Postponing the imposition of reciprocal taxes for 90 days helps businesses prepare resources to respond to risks - Photo: K.GIANG
According to information from the Vietnam Textile and Garment Group (Vinatex), in the first quarter of 2025, the company's consolidated revenue is estimated at VND 4,417 billion, up 6.1% over the same period; consolidated profit is estimated at VND 271 billion, up 165.5% over the same period in 2024.
Business situation is positive in the first quarter, will orders be available in the second quarter?
The growth results were achieved thanks to the fact that many yarn enterprises cut losses and made profits while all garment enterprises had good business results.
In which, the yarn business has orders until May 2025. However, from the last week of February 2025 until now, the yarn market has decreased in both price and demand due to US-China trade tensions, while cotton prices have continuously decreased.
Most yarn orders tend to be finalized based on usage needs, fast delivery requirements, no stockpiling, and selling prices closely follow market fluctuations.
In the garment industry, many businesses have received enough orders until the end of the second quarter of 2025 and are negotiating for the third quarter of 2025.
Many orders tend to speed up delivery to limit the impact of US tariff policies. Orders in Q2-2025 tend to slow down due to waiting for tax policies.
Vinatex said that before the US announced the reciprocal tax rate and tax plan, many customers had suspended orders, causing the market and production to stagnate.
However, as soon as the information about the temporary suspension of the tax was announced on April 10, customers accelerated production and delivery progress, requiring orders to be completed within the next 90 days.
In addition, businesses have also proactively developed short- and long-term response solutions, focusing on negotiating with customers in a spirit of friendly sharing. Searching for export markets as well as new sources of raw materials, optimizing production management, speeding up production of orders signed in the second quarter...
However, the Vietnamese textile industry also needs to have a backup plan in case Chinese textiles are not exported to the US due to high taxes, which will affect other major markets such as the EU, Japan, South Korea and even the domestic market of Vietnam.
According to the group's assessment, demand for textile and garment products in the US market may not decrease sharply because inventories have returned to low levels after COVID-19 and expectations of more positive signals from tariff policies.
Respond calmly
Vinatex Chairman Le Tien Truong emphasized that market fluctuations and high tax rates are not new to Vietnam's textile and garment industry - an industry that has experienced many storms in the past but has still firmly overcome them, affirming its position as the second largest exporter in the world .
Therefore, the most important thing right now is not to be confused or worried, but to have a steadfast spirit, courage, commitment, and readiness to work at the highest efficiency in the next 90 days.
Mr. Truong recommends that units need to activate a close coordination mechanism, accumulate reserve funds for the worst market scenario. Promote labor productivity, maximize output with 90 fast-paced working days. Propaganda for workers not to panic, not to waver, and strive for orders in the second quarter.
In addition, Vinatex also promotes the priority use of fabrics in the system, classifies each item and market at risk of being affected to have a basis for negotiating with customers and finding suitable directions.
Vinatex promotes transparency in rules of origin as well as compliance with regulations on anti-commercial fraud. Diversify products, supply chains, and expand markets to avoid dependence on a few existing markets."
"The biggest problem now is waiting for positive results from the Government 's negotiating delegations. As an industry that contributes about 14% of Vietnam's total export turnover to the US and has nearly 1 million direct employees, the group will have timely reports and propose related issues with a calm, clear-headed, unanimous and sharing spirit" - Vinatex emphasized.
Source: https://tuoitre.vn/ong-lon-det-may-vinatex-bien-dong-ra-sao-giua-con-bao-thue-doi-ung-20250412072904023.htm
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