In his opening remarks, Vinatex General Director Cao Huu Hieu said that the Group’s positive revenue and profit performance in the first half of 2026 was the result of the collective efforts of the entire Vinatex system, with human resource management making a meaningful contribution. He noted that the Group’s human resources function has continued to strengthen its role as a strategic advisor to the Board of Directors and the Executive Office in developing solutions to stabilize the workforce and meet production and business requirements. The Human Resources Division has worked closely with member enterprises, providing regular guidance, addressing operational challenges, and helping resolve bottlenecks encountered during implementation. In particular, a number of enterprises that had previously faced operational difficulties have gradually regained momentum. This serves as clear evidence of the effectiveness of integrating human resource management with production and business operations at the enterprise level.

During the second quarter, the implementation timeline for several Human Resources Division initiatives was adjusted as member enterprises prioritized stabilizing production, optimizing order fulfillment, and maintaining workforce stability amid market uncertainties. Nevertheless, the Group’s overall objectives remained on track.

Regarding key performance indicators, Vinatex has set a target of keeping the annual employee turnover rate below 15%. In the first six months of the year, the average turnover rate across the Group stood at 9.8%. However, workforce stability varied considerably among member enterprises. Average employee income increased by more than 10% during the period, although income levels remained uneven across the Group. Accordingly, further efforts are needed to develop solutions tailored to the specific conditions of each enterprise to improve employee income and strengthen workforce retention. In addition, greater attention should be given to developing a strong succession pipeline to ensure the long-term sustainability of Vinatex’s human resources.

Presenting the Human Resources Division’s six-month review of its 2026 action program, Ms. Tran Tuong Anh, Member of the Board of Directors of Hoa Tho Textile and Garment Corporation and Human Resources Division expert, reported that the Group’s employee turnover rate in the first half of 2026 declined by 0.4% compared with the same period in 2025. No labor shortages emerged across the system, contributing to stable production and the successful achievement of the Group’s first-half business objectives. The Human Resources Division continued to build a data-driven human resource management platform by developing a set of core HR metrics and standardized reporting templates for implementation across the Group. It also provided focused support to four key enterprises: Branch of Vinatex – Nam Dinh Spinning factory, Eight March Textile company Ltd. (EMTEXCO); Hanoi Textile and Garment Joint Stock Corporation (HANOSIMEX); and Nam Dinh Textile and Garment Joint Stock Corporation (NATEXCO) – in the areas of human resource management, digital transformation, training, and recruitment. The Division also organized training and experience-sharing programs for more than 200 middle managers, collaborated with Hanoi University of Industry and Trade to assess training needs and provide consulting on work-integrated degree programs in Garment Technology and Spinning Technology; strengthened professional knowledge sharing through its quarterly Human Resources Newsletter, which provides legal updates and shares HR management knowledge and best practices.

Despite the progress achieved, several challenges remained in implementing the Human Resources Division’s initiatives: the fragmented HR data resulting from the lack of standardized and integrated personnel records; limited dedicated HR resources, with many staff members undertaking multiple responsibilities and requiring further capacity building; uneven progress in digital transformation across member enterprises; an employee performance evaluation system based on KPIs that is still under development and in the pilot phase; delays and inconsistencies in the implementation of certain training programs; and varying levels of organizational maturity among member enterprises.

During the conference, participants also heard presentations from the   Human Resources Division’ Executive Committee on workforce trends, employee compensation, and the effectiveness of human resource management across member enterprises during the first half of the year; an outlook on the labor market and employment trends for the second half of 2026, as well as a thematic session entitled “Personal Data Protection in Human Resource Management: From Regulation to Action,” aimed at enhancing awareness and ensuring compliance with legal requirements in HR management.

Sharing practical experience in human resource management, two presentations delivered by Hue Textile and Garment Joint Stock Corporation and Hoa Tho Textile and Garment Corporation on “Applying KPI/OKR Performance Management Tools in Human Resource Management” and “Applying HR Metrics to Measure and Improve Human Resource Management Effectiveness” provided participants with valuable practical insights and actionable solutions. The presentations generated strong interest and lively discussions among members of the Human Resources Division throughout the conference.

In his closing remarks, Mr. Cao Huu Hieu, General Director of Vinatex and Director of the Human Resources Division, affirmed that human resource management has increasingly demonstrated its strategic value, making tangible contributions to the production and business performance of member enterprises. The Human Resources Division has also worked closely with the Group’s Yarn and Garment Production and Business Divisions to develop solutions that ensure an adequate workforce for operations, contributing to the positive growth achieved in the first half of the year. Coordination between the Group’s Human Resources Division and member enterprises has improved significantly, while initiatives such as on-site support, workplace-based training, and specialized consulting have begun to deliver positive results. The capabilities of HR professionals have received greater attention, with several member enterprises making systematic investments in their human resource management systems. These efforts have laid a solid foundation for the next phase of Vinatex’s management transformation.

