As of April 15, Vietnam’s total textile and garment export turnover had reached 11.8 billion USD, up 8.7% compared to the same period in 2024. This result is viewed as a positive sign amid an unpredictable market. Businesses are effectively seizing this “golden period” to accelerate product exports and work towards fulfilling their annual targets ahead of schedule.

Seizing opportunities effectively

According to Than Duc Viet, General Director of May 10 Corporation, the company’s total revenue in the first three months of the year reached 1.25 trillion VND, marking a 12% increase year-on-year.

However, difficulties began to emerge in early April when news broke of potential retaliatory tariffs from the US on Vietnamese goods, leading to temporary disruptions in orders. The subsequent announcement of a 10% tariff imposed by the US for a 90-day period allowed the company to boost production and aim to meet its second-quarter targets.

The second half of the year is forecast to be genuinely challenging, with ominous and unpredictable signals from the market. Enterprises are preparing various response scenarios while awaiting the outcome of Vietnam’s negotiations with the US to determine the final tariff rate.

In the short tern, businesses are proactively diversifying their markets and customers, maintaining strong control over raw material supplies to meet demand effectively, and expanding their service, training, and retail operations. They are also increasing the share of domestic revenue to meet annual targets.

Nguyen Xuan Duong, Chairman of the Board of Directors at Hung Yen Garment Corporation (Hugaco), noted that in recent months, many businesses have posted decent growth rates. Hugaco itself recorded a 10% increase compared to the same period last year. All units within the system have secured orders through to the end of July and are currently negotiating contracts for the following months.

Alongside these advantages, businesses are also confronting challenges caused by the tariff fluctuations imposed by the US. Major US importers are now renegotiating to share cost-sharing solutions. If Vietnamese companies fail to meet their demands, orders may be diverted to alternative production hubs.

“What worries many enterprises is the uneven application of tariffs between countries that directly compete with Vietnam. This disparity threatens to erode Vietnam’s competitive edge, leading to a shift in orders to countries with lower costs. As such, businesses must devise coping strategies to adapt accordingly,” Duong stressed.

Analysing deeper into the fluctuations of US tariff changes on Vietnam’s textile and garment sector, Hoang Manh Cam, Deputy Chief of Staff of the Board of Directors at the Vietnam National Textile and Garment Group (Vinatex), remarked that the 10% tariff applied over a 90-day period is seen as a “golden window” for enterprises to ramp up production and accelerate exports.

In addition, it is crucial to provide the best possible conditions for workers during this period to ensure productivity, build reserves, and compensate for potential future order losses.

At present, garment orders remain steady, and companies are operating at maximum capacity to realise their full-year targets as soon as possible. However, the yarn industry has encountered difficulties sooner, with some firms suspending operations and postponing orders due to their inability to supply materials to garment manufacturers in time.

“After this period, a new baseline for tariffs and pricing may emerge, and businesses will need to adapt to these changes. The US is a core export market for Vietnam’s textile and garment industry, so the objective is not only to maintain profit and revenue but also to preserve Vietnam’s position in the US market. The US sets the pace—once Vietnam secures a solid foothold and expands its market share there, its standing in the global supply chain will inevitably improve, attracting the attention of major clients,” Cam emphasised.

Diversifying markets and customers

Statistics from the General Department of Customs show that as of April 15, Vietnam’s total textile and garment export turnover reached 11.8 billion USD, an increase of 8.7% compared to the same period in 2024. Major export markets have all maintained positive growth, such as the US market share rising from 36.3% to 38%, the European Union from 9.1% to 9.4%, and Japan from 10.8% to 11%.

Commenting on this trend, Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (Vitas), stated that businesses must proactively implement market-responsive solutions to sustain growth momentum and reach the sector’s export target of 48 billion USD. The 22 next-generation free trade agreements currently in effect or soon to be implemented are expected to open up numerous opportunities for enterprises to diversify their markets, customers, and product ranges.

According to Le Tien Truong, Chairman of the Board of Directors at Vinatex, during this second quarter, the entire system must swiftly execute existing orders by arranging production with extended working hours in accordance with regulations and adopting productivity-enhancing measures to maximise profits in the quarter and create reserves for the more unpredictable second half of the year.

Enterprises must fully exploit this short-term 90-day window to build up resources that will support their long-term goals. Successfully fulfilling orders during this period will clearly demonstrate breakthrough capacity, accountability, and strong commitments to customers, thereby enhancing the reputation and competitive advantage of Vietnam’s textile and garment sector moving forward.

Units must take full advantage of the short-term opportunity within 90 days to have enough resources to persevere with long-term goals. Successful completion of orders during this period will clearly demonstrate breakthrough capacity, responsibility as well as strong commitments to customers, building prestige and competitive advantage of the Vietnamese textile and garment industry in the coming period.

“In parallel with the production campaign, the group has also directed relevant departments to study the raw material supply chain, prioritising the use of fabrics from in-house enterprises where quality requirements are met. This helps businesses categorise products and markets at risk of being affected by new tariff policies, forming the basis for negotiation with clients and identifying appropriate directions. It is also placing emphasis on transparency regarding rules of origin and compliance with anti-fraud trade regulations. At the same time, it is steering enterprises towards product and supply chain diversification, as well as market and customer expansion, to avoid over-reliance on a few existing markets,” Truong affirmed.