As a hub connecting Asia and Europe, Turkey's textile industry has long been a pillar of the economy, but it is now facing unprecedented challenges. Data shows that since 2025, over 300 textile and garment companies in Turkey have filed for bankruptcy protection, and more than 300,000 jobs have been lost in the industry over the past two years. Industry insiders generally believe that this round of adjustments has gone beyond short-term cyclical fluctuations, exhibiting significant structural characteristics. According to Turkish media reports, in major textile-producing regions such as Istanbul, Denizli, Bursa, Gaziantep, and Kahramanmarash, many factories have already ceased production or reduced their operating rates to 30% to 40% of normal levels. Exports, a crucial support for the industry, continue to be under pressure, with weak demand in the European market coupled with rising raw material and energy costs constraining business operations. Official data shows that as of November 2025, Turkey's textile exports totaled approximately $8.6 billion, and garment exports totaled approximately $15.5 billion, for a combined $24.1 billion. While still among the country's major export sectors, this represents a decrease of approximately 23.6% compared to the historical high of $31.56 billion in the same period of 2022.
Not only Turkey, but even Vietnam, a rising textile power, faced immense pressure in 2025. According to Vu Duc Giang, Chairman of the Vietnam Textile and Garment Association, amidst multiple challenges in the global market, Vietnam's textile and garment industry achieved exports of $46 billion in 2025, slightly below the original target of $48 billion, but representing a 5.6% increase over the previous year, further solidifying its position among the top three in the global textile supply chain. Vu Duc Giang pointed out that 2025 will be the most difficult year for Vietnam's textile and garment industry in recent decades. Continued disruptions to the global supply chain, high logistics costs, increasingly stringent requirements from international brand clients, and rapid adjustments in procurement strategies in major markets have forced companies to maintain a constant state of dynamic adaptation and strategic adjustment.
Both Turkey and Vietnam are emerging textile powerhouses that have risen in recent years, attracting significant foreign investment. However, in 2025, their textile export businesses inevitably faced a crisis. On the other hand, according to the latest data from the General Administration of Customs, in US dollar terms, my country's textile and apparel exports remained relatively stable from January to December 2025, with a total export value of US$293.77 billion, a 2.4% decrease compared to 2024. Whether it's established players like China or emerging players like Vietnam and Turkey, the textile industry is under pressure. This reflects the significant impact of the economic downturn on traditional European and American textile markets, leading to a continuous decrease in existing demand. However, both domestically and internationally, the past few years have seen rapid growth in textile production capacity, and the global textile market has entered a phase of competition for existing market share, inevitably requiring the clearing of excess capacity.
The global textile industry shares certain similarities with China's textile industry in recent years. The rapid growth in loom production that began in 2023 was driven by two factors: firstly, market demand gradually recovered as the global economy emerged from the pandemic; and secondly, some regions offered favorable conditions, giving their textile industries a comparative advantage and attracting significant production capacity. However, how to absorb this new capacity became a major problem. Currently, global textile trade is showing signs of deglobalization. Trade barriers, unprecedented in the past few decades, are becoming increasingly common. People are unsure where tariffs will be imposed, where trade protectionism will be implemented, or where shipping routes will be disrupted by war. Consequently, Chinese textile companies have significantly accelerated their overseas expansion in recent years, increasing investment in Egypt, South Africa, Southeast Asia, and Latin America. While this may mitigate many policy risks, a global perspective reveals that with slowing growth in overall demand, total production capacity is increasing, making the reshuffling of the global textile industry even more severe. However, from another perspective, this is something that must be done, especially after entering 2026. Less than a month later, Venezuela and Iran have experienced accidents one after another, which shows that the world has entered a turbulent period. Not putting all your eggs in one basket is the best solution among various options, but behind this choice, the pain caused by the mismatch between supply and demand is a consequence that the industry must bear.