Despite the progress achieved, several issues still require focused attention. These include inconsistencies in the quality of human resource management across member enterprises; the incomplete standardization and integration of HR data, which limits data analysis and decision-making; uneven implementation of certain training programs, with post-training effectiveness yet to be clearly measured; and the lack of in-depth root cause analysis and targeted solutions for persistent operational bottlenecks at some enterprises, resulting in limited improvement outcomes.

On this basis, the Group’s leadership called on the Human Resources Division to focus on the following key priorities during the third quarter and the second half of 2026:

(1) Expedite the completion of the Group’s HR data system and the Human Resource Management Maturity Assessment Toolkit, with both scheduled for issuance in July 2026.

(2) Fully implement the approved training plan, with particular emphasis on evaluating training effectiveness through measurable improvements in employees’ competencies and job performance.

(3) Continue implementing the support program for the four key enterprises facing operational challenges in a more proactive and results-oriented manner, ensuring that all initiatives are closely aligned with production and business performance.

(4) Further strengthen workforce stability by prioritizing employee retention and the effective utilization of the existing workforce. The Group aims to keep the employee turnover rate below 10%, continue improving employee income, particularly at enterprises where average income remains below the Group and local averages; recommend measures to enhance labor productivity, thereby creating sustainable opportunities for long-term income growth.

(5) Improve the quality of succession planning and leadership development by transforming from a procedural exercise into practical management; proactively preparing a strong pipeline of current and future managers to support the long-term development of member enterprises.

Against the backdrop of evolving U.S. trade policies and expectations of continued challenges in the second half of the year, the Human Resources Division should further reinforce its role in enhancing business performance by shifting toward a more proactive approach to workforce management, ensuring that the workforce are fully prepared to meet production and business requirements.

The Group’s leadership also called on the management of member enterprises to recognize human resource management as a core component of corporate governance. Enterprise leaders are expected to take direct responsibility for overseeing, monitoring, and delivering key performance targets related to workforce management, employee income, training, and talent development.

Reviewing the Group’s production and business performance in the first half of the year, General Director Cao Huu Hieu said that amid continued global economic uncertainties, weakening consumer demand in many key markets, and intensifying competitive pressures, Vinatex proactively adapted to the changing environment and maintained stable production across its operations. The Group’s consolidated revenue for the first six months of 2026 was estimated at VND 10,049 billion, equivalent to 46.9% of its full-year target and up 9.6% year-on-year. Consolidated pre-tax profit was estimated at VND 882.9 billion, reaching 64% of the full-year plan and increasing 32.4% compared with the same period in 2025. Across the Group, the workforce totaled 48,134 employees. Average monthly income reached VND 12.4 million per employee, up 8.9% year-on-year and approaching the full-year target of VND 12.6 million per employee per month.

According to General Director Cao Huu Hieu, the results achieved in the first half of the year reflected the collective efforts of the entire Vinatex system. In particular, the Yarn Production and Business Division and the Garment Production and Business Division continued to play a pivotal role in coordinating operations and supporting member companies in improving production and business efficiency.

For the second half of 2026, Vinatex aims to achieve its full-year revenue target. The Group targets consolidated pre-tax profit of approximately VND 1,400 billion, exceeding the annual plan by 2–3%, while the Parent Company is expected to outperform its profit target by 4%, reaching around VND 270 billion. Vinatex also targets a 10% increase in its annual import-export trade surplus, a 9–10% rise in average employee income, and the achievement of its annual targets for capital efficiency and total factor productivity (TFP).

To achieve these objectives, General Director Cao Huu Hieu called on the entire Vinatex system to implement four key strategic of priorities in a coordinated manner:

First, secure orders and strengthen customer relationships by reviewing and optimizing the customer portfolio, with priority given to retaining strategic customers. The Garment Production and Business Division will continue assessing the competitiveness of the garment sector and guide product portfolio adjustments in line with each member company’s capabilities. Meanwhile, the Yarn Production and Business Division will focus on developing a product mix that better meets the demands of the Chinese market, FDI enterprises and the domestic market.

Second, protect profit margins by tightly controlling production costs, improving raw material management, optimizing cotton procurement, and implementing productivity improvement initiatives to achieve the Group’s Total Factor Productivity (TFP) growth target.

Third, strengthen cash flow management by reducing inventories of raw materials and finished goods, accelerating receivables collection, maximizing the utilization of idle assets, and expediting value-added tax refunds to supplement working capital for production and business operations.

Fourth, maintain competitiveness by accelerating digital transformation, enhancing management platforms, strengthening quality management and social responsibility systems, and tightening controls over product traceability and rules-of-origin verification to meet the increasingly stringent requirements of export markets.

At the conference, representatives of Vinatex’s Yarn Production and Business Division and Garment Production and Business Division presented an overview of market developments in the first half of 2026, shared their outlook for the remainder of the year, and proposed solutions to achieve the Group’s 2026 business targets.

A key highlight of the conference was the evaluation of the performance of Vinatex’s capital representatives at its affiliated enterprises. This marked the 15th year that the Group has conducted evaluations under its revised assessment framework. Over the years, particularly during the 2020–2025 period, the evaluation system has been continuously refined in terms of assessment criteria, methodology, and implementation.

