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.

From Market volatility to Workforce pressures

Recent market developments have demonstrated that the global textile and garment supply chain no longer operates under its traditional model. Orders are shifting more rapidly, lead times are becoming shrinking, and requirements relating to quality, social responsibility, traceability, and data transparency are growing increasingly stringent. In this environment, buyers are no longer seeking only low-cost suppliers; they increasingly prioritize companies that can respond quickly, maintain stable production, and adapt effectively to market fluctuations.

As a result, workforce quality has become a core element of competitive advantage. If the industry’s priority in the past was simply to secure enough workers to keep production lines running, the challenge today is to build and retain a skilled, adaptable, and future-ready workforce. Internal capabilities, the ability to maintain flexible production rhythms, and the quality of human capital are increasingly becoming the key determinants of resilience and competitive advantage for textile and garment enterprises in this new environment.

Retaining Core employees means Preserving production capacity

Amid ongoing market volatility, workforce stability has become a critical factor in the production efficiency of textile and garment enterprises. Employee turnover not only disrupts production lines but also increases recruitment and training costs, while raising quality-related risks.

Following the Lunar New Year holiday 2026, the return-to-work rate at Vinatex’s member companies reached 98–100%, reflecting the effectiveness of the Group’s employee welfare, engagement, and job security policies. By maintaining a stable workforce, many enterprises were able to quickly resume production and sustain operational momentum from the very beginning of the year.

In practice, companies that invest in employee well-being and build trust within the organization tend to be better positioned to maintain stable operations, enhance resilience, and strengthen their competitive capabilities in an increasingly uncertain market environment.

From Filling positions to Building the right skills

As global supply chains continue to change, new demands are being placed on the textile and garment workforce. Workers can no longer rely solely on proficiency in a single, fixed role; they must be capable of quickly adapting to new products, processes, machinery, and quality requirements. The industry’s workforce challenge has therefore shifted from securing sufficient manpower to building a workforce equipped with the right skills.

To respond to these new demands, frontline employees must receive practical, production-oriented training, while technical and management staff need to improve their coordination, problem-solving, and interdepartmental collaboration skills. For 2026, Vinatex has outlined several key initiatives, including completing its organizational model, standardizing competency frameworks, preparing workforce plans based on production needs, strengthening training in productivity, quality, foreign languages, and customer skills, and building a KPI system tied to productivity and income.

The issue is not training more but training smarter – developing the exact skills that enterprises need to remain competitive in the new era of the textile and garment industry.

Middle Management as the Foundation of Performance

Middle-management personnel – including team leaders, line supervisors, workshop managers, and shift supervisors – have become a critical link in the textile and garment industry’s workforce equation, as they are directly responsible for managing production and maintaining the closest day-to-day engagement with employees. In an environment where orders change rapidly, product designs are becoming increasingly complex, and profit margins are narrowing, companies will struggle to convert resources and orders into actual productivity if this group lacks the necessary capabilities.

For this reason, Vinatex believes that improving performance must begin with people, organizational structures, and execution discipline. In this process, strengthening the capabilities of middle managers is a key priority for sustaining operational efficiency and meeting the market’s increasingly demanding requirements.

As global supply chains continue to be reconfigured, the workforce challenge must be viewed through the lens of competitiveness. Retaining core workers is about safeguarding production continuity. Building new skills is about staying agile in the face of changing products and market expectations. Developing capable middle managers is about maintaining operational discipline and efficiency. These priorities have moved far beyond the responsibility of the HR department; they have become decisive factors in a company’s ability to win orders, keep customers, and sustain its position in an ever-changing global supply chain.

Enterprises are advised to integrate safety standards throughout their entire governance systems, link safety indicators to management KPIs, while broadening the concept of workplace safety to include mental health, harassment-free environments, non-discrimination, and the prohibition of forced labor. Transparency in safety data and reporting is also considered an essential requirement for fulfilling social responsibility commitments and building trust with international partners.

Digital technologies such as IoT, AI, and automation are creating major opportunities for textile and garment enterprises to transform their approach to occupational safety management. These technologies enable real-time monitoring of working environments, prediction of accident risks, reduced reliance on manual labor in hazardous operations, and the development of a data-driven safety culture.

In addition, workplace anti-harassment requirements are regarded as an important step toward building a fair, inclusive, and safe working environment — both physically and mentally, especially in the textile and garment industry, where female workers make up a large proportion of the workforce.

To encourage workers to actively participate in ensuring workplace safety rather than merely complying with regulations, enterprises need to strengthen practical training programs, establish mechanism to recognize employee initiatives, create safe feedback channels, and enhance the role of middle management. The goal is to build a sustainable safety culture in which employees proactively protect themselves and their colleagues during their work.

In 2025, Hue Textile and Garment Joint Stock Company (HUEGATEX) successfully fulfilled the business and production targets assigned by its Annual General Meeting of Shareholders. Specifically, total revenue reached VND 2,325 billion, equivalent to 112.3% of the annual plan and up 15.7% compared with 2024. Pre-tax profit reached VND 189.5 billion, equivalent to 135.3% of the target and up 38% year-on-year. Average employee income reached VND 10.8 million per person per month, equivalent to 107.9% of the plan and an increase of 11.8% over 2024.

Based on market forecasts, HUEGATEX has established its 2026 business plan with targets including total revenue of VND 2,370 billion, pre-tax profit of VND 175.5 billion, and average monthly income of VND 11.45 million per employee. To achieve these goals, the company has clearly outlined tasks and solutions for each operational segment in 2026, including yarn, weaving & dyeing, garment manufacturing, corporate governance, and finance.

Dr. Le Tien Truong, Chairman of the Board of VINATEX, emphasized that under the new business environment, HUEGATEX should continue leveraging its key advantage as one of the Group’s few enterprises possessing an integrated supply chain. Effectively connecting each stage of the value chain—from spinning and weaving-dyeing to garment manufacturing—is not only a strategic objective but also a core solution for enhancing competitiveness, increasing value creation, and reducing working capital pressure.

The development strategy should be carefully calibrated. Rather than pursuing immediate 100% self-sufficiency in raw materials, the focus should be on achieving an optimal self-sufficiency rate of 40–50% to ensure production efficiency. The spinning sector should be developed to meet approximately 15–20% of the demand from weaving and dyeing operations, while stronger internal linkages should be promoted as a means of enhancing both operational reliability and efficiency. For the garment sector, the implementation of the “three-tier garment manufacturing” model should be accelerated, with lessons learned continuously during operation to refine and develop future smart factory models. The long-term vision is to build green, clean, modern, circular, and high-income manufacturing centers, particularly within the core area of Hue City. The primary focus will be on applying technology to improve Total Factor Productivity (TFP), supporting the objective of achieving growth of more than 6% in 2026.

Regarding workforce policies, in addition to the target of increasing employee income by approximately 10%, enterprises should ensure that average income remains at least 1.3 times the local GRDP per capita, while allowing flexibility to reflect regional differences. This is a shared responsibility of shareholders, the Board of Directors, and the Executive Management team in order to retain, develop, and attract high-quality human resources.

