Vietnam’s national textile group sees profit jump nearly 200% after US delays tariff decision

The Vietnam National Textile and Garment Group (Vinatex) said consolidated profit reached nearly VND556 billion (US$21.3 million) in the first six months of the year, up 197 percent from the same period in 2024. 

Revenue rose 8 percent to VND9.035 trillion ($345.8 million), accounting for 49 percent of its full-year target.

"Stronger global demand, improved pricing, and early orders contributed to the increase," Vinatex chairman Le Tien Truong told reporters on Friday.

He said orders resumed earlier than usual, some two to three months ahead of typical schedules, with fewer small, fragmented batches. 

Inventory levels also declined, allowing the group to operate more efficiently.

The biggest boost came after April 9, when the U.S. Trade Representative announced a postponement of countervailing duties targeting Vietnamese textile and garment exports. 

The initial proposal had raised concerns among exporters over potential disruptions to the country's largest overseas market.

"Since that announcement, orders have surged. Some even requested delivery by July," Truong said. 

"Larger and longer-term orders are returning, which is driving profitability."

While U.S. authorities have yet to finalize a decision on the proposed tariffs, both Vietnamese exporters and foreign buyers are proceeding with negotiations to avoid missing key production cycles, including orders for the winter and holiday season.

"If we wait for the final tariff outcome, it may be too late to deliver for the peak season," Truong said, adding that maintaining trust in the global supply chain is crucial.

He expects tariff levels, if imposed, to be manageable based on recent technical discussions and said order growth could remain strong through the second half of the year, with projected export growth of 8-10 percent.

Vinatex is targeting full-year consolidated profit of VND950 billion to VND1 trillion ($36.4–38.3 million).

Vietnam's textile and garment exports totalled $3.84 billion in May, up six percent year-on-year and the highest monthly figure ever recorded, surpassing even post-pandemic highs in 2022. 

In the first five months of 2025, total sector exports reached $17.8 billion, a 10-percent increase from a year earlier.

Vietnam has more than 13,000 textile and garment enterprises, making it one of the world's top apparel exporters.