Vinatex currently has nearly 30 member enterprises that vary significantly in scale, level of development, production conditions, and market orientation. As a result, a one-size-fits-all formula or strategy is neither practical nor effective. Instead, the Group applies a common management approach that is both systematic and flexible, enabling each enterprise to capitalize on its unique strengths while leveraging the collective advantages of the entire Vinatex system. This approach aims to enhance overall competitiveness and build Vinatex into a large-scale, efficient textile and garment manufacturing group that is increasingly adaptable to evolving market demands and emerging industry trends.

Summarizing 15 years of evaluating the performance of Vinatex’s capital representatives at affiliated enterprises, Dr. Le Tien Truong, Chairman of Vinatex, affirmed that the evaluation framework has laid an important foundation for improving the Group’s capital efficiency, strengthening corporate governance, and building a sustainable ecosystem of member enterprises.

Over the past 15 years, the 2009–2014 period laid the foundation for Vinatex’s capital representative evaluation system. The 2015–2020 period marked its expansion from a primary focus on financial performance to a broader assessment of enterprise development capabilities through a comprehensive overhaul of the evaluation framework.

During the 2021–2025 period, the evaluation system took a further step forward by shifting from outcome-based assessment to data-driven management. The KPI system evolved from being merely an evaluation tool   into a management instrument for identifying issues, analyzing root causes, and recommending improvement measures tailored to each enterprise. In addition to traditional financial indicators, the framework incorporated a range of modern management metrics, including the Z-score to measure financial health, revenue and profit per employee, employee turnover rate, Total Factor Productivity (TFP), and the Cash Conversion Cycle (CCC). As a result, the evaluation system now provides a more comprehensive reflection of both the management performance of capital representatives and the competitiveness of member enterprises.

For the 2026–2030 period, Vinatex will continue to enhance the evaluation framework by introducing three additional indicators alongside the existing criteria: Return on Capital Employed (ROCE), the Quick Ratio, and the Deployment Rate of Tranined Successor Candidates.

The conference participants expressed strong support for and appreciation of the objectives and recent innovations in Vinatex’s evaluation framework for capital representatives at its affiliated enterprises.

In recognition of the outstanding achievements recorded in 2025, Vinatex decided to allocate nearly VND 7 billion from the Parent Company’s Reward Fund to reward capital representatives at member enterprises. The Group particularly commended the exceptional performance of eight enterprises: Phong Phu Corporation, Hoa Tho Textile and Garment Corporation, Viet Thang Corporation, Hue Textile and Garment Joint Stock Corporation, Viet Tien Garment Corporation, Garco 10 Corporation, Nha Be Garment Corporation, and Hung Yen Garment Corporation.

In his concluding remarks, Chairman Le Tien Truong emphasized that after July 24, 2026, the United States’ temporary additional tariff measures on Vietnam are likely to be replaced by new measures under Section 301. However, until now, there is still insufficient information regarding the extent of their impact on individual countries, as well as issues related to overcapacity, intellectual property, and labor standards. Vinatex and its member enterprises should therefore continue to closely monitor policy developments and take appropriate actions.

Regarding priorities for the second half of 2026, Vinatex should focus on three key areas:

First, the Group’s business results in the first half of 2026 reflected not merely growth in scale, but higher-quality growth. This was achieved through improved operational efficiency, higher productivity, and greater sustainability, while the Group’s asset base remained largely unchanged. These results demonstrate that the entire Vinatex system is progressing in line with the strategic direction set at the beginning of the year – driving growth through efficiency rather than expansion.

Second, member enterprises need to recognize that the second half of the year will present significant challenges, with uncertainty surrounding tariffs and international trade policies remaining the most critical. Profitability in the second half may not match the exceptionally strong performance recorded in the first six months. However, experience over the years has shown that periods of heightened market volatility and policy uncertainty often create the greatest opportunities for enterprises with strong adaptability. In 2021, amid the COVID-19 pandemic, in 2022 during geopolitical disruptions, and in 2025 amid major shifts in the global trade environment, Vinatex consistently delivered results that exceeded expectations. This demonstrates that periods of policy uncertainty provide opportunities for businesses that can identify challenges early, make timely decisions, and execute effectively. After years of continuous improvement, Vinatex has built strong adaptive capabilities, making agility an integral part of its management approach while maintaining discipline and unity across the Group. As a result, whenever the market becomes more volatile, Vinatex’s member enterprises should view such changes not as risks, but as opportunities to reinforce the competitive advantage.

Third, Vinatex expects second-half profit of 2026 to reach approximately 60–65% of the first-half result, enabling consolidated profit for the full year to exceed the level achieved in 2025. This target represents both the Group’s forecast and its confidence, while also serving as a shared objective for the entire Vinatex system. Alongside its profit target, Vinatex remains committed to increasing average employee income by more than 10% and further improving capital efficiency and cash flow management across all member enterprises.