In particular, 2026 is expected to present many similarities to the previous year in terms of tariff-related risks. The period between now and July 24, while the 10% tariff rate remains in effect, represents a critical “window of opportunity.” HUEGATEX should maximize its pace of execution and strive to complete 70–75% of its annual plan within the first seven months of the year.

At the same time, the company should capitalize on favorable conditions in the spinning sector through the end of August to achieve approximately 80% of its production targets. Given the significant uncertainties arising from market conditions and geopolitical developments, accelerating performance during the first half of the year and appropriately adjusting operations during the later months of the year will be essential. This approach will also require the cooperation and support of employees. Management activities should remain flexible and closely aligned with market realities, maximizing opportunities while minimizing potential adverse impacts.

Vinatex Phu Hung Joint Stock Company reported that in 2025, the company achieved total revenue of more than VND 832 billion, exceeding its target by 3%. Pre-tax profit reached over VND 11 billion, surpassing the plan by 6%, while yarn production totaled 11,428 tons, equivalent to 101% of the annual target.

Entering 2026, Vinatex Phu Hung has adopted a strategy of cautious volume growth combined with a breakthrough in efficiency. The company targets revenue of VND 878 billion, representing an increase of 5%; pre-tax profit of VND 15 billion, up 35%; and yarn output growth of approximately 3%.

Dr. Le Tien Truong, Chairman of the Board of VINATEX, emphasized that 2025 marked an important period of success for Vinatex Phu Hung, highlighted by outstanding achievements across multiple areas, including financial performance, manufacturing operations, and human resource management.

Assigning objectives for Vinatex Phu Hung in the coming period, the Chairman emphasized the need to reduce total inventory and accounts receivable in order to improve the company’s financial credit profile. In addition, Vinatex Phu Hung’s mission through 2027 has been defined as a strategic roadmap aimed at transforming the company into an enterprise with a healthy enterprise with a strong credit rating. The immediate priority is to improve its credit standing, with a target of raising its Z-score to 2.1, surpassing the 1.8 threshold required for a Category B rating. According to the estimates, an improvement in the company’s credit profile could reduce borrowing costs by at least 0.5 percentage points, thereby directly enhancing financial performance. At the same time, the company has outlined a strong profit growth roadmap, targeting pre-tax profit of VND 30 billion by 2027. This plan is built on the foundation of a projected pre-tax profit of VND 15 billion in 2026.

With depreciation expenses are expected to decline by more than VND 10 billion in the coming year. From a capital resources perspective, Vinatex Phu Hung should target increasing shareholders’ equity to approximately VND 135–140 billion. A key measure will be to secure shareholder approval for distributing dividends in the form of shares during the 2025–2027 period. This approach would allow the company to retain cash for investment, strengthen its financial foundation, and improve its creditworthiness.

In terms of operational efficiency, Vinatex Phu Hung aims to maintain a stable working capital turnover ratio of three cycles per year, in line with prevailing industry benchmarks. This target is expected to help the company reduce pressure on credit facilities while optimizing financing costs. Beyond financial metrics, Vinatex Phu Hung is expected to establish a strategic repositioning roadmap through the end of 2027, preparing to enter the 2028–2033 term with a renewed profile—more proactive, financially secure, and self-reliant across its production, business, and investment activities.

Dr. Le Tien Truong believes that achieving these objectives could improve Vinatex Phu Hung’s overall performance by an additional 15–20%, primarily through lower financing costs and reduced non-production expenses, thereby creating a solid foundation for the company’s next stage of development.

In 2025, Duc Giang Corporation (DUGARCO) delivered solid business results, with revenue reaching VND 2,445 billion, equivalent to 102% of the previous year’s level; profit totaling VND 28.7 billion, representing 120% year-on-year growth; and export turnover amounting to USD 76.8 million, maintaining 100% of the prior year’s performance. For 2026, DUGARCO has set the following key targets: production revenue of VND 2,434 billion, pre-tax profit of VND 30 billion, and export turnover of USD 72 million.

Mr. Cao Huu Hieu, General Director of VINATEX, acknowledged and congratulated DUGARCO on its strong business performance, noted that the company had successfully achieved the targets approved at the 2025 Annual General Meeting of Shareholders and had ensured dividend benefits for shareholders. Regarding the 2026 business plan, DUGARCO should set more ambitious targets in line with the Party and Government’s policy direction of achieving double-digit growth. There are several key priorities for the Corporation: (1) Maintain workforce stability and optimize the utilization of existing labor resources. (2) Balance the production mix. In the current environment, the company’s plan to increase ODM orders (up 31%) and CM orders (up 8%), while reducing FOB business (down 13%), is considered appropriate for mitigating risks related to raw materials and logistics. (3) Expand into new markets, such as Australia and Canada, both to develop new customer bases and to offset the decline in the Russian market. (4) Strengthen financial cost management, particularly borrowing costs, as interest rates are expected to trend upward in 2026 while the company’s debt-to-equity ratio remains relatively high.

With its clearly defined plans and strategic initiatives for 2026, VINATEX expects its capital representative at DUGARCO to further strengthen his role in contributing to the company’s success. This includes fostering greater unity and consent within the Board of Directors, working closely with both the Board and the Executive management team to successfully implement the company’s medium- and long-term development strategies, as well as addressing major corporate issues. At the same time, fulfilling the responsibilities of capital representation, ensuring compliance with applicable laws, regulations, and internal governance policies of the Group, while safeguarding and enhancing the value of state-owned capital invested in the enterprise.

In 2025, based on a range of coordinated initiatives in market development and product diversification, Phu Bai Spinning Mill Joint Stock Company (Phu Bai SJSC) achieved revenue of VND 1,124.78 billion, equivalent to 97.4% of its annual target. Export turnover reached USD 39.61 million, exceeding the plan by 10.02%, while pre-tax profit totaled VND 23.6 billion, representing an increase of 52.26% compared with 2024. Average employee income reached VND 11.8 million per person per month.

Entering 2026, Phu Bai SJSC has set targets of VND 1,221 billion in revenue, export turnover of USD 42.70 million, and pre-tax profit of VND 30 billion. The company also plans to contribute VND 6 billion to the state budget and distribute dividends at a rate of 5–10%.

Mr. Pham Van Tan, Deputy General Director of VINATEX and Chairman of Phu Bai SJSC, emphasized that as the company enters 2026, it has adopted a new management mindset: shifting from “investment” to “efficient utilization,” from “selling products” to “selling value,” and from “maintaining stability” to “enhancing governance quality.”

To implement this strategic agenda, Phu Bai SJSC has developed a comprehensive action program built around five key management pillars. The objective is to align production, market development, governance, and financial management, thereby creating a solid foundation for sustainable growth:

(1) Production & Technology: Putting Efficiency at the Center
The company will focus on maximizing the utilization of production equipment following recent investments, while tightening controls over material losses and production norms. At the same time, product quality will remain a top priority and a core competitive advantage, strengthening the company’s position within the supply chain.

(2) Market & Products: Expanding and Upgrading Product Value
Phu Bai SJSC will continue to strengthen its presence in key markets such as South Korea and Japan, while expanding into China, Hong Kong, and the domestic market. Emphasis will be placed on developing higher value-added yarn products, including recycled yarns, traceable yarns, technical yarns, and environmentally friendly products that meet the increasingly stringent requirements of international customers.

