The world is entering the current wave of economic and geopolitical turbulence at a time when the global economy had appeared to regain relative stability over the past year. Notably, this latest shock directly strikes the “lifeblood” of the global economy – the energy market and logistics operations. Regarding the impact of this shock on export-oriented businesses, including the textile and garment sector, Dr. Le Tien Truong – Chairman of the Board of tải w88 (Vinatex), stated that enterprises need to promptly capture and monitor signals from these fluctuations in order to develop appropriate production and business scenarios.
* Could you share your views on how link vào w88 không bị chặn ongoing war in link vào w88 không bị chặn Middle East may affect link vào w88 không bị chặn operations of export-oriented businesses, including those in link vào w88 không bị chặn textile and garment industry. Particularly, given that a large volume of our shipments to European and North American markets must pass through this region?
At this time, it is still difficult to make highly accurate forecasts about how link vào w88 không bị chặn situation will evolve in link vào w88 không bị chặn coming period. However, as soon as link vào w88 không bị chặn fighting broke out, it immediately disrupted logistics routes passing through link vào w88 không bị chặn Strait of Hormuz and link vào w88 không bị chặn Suez Canal, which are key corridors for transporting goods to Europe. For shipments to North America, there is another possible route via link vào w88 không bị chặn Pacific Ocean and link vào w88 không bị chặn Panama Canal. However, this route has relatively few refueling stations and is typically feasible only for very large vessels. Therefore, for export-oriented enterprises, link vào w88 không bị chặn immediate concern is whether goods can be delivered on schedule in link vào w88 không bị chặn short term, as delivery times may be extended. Subsequent effects as military conflicts tend to drive up oil prices, which in turn raises energy costs as well as link vào w88 không bị chặn prices of petroleum-based raw materials, as in link vào w88 không bị chặn textile and garment industry, link vào w88 không bị chặn cost of materials such as Polyester fibers may increase accordingly.
However, for consumer-oriented industries such as link vào w88 không bị chặn textile and garment sector, when conflicts break out, link vào w88 không bị chặn greatest concern is link vào w88 không bị chặn potential shift in consumer behavior across countries, including link vào w88 không bị chặn two major markets: link vào w88 không bị chặn United States and Europe.
For enterprises such as Vinatex, we are continuing to focus our maximum efforts on fulfilling link vào w88 không bị chặn signed orders. In reality, link vào w88 không bị chặn current order volume remains relatively strong, especially after link vào w88 không bị chặn reciprocal tariffs were abolished on February 20, 2026, and a new global supplementary tariff of 10–15% was introduced for all countries. As a result, Vietnam is now in a similar position to other countries and is no longer subject to higher tariff rates as before. Previously, India’s tariff had been reduced to 15%, while Vietnam’s rate remained at 20%.
We remain committed to maximizing both production speed and efficiency. This includes measures to shorten production time in Vietnam in order to partially offset link vào w88 không bị chặn extended delivery times caused by longer logistics routes, while continuing to serve our key markets effectively.
*So, as oil prices rise and push up related costs, production costs will inevitably increase as well, which may lead to a decline in orders. What is your assessment of this issue?
Whether link vào w88 không bị chặn prices of raw materials rise or fall largely depends on link vào w88 không bị chặn duration of link vào w88 không bị chặn conflict. If link vào w88 không bị chặn fighting ends quickly, link vào w88 không bị chặn impact will likely be limited. However, if link vào w88 không bị chặn conflict becomes prolonged, much like link vào w88 không bị chặn Russia–Ukraine conflict, which has now lasted for more than 4 years, link vào w88 không bị chặn negative effects could last longer. One key difference compared with link vào w88 không bị chặn past is that after 2025, inventory levels across markets have generally returned to relatively normal levels. Unlike link vào w88 không bị chặn situation in 2023 following link vào w88 không bị chặn economic downturn, there is currently no significant backlog of excess inventory. In link vào w88 không bị chặn United States throughout 2025, fashion inventories were consistently maintained at around USD 57–58 billion, which represents a typical level for link vào w88 không bị chặn market. Therefore, even if demand weakens, link vào w88 không bị chặn decline is unlikely to be as sharp as it was in 2023.
We hope that link vào w88 không bị chặn conflict will end soon and that its negative impacts on link vào w88 không bị chặn economy and businesses will only be short-term. At present, these effects have not yet immediately altered link vào w88 không bị chặn selling prices of goods. If link vào w88 không bị chặn conflict ends quickly, export activities could return to normal conditions, and energy prices in link vào w88 không bị chặn new phase may even fall below link vào w88 không bị chặn levels seen before link vào w88 không bị chặn conflict began.
