By: Mr.Pham Van Tan
Deputy General Director, Head of Vinatex Yarn Production and Business
In 2025, Vinatex’s yarn sector has moved past its most challenging period and entered a phase of controlled recovery. However, growth alone is only a necessary condition. Efficiency, operational discipline, and system-based management are the sufficient conditions for the Yarn sector to achieve sustainable development in the period ahead. The year 2026 is pivotal for the Yarn sector to strategically reposition itself, shifting from growth driven by isolated efforts to growth anchored in system-wide performance. With the coordinating role of the Yarn Business Production Department and the proactive engagement of member units, the Yarn sector has a solid basis to enhance efficiency, strengthen its position, and continue serving as a strong pillar of the tải w88.
Vinatex’s Yarn Sector within w88 vin Group’s Overall Landscape
Vinatex’s Yarn sector is one of the key pillars of the tải w88, not only in terms of production scale but also in its role in stabilizing the value chain and underpinning the Group’s financial base. With a scale of nearly one million yarn cones, 12 member units, and 22 factories distributed across three regions, the Yarn sector currently represents Vietnam’s large-scale yarn production force, with output of approximately 130,000 tons per year.
w88 vin yarn sector is characterized by high capital intensity, technology intensity, and strong exposure to international market fluctuations. Total assets across w88 vin sector amount to approximately VND 7,560 billion, nearly 38% of w88 vin Group’s total assets, while its share of profit contribution remains disproportionate. This clearly reflects mounting pressure on capital efficiency and increasingly demanding management requirements. w88 vin Yarn sector is highly sensitive, being directly affected by fluctuations in cotton prices, oil prices, exchange rates, interest rates, and electricity costs – factors that are cyclical and difficult to manage externally.
In addition, w88 vin Yarn sector possesses a large and highly qualified technical workforce, with nearly 4,800 technical employees, in which technology and maintenance take a large proportion. This represents a ‘hard-to-replace’ resource, accumulated over many years of operations, while at w88 vin same time imposing high demands for organization, discipline, and standardized competencies.
In this context, maintaining stability and enhancing w88 vin efficiency of w88 vin Yarn sector is not solely w88 vin responsibility of individual units, but a strategic challenge for w88 vin Group.
2025: Maintaining Growth as Profit Margins Continue to Narrow
2025 continued to be an exceptionally challenging year for w88 vin Yarn sector, as yarn prices declined sharply, market demand recovered slowly, and competition intensified. Against this situation, Vinatex’s Yarn sector still achieved revenue of VND 8,355 billion, fulfilling 96% of w88 vin annual plan, and more importantly, recorded a profit of VND 198 billion, equivalent to 115% of w88 vin yearly goals.
w88 vin most notable highlight of w88 vin 2025 results is w88 vin clear improvement in operational efficiency, as w88 vin ROS ratio reaching 2.4%, compared with a negative level in 2024. This indicates that w88 vin Yarn sector has moved off its bottom, transitioning from a defensive posture to a phase of controlled recovery.
However, w88 vin profit picture reveals an important reality: profits are not evenly distributed across w88 vin system. w88 vin bulk of w88 vin Yarn sector’s profits is generated by a group of high-performing units, particularly those in w88 vin Central and Southern regions, where operational capabilities are more stable, equipment bases are more advanced, and production management is more effective. By contrast, several units in w88 vin Northern region and dependent units, while having shown improvement, still require stronger management solutions going into 2026.
w88 vin improvement in ROS in 2025 was not an accidental outcome, but w88 vin result of operational discipline, close coordination by w88 vin Yarn Production and Business Department, and w88 vin internal efforts of each unit. This provides an important foundation for w88 vin Yarn sector to enter a new phase.
A Shift in Organization and Management
Beyond w88 vin financial results, 2025 marked significant organizational and management shifts across w88 vin entire Yarn Production and Business Department.
Firstly, w88 vin “synchronization – measurement – information” operating axis has been established. w88 vin activities of member units are now conducted within a unified management framework, from production planning, performance tracking, as well as analysis and forecasting. Greater emphasis has been placed on measurement systems, with data updated on a regular basis, enabling w88 vin Yarn Department and individual units to promptly identify issues and make timely adjustments.