(3) Finance: Growth with Financial Stability
The company’s financial strategy aims to reduce dependence on short-term loans while maintaining strict control over inventories, receivables, and cash flow. In parallel, the company will prioritize increasing the share of higher-margin products to improve overall profitability and operational efficiency.

(4) Human Resources: Retaining and Developing Core Talent
The company will focus on retaining employees—particularly skilled technical workers—through competitive compensation policies. At the same time, it will invest in successor development to ensure business continuity and enhance workforce quality over the long term.

(5) Governance & Digital Transformation: Elevating Management Capabilities
Phu Bai SJSC is accelerating the deployment of digital platforms such as MES, IoT, HRM systems, and accounting software, with the goal of enabling data-driven management and real-time operational control. This pillar is regarded as a critical enabler for improving efficiency, transparency, and adaptability in an increasingly dynamic business environment.

Reporting on the implementation of the 2025 Annual General Meeting of Shareholders’ Resolution, Mr. Nguyen Quang Minh, General director of Viet Thang Corporation – JSC (VICOTEX), stated that in 2025, under the timely guidance of the Board of Directors and Executive Management, VICOTEX proactively adapted to market fluctuations, maintained stable production, expanded exports, and improved management efficiency. As a result, the company achieved several positive outcomes. Consolidated revenue reached VND 1,618 billion, equivalent to 94% of the previous year’s level, while consolidated pre-tax profit amounted to VND 52 billion, representing a 61% increase year-on-year. The parent company recorded revenue of VND 1,291 billion, exceeding its target by 8% and reaching 116.3% of the previous year’s performance. Parent company pre-tax profit totaled VND 54.3 billion, surpassing the plan by 43% and increasing to 174% of the prior year’s level. The Corporation distributed a dividend of 15% for 2025, compared with the planned range of 7–14%, and 150% of the previous year’s dividend level. In addition, employee income improved to VND 12.1 million per person per month, exceeding the target by 4.22% and increasing by 6.6% compared with the previous year.

Regarding its 2026 business plan VICOTEX has identified the year as a pivotal milestone in its transformation journey, focusing on a growth model centered on higher efficiency, sustainable development, and enhanced competitiveness. The company’s key strategic priorities include: (i) Accelerating digital transformation; (ii) Investing in technological upgrades and automation; (iii) Developing sustainable products that meet international standards; (iv) Leveraging free trade agreements (FTAs) to expand export markets; (v) Capitalizing on the advantages of its integrated “spinning–weaving–dyeing–garment” value chain; (vi) Further strengthening its workforce and developing human resources to support the next phase of growth.

For 2026, Viet Thang has established the following targets: Consolidated revenue: VND 1,735.8 billion, equivalent to 108% of the 2025 level; Consolidated pre-tax profit: VND 68 billion, equivalent to 131% of the 2025 result; Parent company revenue: VND 1,330 billion, equivalent to 103% of the 2025 level; Parent company pre-tax profit: VND 63 billion, equivalent to 116% of the 2025 result.

Dr. Le Tien Truong, Chairman of VINATEX, noted that 2025 was an exceptionally challenging year for the textile and garment industry, as global consumer demand recovered slowly, price competition intensified, and U.S. tariff policies created significant pressure on export activities. Against this backdrop, VICOTEX still achieved a pre-tax profit of VND 54 billion, representing an increase of approximately 74% compared with the previous year, placing the company among the fastest-growing profit performers within the VINATEX system. Notably, Viet Thang’s Spinning Mill ranked among the top four best-performing spinning operations within the Group’s network of 12 enterprises operating a total of 22 spinning mills.

Entering 2026, the Board of Directors also noted that the market will continue to face significant uncertainties arising from tariff policies, weakening global consumer demand, and ongoing geopolitical volatility. In response, Viet Thang Corporation – JSC will continue to manage its operations with a focus on flexibility, prudence, and efficiency. Key priorities include strengthening cash flow management, maintaining tight control over inventory levels, improving productivity and product quality, and proactively adjusting production capacity in line with evolving market demand.

According to Hung Yen Garment Corporation – JSC (HUGACO), the company successfully navigated a year marked by significant volatility in the global textile and garment market in 2025, maintaining stable production and sustaining its growth momentum. Specifically, revenue reached VND 789.3 billion, equivalent to 128.1% of the annual target. Pre-tax profit totaled VND 93.7 billion, exceeding the 2025 plan by 87.4%. Average employee income reached VND 13.4 million per month, representing an increase of 11.7% compared with 2024. In addition, the company approved a cash dividend payout equivalent to 25% of charter capital.

Entering 2026, HUGACO has set targets of VND 715 billion in revenue, VND 70 billion in pre-tax profit, and VND 15 billion in budget contributions. The company also aims to maintain an average employee income of at least VND 14 million per month. In addition, the Corporation plans to distribute dividends in the range of 15–20% of charter capital.

Assessing the implementation of the 2025 Annual General Meeting of Shareholders’ Resolution, Dr. Le Tien Truong, Chairman of VINATEX and HUGACO, acknowledged that the Corporation had delivered an outstanding year of performance, successfully meeting and exceeding its business targets. He noted that Hung Yen Garment was one of the brightest performers within the garment segment in 2025, achieving 28% profit growth and ranking among the top three fastest-growing profit contributors in the Group.

Particularly noteworthy, Hung Yen Garment continued to hold the No. 1 position across the entire Group in terms of performance per employee, reaching VND 56 million per employee in 2025. Even during the unfavorable market conditions of 2024, the company still maintained an average of VND 45 million per employee.

Regarding its future strategic direction, HUGACO will not pursue expansion through scale alone, nor will it focus on large-volume FOB orders. The company recognizes that it does not possess a distinct advantage in low-cost labor or mass production. Instead, it has clearly identified its competitive advantage in the ability to manufacture complex products, handle small-batch orders, adapt quickly to changing customer requirements, execute orders with short lead times, and achieve high productivity within compressed production schedules.

Against a backdrop of global economic uncertainty, weakening international trade, and forecasts of challenging conditions for textile and garment orders during the second and third quarters of 2026, Dr. Le Tien Truong emphasized that HUGACO must capitalize on every available business opportunity. Whenever market conditions show positive signs, the company should proactively organize production activities—including reasonable overtime arrangements when necessary—to maintain production momentum and ensure operational efficiency. Another important strategic direction is to broaden the working-age profile of the workforce by creating opportunities for employees aged 40 to 50 to remain productive and actively engaged in manufacturing. This can be achieved through the application of supporting technologies and more suitable work arrangements.

Dr. Le Tien Truong also emphasized that the journey ahead   would require stronger collaboration and closer integration across the entire system—not only within Hung Yen Garment Corporation – JSC itself, but also among related enterprises within the ecosystem, including Tien Hung Garment, Hung Long Garment, and Viet Y Garment.

Such cooperation will create collective strength to implement major strategic initiatives, including the development of FOB business, investment in social housing for workers, and other key projects, based on strong consensus and coordinated action.

In 2025, Hanoi Textile and Garment Joint Stock Corporation (HANOSIMEX) successfully fulfilled the business objectives approved at the 2025 Annual General Meeting of Shareholders. Specifically, revenue reached VND 1,242 billion, equivalent to 104.3% of the annual target; consolidated profit totaled VND 17.027 billion, achieving 189.2% of the planned figure; and average employee income reached VND 11.4 million per person per month, equivalent to 106% of the target.

