Q1’s financial statements of state-run Vietnam National Textile and Garment Group (Vinatex) show that during the period, the parent company posted $1.07 million in after-tax profit, 6.2 times higher than the same period last year.

Consolidated after-tax profit reached $10.03 million, a 3.4-fold increase on-year. Vinatex noted that the garment segment continued to recover positively, with clear improvements in both selling prices and order volumes.

Growing market demand enabled manufacturing units to boost revenues and improve gross profit margins compared to Q1 of 2024.

While the fibre segment still faced challenges, timely price locking for cotton and yarn allowed businesses to achieve favourable results, particularly notable as the segment posted a loss in the same period last year.

Vinatex remains one of the industry's key players, with exports to the US accounting for approximately 35 per cent of its total revenue.

Other major exporters to the United States include Song Hong Garment JSC with 80 per cent of the company’s revenue bound to US market, TNG Investment and Trading JSC with 46 per cent, and Thanh Cong Textile Garment Investment Trading JSC with 25 per cent.

In Q1, Song Hong Garment raked in net revenue approximating $40.7 million, up 34 per cent on-year. Gross profit margin rose from 12 per cent to over 16.4 per cent, resulting in an after-tax profit of $3.45 million, an increase of 51 per cent.

The revenue boost stemmed from an increase in orders and effective cost-saving measures.

The company maintains a solid customer base in the US, including giants like Walmart, Nike, Target, and Haddad Brands.

Thanh Cong Textile also saw growth, with Q1 revenue up 8 per cent on-year to nearly $40.4 million, while its after-tax profit rose 26 per cent to $3.14 million.

Beyond these major apparel exporters, other textile firms also posted standout results. Century Synthetic Fiber Corporation, for example, recorded a 42 per cent on-year increase in Q1 net revenue, reaching $15.06 million.

Its after-tax profit soared to $1.42 million from just $28,440 in Q1 of 2024, driven by higher sales volume and improved pricing.

These positive earnings reflect a broader recovery in Vietnam’s textile and apparel sector. According to the Vietnam Textile and Apparel Association (Vitas), the sector’s export value in Q1 was estimated at $12.5-12.7 billion.

The textile and apparel sector, however, faces looming risks from US tariff policy changes, which could significantly impact companies with large export exposure to the US market.

Song Hong Garment’s management acknowledged that tariffs could lead to order reductions, although the company has secured contracts through the end of the year.

Tariff pressures affect all manufacturers, making it challenging to shift production markets. Still, Song Hong Garment believes Asia remains the most competitive manufacturing hub, thanks to its production capacity and service capabilities.

“Vietnam is one of the world’s major manufacturing centres, alongside Indonesia and Bangladesh. Clients and partners will not turn away from Vietnam. Compared to other countries, we have a quality labour force. With efforts to improve productivity and product quality, Vietnam will maintain its competitive edge,” Song Hong’s leadership said.

Meanwhile, Thanh Cong Textile has reported no order cancellations or delays from its American clients.

Additionally, its Japanese and South Korean markets remain stable. While the European market continues to pose challenges, the company is actively developing new clients and increasing volumes with existing ones to gain more market share.

At TNG, the management stated during its 2025 AGM on April 20 that current US orders account for 26 per cent of the total volume, with contracts secured through August. The company plans to expedite shipments to the US before July 10 in anticipation of possible tariff impacts.

The EU market accounts for 48-50 per cent of TNG’s output, with some customers already placing orders through the end of 2025. TNG is also exploring and expanding into other markets.

“Thanks to Vietnam’s extensive network of free trade agreements, TNG stands to benefit from favourable tariffs when exporting to major markets such as the EU, Japan, and Canada,” said the TNG leadership at its AGM.