Recruitment Trends: From Academic Qualifications to Practical Performance

Participating in the 2026 Job Fair at Hanoi Industrial and Trade University (HITU), textile and garment enterprises including EMTEXCO and HANOSIMEX highlighted their efforts to strengthen the recruitment and development of young talent by building direct connections with students from an early stage. EMTEXCO has managers and department heads directly conduct interviews to evaluate candidates’ expertise, skills, attitudes, and career orientations. The company also runs annual internship programs that allow students to experience actual manufacturing environments, while providing internship stipends, meal allowances, and other benefits to attract and cultivate high-quality talent.

Meanwhile, HANOSIMEX gives priority to candidates with relevant academic training, as well as those who demonstrate positive attitudes, a willingness to learn, and adaptability to industrial working environments. The company focuses on career development programs, orientation training, investments in modern technologies, and stable employee benefits to attract and retain young workers.

As digital transformation, automation, and technological applications continue to reshape the textile and garment industry, employers are placing increasing value on hands-on capabilities, technological adaptability, and innovative mindsets rather than academic qualifications alone. In addition to professional knowledge, soft skills – including communication, teamwork, problem-solving, responsibility, and the ability to learn quickly – together with foreign language proficiency and digital literacy, are becoming essential assets that enable students to enhance their competitiveness and adapt to the changing requirements of the labor market.

Building Competencies for Future Career Goals

Final-year students at HITU believe that choosing a job is about more than just income; it is also about opportunities to learn, a professional work environment, and clear long-term career prospects. Pham Van Duy, a final-year Mechatronics student, said he is seeking a workplace that provides systematic training, experienced guidance, and a culture of innovation to help young employees quickly adapt, improve their professional skills, and turn academic knowledge into real-world competencies.

After engaging with industry representatives, Duy recognized that the textile and garment sector is undergoing a strong transformation toward automation and advanced technologies. He aims to become a   maintenance and repair engineer specializing in garment machinery, with expertise in modern electronic sewing systems and the ability to contribute to equipment innovation and preventive maintenance solutions that improve manufacturing efficiency.

Meanwhile, Nguyen Thi Nguyet, a Textile Technology student, noted that students today place greater importance on securing jobs aligned with their academic disciplines, working in professional environments, accessing training opportunities, and having clear career development paths. Through discussions with recruiters, students have gained a deeper appreciation of the role that soft skills – such as communication, teamwork, situational problem-solving, adaptability, foreign languages, and digital literacy – play in strengthening their competitive advantage.

Beyond their academic studies, HITU students actively engage in practical projects, research activities, and professional competitions to sharpen their technical thinking and develop teamwork, time management, and problem-solving capabilities. These real-world experiences give them greater confidence as they enter the workforce and help them meet the increasingly sophisticated demands of an industry undergoing technological transformation and embracing smart manufacturing.

Dr. Hoang Xuan Hiep, President of HITU: Vietnam’s Textile and Garment industry is entering a highly challenging transition period, marked by persistent global economic uncertainties, increasing competition, and rising expectations regarding workforce quality. According to Dr. Hiep, the key to overcoming these difficulties is the development of high-quality human resources. This requires enterprises to make stronger investments in training and skills development while continuing to improve wages and ensure stable livelihoods for workers.

Entering 2026, despite persistent challenges, Vietnam’s Textile and Garment industry is presented with new opportunities arising from the recovery of the global economy. In this context, retaining workers, upgrading skills, and developing a high-quality workforce must remain at the center of corporate priorities. These efforts are not merely short-term responses to current challenges but also the foundation for enhancing value creation and sustaining the industry’s competitive advantage in the new era.

Kick-Starting Your Day with Energy

For managers, the morning is not merely the start of the workday; it is also a process of “activating” energy and mental readiness. Spending a few quiet moments, engaging in light exercise, taking deep breaths, or reflecting on the day’s priorities can help the brain transition from   rest into a more focused and purposeful mode work more effectively.

Managers should also avoid checking emails, messages, or work-related applications immediately upon waking, as this can trigger a reactive mindset and unnecessary stress. Once their morning ritual is complete, they should prioritize the most important task or the work that requires the highest level of concentration.

 Quick Formula/Key Takeaway:

• First 10 minutes after waking up: Do not check your phone.
• Next 10 minutes: Engage in light exercise or deep breathing.
• When starting work: Prioritize the most important task.

Maintaining Emotional Balance

Leaders do not merely manage tasks; they also shape the atmosphere and energy of the entire organization. Therefore, conducting an “emotional check-in” each morning is essential for recognizing one’s mental state, identifying underlying concerns, and choosing appropriate responses. This is not about forcing oneself to think positively, but about consciously acknowledging emotions so they do not unconsciously dictate our reactions.

 Quick Formula:

• Recognize: What state of mind am I in right now?
• Name it: Identify the specific emotion.
• Adjust: Choose the most appropriate response.

Personalizing Morning Routines

There is no one-size-fits-all morning formula for managers, as effective routines are often highly personalized. Each individual needs to understand which pace and type of morning start works best for them – whether it is exercising, taking time to relax, or beginning the day with an important task. The key is to experiment, make adjustments, and maintain the habits that genuinely suit one’s needs, rather than simply following popular trends.

