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 2тАУ3%, 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 9тАУ10% 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 2020тАУ2025 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 2009тАУ2014 period laid the foundation for Vinatex’s capital representative evaluation system. The 2015тАУ2020 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 2021тАУ2025 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┬а┬а 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 2026тАУ2030 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 60тАУ65% 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.

This article analyzes the key shifts in the sourcing strategies of U.S. fashion brands, highlighting the profound and ongoing reconfiguration of global supply chains.

The U.S. Fashion Industry Continues to Face an Uncertain Business Environment

Entering 2026, the U.S. fashion industry is operating in an environment marked by inflation, high interest rates, trade disruptions, and weakening consumer confidence. An April 2026 report by Professor Sheng Lu from the University of Delaware (U.S.) indicates that consumption patterns are becoming increasingly segmented by income level, with middle- and lower-income consumers remaining under considerable financial strain due to the high cost of living and persistently elevated borrowing costs.

U.S. economic indicators suggest that inflationary pressures are regaining momentum. The CPI climbed to 3.8% in April 2026, marking its highest since May 2023 and an increase of 0.5 percentage points from the previous month. Meanwhile, the Federal Reserve maintained its policy rate at 3.5%тАУ3.75% during its early-May 2026 meeting and has not indicated any intention to ease monetary policy in the near term. Despite a 4.9% year-on-year increase in retail sales in April, many fashion companies believe that consumers are becoming more price-conscious and increasingly selective in their purchases of non-essential goods.

Kohl’s reports that its core customers, lower- and middle-income households, are still facing financial pressure and are increasingly focused on value. Macy’s likewise sees rising uncertainty in consumer spending due to macroeconomic conditions, geopolitical tensions, and evolving trade policies. For Carter’s, tariffs continue to weigh heavily on market sentiment and have made the business outlook considerably harder to predict.

Beyond consumer trends, U.S. trade policy remains a major wildcard for the global fashion industry. Businesses anticipate that tariff and trade uncertainties will persist well into the second half of 2026, forcing fashion brands to keep their sourcing strategies flexible and their supply chains increasingly diversified.

Tariffs Continue to Squeeze Corporate Profit Margins

Sheng LuтАЩs analysis of the financial results of roughly 30 major U.S. fashion companies shows that tariffs remained among the industry’s biggest margin pressures in fiscal 2025. Many companies reported that import tariffs had shaved between 0.2-4.6% off their gross profit margins.

Macy’s estimates that tariff-related impacts will reduce its gross profit margin by approximately 0.2тАУ0.3% in 2026. Meanwhile, GAP stated that changes in global tariff rates during 2025 had a significant adverse effect on profitability, reducing both its gross margin and operating margin by around 1.2% for the full year and by approximately 2% in the fourth quarter of 2025. At the same time, Abercrombie & Fitch reported approximately USD 90 million in tariff-related costs included in its cost of goods sold, resulting in an approximately 2.5% decline in operating margin compared with the previous year.

Some companies have faced significantly greater pressure due to their heavy reliance on sourcing from Asia. Columbia Sportswear reported that unmitigated tariff costs exceeded USD 30 million in 2025, equivalent to an impact of approximately 3тАУ4% over a two-year period.

Meanwhile, PVH Corp. тАУ the parent company of Calvin Klein and Tommy Hilfiger тАУ estimated that its total tariff-related costs could reach approximately USD 195 million in 2026. However, the company stated that it is implementing a range of mitigation measures aimed at offsetting around 60% of the impact this year, with a target of reducing more than 75% of the tariff burden by the end of 2026.

In response to mounting cost pressures, many U.S. fashion companies are pursuing multiple strategies simultaneously, including adjusting prices, optimizing product portfolios, discontinuing underperforming product lines, renegotiating with suppliers, and shifting sourcing to countries with more competitive cost structures. Some companies are also accelerating their full-price selling strategies and limiting promotional activities in an effort to protect profit margins.

However, a key concern is that most companies believe the current trade environment remains highly unpredictable due to the continually evolving U.S. tariff policies. As a result, brands are required to maintain more conservative inventory levels while enhancing the flexibility of their supply chain management and global sourcing strategies.

U.S. Fashion Brands Implement Selective Price Increases

In addition to optimizing sourcing strategies and controlling costs, price increases have become one of the most widely used measures adopted by U.S. fashion brands to offset the impact of tariffs. However, rather than implementing across-the-board price hikes, most companies have opted for a selective pricing strategy, targeting fashion items, new product launches, or premium segments in order to minimize adverse effects on consumer demand.

Columbia Sportswear stated that it had implemented high-single-digit price increases in the U.S. market for its Spring and Fall 2026 collections to offset tariff-related costs. Meanwhile, LeviтАЩs reported that tariffs had reduced its profit margin by approximately 1.5%. However, a significant portion of this impact has been mitigated through price increases, product cost optimization, and a stronger focus on full-price selling. According to the company, consumers have so far shown no significant negative reaction to these pricing adjustments.

The trend toward reducing promotional activities and increasing the share of full-price sales is also being widely adopted by many brands as a means of protecting profit margins. Victoria’s Secret noted that scaling back discount programs had significantly improved its average selling price per item, thereby supporting the profit margins of its PINK brand. Meanwhile, Oxford Industries stated that its 4тАУ8% price increase was driven primarily by product mix enhancement and a higher proportion of newly introduced, higher-value products.

Nevertheless, companies remain cautious in their pricing strategies for basic product categories in order to protect price-sensitive consumers. Urban Outfitters, Inc. (URBN) stated that it continues to prioritize maintaining entry-level prices for its core products and only raises prices for categories where тАЬthe product value proposition is strong enough for consumers to accept.тАЭ

This trend suggests that the U.S. fashion industry is entering a new phase of competition, in which brand building, product development, and pricing management capabilities are becoming increasingly critical to offset cost pressures and sustain profitability.

