Messages for the 2025

Maximizing internal strength, harnessing high-quality human resources, and building a sustainable position in the global textile and garment value chain. Leveraging innovation, creativity, and advanced technology to develop diverse products while transitioning strongly into the circular economy era.

The year 2024 has reaffirmed the unpredictable market. While the first half of the year showed slight improvement, it still carried the challenging momentum of 2023. However, the second half witnessed a sudden surge in orders to Vietnam, driven by unexpected political upheavals in competing countries.

In 2024, our predictions across three different scenarios proved to be quite accurate. Through monthly reviews and workshops, we made timely and flexible adjustments aligned with market trends, targeting high-potential areas while minimizing losses caused by low pricing and weak demand. Thanks to thorough preparation for various scenarios, we exceeded our annual targets, achieving over 40% growth—an exceptional result given the market challenges and persistently low demand.

The garment sector continued to be the Group’s most vital resource, ensuring financial and labor stability, with some strong enterprises achieving growth rates exceeding 50% compared to 2023. Although the yarn sector remained challenging, operating below cost, losses were reduced by over 85% compared to 2023, marking initial progress in finding its path in a new phase.

Market difficulties and competition have provided us with significant lessons, aligned with the five steadfast principles and the resilient, courageous, innovative, and united spirit fostered over the past three years:

1. Self-reliance and Internal Strength: Only by maximizing internal strength can we stand firm and trust our system through the toughest challenges. We cannot rely on external support to help the Group overcome difficulties.
2. Proactivity, Creativity, and Flexibility: The most crucial strategy for survival is constant adaptation based on high-quality forecasting and following market and competitor trends.
3. Building High-Quality Human Resources: Developing a strong workforce with a mix of generations, particularly focusing on young talent. In the context of scarce skilled labor, pooling and sharing high-quality human resources have helped address challenges across the Group. Connections between member units have been enhanced.
4. Accepting Challenges and Experimenting: Actively exploring new products, applying advanced technologies, and seeking new markets.
5. Upholding Responsibility and Promoting Sustainability: Strengthening our image as a responsible corporation focused on green textiles is essential. Meeting all commitments ensures our position as a reliable partner in global supply chains.

The year 2025 marks significant milestones for the nation, including the 80th anniversary of its founding, accompanied by the vision of entering a “new era of national revival.” It is also a pivotal year for Vinatex, celebrating its 30th anniversary and the start of a new term for the Board of Directors. The mission for 2025 is to define what the “new era of Vinatex” means and how it can rise to meet the expectations of the nation and its people.

The new era for Vinatex can initially be defined as sustainable development across four pillars: environment, society, governance, and finance (ESGF). It envisions Vinatex as a globally competitive player in textile and garment supply chains, possessing unique competitive strengths through innovative technologies and distinctive products. It also embodies a corporate culture that blends the humanitarian traditions of past generations with modern, worker-focused practices.

Strategies for Vinatex to Rise in the New Era:

• Maximizing Internal Strengths: Leverage the potential of individual enterprises to create a unified Group strength. The Group’s strategic vision must translate into concrete actions at the enterprise level. Horizontal and vertical integration within and outside the Group is crucial for building Group competitiveness in the new phase, serving as the foundation for securing a high position in global supply chains.
• Attracting and Effectively Utilizing Talent: Develop and share high-quality human resources across the Group, fostering collective progress. Given the intense competition in the labor market, attracting and retaining top talent is vital.
• Accelerating Digital Transformation: Modernize governance by implementing the best management practices and digital transformation initiatives across all enterprises in the Group.
• Developing Niche Products and Markets: Research and create distinctive, innovative products beyond conventional textiles, establishing technological and market barriers to protect the Group’s sustainability. Balance highly competitive production areas with those offering greater creative value.
• Applying Automation and AI: Reduce dependence on labor through automation and artificial intelligence, increasing the productivity and value of individual workers in the textile and garment sector to align with the country’s economic progress.
• Preserving Unity and Modernizing Culture: Maintain solidarity and mutual support traditions while fostering a modern corporate culture that emphasizes innovation, talent recognition, and calculated risk-taking.

The market will remain competitive, and the challenges of 2025 will be no less than in previous years. Global economic uncertainties and competitors’ recovery after a turbulent year will lead to increased supply. However, with the “unchanging” values Vinatex has built, coupled with clear strategies and the determination, self-reliance, and resilience of the entire system, we are confident in stepping into 2025—a year that marks the beginning of a new journey where Vinatex will rise alongside the nation in this new era.

By: Le Tien Truong

Chairman of Vinatex