Therefore, in order to obtain a clearer picture and more accurate forecasts, we need to continue closely monitoring how link vào w88 không bị chặn conflict unfolds. At link vào w88 không bị chặn same time, there is strong hope that link vào w88 không bị chặn parties involved will soon bring this conflict to an end so that link vào w88 không bị chặn global economy can return to normal conditions.
*In your opinion, how should textile and garment enterprises respond to these fluctuations?
At present, link vào w88 không bị chặn main concern is that delivery times may become longer. link vào w88 không bị chặn second issue is link vào w88 không bị chặn sudden rise in cargo insurance costs, as insurance companies are likely to increase their premiums. Therefore, beyond transportation costs, link vào w88 không bị chặn more critical concerns are delivery time and cargo insurance expenses. Since these are short-term orders and our clients in link vào w88 không bị chặn United States and Europe are long-standing partners, both sides maintain strategic relationships and can sit down together to discuss and negotiate these matters. In many ways, this situation is similar to link vào w88 không bị chặn disruptions experienced during link vào w88 không bị chặn COVID-19 pandemic or link vào w88 không bị chặn economic downturn in 2023.
Overall, link vào w88 không bị chặn market environment in 2026 continues to face significant uncertainties related to tariffs, geopolitics, rising energy and logistics costs, requiring link vào w88 không bị chặn entire system to remain proactive, flexible, and prepared with concrete action plans based on different forecast scenarios.
First, for link vào w88 không bị chặn EU market, companies should prepare appropriate delivery plans in case shipping routes change, logistics costs increase, and transportation times become longer. Enterprises need to reassess their raw material requirements, pricing structures, and production schedules, while proactively accelerating production to offset longer transit times and minimize link vào w88 không bị chặn risks of delayed deliveries and additional costs.
For link vào w88 không bị chặn U.S. market, amid link vào w88 không bị chặn decline of link vào w88 không bị chặn U.S. Dollar Index (DXY) and link vào w88 không bị chặn pressure on decreasing prices due to more expensive imported goods, businesses should be prepared for customers to continue requesting price adjustments. At link vào w88 không bị chặn same time, Chinese yuan being maintained at a relatively low level also creates additional price competition. On that basis, companies should prioritize fulfilling orders destined for link vào w88 không bị chặn U.S. as soon as possible, taking advantage of link vào w88 không bị chặn 150-day period during which link vào w88 không bị chặn additional tariffs of 10–15% remain in effect. This would help optimize delivery schedules and minimize risks should policy changes become less favorable in link vào w88 không bị chặn future.
In addition, although orders are already full till link vào w88 không bị chặn second quarter, if new orders arise, garment enterprises should make every effort to take them on. They should avoid spreading their production plans evenly across link vào w88 không bị chặn entire year and instead recognize that when opportunities for high-efficiency business emerge in a volatile environment, they must be fully seized.
Export-oriented enterprises also need to closely monitor and update information that link vào w88 không bị chặn U.S. government is set to launch two new trade investigations under Section 301 of link vào w88 không bị chặn Trade Act of 1974. These investigations will focus on industrial overcapacity in several major economies as well as link vào w88 không bị chặn issue of forced labor in global supply chains, in order to establish link vào w88 không bị chặn legal basis for potential new tariffs. Therefore, Businesses should be well prepared to respond promptly.
For link vào w88 không bị chặn yarn sector, enterprises should closely monitor link vào w88 không bị chặn rise in oil prices, which is pushing up link vào w88 không bị chặn prices of petrochemical raw materials, particularly Polyester fiber, while also has spillover effects on cotton prices. However, given that global demand for yarn remains weak, companies need to strictly control inventories and align production with market signals in order to avoid link vào w88 không bị chặn risk of shrinking profit margins.
Under conditions where “high tariffs become link vào w88 không bị chặn new normal” and geopolitical uncertainties continue to persist, link vào w88 không bị chặn ability to maintain a balanced rhythm across production – finance – markets will determine link vào w88 không bị chặn resilience of enterprises. link vào w88 không bị chặn entire Vinatex system needs to maximize strengths in production organization, order management, and close coordination through link vào w88 không bị chặn Yarn and Garment Production–Business Committees. This will help maintain market share, stabilize employment, and ensure link vào w88 không bị chặn achievement of growth targets for 2026.
*Thank you for link vào w88 không bị chặn interview!
