The textile industry consumes large quantities of water and generates significant volumes of wastewater, creating increasing pressure on water resources. This study investigated the current status of water use and reuse in 68 textile enterprises in Vietnam, developed a quality criteria framework for textile wastewater reuse, and evaluated the reuse potential of a pilot-scale membrane system (MF+UF, MF+UF+NF, and MF+UF+RO). The results showed that only 38.24% of the surveyed businesses currently reuse water, indicating considerable potential for expanding water recycling in the sector. A four-level water reuse quality criteria framework was proposed for different purpose applications. Pilot experiments demonstrated that the water output of MF+UF was suitable for reuse for less demanding processes such as cooling, equipment cleaning, air pollution control, and factory cleaning. The MF+UF+NF gave higher quality water, be reused for level 1, except for the EC parameter, and just reached levels 3 and 4. The RO permeate met the proposed water quality criteria for most high-quality reuse purposes. The findings provide a practical basis for promoting water reclamation and circular water management in the Vietnamese textile industry.