For 2026, HANOSIMEX has set targets of VND 1,270 billion in consolidated revenue, VND 20 billion in pre-tax profit, and average employee income of VND 12.1 million per person per month.

Speaking at the Annual General Meeting, Mr. Cao Huu Hieu, General Director of VINATEX and Chairman of HANOSIMEX, acknowledged the achievements delivered by HANOSIMEX and commended the courage, determination, and accountability demonstrated by the Board of Directors and Executive Management team throughout 2025.

The Board of Directors of HANOSIMEX has identified its central objective for 2026 as “Optimizing Productivity – Diversifying Markets – Enhancing Product Value through Sustainable Development.” Entering 2026, HANOSIMEX benefits from the growth momentum built during the previous year. However, the company must also navigate a market environment characterized by increasing complexity, volatility, and uncertainty.

The key priorities that HANOSIMEX should focus on implementing in the coming period include:

• Enhancing labor productivity, maximizing equipment utilization, and maintaining strict control over production costs. Product quality must remain the top priority and serve as a core competitive advantage, strengthening the company’s position within the supply chain.
• Recruiting, retaining, and developing employees, particularly skilled technical workers at its manufacturing facilities. The company should establish and refine a performance evaluation system that links compensation, productivity, and operational effectiveness to clearly defined KPIs.
• Continuing workforce development initiatives by improving the professional qualifications, technical expertise, and managerial capabilities of employees and management personnel. Strengthening corporate culture to create a stable, collaborative, and professional working environment.
• Consolidating and expanding market presence, ensuring a stable order pipeline while improving the quality and profitability of each order.
• Enhancing financial management, including tighter cost control and more efficient capital utilization. The company should also evaluate and apply appropriate financial risk management tools when necessary.
• Continuing strategic investment projects, particularly those focused on automation and production capacity enhancement.

Accelerating the application of information technology and digital transformation across production management, order management, and overall business operations. Investing in specialized garment manufacturing software to improve the transparency, timeliness, and accuracy of operational data. Expanding the deployment of digital transformation platforms in manufacturing management, with particular emphasis on human resources systems and accounting software at the corporate headquarters, ultimately moving toward data-driven management and real-time operations management.

According to Nam Dinh Textile Garment Joint Stock Corporation (NATEXCO), consolidated revenue in 2025 reached VND 1,136.3 billion, achieving 104% of the annual target, while export turnover totaled USD 16.19 million. Production output remained stable, with 13,355 tons of yarn produced, equivalent to 105% of the plan, alongside nearly 19.7 million meters of fabric and various garment and towel products. Notably, 2025 marked a significant milestone as NATEXCO approached break-even after several years of accumulated losses caused by prolonged market difficulties.

Entering 2026, NATEXCO aims for a clear recovery in both scale and profitability. The company has set targets of VND 1,200 billion in consolidated revenue, USD 18.54 million in export turnover, and VND 9 billion in pre-tax profit. It also plans to increase production across most product categories, particularly in the yarn and fabric segments.

Mr. Pham Van Tan, Standing Deputy General Director of VINATEX and Chairman of NATEXCO, stated that Nam Dinh Textile Garment JSC has identified 2026 as a pivotal year, marking its transition from a phase of stabilization to one of efficient and sustainable growth. The Board of Directors has emphasized the management message of “Strengthening Discipline – Delivering on Commitments – Acting decisively,” with the objective of restoring NATEXCO’s position as an enterprise that is profitable, competitive, and well-positioned for the future.

The Board of Directors’ priorities include achieving the company’s 2026 business targets while expanding export markets and diversifying its customer base. The Corporation also aims to develop an integrated internal supply chain across spinning, weaving/dyeing, and garment manufacturing, thereby creating greater value throughout the organization. At the same time, the company will continue promoting strategic product lines, particularly flame-retardant fabrics, as part of its long-term growth strategy.

One of the key strategic pillars is the development of a modern management model, supported by a lean organizational structure, accelerated digital transformation, and the implementation of an effective KPI framework. Management and operational activities are required to be carried out consistently under the principles of decisiveness – discipline – scientific – efficiency, while strengthening delegation and empowerment alongside appropriate control mechanisms. At the same time, NATEXCO plans to pursue deep investment strategies, reinforcing capabilities in its core businesses of spinning and dyeing, while also exploring opportunities to expand its weaving and towel segments. In the garment sector, the company will focus on brand building and increasing value-added content, rather than pursuing growth solely through capacity expansion.

To achieve these objectives, NATEXCO will implement a comprehensive set of initiatives across its key business segments:

Spinning Division: The company will focus on improving productivity and product quality while reducing production costs. At the same time, efforts will be directed toward expanding market reach and developing specialized yarn products.

Weaving – Dyeing – Towel Division: This segment is positioned as the corporation’s core production chain, with a focus on increasing the proportion of finished fabrics, maximizing the advantages of its integrated supply chain, and accelerating research and development of new products—particularly flame-retardant fabrics. In parallel, investments will be made to expand the production capacity of the Towel Factory.

Garment Division: The company will pursue a strategy of market diversification, reducing its dependence on Europe while increasing its presence in South Korea and proactively exploring opportunities in the Chinese market. Operations will be guided by the principles of speed, flexibility, and decisive execution.

NATEXCO also places strong emphasis on developing a younger and more highly qualified management team, gradually rejuvenating its workforce while strengthening training and professional development programs. At the same time, the company is committed to improving working conditions, enhancing employee income and welfare benefits, and maintaining a stable, motivated, and sustainable workforce.

Reporting on the implementation of the 2025 Annual General Meeting of Shareholders’ Resolution, Hoa Tho Textile Garment Joint Stock Corporation announced that it had successfully fulfilled all business and production objectives approved by shareholders. Specifically, consolidated revenue and other income reached VND 5,544 billion, representing a 6% increase over 2024 and 110% of the 2025 plan. Consolidated pre-tax profit totaled VND 400.6 billion, up 14% year-on-year and equivalent to 111% of the annual target. Export turnover reached USD 264 million, an increase of 5% compared with 2024 and 105% of the plan; average employee income reached VND 12.2 million per person per month, up 16% from 2024 and achieving 109% of the 2025 target.

Based on the results achieved in 2025, market outlook assessments, and the strategic direction of VINATEX, Hoa Tho Corp has established its 2026 business plan with the following targets: revenue of VND 5,550 billion, consolidated profit of VND 423 billion, export turnover of USD 260 million, and average employee income growth of 7–10% compared with 2025.

Dr. Le Tien Truong, Chairman of VINATEX, acknowledged Hoa Tho’s strong business performance in 2025. Regarding future development, he emphasized that Hoa Tho should proactively adjust its strategic direction to align with the locality’s new development framework as well as the country’s broader economic development strategy for the upcoming period.