 Quick Formula:

• Experiment: Try new practices.
• Keep: Maintain the effective habits.
• Eliminate: Let go of what does not work for you.

Small but consistent changes can gradually shape an effective “morning ritual,” enabling managers to start each day with greater clarity, focus, and proactivity. While leaders cannot control every uncertainty that unfolds during the day, they can control how they begin each morning. By doing so, they can enhance their performance and lead   more effectively.

A Golden Legacy Shaped by a Culture of Innovation, Creativity, and Unity

Sixty years have marked a journey of relentless effort, creativity, and resilience demonstrated by a united collective that overcame every challenge. Today, Hung Yen Garment Corporation – JSC can proudly stand as a strong and sustainably developing enterprise, committed to its employees and making significant contributions to the development of both the local community and the VINATEX. Throughout this 60-year journey, every stage of construction and development has left behind golden milestones shaped by the spirit of innovation, creativity, and solidarity of generations of Hung Yen Garment employees. Among them:

The period 1966 – 1986

HUGACO was established on May 19, 1966 under its original name – Hung Yen Export Garment Enterprise, during the war against the United States. The company was founded to carry out the Party and State’s policy of decentralizing production, developing the economy, expanding exports, and supporting the front lines.

During the 1966–1975 period, the enterprise had to organize production under extremely difficult evacuation conditions.  Workers had to work from day to night not only to manufacture export goods but also to produce military uniforms for the battlefield, demonstrating a strong spirit of dedication and commitment during wartime.

After 1976, the company relocated to Hung Yen Town to build a new production facility, but continued to face numerous challenges stemming from outdated equipment, the subsidy mechanism, the aftermath of war, and economic embargoes.  Despite the difficult living conditions faced by workers, wages were insufficient to cover basic living needs, the company maintained production and participated in garment processing contracts for the Soviet Union under the “19th of May Agreement” in order to improve employees’ livelihoods.

In addition to consistently exceeding production targets, HUGACO also placed strong emphasis on employee welfare by establishing a kindergarten for workers’ children and investing in vocational training to build a foundation for long-term development.

The period 1986 – 2005

After the 6th National Party Congress, despite being heavily affected by the collapse of the Eastern European and former Soviet markets, HUGACO proactively shifted its development strategy by sending workers for training at Huu Nghi Garment in Ho Chi Minh City in order to expand export markets to capitalist countries. At the same time, the company established an additional production facility in My Hao, Hung Yen, creating more favorable conditions for accessing customers and expanding into Western European and Japanese markets.

As a result of strategic direction and the ability to seize opportunities arising from the Vietnam–U.S. Trade Agreement in 2001 and Vietnam’s accession to the WTO in 2007, HUGACO successfully overcame difficulties, strengthened its production capacity, and established five new factories during 20 years.

For the period from 1995 to 2005, the company’s industrial output value increased by 2.5 times, creating jobs for nearly 4,000 workers while steadily improving employee income. This period is regarded as a phase of strong growth for the enterprise under the leadership of Ms. Luong Thi Huu, Secretary of the Party Committee and General Director of HUGACO from 1987 to 2004.

The period 2005 – 2025

Following its equitization process, HUGACO achieved significant advances in business efficiency and competitive capability. The enterprise demonstrated strong adaptability to market conditions while maintaining a sustainable development strategy amid the volatility of the textile and garment industry.

The company’s labor productivity increased more than fourfold, industrial production value rose sevenfold, employee income increased seven times, and market capitalization exceeded VND 650 billion. By 2025, each hectare of land used locally contributed more than VND 200 billion through wages, social insurance and health insurance contributions, and corporate income tax payments.

HUGACO consistently ranks among the top three highest-paying units within VINATEX and among the top five enterprises in the industry with the highest return on charter capital, at around 50%. Although not a pioneer in adopting new business models, the company is highly regarded for its consistency, efficiency, and sustainable development.

Together with its affiliated enterprises, HUGACO has created approximately 7,000 additional jobs, bringing the total workforce across the system to around 15,000 employees.

Especially, the period 2020 – 2025

Despite being affected by the Covid-19 pandemic, the global economic crisis, geopolitical conflicts, and trade tensions, HUGACO has continued to maintain stable production, preserve its workforce, and sustain steady growth. These achievements demonstrate the company’s flexible adaptability and resilience amid a highly volatile environment.

This phase of development is closely associated with the leadership of Mr. Nguyen Xuan Duong — Secretary of the Party Committee, Chairman and General Director of the HUGACO. The company’s achievements have been recognized by the Party and the State through numerous prestigious honors, including the Second-Class Independence Order (2011), multiple Labor Orders, Government Emulation Flags, and the title of “Enterprise for Employees” at both national and industry levels for ten consecutive years.

In addition to its business accomplishments, HUGACO has also earned strong employee loyalty and long-term partnership support from both domestic and international partners.

Reaching Further Through Knowledge, Technology, and High-Quality Human Resources

HUGACO affirms that its success has been built upon the guidance of the Party and the Government, the support of Hung Yen Province and various Ministries and Agencies, especially VINATEX — its major shareholder and long-term partner over the past three decades, together with the trust of customers, partners, investors, and the contributions of generations of employees.

