Strong growth momentum

Among the sector’s top performers, Vietnam National Textile and Garment Group (Vinatex, UpCOM: VTG) posted consolidated revenue of VND 18.89 trillion in 2025, fulfilling 103.2% of its annual target. Consolidated after-tax profit reached VND 1.355 trillion, equivalent to 149% of the plan. This marks the second-highest profit level in the group’s 30-year history, surpassed only by 2021.

According to company leadership, the results stemmed from proactive management, flexible market adaptation, and strong workforce support during peak production periods. In particular, during the second and third quarters of 2025, many customers accelerated orders ahead of the implementation of U.S. reciprocal tariff policies. Vinatex also launched a “90-day acceleration campaign” to ramp up production and meet strict requirements on timelines and quality.

Similarly, Viet Tien Garment Corporation (UpCOM: VGG) recorded consolidated revenue exceeding VND 10 trillion for the first time in 2025. In the fourth quarter alone, revenue reached more than VND 2.625 trillion, up over 23% year-on-year. After-tax profit totaled nearly VND 117 billion, rising nearly 15% compared to the same period in 2024, driven by an increase in signed orders.

For the full year, VGG posted consolidated revenue of VND 10.511 trillion, up nearly 8% from 2024, while after-tax profit exceeded VND 441 billion, increasing nearly 21.5%.

Nha Be Garment Corporation (UpCOM: MNB) also reported fourth-quarter 2025 revenue growth of nearly 9% year-on-year to more than VND 1.508 trillion. After-tax profit rose over 9.4% to nearly VND 58 billion. For the full year, revenue reached nearly VND 5.286 trillion, up more than 14%, while after-tax profit surged nearly 57% to almost VND 134 billion.

Hoa Tho Textile and Garment Corporation (HoSE: HTG) marked 2025 as its most successful year on record. Consolidated revenue was estimated at VND 5.537 trillion, exceeding the annual target by 10%. Export turnover reached USD 268 million, 5% above plan. Consolidated pre-tax profit was estimated at VND 400 billion, surpassing the target by 11%. Compared to 2024, revenue rose 9% and pre-tax profit increased 13%, both reaching historic highs.

TNG Investment and Trading JSC (HNX: TNG) also posted double-digit revenue and profit growth. In the fourth quarter, net revenue reached VND 2.027 trillion, up 9% year-on-year, while after-tax profit climbed 50% to VND 111.6 billion. For the full year, net revenue totaled VND 8.698 trillion, up 12%, and after-tax profit reached VND 392 billion, up 24% and the highest in the company’s history. TNG exceeded its 2025 revenue target by about 7% and profit target by 15%.

The company attributed growth primarily to expanded orders from major client Decathlon. Demand in the EU market remained positive as inflation cooled and real incomes improved. In the U.S., TNG benefited from the shift of orders away from China, as Chinese apparel exports to the U.S. face tariffs roughly double those applied to Vietnam.

Industry-wide recovery and strategic direction

Positive corporate results mirror broader industry recovery. According to the Vietnam Textile and Apparel Association (VITAS), 2025 marked an impressive rebound, with export turnover reaching USD 46 billion, up 5.6% from 2024. The trade surplus was estimated at USD 21 billion, while the domestic value-added ratio rose to approximately 52%, contributing significantly to overall industry performance.

Garments remained the dominant export category, accounting for around 80% of total export turnover. Apparel exports increased from USD 27.8 billion in 2020 to about USD 36.6 billion in 2025. Export structure is shifting toward products with higher technical content, design value and environmental standards. Green transformation, digitalization and fashion upgrading have become prerequisites for participation in global supply chains.

From 2026 onward, VITAS plans to maintain three strategic pillars: diversifying markets, customers and products; strengthening domestic supply of raw materials; and accelerating automation, digital transformation and new technology adoption. The industry targets export turnover of USD 48–49 billion in 2026 and USD 64.5 billion by 2030.

According to VITAS leadership, there remains significant room to enhance value added in apparel exports. To increase profitability and competitiveness, firms must move beyond large-scale contract manufacturing toward segments requiring higher intellectual input and craftsmanship. Foreign buyers have begun shifting toward made-to-measure production rather than bulk orders.

International customers are also showing preference for handcrafted products over machine-made goods—an area where Vietnamese firms hold an advantage due to their skilled workforce.

Nevertheless, VITAS acknowledged persistent challenges, including intensifying price competition, stagnant export prices and rising production costs such as wages, utilities and logistics.

Mirae Asset Securities similarly assessed that Vietnam’s textile industry could maintain stable competitive advantages if U.S. reciprocal tariff measures are implemented. Recent geopolitical shifts may present short-term opportunities for Vietnamese firms. However, a high-tariff environment could dampen U.S. demand and intensify competition in key markets, leading to a neutral overall sector outlook.

According to Mirae Asset, tariff effects have begun impacting prices and consumer confidence in the U.S., potentially affecting textile consumption in the second half of 2025 and the first half of 2026 (noting that this assessment was made prior to recent tariff policy changes).

Vietnam continues to benefit from declining Chinese market share in the U.S. and preferential treatment under free trade agreements, though competition in Asia and the EU is expected to intensify.

In the short term, the apparel segment may face headwinds, while the yarn segment is under pressure from weakening demand in China and South Korea. Over the longer term, however, the industry remains positive, supported by global supply chain diversification and production shifts away from China, reinforcing Vietnam’s position in the global textile market.