Regarding future development space, VINATEX has proposed establishing two smart manufacturing hubs in the Quang Nam–Da Nang region:  one dedicated to spinning and the other to high-tech garment manufacturing. These facilities are expected to operate with a smaller workforce while generating significantly higher value-added output. The objective is for these smart manufacturing centers to achieve productivity levels 20–30% higher than current operations, thereby enhancing the overall efficiency of the Group. Hoa Tho Corp should continue leveraging locations with cost advantages, such as Dong Ha and Quang Tri, to support large-scale production of traditional, price-competitive orders. The spinning sector should continue to be developed in Da Nang with a strong focus on modernization, energy efficiency, and the increased adoption of renewable energy sources.

In particular, Hoa Tho Corp should gradually evolve from a textile and garment manufacturer into a more integrated supply chain solutions provider for major global customers. Given the advantages of Da Nang as a centrally governed city, an international financial center, and a key seaport hub, this represents a highly suitable strategic direction for the company’s future development.

For the next term, Vinatex has assigned Hoa Tho the task of developing new profit centers beyond its traditional manufacturing operations, while remaining closely integrated with the textile and apparel supply chain. By 2032, the objective is for these new business areas to contribute between 10% and 20% of total shareholder profit. At the same time, the company must proactively build a strong pipeline of successor leaders capable of supporting its growth and development beyond 2032,” emphasized Dr. Le Tien Truong.

Reporting at the 2026 Annual General Meeting of Shareholders, Viet Tien Garment Corporation (VTEC) announced that it had successfully achieved its key business targets in 2025. Specifically, consolidated revenue reached VND 10,503 billion, exceeding the annual plan by 7.17% and increasing 7.7% year-on-year. Consolidated pre-tax profit amounted to VND 530 billion, representing a 23.5% increase compared with the previous year, while average employee income exceeded VND 13.3 million per month, thereby ensuring stable employment and income for the workforce.

. In addition, Viet Tien plans to distribute a 30% dividend to shareholders.

For 2026, VTEC has established the following business targets: Total revenue: VND 10,330 billion, representing a 2% decrease compared with the 2025 actual result; Parent company pre-tax profit: VND 370 billion, an increase of 12% over the previous year; Average employee income: VND 13.5 million per person per month.

Dr. Le Tien Truong, Chairman of VINATEX, noted that 2025 was a particularly significant year for VTEC. The company achieved a higher level of profitability per unit of revenue compared with 2024, demonstrating that its business model, customer selection strategy, and product portfolio were more optimized and effective than in previous years. VTEC continues to be one of the leading enterprises in Vietnam’s textile and garment industry.

Dr. Le Tien Truong recommended that, in the coming years, the Board of Directors of Viet Tien Garment Corporation continue exploring the development of a dedicated logistics service center for the garment industry,  based on Viet Tien’s large-scale manufacturing operations and extensive customer network, enabling the company to become an integral component of the textile and garment industry’s service value chain.

This direction is well aligned with the strategic vision of Ho Chi Minh City as the country’s premier service hub and an emerging international financial center.

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

Mr. Nguyen Hung Quy – Executive Director of Vinatex and General Director of Vinatex Southern Textile and Garment Corporation Co., Ltd. (VSC)

Amid the global energy crisis and increasing market volatility, customers have become more cautious in placing orders, with order information arriving more slowly and, in some cases, orders being reduced or canceled altogether. Total order volume in the second quarter is forecast to decline by 20–25% compared to the same period in 2025.

In addition, supply chain disruptions continue to pose challenges, with imported raw materials and accessories from China showing delays of one to three weeks, continuously affecting factory production schedules. As a result, enterprises are being forced to accelerate production and organize overtime  production to meet deadlines as delivery times are shortened and  production plans must be adjusted constantly. In terms of pricing, customers continue to tighten purchasing conditions and demand highly competitive prices, leading to an expected decline in profit margins during the second and third quarters.

To respond to this situation, VSC is focusing on customer and market development. The company aims to reduce dependence on the U.S. market by proactively expanding into the EU, the UK, and Japan. At the same time, VSC plans to develop an additional one to two new customers as a backup source to offset potential order reductions or shortages.

The company is also concentrating on revenue growth and cost control, with the goal of securing one to two additional FOB customers in 2026 (to increase the proportion of FOB orders in order to enhance added value and operational autonomy. However, close attention is being paid to controlling risk factors such as raw material price fluctuations, payment terms, and customers’ financial capacity); maintain regular communication with existing customers and closely monitor their business conditions and order trends.

The factories have also activated flexible production management models. They are closely monitoring the synchronization of raw materials and accessories, while keeping track of production conditions in order to proactively adjust plans and minimize additional costs. Supply sources are being diversified to reduce dependence on any single market, while localization rates for raw materials and accessories are gradually being increased whenever conditions allow.

At the same time, enterprises are maximizing the application of initiatives and process improvements to reduce production time and enhance line efficiency. Strong emphasis is being placed on cost control and energy optimization through reviewing and eliminating unnecessary expenses; optimizing raw material consumption  standards. Companies are also investing in energy-saving equipment, improving production processes to reduce energy consumption, and negotiating with suppliers to stabilize input prices.

With these short-term solutions in place, the factories have managed to control and restrain rising costs, particularly in electricity expenses, raw materials and accessories, and administrative costs. Receivables have been closely monitored and thoroughly resolved, preventing outstanding debts from accumulating in recent periods.

Labor productivity has generally shown improvement compared to the same period last year. However, during March, there were signs of a relative decline, mainly due to delays in raw material supplies, changes in orders, reduced order volumes, and the continuous replacement of supply sources.

During this period of continuous volatility, in order to maintain workforce stability, VSC has implemented policies that harmoniously combine employee welfare support, productivity incentives, and labor discipline maintenance.

The company has established flexible productivity-based bonus mechanisms linked to actual performance (such as line bonuses for exceeding production targets). It has also invested in upgrading working conditions, improving the quality and nutrition of employee meals, especially during periods of accelerated production.

Regular dialogue sessions are organized to ensure transparent communication so that employees can better understand the company’s situation, share difficulties, and work together with the enterprise. Internal welfare programs, employee support initiatives, and assistance for workers facing unexpected hardships are also being implemented.

At the same time, VSC is strengthening vocational training programs to improve workers’ skills and help them adapt to new production requirements. Innovation and improvement initiatives are encouraged through timely recognition and reward mechanisms, while maintaining strict compliance with workplace discipline and labor regulations.

Mr. Nguyen Ngoc Binh – General Director of Hoa Tho Textile Garment Joint Stock Corporation (Hoa Tho Corporation)

At Hoa Tho Corporation, production activities remained stable during the first quarter of 2026. Factories across the entire Hoa Tho system continued operating normally, continuously, and without disruption, while production capacity, workforce availability, and operating conditions were all maintained. Order conditions and production organization also remained stable and aligned with the planned targets.

Fully aware of the potential indirect risks that may arise, Hoa Tho Corporation has proactively implemented the following key solutions:

-Closely coordinating with partners and customers to monitor market developments, especially fluctuations in fuel and logistics costs, in order to promptly develop and implement appropriate response measures;

-Proactively preparing production plans and raw material supplies to ensure continuity and on-time order fulfillment;

-Strengthening cooperation with transportation and logistics partners while diversifying transportation options to minimize risks and optimize costs;

-Proactively negotiating with shipping lines and traditional raw material suppliers to adjust prices for goods, transportation, and related services in line with actual market conditions while ensuring balanced benefits for all parties;

-Flexibly adjusting production plans to improve responsiveness to delivery schedules;

-Strengthening cost management across the entire system by promoting cost-saving measures, optimizing the use of raw materials and energy, and improving operational efficiency.

