Job Chinese goods Tighter regulations and increased tariffs on entry into the US market are also creating a wave of orders shifting to other Asian countries, including Vietnam.
Positive growth
Vietnam Textile and Garment Group - Vinatex (VGT) announced consolidated net revenue of VND 4,268 billion in the first quarter, an 8% increase compared to the same period last year. Notably, the group's consolidated profit reached VND 172 billion, an impressive 372% increase.
According to Vinatex leaders, most member companies have received enough orders to last until the end of the second quarter of 2025 and are in the process of negotiating orders for the third quarter.
Explaining these positive results, Vinatex stated that garment production and exports have recovered thanks to a simultaneous improvement in selling prices and order volumes. Increased demand from markets has helped member units improve profit margins and maximize production capacity.
Amidst volatile international markets, particularly the risk of increased tariffs from the US, Vinatex proactively accelerated order fulfillment and optimized revenue in the early months of the year.
Not only Vinatex, but several other listed garment companies also announced positive results. Song Hong Garment Joint Stock Company (MSH) achieved net revenue of over 1,017 billion VND in the first quarter, an increase of 34.4% compared to the same period last year. After-tax profit reached 86.3 billion VND, an increase of 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, an 8% increase compared to the same period in 2024, equivalent to 22% of the 2025 revenue plan. After-tax profit reached VND 77.4 billion, a 23% increase.
TCM's revenue comes from three main product groups: garments (77%), fabrics (15%), and yarn (7%). Currently, the company exports to approximately 40 countries across four continents, with a focus on expanding into markets such as Japan, South Korea, and Europe to reduce its dependence on the US market.
According to its 2025 plan, TCM aims for revenue of VND 4,525 billion (a 19% increase) compared to 2024 and after-tax profit of VND 278.7 billion (an increase of approximately 5%).
This year, TCM's leadership stated that the group continues to focus on its original design product development (ODM) strategy, investing in technology for R&D, building a professional sales team, and diversifying its product range.
At the same time, the corporation is boosting production using a closed-loop process to shorten production time – a factor that is becoming a crucial competitive advantage in the global textile and garment industry.
Opportunities and challenges go hand in hand.
According to Mr. Vu Duc Giang, chairman of the Vietnam Textile and Garment Association (Vitas), despite being affected by increasingly stringent US tariff policies and uncertainties in global trade, textile and garment exports still have significant growth potential and could easily reach $48 billion this year.
Mr. Giang noted that 2025 will be a pivotal year for Vietnam's textile and garment industry as businesses are gradually exploiting the benefits from new-generation free trade agreements (FTAs). To date, 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 Ministry of Industry and Trade 's plan.
"FTAs with zero export tariffs are a strategic leverage that helps the textile and garment industry develop based on three pillars: market diversification, customer base, and products," Mr. Giang emphasized.
However, alongside these positive signs, Mr. Giang also warned that if businesses do not adapt promptly and fully comply with the rules of origin, they are very likely to be subject to additional tariffs or fall under trade defense investigations.
Similarly, Mr. Tran Nhu Tung - Chairman of the Board of Directors of Thanh Cong Textile and Garment Investment and Trading Joint Stock Company (TCM) - said that the US government's decision to temporarily postpone the implementation of the additional tariff package for another 90 days is a "golden opportunity" for businesses to review their entire production and export plans.
In addition, the barriers faced by Chinese goods in the US market are driving the redirection of orders to other Asian countries, including Vietnam.
According to TCM leaders' calculations, if Vietnam can replace 20-30% of the textile and garment market share that China is currently exporting to the US, the domestic textile and garment industry will have a strong opportunity for breakthrough.
However, Mr. Tung noted that the opportunity will only become a reality if businesses fully meet the requirements for traceability and supply chain transparency, in the context of the US increasing scrutiny to prevent "tax evasion" through processing and transshipment.
"More importantly, domestic businesses must proactively improve their 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
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