International opportunities for the textile industry

28.03.2025

The textile industry has been internationally oriented for centuries and this has not changed to this day - it has opened up new markets through international trade routes. In 2025, new synergies and opportunities will arise in Africa (Ethiopia, Benin and South Africa) and Asia (Vietnam).

1. Benin
In recent years, Benin has seen a significant market increase in the organic cotton sector and an overall economic strengthening [1]. The "Growing Benin's Organic Cotton Sector" project, which was launched three years ago and successfully implemented with a total volume of EUR 1 million, aimed to support small farmers in converting to organic cotton cultivation in accordance with the Cotton made in Africa Organic standard, avoid the use of synthetic pesticides, further develop the organic cotton sector and thus secure the future of the farming communities. Due to the positive results, the project is now being transferred to a second phase. The project was implemented by the Organization Béninoise pour la Promotion de l'Agriculture Biologique (OBEPAB) and financed by the BMZ (German Federal Ministry for Economic Cooperation and Development). The BMZ worked together with GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit), the Pesticide Action Network (PAN) UK, Paul Reinhart AG and the Aid by Trade Foundation (AbTF).
[1] Information from GTAI: Wirtschaftsdaten kompakt Benin
[2] Information from Aid by Trade Foundation (ABTF): cottonmadeinafrica.org/en/news/cotton-farmers-in-benin-benefit-from-organic-cotton-cultivation/

2. Ethiopia
The Ethiopian textile and clothing sector has developed into an important regional center and comprises 3,700 companies. The country has large areas that can be used for cotton cultivation (only 3.7 % of the total area is currently used). The sector benefits from government support and attractive investment opportunities, which are promoted by favorable production conditions and trade agreements [1, 2].
The Manufacturing Industry Development Institute (MIDI) is an Ethiopian government organization whose mission is to improve the development and competitiveness of the manufacturing industry through research, technology development, market expansion, training and capacity building. MIDI cooperates with the Ludwig-Maximilians-University on the health aspects of the Ethiopian leather processing industry. In addition, MIDI is interested in creating potential links (especially within the leather and textile industry) and exchanging ideas with potential project partners.
[1] Information from GTAI: Ethiopia's textile and garment industry with structural problems | Industries | Ethiopia | Textiles, garments
[2] Ethiopia Office Abroad: Home - International Office Ethiopia / African Union - Konrad-Adenauer-Stiftung

3. South Africa
The textile industry in South Africa accounts for around 2.5 percent of manufacturing production. There is considerable potential for German companies, particularly in sub-sectors such as spinning, weaving, textile finishing and protective clothing. The market is driven by an expanding fashion industry, among other things. The government promotes local production, focuses on sustainable and ethical fashion and has classified the sector as one of the eight growth areas. Modern technologies and online retail are creating additional opportunities for the industry.
[1] Information from GTAI on the delegation trip from South Africa: GTAI Export Guide - Textile industry in South Africa offers opportunities for machine manufacturers
[2] Information from GTAI: Economy in South Africa

4. Vietnam
Vietnam is one of the world's leading textile exporters. The country has developed significantly since its past as a low-wage country. It now offers technical opportunities, well-developed supply chains, skilled labor and a growing interest in sustainability issues. EU regulations are helping to make Vietnam very attractive for international trade. The open society and the large number of small and medium-sized enterprises (SMEs) are a great advantage for trade. Several textile and other large companies are already producing shoes and backpacks in Vietnam. There is an interest in German and Bavarian companies seeking to cooperate with Vietnamese companies, whether in the area of purchasing or to open up the Vietnamese market.
At the ASEAN Pacific Forum Bavaria in Nuremberg on 17.07.25, interested parties will have the opportunity to get to know each other in person [4].
[1] Target market Vietnam: Zielmarkt-Handout_LS_Vietnam_Textilmaschinen_2024.pdf
[2] Information from GTAI: Business in Vietnam
[3] AHK Vietnam: "Vietnam grows through diversity", overview flyer: 546c37ef-c0e1-4a44-9885-aa60e32d852f
[4] ASEAN Pacific Forum in Nuremberg on 17.7.2025: 16th Asia-Pacific Forum Bavaria 2025