Vietnam’s textile and apparel sector showed strong signs of recovery in Q1 2025, with major companies reporting significant profit growth despite global trade challenges. State-owned Vinatex posted an after-tax profit of $1.07 million, a 6.2-fold increase year-on-year, while its consolidated profit reached $10.03 million, driven by improved order volumes and selling prices. The fibre segment also performed better thanks to strategic price locking. Other leading exporters to the U.S. also saw notable gains: Song Hong Garment JSC reported $40.7 million in revenue (up 34%) and a 51% rise in profit to $3.45 million, supported by orders from major U.S. clients like Walmart and Nike. Thanh Cong Textile Garment posted $40.4 million in revenue (up 8%) and a 26% rise in profit to $3.14 million. Century Synthetic Fiber Corp. recorded a 42% revenue increase to $15.06 million, with profit jumping from $28,440 to $1.42 million. According to VITAS, total textile and apparel exports reached $12.5–12.7 billion in Q1. Despite the gains, risks remain, particularly from potential U.S. tariff changes, which could impact large exporters. Song Hong Garment and TNG are proactively securing contracts and speeding up shipments to mitigate impacts. While the EU market is challenging, companies like Thanh Cong and TNG are expanding market reach through Vietnam’s free trade agreements, especially with the EU, Japan, and Canada. Vietnam’s strong workforce, production capacity, and stable political climate continue to reinforce its competitive edge in global manufacturing. (ICE HO CHI MINH CITY)

Fonte notizia: Vietnam Investment Review