Entering a new phase of development, HUGACO continues to pursue its strategy of becoming “an excellent and reliable manufacturer providing solutions for the green garment and fashion industry,” with a vision toward 2045 of becoming a garment enterprise with high added value and strong competitiveness within the global textile and apparel value chain.

The enterprise has set targets through 2030 of achieving average labor productivity growth of more than 10% per year, increasing wages by over 10% annually, and reaching an average income of VND 18 million per employee per month by 2029. At the same time, Hung Yen Garment Corporation – JSC will continue building a modern, safe, and equitable working environment while promoting transparent governance and digital transformation throughout the entire value chain.

To realize these goals, the company plans to invest in advanced technologies, implement comprehensive digital transformation, develop green products, enhance the quality of its workforce, and expand markets for high value-added products. Guided by the spirit of “Preserving Pride – Reaching New Horizons”, HUGACO aims to continue its sustainable development journey and contribute to the growth of Hung Yen Province as well as Vietnam’s textile and garment industry.

By: Dr. Le Tien Truong, Secretary of the Party Committee, Chairman of the BoD of VINATEX and HUGACO

In 2025, among the companies with capital contribution from Vinatex, three enterprises recorded consolidated profits exceeding VND 400 billion (Viet Tien Garment Corp, Phong Phu JSC, and Hoa Tho Textile – Garment JSC) — including one affiliated company with profits surpassing VND 500 billion (Viet Tien Garment Corp). Four other companies posted profits/consolidated profits ranging from over VND 100 billion to more than VND 200 billion (Nha Be Garment Corp, Garment 10 Corp, Hue Textile & Garment JSC, and Huu Nghi Garment JSC).

The group of companies achieving after-tax returns on charter capital above 40% now accounts for nearly 30% of the parent company’s investment portfolio. Several well-known enterprises that had consistently ranked among the Group’s leaders for many years but showed signs of slowing down after the Covid-19 pandemic successfully restructured their business models in 2025, regained strong growth momentum, and returned to leading positions within the Group, notably Viet Tien Garment Corp and Phong Phu Corp.

Companies that have continuously maintained high-quality growth over the past four years include Hoa Tho and Hue Textile & Garment JSC, both achieving returns on charter capital of around 100%. This year also witnessed breakthrough efficiency growth at three enterprises: Garment 10 Corp (which for the first time in its history posted profits exceeding VND 200 billion with 50% growth); Viet Thang (which recorded 68% profit growth) and became the only pure textile-yarn manufacturing enterprise with a pre-tax return on charter capital exceeding 25%; and Hung Yen Garment (which achieved profit growth of 28%).

For the first time, 12 companies within Vinatex’s investment portfolio achieved an A-level Z-score (above 3.0), accounting for 50% of all enterprises in the portfolio. 4 companies achieved B-level ratings (indicating stable performance with Z-scores above 1.8). Only 4 companies remained in category C (Z-scores above 1.1), though they recorded strong score improvements compared with 2024 and are approaching the 1.8 threshold required for category B. Meanwhile, 4 category D companies, mainly in the yarn sector, are gradually overcoming the accumulated difficulties from the 2022–2024 period.

Built on the foundation of consistently strong performance across its invested enterprises, particularly major subsidiaries such as Phong Phu, Hoa Tho, and Hue Textile & Garment — the Group achieved a new record in consolidated profit in 2025, reaching VND 1,479.8 billion. Pre-tax return on equity (ROE) rose to 29.7%, coinciding with the 30th anniversary of the Group’s establishment.

Looking back, we have gone through 5 highly challenging years (2021–2025): the Covid-19 pandemic in 2021; the Russia–Ukraine conflict beginning in 2022; the market crisis and the textile and garment sector’s first export decline after 30 years of economic opening in 2023; the yarn industry crisis from June 2022 to July 2024; the reciprocal tariffs in 2025; as well as mounting pressures from buyers regarding price reductions, supply chain traceability, green production, and circular manufacturing, alongside tighter credit conditions imposed by financial institutions.

Against this backdrop, it is obvious that enterprises have become significantly more mature in terms of strategic autonomy, operational flexibility, product and market restructuring, and especially their ability to assess, forecast, and respond proactively to market developments from an early stage and at a distance.

The most striking aspect of the shareholder meetings held so far is that none of the Boards of Directors or Executive management teams treated the external challenges mentioned above as excuses for declining business performance, nor as grounds to overstate management’s “overcoming difficulties” achievements.

Instead, enterprises have approached undesirable, unpredictable, or challenging market developments — as external variables that management teams are responsible for addressing directly, without avoidance. Facing problems and resolving them thoroughly has become the central message conveyed to shareholders.

The second major shift, equally important, is that most shareholder meetings no longer viewed intense competition for labor as an unsolvable challenge. Instead, enterprises have shifted toward treating wages and labor costs as fundamental input costs of the product, accepting market-based compensation levels in each locality.

