Vietnam’s textile and garment sector has closed 2025 with a defiant performance, projecting total exports to hit $46 billion - a 5.6 per cent Y-o-Y increase that cements its status as a top-three global exporter. Despite the ‘fog’ of escalating US tariff pressures and rising logistics costs, industry leaders like Vinatex reported their second-highest profits in 30 years. Cao Huu Hieu, CEO credited this success to a ‘90-day sprint’ campaign, which maximized factory output to clear orders ahead of trade policy shifts. Vinatex’s consolidated profit increased by nearly 50 per cent above target to $54.2 million, while Hoa Tho Textile Garment Corporation achieved record-breaking pre-tax profits of $16 million, up 13 per cent from the previous year.
Diversification and circularity
As global demand growth is forecast to cool to 3 per cent in 2026, the sector is pivoting toward market diversification to hedge against U.S. market volatility. Manufacturers are aggressively expanding their footprint in the EU, Japan, and South Korea, leveraging the Vietnam-EFTA FTA to offset aggressive price-cutting from Chinese competitors. Opportunities are also emerging in high-value technical textiles and the yarn segment, which staged a dramatic recovery in 2025 by returning to profitability after years of negative growth. However, the industry faces an uphill battle with stricter EU traceability regulations and green compliance mandates, necessitating a shift from volume-based growth to sustainable, high-tech production.
Vietnam National Textile and Garment Group (Vinatex) is the state-controlled leader of the nation's garment sector, operating a closed supply chain across 138 global markets. With a 2026 revenue target of $800 million, the group focuses on high-value yarn, dyeing, and apparel, prioritizing a 10 per cent wage hike for its 60,000+ employees to drive productivity.
