The sector's total export value is estimated up about 5-5.6 per cent on-year, reflecting the sector's ability to largely contain global tariff volatility and limit negative impacts on production and business performance.

“This year marks the second-highest profit in our 30-year history,” said Cao Huu Hieu, CEO of state conglomerate Vietnam National Textile and Garment Group (Vinatex), at a press briefing on December 26 reviewing the year's export and business performance.

As export markets have recovered, companies across the sector have announced impressive revenue and profit figures.

The textile apparel sector delivered a robust performance despite global tariff pressures

Vinatex reported a successful year, with consolidated revenue estimated at $755.6 million, equivalent to 103.2 per cent of its annual plan, and consolidated profit approximating $54.2 million, reaching 149 per cent of the target.

Average monthly income for employees was estimated at VND11.7 million per person (about $468), up 10 per cent on-year.

The textile apparel market in 2025 has been marked by a mix of opportunities and challenges.

Volatile cotton and fibre prices, along with fluctuating logistics costs, have pushed up expenses, while customers have imposed increasingly stringent requirements on delivery times, product quality, and traceability.

Processing fees have declined, and tightening origin-tracking regulations have added further pressure.

Tariff policies, in particular, have placed significant strain on a global textile supply chain that has yet to fully recover, prompting customers to require manufacturers to share part of the additional tariff-related costs.

This has intensified competition, especially from low-cost exporters such as Bangladesh and Indonesia. Despite these headwinds, Vietnamese textile apparel firms have closed the year with striking business results .

Explaining a 49 per cent surge in profit, second only to 2021, CEO Hieu attributed the outcome to highly flexible management, highlighting the "90-day sprint" campaign to maximise output and complete orders for the second quarter of 2025, especially ahead of shifts in US tariff policies.

At Hoa Tho Textile Garment Corporation, revenues, exports, and profits all exceeded plans, making 2025 the strongest year in the company's history.

Its consolidation was estimated at $221.5 million, 10 per cent above the annual target, while export value reached $268 million, 5 per cent higher than planned.

The company's consolidated pre-tax profit was put at $16 million, exceeding the target by 11 per cent. Compared with 2024, revenue rose 9 per cent and pre-tax profit climbed 13 per cent, setting record highs.

After three years in which many yarn producers within the Vinatex system recorded negative growth, the market recovery in 2025 enabled a number of firms to cut losses and return to profitability.

For instance, 8-3 Textile Company Co., Ltd. reported estimated 2025 revenue of $32.8 million, up 18 per cent on-year, with pre-tax profit of nearly $140,000. Production output is expected to exceed 12 million tonnes, up 22 per cent, while sales volume is projected at about 12,191 tonnes, an increase of 19 per cent.

Even more striking was Dong Xuan Knitting Co., Ltd., which closed 2025 with revenue of around $18.7 million, up 8 per cent from 2024 and meeting its annual plan.

Pre-tax profit approximated $428,000, a 188 per cent increase and 110 per cent above projections.

Based on 2025 growth results and an analysis of market conditions in the fourth quarter, Vinatex has set a consolidated revenue target of about $800 million for 2026, with consolidated profit in the range of $48-$60 million.

CEO Hieu acknowledged that this is a challenging plan, given unresolved reciprocal tariff issues and lingering risks. Even if conditions are less favourable, the group, however, expects to achieve consolidate profit of about $56 million.

Looking ahead, global textile demand in 2026 is forecast to grow by only about 3 per cent, roughly half the pace of 2025, as the effects of tariff policies are absorbed by US consumers, leading to reduced spending.

Export-oriented manufacturers are expected to divert large volumes to traditional markets such as the EU, Japan, and South Korea, intensifying competition.

At the same time, China is likely to step up exports to the EU, competing aggressively on price through deep discounts, which would add pressure on Vietnamese products that already lack strong price advantages and may even find themselves at a disadvantage.

Even so, CEO Hieu is confident that Vietnam will continue to hold an important position in the global textile supply chain.

In 2026, Hoa Tho aims to maintain its growth momentum, targeting revenue of about $222 million, export turnover of $269 million, and consolidating pre-tax profit of approximately $16.8 million.

To achieve these goals, the company said it will focus on restructuring its customer base and core product lines for each garment factory, improving operational efficiency, and striving to raise overall productivity by more than 5 per cent.

At the same time, Hoa Tho plans to develop new yarn products with higher added value, effectively leverage ongoing factory upgrades, and boost productivity across its yarn operations.