Vietnam's garment giant Vinatex posts second-highest profit in 30 years despite trade headwinds

Vietnam National Textile and Garment Group (Vinatex), the country's top garment maker, expects consolidated profit to reach VND1,355 billion ($51.5 million) in 2025, the second-highest result in its 30-year history, despite mounting global trade and cost pressures on the industry.

Speaking at a meeting in Hanoi on Tuesday, Vinatex CEO Cao Huu Hieu said the state-controlled group’s profit would exceed its full-year target by 49%, while consolidated revenue is projected to surpass plan by 3% to VND18,890 billion ($717.94 million).

By segment, the garment business is forecast to generate more than VND800 billion ($30.4 million) in profit, while the yarn segment is expected to contribute around VND176 billion ($6.69 million).

Average monthly income for Vinatex employees is projected to rise 10% year-on-year to VND11.7 million ($445), Hieu said.

The strong performance comes as Vietnam’s textile and garment sector continues to face persistent headwinds, including geopolitical tensions, volatile raw material prices, rising logistics costs, and increasingly stringent requirements on delivery times, product quality and supply-chain traceability.

Trade policy uncertainty, particularly the prospect of higher U.S. tariffs under the Trump administration, has added pressure to global apparel supply chains that have yet to fully recover from the pandemic.

Vinatex said international buyers have asked manufacturers to absorb part of the additional tariff burden, intensifying competition with low-cost exporters such as Bangladesh and Indonesia.

Other major markets, including the European Union, Japan and South Korea, have also become more crowded as exporters redirect shipments away from the U.S. in response to higher duties.

Against this backdrop, Vietnam’s textile and garment exports are expected to reach $46 billion in 2025, up about 5% from 2024, with the U.S. remaining the largest market at more than $18 billion, up 10%. Apparel is projected to account for over $38 billion of total export value.

Vinatex said it has rolled out measures to mitigate risks, including accelerating production ahead of tariff changes, providing regular market briefings to subsidiaries, shifting toward higher-value garment segments, and diversifying yarn exports to markets such as South Korea, India, and Turkey.

For 2026, the group targets consolidated revenue of VND20,000 billion ($760.12 million) and profit of VND1,200-1,500 billion ($45.61-57 million), describing the outlook as challenging amid lingering uncertainty over reciprocal tariffs and subdued global demand growth.