Amid increasingly complex fluctuations in global fuel prices, and in an effort to share difficulties and ease commuting cost pressures, Hoa Tho Corporation has implemented a practical support policy for employees. Under this policy, each employee receives a transportation fuel allowance of VND 200,000. The total amount allocated for this support program exceeded VND 2.2 billion. Although the amount may not be substantial, Hoa Tho believes that, through this spirit of support and solidarity, employees will feel more secure in staying committed to their machines, production lines, and standing by the company through difficult market conditions.

Mrs. Nguyen Hong Lien – General Director of Hue Textile Garment Joint Stock Corporation (Huegatex)

Facing the slowdown and sharp fragmentation of the global textile and garment market since the beginning of the second quarter of 2026, Huegatex has activated a flexible response strategy, positioning cost management and quality control as the central pillars of all production and business activities. Actual data from Huegatex reveals a paradoxical trend: while orders for basic products have declined sharply, demand for technically complex product lines has continued to increase.

For the Yarn sector, transactions in several traditional markets have slowed down. However, stronger growth has been recorded among FDI enterprises and in several neighboring countries within the region, particularly for value-added yarn products such as compact yarn and recycled yarn. These product lines offer more stable profit margins and face less competition from low-end market players.

Currently, yarn product prices have shown a noticeable upward trend due to increasing market demand. However, enterprises need to exercise tighter control when facing short-term “surges” in demand, as this can also become a pricing risk given the rapid fluctuations in the raw material market. Such volatility may lead customers to request price renegotiations or even postpone or cancel orders.

Huegatex therefore avoids committing excessively large volumes to any single customer in order to minimize risks related to order cancellations or price pressure during market fluctuations. Orders are divided into smaller volumes for traditional customers with strong payment credibility, while new customers without established transaction histories are limited as much as possible during periods of market instability. The company also carefully calculates cotton and fiber purchasing plans, selecting appropriate purchasing periods and avoiding excessive volume commitments beyond actual production capacity in order to mitigate risks.

For the Garment sector, orders for basic product lines have shown a downward trend, while demand for products requiring more sophisticated sewing techniques has increased. Customers are currently prioritizing orders that can meet stringent standards for sustainable materials.

Another notable market trend is that large-volume orders with fast delivery requirements are shifting strongly to Vietnam from lower-cost markets such as India and Indonesia, which have faced difficulties in ensuring delivery schedules and quality standards. This could become a long-term trend, creating opportunities for garment enterprises to capitalize on throughout 2026.

For Huegatex, the company currently has secured orders through the end of June, while some units have already signed orders extending into July and August. Transaction prices for CMT orders have improved considerably. However, on the other hand, FOB orders are facing shrinking profit margins due to rising costs of raw materials and transportation.

As a result, for long-term FOB contracts, Hue Textile Garment has been implementing early yarn price locking strategies to secure input costs for greige fabric production and avoid risks from continuously fluctuating yarn prices. Dyeing processes are only carried out close to delivery dates based on final order specifications, helping maintain color flexibility in line with market trends while reducing the risk of unsold finished-goods inventory.

At the same time, the company leverages its advantages in productivity and quality to renegotiate better processing prices, ensuring stable cash flow across the system. Hue Textile Garment also avoids accepting orders beyond its production capacity in order to minimize the risk of cancellations if market conditions suddenly reverse.

Facing the risks of soaring shipping costs and container shortages, Huegatex has proactively shortened booking  timelines and arranged production schedules more flexibly, as current vessel booking conditions only allow bookings within a maximum of four weeks prior to the expected shipment date. The Yarn sector is concentrating on markets close to Vietnam such as China, South Korea, and Japan, while temporarily suspending exports to distant markets where maritime transportation risks have exceeded controllable levels.

Huegatex believes that this is a crucial period for strengthening forecasting capabilities. Closely monitoring actual customer behavior enables enterprises to proactively improve governance, adjust production plans, and enhance competitiveness in an increasingly challenging market environment.

Mr. Doan Minh Duc – Deputy General Director of Nha Be Garment Corporation Joint Stock Company

Amid the global energy crisis and ongoing market instability, Nha Be Garment Corporation is facing several direct challenges. Rising input and operating costs are placing significant pressure on profit margins, while partner requirements are changing rapidly, particularly regarding increasingly urgent delivery deadlines. Intense competitive pressure requires the company to maintain maximum flexibility in reallocating machinery and shifting production among different product lines in order to avoid order cancellations.

To remain resilient amid market volatility, Nha Be Garment Corporation has implemented a highly pragmatic  operating strategy built around several key pillars:

Efficient management and cost savings: Applying strict cost-saving measures across all stages, from production preparation to rigorous quality control in order to prevent defective or damaged products. Each production step is optimized (for example, reviewing the entire sewing process of a garment to eliminate unnecessary operations).

Pioneering the application of AI and robotics: Accelerating automation to reduce dependence on manual labor. Nha Be Garment has introduced robots into technically demanding production stages while maintaining the goal of “keeping revenue stable even if workforce headcount is reduced by half.”

Organizational restructuring: Strongly restructuring the workforce by increasing the proportion of direct labor (from 60% to 80%) while reducing indirect labor in order to optimize actual productivity.

Market flexibility: Focusing on technically challenging, high-value, small-volume orders to minimize risks rather than pursuing large-volume orders that are more vulnerable to market fluctuations.

Thanks to these decisive measures, Nha Be Garment Corporation achieved positive results in the first quarter of 2026, with revenue increasing by approximately 10% and profit exceeding the annual plan by around 19%. Effective management helped offset rising operating costs. The company has maintained its position in the U.S. market, which accounts for 60% of its business, while also expanding into the EU, Japan, and China. Forecasts indicate that growth in the second quarter is expected to remain stable before the company faces greater challenges in the final months of the year.

Alongside efforts to improve productivity, Nha Be Garment places strong emphasis on protecting employee rights and supporting workers’ livelihoods. The company evaluates annual cost-saving performance to provide bonuses for employees, prioritizing direct labor workers with additional rewards equivalent to 0.5–0.8 months of salary added to monthly income. Transportation support allowances ranging from VND 200,000 to 300,000 per employee have also been provided to help workers cope with rising living costs. In addition, the company continues investing in modern equipment and the latest machinery to reduce the intensity of manual labor while simultaneously improving workers’ skills through the operation of advanced technological systems.

Mr. Vien Minh Dao – Member of the Members’ Council and General Director of Det 8-3 One Member Limited Liability Company (Emtexco)

The energy crisis and market volatility are placing increasing pressure on businesses, driving logistics costs up by nearly 20% and creating risks of supply chain disruptions. Fluctuations in global commodity prices have also intensified inflationary pressure, reducing purchasing power and increasing financial costs for Det 8-3 One Member Limited Liability Company in recent periods. Average interest rates have risen by 56%, from 4.8% to 7.5%.

