Vietnam’s textile and garment industry has continued to hold its growth trajectory through the first eight months of the year, even as mounting pressure from pricing competition, tighter delivery schedules, and shifting tariff policies increasingly weigh on businesses’ day-to-day operations and profit margins. In response, companies across the sector are doubling down on productivity improvements, cost reduction, and export diversification.
Vinatex Reports Strong Revenue and Profit Gains
Cao Huu Hieu, General Director of the Vietnam National Textile and Garment Group (Vinatex), reported that the group’s consolidated revenue for the first eight months rose 8.3% year on year, while pre-tax profit surged 39.3% over the same period. The pre-tax profit margin also improved notably, climbing from 7.4% to 9.5%.
The yarn sector was a standout contributor, with revenue rising 18.8% and profit nearly tripling year on year. The towel segment also performed strongly, with revenue up 19.4% and profit growing 37.3%.
The garment segment, while still recording revenue growth of 3.9%, faced significant pressure on its profit margins as price competition intensified, order sizes shrank, and delivery windows shortened.
Cao Huu Hieu noted that the garment sector currently holds orders through the fourth quarter, with certain units already having confirmed orders for the early months of 2027. In the yarn sector, order coverage is sufficient through September, though coverage from October onward remains uneven. Vinatex anticipates maintaining its growth momentum into the first nine months, projecting consolidated revenue growth of approximately 7.3% and pre-tax profit growth of 37.8% year on year — a figure that would surpass its annual profit target.
Nha Be Garment Corporation Navigates Full Order Books and Capacity Constraints
Nguyen Ngoc Lan, General Director of Nha Be Garment Corporation (NBC), detailed that the company currently produces eight highly specialised product groups, including men’s suits, men’s trousers, women’s suits, women’s trousers, shirts, two-layer jackets, knitwear, and mid- to high-end fashion.
NBC has secured orders through the end of 2026, with demand for products made from ottoman fabric already exceeding its production capacity. Since many of these specialised products cannot be subcontracted to satellite factories, the company has had to refine its internal production allocation, assigning orders across factories within its own system. Each factory now serves multiple customers to help balance production capacity, improve operational efficiency, and meet delivery deadlines.
While the 2026 order book is secured, Nguyen Ngoc Lan acknowledged that the 2027 market outlook remains unclear, as many traditional customers have yet to announce their ordering plans. The company intends to continue implementing measures to improve efficiency, increase profit margins, and expand into new markets and customer bases to reach its targets as early as possible.
Vietnam Leads Exporting Nations in Export Turnover Growth
Import trends across Vietnam’s major consumer markets over the past seven months reveal a clear divergence. Textile and garment imports into the United States fell 7.7%, while those into the European Union declined by approximately 8%. By contrast, Japan recorded a 6.6% increase in textile and garment imports, while South Korea and China posted increases of 1% and 24%, respectively, compared with the same period in 2025.
Despite these mixed signals, Vietnam textile exports continued to outpace competing nations in terms of export turnover growth. In August alone, export turnover reached 4.8 billion USD, up 8.1% year on year. Within this figure, textiles and yarns surged 40%, while garments rose 3.2%.
For the first eight months of the year in total, Vietnam textile exports reached 33.02 billion USD, representing a 6.7% increase overall. Textiles and yarns jumped sharply by 37.4%, while garments grew by 1.6%.
Industry Faces Mounting Risks Through Year-End
Cao Huu Hieu cautioned that despite the positive numbers, the market carries considerable risks heading into the final months of the year. Sharp fluctuations in cotton and fibre prices, exchange-rate risks with the VND/USD rate trending upward, narrowing demand in the US and EU, and rising logistics and raw material costs are all continuing to squeeze profit margins. Increasingly stringent rules of origin and trade remedy requirements, combined with intensifying competition from Bangladesh, China, and other textile and garment-producing countries, add further complexity to the operating environment.
Against this backdrop, he emphasised that companies must maintain close control over cash flow, receivables, inventories, and capital efficiency. Enterprises are urged to focus on improving productivity, cutting costs, protecting profit margins, and closely monitoring US tariff policies while proactively updating management scenarios and preparing plans for 2027.
Vinatex Chairman Calls for Strategic Operational Overhaul
Vinatex Chairman Le Tien Truong added that, given unpredictable market developments, companies across the sector need to review their production models, customer structures, product portfolios, and business methods. He called for KPI systems to be expanded beyond revenue, profit, and dividend metrics to include indicators that more accurately reflect operational efficiency and profit margins.
Le Tien Truong also emphasised the need for enterprises to accelerate the application of technology, diversify the currencies used for import and export payments, progressively reduce dependence on bank loans, and increase capital mobilisation from shareholders, partners, and major customers — all critical moves for sustaining resilience under the continued pressure of textile tariff pressure and evolving global trade dynamics.
