By: Mr. Nguyen Duc Tri
Deputy General Director, Head of Vinatex Garment Production and Business
The year 2025 marks a notable turning point in global textile and garment trade as the United States officially implements reciprocal tariff measures and intensifies supply-chain oversight across multiple categories of imported goods, including textiles and garments. These policies deliver a tariff shock, exerting far-reaching impacts on market sentiment, purchasing strategies, and the way international brands structure and manage their global supply networks. Within this context, the Garment sector of the Vietnam National Textile and Garment Group (Vinatex) continues to play a leading role, not only maintaining production stability but also helping to reinforce the resilience of Vietnam’s entire textile and garment value chain in the face of structural shifts in the U.S. market.
U.S. Reciprocal Tariffs in 2025: From Protection Tool to Signal of Supply Chain Restructuring
Unlike earlier rounds of tariffs characterized by confrontation, the United States’ reciprocal tariffs in 2025 are being implemented in a more cautious manner with greater strategic depth. The focus extends beyond nominal tariff levels to the way the U.S. is redefining market access criteria, linking tariffs to rules of origin, levels of supply chain dependency, and a range of non-tariff standards.
For the textile and garment industry, this policy not only delivers a price shock but also gives rise to a prolonged state of uncertainty. U.S. brands have become more cautious in committing to long-term contracts, increasingly diversifying risk and imposing higher requirements for supply chain transparency. As a result, order flows have become more fragmented, profit margins compressed, and operational pressures intensified significantly.
It can be argued that the United States’ reciprocal tariffs in 2025 are not only a trade measure but a clear signal toward global supply chain restructuring, in which stability and risk-management capability are placed on par with cost considerations.
The United States remains a major export market with a pervasive influence on Vietnam’s Textile and Garment industry. Any changes in U.S. trade policy are quickly transmitted to ordering behavior, product mix, and the pace of domestic production.
As reciprocal tariffs are rolled out, cost advantages alone are no longer sufficient to secure orders. Instead, U.S. brands are increasingly prioritizing suppliers with stable production capabilities, strong compliance records, and the agility to respond quickly to policy requirements. This is the critical factor that has brought the role of Vinatex’s Garment sector a clear standout in 2025.
2025: Vinatex’s Garment Sector – Maintains Momentum Amid Reciprocal Tariff Pressures
Under the impact of the United States’ reciprocal tariff policy, Vinatex’s Garment sector in 2025 is operating amid overlapping pressures. The U.S. market has become more cautious, and short-term orders are on the rise, while requirements for delivery timelines and compliance are more stringent.
Against this context, the Garment sector has chosen not to react passively but to proactively adjust its operating approach. The focus has been placed on maintaining stable production, retaining the workforce, and ensuring delivery capacity. This represents a strategic choice, as in an uncertain environment, the ability to ‘keep operations on track’ becomes a critical factor in sustaining customer confidence.
Units across the system have strengthened flexible production organization, enabling rapid adaptation to fluctuations in order volumes, while simultaneously emphasizing cost efficiency and enhanced operational discipline.
At the sector level, coordination and support among units have been more clearly strengthened. Timely collaboration has helped mitigate localized risks and contribute to improved overall efficiency. This has been a key factor enabling Vinatex’s Garment sector to maintain the necessary stability in a volatile year. Total revenue of the Garment sector across 06 member units reached VND 7,217 billion, equivalent to 113% of the annual plan; pre-tax profit amounted to VND 657 billion, achieving 136% of the plan; the profit/revenue margin stood at 9.1%.
Indeed, the stability of the Garment sector has generated a crucial pull for the entire Vinatex organization. As the Garment sector maintains production momentum, the yarn-weaving-dyeing stages are more stable, thereby mitigating the effects of reciprocal tariff policies.
Reciprocal Tariffs and New Demands on Supply Chains
A defining feature of U.S. reciprocal tariffs is their close connection to stakeholder criteria: the origin of raw materials, the level of dependence on specific countries, and environmental and social responsibility. This characteristic is driving structural shifts across the global Garment industry, which directly influences the development orientation of Vinatex’s Garment sector.
Firstly, slower growth but clear divergence
The global fashion market is no longer experiencing strong growth in volume. Low-value segments and fast-fashion products are facing intense competitive pressure, and profit margins continue to narrow. By contrast, sustainability-focused products with consistent quality that meet environmental and social standards continue to maintain a relatively solid position.
