Textile and garment industry 'accelerates' in early 2025

The textile and garment industry's prospects in 2025 are assessed as very positive - Photo: HA QUAN

Job Chinese goods Tightening and increasing taxes on entering the US market is also creating a wave of shifting orders to other Asian countries, including Vietnam.

Positive growth

Vietnam National Textile and Garment Group - Vinatex (VGT) announced consolidated net revenue of VND4,268 billion in the first quarter, up 8% over the same period last year. Notably, the group's consolidated profit reached VND172 billion, an impressive increase of 372%.

According to Vinatex leaders, most member enterprises have received enough orders until the end of the second quarter of 2025 and are in the process of negotiating orders for the third quarter.

Explaining this positive result, Vinatex said that garment production and export activities have recovered thanks to the simultaneous improvement in selling prices and order output. The increase in demand from markets has helped member units improve profit margins and maximize production capacity.

In the context of unstable international markets, especially the risk of increased tariff barriers from the US, Vinatex has proactively accelerated the implementation of orders, optimizing revenue in the first months of the year.

Not only Vinatex, some other listed garment enterprises also announced positive results. Song Hong Garment Joint Stock Company (MSH) achieved net revenue of more than VND1,017 billion in the first quarter, up 34.4% over the same period. Profit after tax reached VND86.3 billion, up 51.4%.

Meanwhile, Thanh Cong Textile - Investment - Trading Joint Stock Company (TCM) also recorded positive growth with first quarter revenue reaching VND 992.8 billion, up 8% over the same period in 2024, equivalent to 22% of the 2025 revenue plan. Profit after tax reached VND 77.4 billion, up 23%.

TCM's revenue comes from three main industries: garments (77%), fabrics (15%) and yarns (7%). The company is currently exporting to about 40 countries on 4 continents, in which markets such as Japan, Korea and Europe are being promoted to reduce dependence on the US market.

According to the 2025 plan, TCM aims to achieve revenue of VND 4,525 billion (up 19%) compared to 2024 and after-tax profit of VND 278.7 billion (up about 5%).

This year, TCM's board of directors said the group will continue to focus on its strategy of developing original design products (ODM), investing in technology for R&D, building a professional sales team, and diversifying products.

At the same time, the group is promoting closed-loop production to shorten production time - a factor that is becoming an important competitive advantage in the global textile industry.

Opportunities and challenges go hand in hand

According to Mr. Vu Duc Giang - Chairman of the Vietnam Textile and Apparel Association (Vitas), despite being affected by increasingly strict US tariff policies and uncertainties in global trade, textile and garment exports still have a lot of room for growth and can completely reach the 48 billion USD mark this year.

Mr. Giang commented that 2025 plays a pivotal role for the Vietnamese textile and garment industry as businesses are gradually exploiting the benefits of new-generation free trade agreements (FTAs). Up to now, Vietnam has signed and implemented 17 FTAs, and is expected to increase this number to 22 FTAs ​​in the 2025-2026 period according to the plan of the Ministry of Industry and Trade .

“FTAs with zero export tax rates are strategic levers, helping the textile and garment industry develop based on three pillars: diversifying markets, customers and products,” Mr. Giang emphasized.

However, besides the positive signals, Mr. Giang also warned that if businesses do not promptly adapt and do not fully comply with the rules of origin, they can easily be subject to additional taxes or fall under trade defense investigations.

Similarly, Mr. Tran Nhu Tung - Chairman of the Board of Directors of Thanh Cong Textile Garment Investment and Trade Joint Stock Company (TCM) - said that the US Government's decision to postpone the implementation of the additional tax package for another 90 days is a "golden time" for businesses to review all production and export plans.

In addition, the barriers to Chinese goods entering the US market are pushing orders to shift to other Asian countries, including Vietnam.

According to calculations by TCM leaders, if Vietnam can replace 20-30% of the textile market share that China is exporting to the US, the domestic textile industry will have a chance to make a strong breakthrough.

However, Mr. Tung noted that the opportunity will only become a reality if businesses fully meet the requirements on traceability and supply chain transparency, in the context that the US is increasing inspections to prevent "tax evasion" through the form of transit processing.

“More importantly, domestic enterprises must proactively improve production capacity, control quality and strengthen transparency throughout the entire supply chain,” Mr. Tung affirmed.

Source: https://baoquangninh.vn/det-may-but-toc-dau-nam-2025-3357249.html