Since the increase in logistics costs mainly comes from domestic transportation expenses (from factories to ports), Emtexco has sought additional supply sources to optimize costs as much as possible. Concerned about the prospect of rising international freight rates, the company has accelerated productivity to the maximum feasible level, balanced production orders, and prioritized orders with distant delivery destinations in order to ship products to customers as early as possible. The company is also carefully calculating production volumes so that bookings can be secured early, helping maintain stable freight rates and ensure shipping space availability.

Amid the global energy crisis, customers are also placing increasing pressure on enterprises regarding delivery schedules in order to secure production materials. In some cases, to ensure timely fulfillment for customers, Emtexco has had to arrange partial shipments. Instead of waiting until enough goods are available for 3 containers, the company may ship immediately once a single container is filled. Although this approach may increase documentation costs, it ensures the earliest possible delivery and accelerates cash flow recovery.

The pressure for earlier deliveries has pushed operating efficiency to its maximum level, with daily output increasing from 36 tons to more than 36.5 tons per day, reaching 1,139 tons in March 2026. The demand for fast deliveries has also helped minimize the company’s inventory levels. As of March 31, 2026, Emtexco’s inventory stood at only 240 tons, equivalent to just over six days of production, thereby significantly reducing inventory-related interest expenses.

In addition to encouraging employees to improve productivity, Emtexco has implemented transportation fuel support for workers since March 2026, increasing the allowance from VND 12,000 per person per day to VND 22,000 per person per day in order to support employees through difficult conditions  during this period of broader economic crisis.

Mr. Pham Ngoc Binh – Deputy Director in Charge of Vinatex Nam Dinh Spinning Factory

Under current conditions, enterprises are facing dual pressures. On one hand, the global recovery in purchasing demand remains slow, while consumer spending continues to be cautious. On the other hand, according to the International Energy Agency, the Middle East conflict beginning on February 28, 2026 has caused the largest disruption in the history of the oil market, significantly reducing energy flows through the Strait of Hormuz and cutting global LNG supply by approximately 20%. Meanwhile, the United Nations Conference on Trade and Development reported that traffic through the Suez Canal remains about 70% lower than 2023 levels, resulting in longer transportation routes and sharply fluctuating ocean freight rates.

For manufacturing enterprises, these developments have translated into very tangible pressure on electricity costs, fuel expenses, logistics, working capital, and the ability to finalize selling prices. For Vinatex Nam Dinh Spinning Factory in particular, the impact is clearly visible in its supply chain and order schedules. Immediately after oil prices exceeded the threshold of USD 100 per barrel, all transportation providers announced increases in local charges ranging from 27% to 32% compared to rates before March 8. Other auxiliary material costs also rose by 12–15% depending on location, while notices stated that price adjustments could be implemented on a daily basis.

Customers have demanded immediate delivery of orders, and some have even requested revisions to contract terms in order to receive goods earlier and reduce the risk of transportation-related price increases. Customers in Pakistan have refused to accept additional transportation surcharges under wartime conditions. Selling prices are therefore required to include freight and insurance costs up to the agreed destination port or border gate.

To respond to the above situation, Vinatex Nam Dinh Spinning Mill has implemented several key measures: Maximizing manpower and backup materials to maintain machine operations and push production efficiency to the highest possible level in order to shorten delivery times for customers; Proactively booking shipping schedules early to lock in freight rates; Maintaining continuous communication with customers regarding cost adjustments so they remain informed. However, for signed orders, the factory remains committed to delivery without increasing prices;

Purchasing additional raw and auxiliary materials with fixed prices and confirmed delivery schedules to reduce risks if oil prices continue rising. Inventory reserves have been increased from 15 days to 30 days of production; Continuously monitoring market developments to implement timely solutions for securing key raw materials such as fiber and cotton, ensuring supply continuity without disruption; Developing production plans based on various cost increase scenarios in order to prepare specific response measures; Strengthening inspection and control activities to prevent unnecessary waste of electricity, water, and auxiliary materials.

As a result, Vinatex Nam Dinh Spinning Factory has been able to ensure delivery schedules in accordance with customer requirements without having to revise contract terms or change delivery timelines. Key raw materials have also been secured sufficiently for the next three months of production, including two months of reserve inventory and three months allocated for transportation lead time. In addition, production costs have remained within the contingency ranges previously calculated by the factory.

With the aim of helping employees cope with rising living costs, Vinatex Nam Dinh Spinning Factory provided emergency support allowances ranging from VND 10,000 to VND 30,000 per workday, implemented in different phases to suit actual conditions.In addition, the factory continuously updates employees on the overall business situation, order status, and production progress in order to encourage morale and improve workforce productivity amid labor shortages caused by post-Tet workforce migration.

Vietnam’s economy in the first quarter of 2026 experienced many complex global fluctuations, but still achieved impressive results with GDP growth reaching 7.83% year-on-year – the highest level since 2011. In this context, how did Vinatex perform in its production and business operations, sir?

In the first quarter of 2026, amid a mix of opportunities and challenges, Vinatex recorded positive consolidated results, with estimated revenue reaching VND 4.554 trillion, fulfilling 23% of the annual plan and  up 2% year-on-year. Estimated profit reached VND 355 billion, achieving 27% of the annual target and increasing by 31% year-on-year compared to 2025. Total export turnover was estimated at USD 468 million, reaching 24.3% of the annual plan and equivalent to 106.3% of the same period in 2025, with the United States remaining the Group’s largest export market. The Parent Company recorded revenue of VND 459 billion, achieving 16% of the annual plan and down 23% year-on-year , while estimated profit reached VND 34.4 billion, accounting for 13% of the annual target and increasing by 29% compared to the same period in 2025. The first-quarter results demonstrate that the Group’s production and business operations remain aligned with its strategic direction of focusing on growth quality rather than expanding scale, given the limitations in market demand.

The yarn sector recorded estimated profit of VND 57 billion, achieving 26% of the annual plan and increasing by 76% compared to the same period in 2025. The yarn sector delivered strong performance by capitalizing on the recovery in selling prices alongside improving market demand.

Order coverage remained relatively stable during the early months of the year, mainly because customers placed orders in advance ahead of the Lunar New Year holiday due to concerns over potential supply disruptions from yarn factories. Demand for cotton yarn imports from China also increased. However, this has been assessed as a short-term growth wave, with insufficient evidence to confirm a comprehensive and sustainable growth trend in the coming quarters.

The garment sector recorded estimated profit of VND 198 billion, achieving 26% of the annual plan and equivalent to 104% compared to the same period in 2025. Selling prices continued to remain favorable from late 2025, while orders stayed stable throughout the first quarter, with many units already securing orders through the end of the second quarter. Many enterprises proactively expanded into new markets and accelerated production and delivery schedules to take advantage of the “buffer period” before the United States imposed an additional 10% tariff.

In the first quarter of 2026, the labor situation remained stable, with workforce fluctuations labor turnover decreased by 60% year-on-year . The rate of employees returning to work after the Lunar New Year holiday reached 99%, with some units achieving 100%. This is considered a positive indicator, helping enterprises stabilize production and accelerate order fulfillment from the beginning of 2026. Employment and workers’ incomes were maintained, with the average monthly income across the system reaching nearly VND 13 million per employee, up 9.8% year-on-year compared to 2025.