With income benchmarks set at approximately 1.3 times local GRDP — and strong-performing enterprises reaching over 1.5 times local GRDP — companies have initially succeeded in halting the continuous decline in workforce numbers. In 2025, three out of twenty garment enterprises recorded workforce growth, ending a three-year consecutive decline in labor. At the same time, the rate of workers returning to factories after the Lunar New Year holiday reached as high as 99%.

Looking back on the lessons learned by both the enterprises and the Group over recent years, the core lesson has been the development of a mindset of autonomy. Strategic orientations and guiding ideas from the Group level were rapidly transformed into proactive action at the operational level.

While supporting weaker enterprises to help them improve, a KPI framework measuring levels of self-reliance was established to define each unit’s improvement roadmap. Built around 4 pillars of autonomous capability: market, finance, production, and workforce — the spirit and mindset of self-reliance have become a shared culture across Vinatex, especially among weaker units that still require support, where striving for self-sufficiency is regarded as a matter of honor for management teams and company representatives.

The new concept of self-reliance that is now being developed and shaped does not mean “closing off” — neither accepting help nor supporting others — it reflects a low level of connectivity or a self-sufficiency mindset in the narrow sense of “self-supply and self-subsistence.” Instead, the current culture of self-reliance is about autonomy in competition and collaboration, with enterprises always ready to expand their sphere of influence and competitive capabilities. Self-reliance is no longer merely about fulfilling the annual business plans assigned by shareholders; it is about building toward resilience and strength. It means making both individual enterprise and the entire Group stronger, deeper in capability, and more resilient in the long term.

Through specifically policies and actions aimed at building autonomous and resilient enterprises, together with the initial achievements gained over the past five years of challenges, business leaders across the Group have developed a strong sense of confidence: in the capability of their teams, in the Group’s leadership, in the strength of internal linkages, and in the system’s ability to support one another and overcome difficulties together.

It is precisely these shared characteristics — functioning like a common “DNA” across the organization — that explain why, despite nearly 20 different shareholder meetings being held over the past two weeks, the prevailing theme consistently highlighted has been: “Confidence – Autonomy – Resilience.” This has been reflected in accurate forecasting, detailed yet flexible response plans, and the calmness, steadfastness, and strong determination demonstrated by employees across all units.

Looking ahead to 2026 and beyond, the shareholder meetings shared a common forecast that volatility will remain intense, with markets likely to shift continuously due to tariffs, wars, inflation, and other uncertainties. Only enterprises with strong adaptive capabilities will be able to maintain their positions in the market.

Companies have chosen to contribute to the country’s target of achieving over 10% economic growth by increasing trade surplus, raising value added (VA), and improving workers’ incomes by more than 10%; not by expanding revenue scale or export turnover. Total Factor Productivity (TFP) growth is targeted at over 6% annually.

Enterprises also determine the need to develop new profit centers beyond traditional manufacturing, while still remaining closely integrated within the global textile and apparel value chain. In the past, the industry mainly focused on upgrading business models from CMT to FOB and ODM, or on developing raw materials to increase domestic value creation. Today, however, companies have begun researching and participating in the logistics segment of the global fashion industry. Enterprises are carefully studying development strategies in response to the restructuring of local administrative systems, the operation of the two-tier government model, and especially following the adoption of the 14th National Party Congress Resolution earlier this January, in order to align corporate strategies with national macroeconomic planning and the country’s two centennial development goals.

Vinatex has gone through significant and highly innovative changes over the past five years, with enterprise self-reliance and resilience serving as the central pillar. Complex developments in global markets and international economic relations have become the new normal. Annual business results may rise or fall, but maintaining strong determination and remaining in control of their strategic direction will define the new mindset of enterprises across the Group. Both the Group’s leadership and its enterprises share the belief that with a foundation and culture built on self-reliance and resilience, they will always move forward with confidence into new phases of challenge.

By Dr Le Tien Truong, Secretary of the Party Committee, Chairman of the Board of Vinatex

SaigonTex – SaigonFabric 2026, spanning more than 30,000 square meters, brings together over 1,000 exhibitors from 22 countries and territories. These include reputable global suppliers in the textile and garment industry such as India, Belgium, Portugal, Cambodia, Taiwan, Germany, the Netherlands, the United States, South Korea, Hong Kong, Indonesia, Japan, Malaysia, Pakistan, Singapore, Thailand, Türkiye, Switzerland, China, Australia, Vietnam, and Italy. The exhibition is expected to attract more than 32,000 trade visitors.

The exhibition showcases a wide range of segments across the textile and garment value chain, including: textile machinery, equipment and technology; garment machinery, equipment and technology; fabrics, nonwoven fabrics, and linings; garment accessories; yarns, cotton, and textile raw materials; new, green and sustainable production technologies and solutions; finished garments and fashion products; as well as quality control, chemicals and dyeing certifications. The event aims to facilitate businesses in finding partners, expanding markets, and capturing upcoming industry trends.

