Vietnam's Gilimex shares tumble after US court dismisses lawsuit against Amazon

Gilimex's stock closed down 6.7 percent at VND10,650 (US$0.41) per share as selling pressure intensified following reports that the U.S. District Court for the Southern District of New York dismissed the case with prejudice, preventing it from being refiled.

Gilimex had not publicly confirmed the ruling as of Friday. 

Under Vietnam's disclosure rules, listed companies must announce extraordinary information within 24 hours if an event could materially affect operations or investor interests.

The company filed the lawsuit in late 2022, alleging Amazon breached its contract, engaged in unfair commercial practices ,and sharply reduced orders after the COVID-19 pandemic. 

Gilimex sought roughly $280 million in compensation.

Amazon had been Gilimex's largest customer for years. 

The company said Amazon's orders accounted for as much as 80 percent of its revenue in 2021, prompting Gilimex to expand production capacity, hire about 7,000 additional workers, and increase annual storage product output to more than one million units.

Gilimex said the subsequent reduction in orders left it with excess production capacity, large inventories and raw materials prepared for Amazon that lost much of their value. 

The company also said it had prioritized Amazon over other major customers, including IKEA and Columbia Sportswear.

The loss of Amazon orders and the legal dispute have weighed on Gilimex's business performance. 

Revenue fell 24 percent to VND3.17 trillion ($120.68 million) in 2022 before dropping more than 70 percent to VND936 billion ($35.63 million) in 2023. 

Revenue was VND713 billion ($27.14 million) in 2025, while net profit totaled VND36 billion ($1.37 million), well below the more than VND300 billion ($11.42 million) the company earned annually in 2020 and 2021.

Gilimex, headquartered in Ho Chi Minh City, manufactures garments and household textiles and has expanded into industrial real estate development.