As of April 15th, the total export turnover Vietnam's textile and garment industry achieved $11.8 billion in export revenue, an 8.7% increase compared to the same period in 2024. This result is considered positive given the unpredictable market fluctuations. Businesses are effectively utilizing this "golden opportunity" to accelerate exports of goods in order to achieve their targets sooner.
Make the most of the opportunity.
According to Than Duc Viet, General Director of May 10 Corporation, the company's total revenue in the first three months of the year reached 1,250 billion VND, an increase of 12% compared to the same period in 2024.
However, difficulties began to emerge from the beginning of April due to information regarding the application of the law. US reciprocal tariffs For Vietnamese goods, this led to a period of order disruption. The subsequent announcement of a 10% tariff by the US government for 90 days helped the company ramp up production, striving to meet its Q2 targets.
The last six months of the year are predicted to be a truly challenging period, with negative and unpredictable market signals. Businesses themselves are developing corresponding response scenarios, while also awaiting the outcome of negotiations between Vietnam and the US to know the specific tariff rates.
Looking ahead, the company is proactively seeking to diversify its markets and customers, effectively controlling the supply of raw materials to meet demands, while also boosting its service, training, and retail businesses, as well as increasing the proportion of domestic revenue to achieve its annual plan.
According to Nguyen Xuan Duong, Chairman of the Board of Directors of Hung Yen Garment Corporation (Hugaco), in recent months, all businesses have achieved considerable growth, with the Corporation itself achieving a 10% increase compared to the same period in 2024. All units in the system currently have orders until the end of July and are negotiating orders for the following months.
Besides the advantages, businesses also face difficulties due to fluctuations in tariffs imposed by the US. In particular, major importers from the US will renegotiate to seek a compromise; if their demands cannot be met, they will move their production elsewhere.
"What worries many businesses is the uneven tax rates applied among countries that directly compete with Vietnam, which will gradually cause Vietnam to lose its competitiveness, with orders shifting to other countries with lower costs. Therefore, businesses must develop countermeasures to ensure appropriate development," Mr. Duong emphasized.
Providing a deeper analysis of the fluctuations in US tariffs on Vietnam's textile and garment industry, the Deputy Chief of the Board of Directors' Office stated: Vietnam Textile and Garment Corporation (Vinatex) Hoang Manh Cam believes that with a 10% tax rate and a 90-day application period, this is considered a "golden opportunity" for businesses to boost production and export goods.
In addition, it is necessary to ensure the best possible working conditions for employees during this period in order to increase efficiency, create reserve resources, and compensate for the potential decline in orders later on.
Currently, garment orders are being maintained, and businesses are focusing their efforts on production at the highest possible rate to achieve their full-year targets as soon as possible. However, the yarn industry is facing difficulties sooner, as some businesses have had to cease operations or postpone orders due to their inability to supply the garment industry on time.
“After this period, a new level of taxation and pricing may be established, at which point businesses must accept these fluctuations. The US is a key export market for Vietnamese textiles and garments, so the goal must be to maintain not only profits and revenue but also the position of Vietnamese textiles and garments in the US market. The US market is a leading market; once we have established our foothold and expanded our market share, it is inevitable that the position of Vietnamese textiles and garments in the global supply chain will be enhanced and attract attention from major customers,” Mr. Cam emphasized.
Diversify your customer market.
According to statistics from the Customs Department, as of April 15th, Vietnam's total textile and garment export turnover reached US$11.8 billion, an increase of 8.7% compared to the same period in 2024; major export markets all maintained positive growth (market share in the US increased from 36.3% to 38%; the European Union from 9.1% to 9.4%; Japan from 10.8% to 11%, etc.).
Regarding this issue, the Chairman of the Vietnam Textile and Garment Association (Vitas), Vu Duc Giang, believes that businesses need to proactively implement solutions to respond to market fluctuations in order to maintain growth momentum and soon reach the export target of 48 billion USD set by the industry. The 22 new-generation free trade agreements that are currently in effect or will soon come into force will create many opportunities for businesses to diversify markets, customers, and product designs.
According to Vinatex Chairman Le Tien Truong, in the second quarter of this year, the entire system needs to quickly fulfill existing orders by arranging production with increased overtime hours as per regulations, and implementing solutions to increase productivity in order to maximize second-quarter profits, making the reserve for the second half of the year difficult to predict.
Units must fully capitalize on short-term opportunities within the 90-day period to secure sufficient resources to remain committed to long-term goals. Successfully fulfilling orders during this period will clearly demonstrate breakthrough capabilities, responsibility, and strong commitments to customers, building credibility and competitive advantage of Vietnam's textile and garment industry in the coming period.
“Besides the production campaign, the corporation also directs relevant departments to research the raw material supply chain, prioritizing the use of fabrics from businesses within the system if they meet quality requirements. It supports businesses in classifying each item and market at risk of being affected by new tax policies to provide a basis for negotiations with customers and to find suitable solutions. The corporation also focuses on requiring transparency regarding rules of origin and compliance with regulations on combating trade fraud. At the same time, it guides businesses to diversify products and supply chains, expand markets and customers to avoid dependence on a few existing markets,” Mr. Truong affirmed.
Source: https://baoquangninh.vn/tang-toc-xuat-khau-det-may-3355552.html
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