In his opening remarks at the exhibition, Vinatex CEO Cao Huu Hieu stated that SaigonTex – SaigonFabric 2026, as one of the textile and garment industry’s large-scale events, continues to serve as an important bridge connecting enterprises, suppliers, and international partners. It is not only a venue for showcasing advanced technologies, equipment, and materials, but also a forum for sharing trends, exploring cooperation opportunities, and fostering innovation across the industry—thereby contributing to the sustainable development of Vietnam’s textile and garment sector and reinforcing its vital role in the country’s economic growth.

“In 2026, the industry faces greater challenges as geopolitical and global trade fluctuations continue to intensify, directly impacting supply chains and production costs. With an export target of USD 49 billion for 2026, diversifying markets, products, and customers has become a key strategic direction, requiring the textile and garment industry to undergo strong transformation. In this context, investment in technology, acceleration of digital transformation, and development of high value-added products will be decisive factors. Textile and garment enterprises must proactively restructure their production operations, enhance adaptability, and optimize costs to maintain efficiency and competitiveness,” emphasized CEO Cao Huu Hieu.

According to Truong Van Cam, Vice Chairman of the Vietnam Textile and Apparel Association, the global economy is currently facing unpredictable fluctuations due to the impacts of wars and conflicts in various regions, particularly in Ukraine and the Middle East. To maintain the textile and garment industry’s position among the world’s top three exporters—with export turnover reaching USD 46.2 billion in 2025 and a trade surplus of USD 20.7 billion—while also achieving the 2026 target of USD 49 billion, it is necessary to strongly implement a range of solutions. These include: diversifying export and import markets, customers, and product portfolios; promoting the production of raw materials and developing domestic and international supply chain linkages to increase localization rates and better leverage FTAs; investing in capacity enhancement through technological innovation, AI application, and workforce training to improve labor productivity and competitiveness; advancing green transformation and circular economy models to meet market requirements and enhance corporate image; and building strong brands to gradually expand both domestic consumption and exports under Vietnamese brands. This year’s exhibition brings together all the necessary elements to support the effective implementation of these solutions.

The exhibition is open to visitors from April 8 to 11, 2026. As part of the event, Vinatex is hosting a seminar titled “Global Textile Trade 2026: From Macroeconomics to National Competitiveness,” presented by experts from the Vietnam National Textile and Garment Group.

On March 24, 2026, in Hong Kong (China), Mr. Le Tien Truong – Chairman of the Board of Directors of Vietnam National Textile and Garment Group (Vinatex) attended and delivered a presentation at the international conference “COTTON USA Outlook: Sustainable Sourcing, Strategic Growth” organized by Cotton Council International (CCI).

The conference brought together approximately 120 delegates, including spinning, textile and garment enterprises, international brands, and sourcing offices from China, Hong Kong, and across Asia. Discussions focused on global cotton market trends, sustainability requirements, traceability, and the future direction of the textile and garment supply chain in the new phase.

At the conference, Mr. Le Tien Truong delivered a presentation titled “Vietnam Textile and Garment Industry,” providing an overview of Vietnam’s textile and garment sector, the current status of the spinning industry, and Vinatex’s position within the global textile supply chain. Particular emphasis was placed on the role of Vinatex’s spinning segment and its development orientation amid increasing volatility in the global market.

According to the report, Vietnam’s textile and garment industry currently comprises approximately 18,200 enterprises with nearly 1.8 million formally employed workers, maintaining its position as the world’s second-largest textile exporter and the largest apparel supplier to the United States market. In the spinning sector, Vietnam is one of the major production hubs in Asia, with a capacity of around 10–12 million spindles and an annual output of 2.0–2.3 million tons. Vinatex’s spinning system (including affiliated entities) accounts for approximately 1 million spindles, with an annual output of nearly 190 thousand tons, and is deeply integrated into the supply chains of many global brands.

Analyzing the market context, the Chairman of Vinatex noted that global economic growth remains subdued, with a slow recovery in textile and apparel demand. Meanwhile, increasing risks related to trade policies, tariffs, energy costs, and logistics are exerting significant pressure on the industry. However, rising requirements for supply chain transparency, traceability, and sustainable development are also creating opportunities for enterprises with strong compliance capabilities, governance frameworks, and technological foundations.

Following the presentation, the conference conducted a live survey on the key factors likely to have the greatest impact on Vietnam’s textile and garment industry over the next 3–5 years. Commenting on the results, Mr. Le Tien Truong emphasized that trade policy, finance, and tariffs would have the most significant impact, as current regulations vary across countries and may create substantial advantages or disadvantages for each nation. In the context of rising trade protectionism and increasing risks of trade conflicts, global demand for textile and apparel products may decline, directly affecting Vietnam’s exports.

Regarding factors such as regional competition, logistics infrastructure, and ESG requirements, the Chairman noted that these are global trends to which all countries must adapt. The ability to sustain competitive advantages, improve production efficiency, and comply with sustainability standards will be decisive for enterprises and the industry to maintain their position in the international supply chain.

Within the framework of the conference, Mr. Le Tien Truong also participated in a panel discussion with representatives from brands, textile and garment enterprises, and international cotton suppliers, focusing on solutions to enhance industry competitiveness amid expectations of continued market volatility in 2026.