Vietnamese textile firms post strong Q1 gains despite global headwinds

The Vietnam National Textile and Garment Group (Vinatex) said consolidated net revenue reached VND4.27 trillion (US$164.47 million) in Q1, up 8 percent year-on-year.

Its net profit jumped 372 percent to VND172 billion ($6.63 million).

Vinatex said many of its subsidiaries have secured orders through Q2 and are now negotiating contracts for Q3.

The recovery in export orders and higher average selling prices have helped improve profit margins and utilization of production capacity.

Amid growing global trade barriers—especially from the United States—Vinatex has accelerated order fulfillment and revenue recognition in early 2025 to mitigate risks.

Other listed textile firms echoed the strong performance.

Song Hong Garment JSC (MSH) posted a 34.4-percent rise in Q1 net revenue to over VND1.02 trillion ($39.3 million), with net profit up 51.4 percent at VND86.3 billion ($3.32 million).

Thanh Cong Textile Garment – Investment – Trading JSC (TCM) reported Q1 revenue of VND992.8 billion ($38.25 million), an 8-percent increase, representing 22 percent of its full-year revenue target.

The firm’s profit climbed 23 percent to VND77.4 billion ($2.9 million).

Thanh Cong’s revenues came primarily from garments, which accounted for 77 percent, followed by fabric at 15 percent and yarn at seven percent.

The company exports to about 40 countries across four continents, with efforts underway to boost sales in Japan, South Korea and Europe to reduce reliance on the U.S. market.

For 2025, Thanh Cong is targeting revenue of VND4.53 trillion ($174.5 million), an increase of 19 percent from the previous year, and post-tax profit of VND278.7 billion ($10.74 million), up five percent.

The company plans to expand its ODM (original design manufacturing) strategy, invest in R&D, and build a professional sales force while moving toward a fully integrated production model to shorten lead times—now a key competitive edge in the global textile market.

Opportunities vs risks

Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), said the sector could reach $48 billion in exports this year, despite global uncertainties and stricter U.S. tariff policies.

He described 2025 as a pivotal year for Vietnamese textile exporters as they begin to leverage next-generation free trade agreements (FTAs).

Vietnam currently has 17 FTAs in effect and plans to expand that number to 22 by 2026.

“These zero-tariff FTAs are strategic levers, enabling the industry to grow by diversifying markets, clients, and products,” Giang said.

However, he warned that failing to comply with rules of origin could expose companies to anti-dumping duties or other trade defense measures.

Thanh Cong Chairman Tran Nhu Tung called the U.S. decision to delay a new tariff package by 90 days a “golden window” for Vietnamese firms to review and adjust export strategies.

With Chinese textile goods facing growing hurdles in the U.S., some orders are being redirected to other Asian countries, including Vietnam.

Tung estimated that if Vietnam could replace even 20–30 percent of China’s current U.S. market share, the domestic industry could see major gains.

“But this opportunity will only materialize if firms ensure full supply chain transparency and traceability,” he said, stressing that U.S. regulators are stepping up checks to prevent transshipment and tax evasion.

“Most importantly, local enterprises must proactively enhance production capacity, ensure quality control, and reinforce transparency across the supply chain,” Tung added.