Vinatex spins stronger profits on value shift

Vinatex spins stronger profits on value shift

In the first quarter of 2026, Vinatex estimated to have recorded consolidated revenue of about VNĐ4.55 trillion

The Vietnam National Textile and Garment Group (Vinatex) has reported modest revenue growth in the first quarter of 2026 but a sharp rise in profit compared with the same period last year, reflecting its strategy of pursuing higher value-added product development in a volatile global market.

According to Cao Hữu Hiếu, CEO of Vinatex, in the first quarter of 2026, the group estimated consolidated revenue of about VNĐ4.55 trillion (US$172.8 million), up 2 per cent, and pre-tax profit of VNĐ355 billion, up 31 per cent year-on-year.

According to the group, its first-quarter performance reflects that operations are on the right strategic track, focusing on quality and value enhancement amid a challenging global market environment.

Hiếu said that both Vinatex’s garment and yarn segments have maintained stable operations thanks to a strong order book, including a significant number of orders secured prior to the Lunar New Year holiday.

However, the company’s leadership cautioned that these short-term advantages may not necessarily indicate broader trends for the remaining quarters of 2026.

The year 2026 presents a range of challenges for the textile and garment sector and export-oriented industries more broadly, including tariff fluctuations, conflicts in the Middle East, volatile energy costs, and disruptions to logistics.

Global textile demand is unlikely to reach the 3 per cent growth forecast at the start of the year while selling prices are expected to remain under pressure or even decline as brands require manufacturers to share additional costs arising from logistics and energy.

Combined with rising input and transport costs as well as supply pressures, profit margins in the textile sector could face significant compression.

In this context, Lê Tiến Trường, chairman of Vinatex, said the group will concentrate its efforts in the second quarter of 2026 aiming to achieve 60 per cent of its full-year pre-tax profit target by the end of the period.

In addition, Vinatex will review and implement cost-saving measures in production to cut expenses while diversifying transport modes to shorten delivery times and optimise logistics costs.

Earlier, Vinatex released its 2025 financial statements reporting a 6 per cent increase in consolidated revenue compared with 2024 to VNĐ18.4 trillion while itspost-tax profit doubled to VNĐ1.3 trillion. 

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