Vietnam’s Textile and Garment Industry 2025: Strategic Adaptation Amid Global Market Volatility
1. Strong Q1/2025 Performance: A Positive Signal
Vietnam National Textile and Garment Group (Vinatex) reported consolidated revenue of VND 4,417 billion in Q1/2025, up 6.1% year-on-year. Profit surged 165.5% to VND 271 billion compared to Q1/2024.
The improvement stems from spinning enterprises cutting losses and turning profits, while all garment units maintained solid business performance. Most spinning companies reported secured orders through May 2025.
2. Market Volatility & U.S. Tariff Uncertainty
Since late February 2025, the fiber market has experienced price and demand declines due to U.S.–China trade tensions and steep cotton price drops. Orders have shifted toward real-time demand, with rapid delivery requirements, avoiding inventory buildup.
Garment manufacturers have booked orders until the end of Q2 and are negotiating Q3 contracts. However, many buyers accelerated delivery timelines to mitigate the impact of U.S. tariff measures.
When the U.S. announced new retaliatory tariffs on April 3, production slowed as buyers paused. Upon the April 10 announcement to suspend tariffs for 90 days, clients quickly resumed production schedules and requested fulfillment within the grace period.
3. Proactive Strategies: Logistics & Supply Chain Optimization
In response, textile enterprises are executing both short- and long-term strategies, including:
- Negotiating with clients based on partnership and transparency.
- Seeking alternative export markets and sourcing new raw material suppliers.
- Streamlining production management and accelerating order fulfillment.
Additionally, businesses are prioritizing origin control and trade compliance to avoid anti-dumping and retaliatory tariffs from import markets.
4. “90-Day Sprint” Campaign & Labor Solidarity
Recognizing the urgency, Vinatex launched the “90-Day Sprint” campaign, urging the entire system to operate swiftly but strategically.
Vietnam’s textile labor union is spearheading the 2025 Workers’ Month, promoting morale, discipline, and output within this critical 90-day window—targeting completion of Q2 orders by July 5, 2025.
Local union branches are mobilizing communication and training efforts to help workers understand the situation, remain calm, and stay highly committed.
5. Long-Term Direction: Diversification & Sustainable Growth
Key initiatives from Vinatex and the broader industry include:
- Diversifying product lines, sourcing, and export markets to reduce dependency on single trade partners.
- Investing in sustainable and eco-friendly production technologies.
- Promoting local raw material development such as mulberry, hemp, banana, and pineapple.
- Enhancing workforce skills in management, design, and digital transformation.
In parallel, Vinatex continues to advocate for government support policies to protect employment and stabilize production amid external disruptions.
6. Conclusion: Resilience, Adaptation & Global Positioning
Despite global uncertainty, Vietnam’s textile and garment industry demonstrates resilience and readiness. Through proactive strategies in logistics, trade compliance, and operational agility—combined with unity across the workforce—Vietnam is well-positioned to uphold its status as the world’s second-largest garment exporter.
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