to dozens of vertically integrated weaving - dyeing - finishing factories, many certified to OEKO-TEX Standard 100 and exporting directly to Japanese and Korean brands. The southern cluster: FDI factories around Ho Chi Minh City, Binh Duong and Dong Nai serving large US and EU orders.

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Average export prices of Vietnamese cotton towels vary by segment: standard OEM face/hand towels around USD 0.3-0.8 per piece FOB, 500-700 GSM hotel bath towels around USD 1.8-3.5 per piece, and premium combed/Supima lines reaching USD 4-6 per piece. Vietnam's competitive advantages over China: textile labor costs roughly 30-40% lower, 0% duty into the EU under EVFTA, preferential access to Japan via CPTPP/RCEP and to Korea via VKFTA — while Chinese goods face higher tariffs in many markets.

The 2025-2026 trend shows a clear shift: Japanese and Korean brands are diversifying supply under a 'China + 1' strategy, with smaller orders (2,000-3,000 pieces per order instead of millions) but faster delivery requirements and stricter quality demands — exactly the strength of flexible factories like ANODA, with 200 tons/month capacity, low MOQs and 30-45 day lead times.

For importers seeking high-quality towels at competitive prices, Vietnam should be the first sourcing destination evaluated in 2026. ANODA is an OEM/ODM towel manufacturer in the Phuong La cluster, exporting regularly to Japan and South Korea, certified to ISO 9001:2015 and OEKO-TEX Standard 100. Contact us for an FOB Hai Phong quotation and a free sample set.

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