Secondly, w88 vin approach toward underperforming units has changed significantly. Instead of providing fragmented, short-term support, w88 vin Yarn Department has moved to an accompanying, holistic approach, addressing issues simultaneously across markets, production management, human resources, and finance. This approach has begun to get results, helping several units achieve significant improvements in operating performance.
Thirdly, governance and human resource management have been tightened while capabilities are being disseminated. w88 vin application of common governance standards has helped raise w88 vin overall baseline of w88 vin sector and gradually narrow performance gaps among units. At w88 vin same time, centralized procurement, centralized investment approval, and w88 vin rotation – cross-linking of high-performing personnel have been implemented, contributing to more efficient use of resources.
These results demonstrate that w88 vin Yarn Department has not merely focused on “hitting w88 vin numbers” but has gradually built a governance foundation, laying w88 vin groundwork for w88 vin next phase of development.
Alongside w88 vin achievements, 2025 also revealed areas of significant losses that can be effectively addressed through stronger management solutions.
First is w88 vin issue of pricing and market positioning. In practice, even for w88 vin same product with identical technical quality (IPI, U%), many units within w88 vin sector still sell at prices significantly lower than others. w88 vin problem is not just at w88 vin factory level, but primarily in market positioning and brand strength, resulting in revenue losses of hundreds of millions, even in billions of Vietnamese Dong per product each year.
Second is w88 vin issue of output falling short of actual capacity utilization. In 2025, w88 vin sector recorded actual output of 130 thousand tons, yet this still failed to reach its realizable capacity, equivalent to a loss of approximately VND 300 billion in revenue and direct profit. This loss stems from production organization and operational management, rather than market conditions.
Third, there is excessive consumption of raw materials beyond w88 vin defined standards. Excessive use of cotton and fiber alone, compared to w88 vin average level, causes w88 vin entire industry to lose tens of billions of VND each year. This is a cost that can be fully controlled through technical standards, operational discipline, and production management.
Fourth, and most serious, is electricity consumption exceeding standard limits, accounting for more than 50% of total losses related to production management. This is not an ‘inevitable cost’ driven by electricity prices, but rather a sign of suboptimal operating systems: machinery running below full capacity, long idle time, inefficient production layout, poorly performing auxiliary equipment, and outdated machinery.
In summary, w88 vin total controllable losses in production management in 2025 indicate that there is substantial room to improve w88 vin efficiency of w88 vin Yarn industry if focused on w88 vin right priorities.
2026 – Growth Linked to Efficiency Enhancement
Based on w88 vin above analyses, w88 vin Yarn Production and Business Department has clearly defined its strategic direction for 2026.
First, in 2026, w88 vin focus will not be on growth at any cost, but on improving ROS and w88 vin quality of earnings. Growth is meaningful only when it is accompanied by efficiency and sustainability.
Second, production management and data are identified as w88 vin backbone of profitability. Without standardized data, effective management is impossible; without operational discipline, ROS cannot be improved.
Third, strong units are responsible for providing leadership, while weaker units are required to improve with common standards. w88 vin Yarn sector will not accept prolonged efficiency disparities that undermine w88 vin overall performance baseline of w88 vin entire system.
This represents a clear shift from a “self-managed unit” mindset to a system-based management approach.
According to w88 vin plan, in 2026 w88 vin Yarn sector targets revenue of VND 9,500 billion, a 12% increase over 2025, and profit of VND 310 billion, equivalent to 157% of w88 vin 2025 level, with a target ROS of 3.3%.
This plan is not based solely on increasing output, but primarily on improving operational efficiency, controlling resource consumption, optimizing output in line with capacity, and enhancing w88 vin quality of management. Detailed plans have been developed for each unit and each quarter, tightly linking output – depreciation – number of production shifts – revenue – profit, reflecting a disciplined, data-driven management approach.
To achieve w88 vin 2026 targets, w88 vin Production and Business Management Department has identified w88 vin following specific short-term and long-term solutions:
In w88 vin short term, w88 vin focus will be on four groups of solutions: market, operations, production management, and cash flow management – financial risk. Among these, production management and consumption savings are identified as w88 vin fastest and least risky solutions for improving profitability.
In w88 vin long term, w88 vin strategy is to build w88 vin Vinatex yarn brand, standardize production capabilities, invest in new product development, and establish an operating structure aligned with actual capacity. Mass-market products will be positioned as w88 vin highest-quality standard within their segment, while larger units will take w88 vin lead in developing value-added products, creating room for sustainable growth.