To achieve these results, what key solutions and measures has the entire system focused on, sir?

Building on the foundation established through successive periods of global economic volatility, Vinatex  has implemented its 2026 business plan with a spirit of decisive action, accompanied by synchronized, practical, and effective solutions.

Vinatex has identified 2026 as the “Year of Efficiency.” Therefore, from the very first quarter, management efforts have been strengthened toward improving overall governance efficiency, including enhancing production and business performance at key units, improving management capacity at the Parent Company, optimizing credit resources, accelerating digital transformation, improving workforce quality, and strengthening risk control and governance across the Group.

In particular, the Garment Production and Business Division focused on improving the efficiency of resource utilization across markets, human resources, and investment activities. Special emphasis was placed on optimizing production management to handle small-volume orders requiring stringent quality standards and short delivery times. Meanwhile, the Yarn Production and Business Division quickly captured market opportunities in the first quarter while simultaneously expanding markets, diversifying product lines, and optimizing working capitalefficiency  while improving cost savings.

In addition, the Group proactively monitored market developments, issued early assessments of potential impacts in order to develop appropriate response scenarios, and strengthened information exchange and forecasting activities through both in-person and online seminars.

The fact that nearly all employees returned to work after the Lunar New Year holiday of the Year of the Horse, with the return rate reaching 99%, also reflects workers’ strong commitment to their enterprises. At the same time, it demonstrates the effectiveness of the policies implemented by the Group’s units in recent years to improve employee welfare, living conditions, and maintain a stable working environment.

The escalating conflict in the Middle East is placing tremendous pressure on global security, triggering sharp fluctuations in energy prices, supply chain disruptions, and increasing inflationary pressure. At the same time, uncertainties in trade policies are also directly affecting businesses. How do you assess this “dual crisis” for the textile and garment industry in the second quarter and the quarters ahead, sir?

The year 2026 continues to present numerous uncertainties related to tariffs, geopolitics, exchange rates, interest rates, and rising costs; particularly due to the latest developments in the Middle East conflict. These factors are creating direct risks in logistics, driving up raw material prices, extending delivery times, and altering consumer behavior in many countries (including the two major markets of the United States and Europe). In this context, the global economy is forecast to experience slower growth, while inflation  pressures are expected to re-emerge, especially in the U.S. market due to the impact of tariff policies. Bank interest rates are also expected to remain high and  may continue to rise further.

Adverse developments during the early months of 2026, especially the conflict in the Middle East, have prompted the World Trade Organization to revise its global trade growth forecast downward to around 1.9%, compared to the 2.6% projection made at the end of 2025. With such modest growth, the likelihood of global textile and garment demand maintaining the expected 3% growth rate is considered low. Meanwhile, product prices are unlikely to improve and may even decline, as brands increasingly require manufacturers to share additional costs arising from tariffs, transportation, and raw materials, significantly narrowing profit margins.

Besides, competitive pressure from other textile and garment exporting countries is intensifying significantly. China and India are aggressively implementing support policies to regain market share lost in 2025, which may reduce order volumes for Vietnam’s textile and garment industry. Competition with lower-cost countries such as Bangladesh, India, and Cambodia is also becoming increasingly difficult as domestic costs continue to rise due to adjustments in wages, electricity prices, fuel costs, and labor competition.

Notably, the Office of the United States Trade Representative has launched an investigation under Section 301 of the Trade Act of 1974, placing Vietnam in what can be described as a “dual challenge”: increasing tariff risks for Vietnamese exports, potentially causing textile and garment exports to decline sharply compared to 2025. Therefore, the possibility cannot be ruled out that the U.S. government may impose additional tariff measures from July 2026 onward after the temporary 10% supplementary tariff under Section 122 expires.

Could you please share Vinatex’s key strategic directions for responding to these unpredictable fluctuations?

In this context, Vinatex and its member enterprises have prepared various response scenarios and solutions.

For the Garment sector, the priority is to accelerate shipments to the U.S. market in order to take advantage of the 150-day period during which the additional 10% tariff remains in effect. Enterprises are also focusing on maximizing productivity and shortening production lead times to offset delivery schedules, while ensuring labor productivity and workforce efficiency remain stable in order to maintain effective production management.

For the Yarn sector, enterprises need to closely monitor market developments to maintain  proactive control over pricing and proactively manage raw material costs. Raw material purchasing strategies must follow a cautious, flexible, and phased approach. At the same time, inventory levels need to be tightly controlled, with production balanced according to market signals in order to avoid the risk of shrinking profit margins. In parallel, the Group is reviewing and improving solutions aimed at saving costs, reducing material consumption, and lowering expenses across all stages of the production process. Transportation methods are also being diversified to ensure operational stability and supply chain security.

In the second quarter of 2026, the Group will continue to focus on two key pillars: governance and markets.

From a governance perspective, the Group is strengthening management and closely monitoring the implementation progress of its 2026 production and business plans. The entire system must make every effort to maximize profits in the second in preparation for a highly uncertain second half of the year. The most important solutions are to maximize productivity, reduce costs, and utilize all resources efficiently in order to improve profit margins.

For the Yarn sector, priority will be given to rapidly implementing activities aimed at improving governance and operational systems, while also preparing contingency plans for the last six months of the year should market conditions deteriorate.

For the Garment sector, management will focus on increasing productivity across the entire system, optimizing all available resources to enable flexible operations, reduce costs, and enhance competitiveness in both pricing and quality. Meanwhile, the Human Resources Division will concentrate on solutions to maximize the efficiency of the existing workforce in support of the Group’s overall production and business objectives.

Regarding market activities, the entire system is closely monitoring developments related to the Middle East conflict, tariff policies, trade defense measures, rules of origin, and green standards in key markets such as the United States and the European Union. The Group is assessing potential impacts in order to implement timely response measures. At the same time, efforts are being intensified to diversify export markets, expand market share in potential regions, and reduce dependence on any single market area. Enterprises are also strengthening customer diversification within the same markets to minimize concentration risks, while leveraging competitive advantages in the U.S. market (including supply capability, product quality, and compliance with ESG standards).

In addition, the Group continues to strengthen risk control at the Parent Company and key subsidiaries. Digital transformation initiatives are being implemented according to roadmap plans across the Parent Company and member units, including the development of a centralized Group-wide data system to support governance and data-driven decision-making. The Group is also developing training and workforce development plans to ensure a capable talent pool that can meet future growth requirements.

In response to increasingly complex market fluctuations, the Party Committee of Vinatex issued a directive on strengthening cost-saving measures in production, controlling working capital and receivables, and proactively responding to changes in markets, customers, and capital sources.

The Party Committee requires member units to closely monitor market developments, customer conditions, order volumes, delivery schedules, payment capabilities, and the risks of delayed, postponed, or canceled orders in order to promptly develop appropriate response plans; closely track labor conditions, employment, income, and employees’ concerns and aspirations, while promptly identifying and resolving emerging issues to avoid disruptions or unexpected situations that could negatively affect production stability and labor relations.

At the same time, the Vietnam National Textile and Garment Group and Trade Union continue to promote various practical activities and workforce engagement initiatives aimed at ensuring the best possible benefits for employees while maximizing labor productivity across the entire system.

Thank you very much!