Secondly, supply chain restructuring is accelerating
International brands are continuing to follow supply-source diversification strategies, reducing reliance on any single country or region. This trend creates opportunities for Vietnam, while simultaneously imposing higher requirements in terms of delivery capability, delivery speed, and the level of transparency expected of manufacturing partners.
At the same time, many major textile and garment manufacturing countries are stepping up support for domestic enterprises through financial, tax, and infrastructure investment policies. This adds further pressure on Vietnamese garment companies, particularly as domestic production costs show an upward trend.
Third, sustainability standards have become a “passport.”
ESG, the circular economy, extended producer responsibility, and traceability are no longer oriented guidelines, but have become mandatory conditions for maintaining the market, particularly in the EU and North America. Firms that do not adjust proactively risk losing their position within global value chains.
Fourth, competition is shifting from price to comprehensive capabilities
International partners are expressing high concern about the abilities of supply-chain–based production, quality control, standards compliance, and rapid responding to market fluctuations. This presents a significant challenge, but also an opportunity for enterprises with well-structured systems and strong management capabilities.
These changes set out a clear requirement: Vinatex’s Garment sector needs to adjust its development approach, shifting the focus from expansion to optimization, and from scale to quality and efficiency.
2026: Strengthen capabilities to confront Reciprocal Tariffs
U.S. reciprocal tariffs are expected to remain an enduring feature of the trade environment in the period ahead. Based on an assessment of the context and operational realities, Vinatex’s Garment sector has designated 2026 as a “year of performance”, a pivotal year marking a clear shift in mindset and strategic approach. Vinatex’s Garment sector is designing its operating framework with a focus on enhancing overall performance, implementing data driven management, and linking business performance results to key KPIs: Revenue of VND 7,500 billion; pre-tax profit of VND 845 billion; growth in total labor productivity over 5%; growth in export surplus exceeding 10%; increased localization rates; and the use of intragroup materials for FOB orders at a minimum of 20%. To execute the plan, the Garment sector of Vinatex will roll out the following priority actions:
Repositioning the Role of Garment Enterprises
Vinatex’s Garment sector is oriented toward a gradual shift from pure contract manufacturing to deeper participation in customers’ supply chains. Garment units are no longer limited to order-based production, but are progressively engaging in material selection, product development, and production organization aligned with sustainability and social responsibility requirements. The objective is to become strategic manufacturing partners with stable positions in long-term supply chains.
Strengthening Internal Value-Chain Linkages
The Group’s integrated yarn-weaving-dyeing-garment value chain is a competitive advantage that not all enterprises possess. In 2026, Vinatex’s Garment sector will continue to intensify the utilization of this internal chain, increasing the share of materials sourced within the system, shortening delivery lead times, and enhancing value added. This also provides a solid foundation for better meeting requirements related to traceability and sustainable development.
Productivity and Efficiency as the Guiding Axis
Amid rising input costs, improving labor productivity and resource-use efficiency is a key solution to protect profit margins. Vinatex’s Garment sector continues to drive technical improvement programs, process standardization, the application of technology, and digital transformation in production management.
Approach Sustainable Development via a Practical Roadmap
The green transition has been identified as an irreversible trend. However, Vinatex’s Garment sector is taking a practical approach, guided by a clear roadmap aligned with the capabilities of each unit. Sustainable development is not merely about meeting customer requirements, but also a long-term solution to enhance resource-use efficiency and reduce future risks.
Investing in Human Resources and Management Capabilities
People are the decisive factor in the transformation process. Vinatex’s Garment sector continues to prioritize management training, enhance workforce skills, foster a culture of continuous improvement, and enhance employee engagement with the organization. This forms the foundation for the effective implementation of other strategies.
As a core manufacturing pillar, Vinatex’s Garment sector contributes not only in terms of revenue and employment, but also plays a vital role in connecting and maximizing the effectiveness of the Group’s entire textile and garment value chain. A Garment sector that operates efficiently, flexibly, and with strong adaptive capacity will provide a solid foundation for Vinatex’s sustainable development in the period ahead.
U.S. reciprocal tariffs in 2025 have introduced new challenges while also clarifying the core strengths of the textile and garment industry. Against this backdrop, Vinatex’s Garment sector has continued to reaffirm its leading role, maintaining production momentum and providing a stabilizing anchor for the entire value chain. Move on to 2026, the task is not merely to withstand reciprocal tariffs, but to proactively enhance supply-chain organization, strengthen the position of the Garment sector in trade relations with the U.S. market, and reinforce its standing within the global textile and garment value chain. The sector’s remaining growth potential must continue to be leveraged to achieve the target “Optimizing performance through effective work” throughout the system.
