On the afternoon of January 29, Phong Phu Joint Stock Corporation (Phong Phu) held a conference to review its 2025 production and business performance and to roll out its 2026 plan. Dr. Le Tien Truong, Chairman of the Board of Directors of the Vietnam National Textile and Garment Group (Vinatex), attended and delivered guiding remarks at the event.
In 2025, Phong Phu recorded revenue of VND 2,860 billion and profit of VND 461 billion, exceeding the plan by 30% and rising 20% year on year. Parent-company pre-tax profit reached more than VND 398 billion, surpassing the plan by 29% and reaching 114% of the 2024 level. Average income was VND 12.5 million per employee per month.
For 2026, Phong Phu targets VND 2,800 billion in revenue, VND 410 billion in profit, and an average employee income of VND 13.5 million per employee per month. To deliver these targets, the company will roll out a comprehensive set of solutions. In the yarn segment, Phong Phu will diversify beyond traditional products; expand supply-chain partnerships to offer additional product lines (towels, yarn, bedding sets, etc.) to existing customers in the EU and Japan; cooperate with partners on special product lines for the domestic market; and shift from commodity yarn toward higher value-added products such as cotton Siro slub, linen-blend yarn, and OE recycled yarn to penetrate premium export markets.
In the home-textile business, Phong Phu plans to invest in an integrated weaving–dyeing–finishing line, with a priority on automating packaging, quality inspection, and internal logistics. The company will continue deploying and improving its internal ERP system to monitor productivity, reduce downtime, and cut waste and hidden costs across each process stage; diversify its customer base and increase the share of higher-value products; and raise labor productivity by 15–20% per year. Total planned investment is VND 93.3 billion for yarn and VND 60.6 billion for home textiles.
On human resources, Phong Phu will establish a transparent KPI system with risk controls and pilot it in 2026 for the corporation’s business units and the home-textile segment. The company will also propose policies to strengthen long-term employee engagement and contribution; improve workforce quality through internal training and targeted external programs; recruit young engineers to develop a successor pipeline; and strive to increase average wages by around 10%.
For digital transformation, Phong Phu will adopt digital signatures; build dashboards for production, finance, and the executive team; develop a Super App integrating multiple functions; and build Core AI and an office chatbot. Financially, the company will continue optimizing the use of low-interest borrowing; seek partners to divest non-core investments and accelerate capital recovery to reduce debt; reduce excess inventory and tighten control over slow-moving stock to free up working capital; negotiate longer payment terms with suppliers; and strengthen cost control and savings initiatives to reduce costs and minimize waste during production.
In his remarks at the conference, Dr. Le Tien Truong congratulated Phong Phu on achieving strong production and business results, marking the first year the company has delivered this level of performance. He noted that the outcome reflected contributions across all areas, including yarn, home textiles, partnerships, and finance, presenting a comprehensive and balanced growth picture. While acknowledging the group’s support, he emphasized that Phong Phu had effectively leveraged available resources to generate tangible results. He also highlighted that Phong Phu, as the last unit in the system to complete its year-end review, adopted a TFP/VA approach—challenging but commendable. Notably, the company has set a 2026 target of 8.7% TFP growth, contributing meaningfully to the group’s overall objective of improving total factor productivity.
Regarding the home-textile segment, Chairman Le Tien Truong emphasized that the business is shouldering a greater contribution as competition continues to intensify. Since 2022, a shift in mindset—developing the home-textile sector through innovation and well-structured, methodical investment—has delivered clear results for Phong Phu: productivity, cost performance, and product quality have improved, creating conditions to penetrate the U.S. market and drive sales up sharply from 80 containers to around 150 containers today.
He affirmed that Phong Phu has been on the right track—doing the right things and doing them well—improving operational efficiency while maintaining a prudent and safe financial balance. At the same time, the company has built a solid financial foundation through 2025, which he described as the strongest in roughly the past 15 years. The next challenge, he said, is to sustain these results and move toward double-digit growth.
In the spirit of “Deep understanding – Right action – Follow through to the end,” the Chairman noted that “deep understanding” must begin with a comprehensive assessment across all dimensions. From there, leaders should ensure they correctly understand the policies, tools, and solutions being implemented—and evaluate whether they truly align with the intended objectives—especially as the global supply-chain model is undergoing major shifts. The longer and more complex the supply chain, the higher the risks; the trend toward de-globalization is reshaping micro-level competitive advantages; and global goods consumption has peaked since 2019 and is trending downward.
The textile and garment industry, he stressed, needs to develop a new growth model featuring shorter, simpler supply chains, and a flexible combination of growth driven by internal strengths and external resources, strategic growth and partnership-based growth. Dr. Lê Tiến Trường also frankly pointed out that Phong Phu is still largely relying on an internally driven growth model, which has inherent limits and will slow as the market becomes saturated. Therefore, the company should assess how far saturation has progressed in order to make timely adjustments.
He underscored the need to remain highly alert in searching for solutions that can create new added value, and called on the Board of Directors and the executive team to strive by the end of the 2025–2030 term to propel Phong Phu forward—becoming the first Vinatex unit to reach the milestone of VND 1,000 billion in profit.
Mr. Tran Quang Nghi, Chairman of the Board of Directors of Phong Phu, affirmed that the company has set out specific targets for 2026 and is demonstrating strong determination in organizing their implementation. This includes clear task assignment, defined accountability, and serious, consistent execution across the entire system.
Based on the direction and guidance of the Group Chairman, he requested that member units carry out three key tasks. First, in terms of internal capabilities, Phong Phu’s production units should conduct a thorough review and reassessment of existing capacity, clearly identify gaps and investment needs, and then consolidate and report their findings so that timely supplementation plans can be put in place. Second, the company should place a stronger focus on market development—proactively investing in market expansion as well as in people and management—while requiring units to develop and report detailed, feasible plans to scale up operations. The leadership team will fully absorb the guidance provided and continue translating it into practical solutions that go deeper and deliver tangible effectiveness. Third, build and safeguard corporate culture, with a particular focus on employee welfare—ensuring that staff and workers are recognized and rewarded in a manner commensurate with their contributions, under principles of fairness and transparency in all circumstances, whether in difficult times or when the company is profitable.
Mr. Duong Khue, General Director of Phong Phu, stated that he had fully taken on board the guidance from the Group’s leadership and the Board of Directors. He also called on all units and members across the system to continue placing their trust in—and working closely with—the executive team in implementing the upcoming directives and solutions.
He affirmed that the executive management will translate these orientations into a clear, practical action plan and carry it out decisively and consistently, ensuring the company achieves its set targets and delivers tangible progress in 2026.
