Textiles and garments make the most of market opportunities in the first half of 2025

Vinatex enterprises need to take full advantage of market opportunities in the first 6 months of the year to increase exports while unexpected US policies have not yet occurred, realizing business results in 2025 as quickly as possible when orders are abundant.

Vinatex enterprises need to take full advantage of market opportunities in the first 6 months of the year to increase exports while unexpected US policies have not yet occurred, realizing business results in 2025 as quickly as possible when orders are abundant.

Chairman of Vietnam National Textile and Garment Group (Vinatex) Le Tien Truong emphasized this content at the February Seminar with leaders of Vinatex enterprises.

In the first month of 2025, the production and business situation of Vinatex as a whole increased by 14% compared to the same period last year. Fiber industry units basically had orders for production and made profits again when producing specialized fiber products for niche markets.

In the garment industry, most units in the Group have enough production orders until the end of June 2025 and are continuing to negotiate and sign orders in the third quarter. However, customers are showing caution because of US President Donald Trump's tariff policies that could greatly affect the supply chain.

Looking at the whole industry, the export turnover of the entire textile and garment industry in January 2025 reached 3.68 billion USD, down 0.7% over the same period. This decline is due to the fact that January 2025 has many days off for the Lunar New Year.

In terms of production efficiency, the average export value per working day increased by over 20% over the same period. In particular, some markets had growth such as the US market reached 1.44 billion USD, up 5.6%; the EU market reached 366.1 million USD, up 4%, exports to Korea reached 343.4 million USD, up 1.2%.

Looking back at the impact of Trump 1.0 tax policy on ASEAN's import and export and the impact of Trump 2.0 tariffs, Mr. Hoang Manh Cam, Deputy Chief of Office of Vinatex's Board of Directors , analyzed that currently, the new tariff measures of the Trump administration have not targeted Vietnam and Vietnam is also the least vulnerable country in the ASEAN region in terms of reciprocal tariffs.

Accordingly, the textile and garment industry is not yet subject to additional taxes.

For more information, Mr. Cam said: "The production capacity of the US textile industry is very small (currently only meeting 3% of domestic demand), so it is still heavily dependent on imports; Historical data shows that Vietnam's textile exports to the US are still growing well, and there is still the potential to increase market share in this country."

However, the US may tighten control over Vietnam and some other countries to prevent China from circumventing the law by exporting indirectly through third countries.

"Thus, Vietnamese textile and garment enterprises need to improve compliance with the regulations on origin of the US anti-forced labor law for China," Mr. Cam noted.

Textiles and garments are one of Vietnam's key export industries to the US. In 2024, this industry will bring in 44 billion USD from exports, of which more than 16 billion USD will be exported to the US alone.

Vinatex Chairman Le Tien Truong directed businesses to take advantage of market opportunities to grow production and business as quickly as possible.

Sharing at the Workshop, representatives of Vinatex member units such as Hoa Tho, Southern Textile and Garment - Vinatex and PD&B commented that the recovery signal of the garment industry market in the first 6 months of this year was positive, however, from the third quarter of 2025, there were signs of slowing down because customers were still waiting to hear about the impacts of US tax policies on the economy.

Along with that, in the first 6 months of 2025, most of the orders moving to Vietnam are high-tech, small-scale orders, including knitwear but with higher technical requirements than large-quantity conventional knitwear. All units take full advantage of market opportunities to produce FOB goods, increasing profits.

Businesses also anticipate that in the second half of 2025, if the impacts of tax policies become clearer, they may have to prepare CMT production plans to minimize risks of origin when exporting to the US market.

Believing that the current tax policy of the US President has not yet been clearly defined, the policies on reciprocal taxes can change continuously and will not be "finalized" until April 2025, like the cases of Canada and Mexico, Chairman of the Board of Directors of Vinatex, Le Tien Truong, emphasized a series of key tasks for units in the system to focus on implementing.

That is to make the most of the market opportunities in the first half of 2025 to increase revenue and export turnover when unexpected US policies have not yet occurred. From there, realize the production and business results in 2025 as quickly as possible when the market is still full of orders, focusing on negotiating orders with fast delivery times, not processing orders according to conventional principles.

Mr. Truong "reminded" businesses to have negotiation measures for FOB orders, clarify the principles in negotiation contracts for cases of delivery after June 2025 regarding the origin of raw materials, as well as the commitment of buyers to accompany manufacturers.

According to the assessment of the Group's Board of Directors, 2025 is predicted to be the year with the highest rate of devaluation of the Vietnamese Dong to implement the Government's financial policies as well as to loosen the public debt ceiling to create momentum for GDP growth of over 8% of the economy.

This will be beneficial for exporting units, but for units with a trade deficit in raw materials or in-depth investment in machinery and equipment, it is necessary to study carefully when there is a difference in exchange rates, the possibility of the VND/USD exchange rate continuing to increase.

Source: https://baodautu.vn/det-may-tan-dung-toi-da-co-hoi-thi-truong-nua-dau-nam-2025-d249005.html