We have just come through 2025 with outstanding production and business results, reaching a level comparable to the historical peak achieved in 2021, the year marking 30 years since the establishment of the Group. However, unlike 2021, which was characterized by excessive purchasing and an overflow of orders following the reopening after Covid-19, the business environment in 2025 was extremely challenging. As early as April 2, 2025, the global market was strongly fluctuated by the United States’ decision to impose reciprocal tariffs. Anxiety spread across the entire global supply chain, and temporary order suspensions occurred in the very first week of April, reviving concerns of another difficult business year like 2023.
Nevertheless, thanks to the proactive and flexible efforts of the entire political system and the business community, tariff-related pressures were gradually alleviated. There was time for preparation, and most importantly, the reciprocal tariff rate applied to Vietnam in 2025 fell within the medium range (20%), rather than among the five countries subject to the highest reciprocal tariffs as announced on April 2, 2025 (46%).
In particular, outstanding creativity, strong determination to seize every order opportunity, no matter how small, and the unity of the entire workforce created a bright spot in 2025. Consolidated revenue grew by approximately 8%, while consolidated profit increased by more than 60% compared to 2024 and was 2.3 times higher than in 2023. Employment was secured for nearly 60,000 direct workers and more than 150,000 workers at affiliated units. Average income reached VND 11.7 million per person per month, nearly 30% higher than the national average income of the processing and manufacturing industry. Total factor productivity (TFP) increased by approximately 6%. The consolidated pre-tax profit margin reached around 27% on charter capital and approximately 14% on equity.
We successfully fulfilled our commitment to achieving the highest possible performance in a year marked by many major national and Group events: the 95th anniversary of the founding of the Communist Party of Vietnam, the 80th anniversary of the founding of the Socialist Republic of Vietnam, the 50th anniversary of the liberation of the South and national reunification, the 30th anniversary of the Group’s establishment, the year of the 4th Congress of the Group’s Party Committee, and Party congresses at all levels toward the 14th National Party Congress. The key lessons learned from 2025 can be summarized as follows:
- Monitor market developments and international trade policies, continuously forecasting and analyzing to identify narrow but viable paths in an uncertain market environment.
- Implement solutions decisively and at high speed, recognizing that their effectiveness often exists only within very short, temporary windows created by international and domestic trade policies.
- Years of persistent market diversification have significantly mitigated the negative impacts of new trade policies and the emerging post-2025 market order.
- Continuously innovate and establish effective governance models, enabling rapid responses to market fluctuations based on the digital transformation process and the growing coverage of shared application software across the Group. On that basis, train and develop staff to meet the requirements of modern models.
- Effectively promote enterprise linkages, continuously benchmarking management quality across the Group on the basis of transparent data, and driving collective progress through the activities of the Yarn and Garment Boards.
Alongside fostering the culture of solidarity, diligence, and thrift built by generations of Vinatex employees, continue to develop a culture of innovation, with scientific evaluation methods to ensure fair remuneration based on real contributions. Emphasize genuine innovation and practical action, and focus on eliminating bureaucracy, formalism, and superficiality in management from the Group level to grassroots units.
The year 2026 begins with a mix of positive signals and challenges. There is hope for the stabilization of the new tariff order, especially following agreements between the world’s two largest economies, which would help stabilize business sentiment and supply chain structures. Geopolitical conflicts show potential to end after nearly four years of instability, laying the groundwork for the recovery of global trade. However, overall global economic growth, particularly in key textile and garment consumption markets, is forecast to slow compared to 2025. Inflation risks may rise, especially in the U.S. market due to tariff policies. Bank interest rates at the end of 2025 show no clear signals of further cuts and may even increase. The baseline forecast for global textile and garment trade demand is only about 3% growth, with prices not increasing and possibly declining as new tariff costs are shared with consumers. Meanwhile, major textile- garment producers such as China and India have shown strong determination and supportive policies to regain market share lost in 2025, creating significant pressure on Vietnam’s Textile and Garment industry.
Domestically, 2025 marked the highest growth rate in the past decade, with Vietnam attracting FDI inflows among the best in the world and maintaining macroeconomic stability. However, this has created intense competition for labor, as many other industries have become more attractive. At the same time, increases in regional minimum wages, electricity prices, and signals of rising interest rates from late 2025 have added pressure to enterprise costs.
Despite both opportunities and challenges, together with the nation, Vinatex’s goal for 2026 is to contribute to national GDP growth of over 10%, with the following specific targets:
- Increase the trade surplus by over 10%, directly contributing 10% to national GDP growth.
- Achieve total factor productivity (TFP) growth of over 5%, nearly double the national average in 2025, through faster growth in revenue and capital than in labor.
- Increase hourly labor income by over 10%, also directly contributing 10% to national GDP growth.
- Improve efficiency growth by over 10%.
The Group has identified 2026 as the year of “overall efficiency across the entire Group,” focusing on improving the efficiency of all existing resources, including the utilization efficiency of fixed assets, working assets, market exploitation, and especially human resources, through higher-value products and smarter production organization.
To successfully implement the 2026 theme, the following key solutions will be deployed:
- Screen out low-efficiency activities and those with declining competitiveness, gradually removing them from the Group’s value chain in the market.
- Focus on boosting efficiency in effective business areas, maximizing utilization to achieve better returns on assets, including both tangible and intangible assets such as technology, brand, and human resources.
- Continue to emphasize the quality of growth and the consistency of competitiveness and business efficiency across enterprises within the Group.
- Fundamentally establish digital management infrastructure for core enterprises, with real-time direct linkage to the Parent Company. Organize, operate, and effectively utilize a Group-wide digital business data center, conducting forecasting and governance solutions based on large, reliable data sources.
- Strengthen research and development of new products at strong units and the Parent Company to create breakthrough progress for the entire system.
- Innovate training activities in a modern, digitalized manner, while customizing them to the conditions of each enterprise. Foster a strong culture of continuous learning and innovation across the Group.
- Assign tasks to units using measurable KPIs, moving toward KPI-based responsibilities for middle management across the Group, and gradually implementing performance-based remuneration through quantitative indicators.
- Systematically organize timely and convenient risk management activities, emphasizing early and proactive prevention of business risks.
The year 2026 is the first year of implementing the Resolution of the 14th National Party Congress and the 2026–2030 five-year plan, with remarkably high and challenging goals. These are, however, the only viable choice to achieve truly sustainable development and to concretize the nation’s two centennial goals. The Group and all member enterprises must commit to fulfilling the objectives set with employees, shareholders, and regulatory authorities, based on the foundation of SELECTIVE INHERITANCE – INNOVATION– FLEXIBLE GOVERNANCE – ELITE HUMAN RESOURCES, to build a CIVILIZED – EFFICIENT – RESPONSIBLE Vinatex enterprise.
By: Dr. Le Tien Truong
Secretary of the Party Committee, Chairman of of Vinatex
