According to a newly released report by Vinatex, Vietnam's textile and garment exports reached USD 18.8 billion in the first five months of the year, up 5.6 per cent from a year earlier. Vinatex said the result reflected the sector's ability to adapt and seize market opportunities, particularly during a period when the United States temporarily maintained an additional 10 per cent tariff until July 24.
Workers on a garment production line at Garment 10 Corporation (Photo: Vinatex).
Vinatex reported estimated consolidated revenue of VND 9.77 trillion (approximately USD 375 million) in the first six months, up 6.5 per cent from a year earlier. Profit rose 14.4 per cent to VND 763 billion (approximately USD 29.3 million), while the yarn segment generated VND 205 billion (approximately USD 7.9 million), fulfilling 82 per cent of its annual target.
Despite the positive performance, achieving the industry's full-year export target of USD 48-49 billion remains a challenge. To meet that goal, the sector would need to generate an average of USD 4.31-4.46 billion in exports each month during the remaining seven months of the year, a demanding task given continued uncertainty surrounding global markets, tariffs and consumer demand.
Hoang Manh Cam, chief of the office of Vinatex's board of directors, said orders had begun to slow since July.
According to Cam, after around 150 days of the US imposing an additional temporary tariff of 10 per cent, importers have become more cautious about placing new orders as they await the outcome of tariff negotiations and trade policy decisions expected after July 24.
Vinatex executives identified two major factors that will shape the textile and garment market during the second half of the year.
The first is geopolitical tension, particularly the conflict in the Middle East, which has driven up oil prices and maritime shipping costs. Many shipping companies have introduced additional insurance surcharges, alternative route fees and risk-related costs, placing direct pressure on exporters. Higher energy prices are also contributing to inflation in major economies, affecting demand for apparel products.
The second factor is US tariff and trade policy. In addition to negotiating new tariff arrangements with several trading partners, Washington is conducting a series of investigations related to labour, intellectual property and other trade issues. The uncertainty has prompted many importers to delay finalising orders until policies become clearer.
Despite the short-term challenges, Vinatex remains optimistic about Vietnam's position in the global supply chain. With an established reputation among international buyers, Vietnam continues to be a preferred sourcing destination.
"Although strong growth in the second half of the year may be difficult to achieve, the textile and garment industry is likely to maintain stability and avoid a sharp decline in key export markets, particularly the United States," Cam said.
Looking further ahead, Vinatex said it would focus on strengthening competitiveness, accelerating green transformation, expanding textile and dyeing supply chains, and developing a green, smart and circular manufacturing ecosystem during the 2026-2030 period.