Vietnam's state-run textile and garment powerhouse, Vietnam National Textile and Garment Group’s (Vinatex) profits increased by 197 per cent to VND556 billion ($21.3 million) in H1, F25 as export orders rose due to a delay in decision on imposing punitive tariffs on Vietnamese goods by the United States.
Vinatex’s revenue also increased by 8 per cent to VND9.035 trillion ($345.8 million) during the period, accounting for 49 per cent of their full-year target.
Le Tien Truong, Chairman, Vinatex, attributes this boost to a stronger global demand, improved pricing, and early orders. Orders resumed two to three months ahead of typical schedules, with fewer fragmented batches, leading to more efficient operations and declining inventory levels, he notes.
The most significant impetus came after April 9, when the US Trade Representative postponed plans for countervailing duties on Vietnamese textile and garment exports. This initial proposal caused considerable concern among exporters, as the US is their largest overseas market.
Even though US authorities haven't finalized a decision on the proposed tariffs, both Vietnamese exporters and foreign buyers are proactively negotiating to ensure they don't miss crucial production cycles, particularly for the upcoming winter and holiday seasons. If we wait for the final tariff outcome, it may be too late to deliver for the peak season, Truong explains, emphasizing on the importance of maintaining trust within the global supply chain.
Truong anticipates, the imposed tariff levels will be manageable based on recent technical discussions. Orders growth will remain robust through the second half of the year with exports rising by 8 per cent-10 per cent, he estimates. Vinatex aims for a full-year consolidated profit between VND950 billion and VND1 trillion ($36.4–38.3 million).
Setting a new monthly record Vietnam's textile and garment exports increased by 6 per cent Y-o-Y to $3.84 billion in May 2025, surpassing even post-pandemic highs from 2022. For the first five months of 2025, total sector exports increased by 10 per cent Y-o-Y to $17.8 billion. With over 13,000 textile and garment enterprises, Vietnam continues to be a top global apparel exporter.