The Shift in Global Sourcing Continues to Intensify

Under the combined influence of tariffs, geopolitical developments, and the need to diversify supply chains, U.S. fashion brands are accelerating the reconfiguration of their global sourcing networks in 2026. According to Sheng Lu, four major trends have emerged: a reduction in sourcing dependence on China; increased procurement from cost-competitive Asian markets, particularly Vietnam, Bangladesh, and India; a growing emphasis on nearshoring to Mexico and Central America; and closer attention to newly negotiated trade agreements affecting the textile and apparel sector.

China continues to lose ground in the U.S. apparel import market. According to import market share data, China’s share of U.S. apparel imports fell dramatically from about 22% at the beginning of 2025 to roughly 9% in March 2026. Meanwhile, Vietnam has consolidated its position as one of the leading sourcing destinations for U.S. apparel buyers, maintaining a market share of approximately 21тАУ24% during 2025тАУ2026.

Alongside Vietnam, Bangladesh and India are increasingly reinforcing their positions as low-cost sourcing hubs for the global fashion industry. Export data show that Vietnam’s apparel exports to the United States reached approximately USD 17.9 billion in 2025, up 10.7% from the previous year. Meanwhile, Bangladesh recorded around USD 7.5 billion in apparel exports to the U.S., an increase of 4.7% year-on-year. During the first four months of 2026, Vietnam’s apparel exports to the U.S. continued to grow by 3%, while Bangladesh posted a 2.7% increase over the same period.

Many companies believe that the shift in sourcing away from China has been underway for several years and is likely to continue in the foreseeable future. Oxford Industries reported that the share of sourcing from China had declined from around 40% to approximately 15% by the beginning of fiscal year 2026. Meanwhile, Abercrombie & Fitch currently sources from more than 16 countries worldwide in an effort to enhance supply chain flexibility and resilience.

Beyond Asia, many U.S. fashion brands continue to maintain and expand a portion of their sourcing activities in Mexico and Central America to shorten lead times, enhance market responsiveness, and reduce logistics risks. Although the apparel import shares from countries covered by the United States-Mexico-Canada Agreement (USMCA) and the Central America Free Trade Agreement (CAFTA) have remained relatively stable during 2025тАУ2026, nearshoring continues to be viewed by companies as a strategic option for complementing their global sourcing networks amid rising trade and geopolitical uncertainties.

Geopolitics and Logistics Emerge as Strategic Priorities

In addition to tariffs, geopolitics is increasingly becoming a major factor influencing sourcing and logistics activities across the global fashion industry. Conflicts in the Middle East and disruptions along international shipping routes have prompted many companies to heighten their vigilance regarding supply chain risks in 2026.

Nike reported some transportation disruptions related to the situation in the Middle East during its most recent quarter. Meanwhile, Victoria’s Secret noted that certain shipments to North America had experienced delays due to logistics disruptions, although the impact has not yet been considered severe. At the same time, PVH Corp. believes that geopolitical conflicts and volatility in global trade will remain major sources of uncertainty for business operations in the period ahead.

According to data from the Drewry World Container Index (WCI), global container shipping costs have been trending upward again in recent months. As of May 28, 2026, the WCI Composite Index had risen to approximately USD 2,800 per 40-foot container. Freight rates on shipping routes from Shanghai to Los Angeles and New York City have also increased significantly compared with the beginning of the year, underscoring the persistent logistics pressures facing global supply chains.

Against this backdrop, adaptability is emerging as a top priority for many U.S. fashion companies. Rather than focusing solely on cost optimization, brands are increasingly prioritizing the development of more agile and resilient supply chains through sourcing diversification, expanded nearshoring initiatives, inventory optimization, and enhanced responsiveness to geopolitical and global trade disruptions.

Overall, these trends indicate that the global fashion supply chain is entering a period of profound restructuring, driven by tariffs, geopolitical developments, and increasingly stringent risk management requirements. For Vietnam, this presents a significant opportunity to strengthen its attractiveness as a sourcing destination and expand its market share amid the ongoing supply diversification strategies of international brands. However, to capitalize on the shifting order landscape, Vietnamese textile and apparel companies must become more proactive in managing their supply chains, while enhancing their ability to deliver orders more quickly, reliably, and flexibly in response to the evolving dynamics of the global market.

By 2026, the “local brand” advantage is no longer sufficient to sustain the competitiveness of Vietnamese fashion labels. Consumers no longer make purchasing decisions simply because a brand is domestic; instead, they place greater emphasis on product quality, design, shopping experience, delivery speed, and customer service. As a result, brand identity must be accompanied by strong operational capabilities, agile supply chains, and effective customer data management.

The traditional store expansion model has also revealed significant limitations, including rising rental, labor, and inventory costs continue to rise while consumers increasingly shift toward online shopping. Consequently, fashion brands need to restructure toward a leaner, omnichannel retail model that places customer data at the center of decision-making.

In addition, intensifying competition from international brands is forcing Vietnamese fashion companies to seek differentiated advantages rather than competing head-on in terms of scale and price. Competitive strengths such as a deep understanding of Vietnamese culture, climate, fit preferences, and consumer preferences need to be leveraged more effectively and strategically.

More importantly, today’s challenge extends beyond weakening consumer demand; it lies in management capability. The brands that succeed are those that can effectively manage customer data, operate lean business models, and invest in communities and digital content. The withdrawal of several brands in early 2026 is widely viewed as a natural market correction, highlighting the need for businesses to shift from a product-selling mindset to one focused on building long-term customer relationships, optimizing supply chains, investing in brand value, and professionalizing management practices through long-term strategic thinking.

Interviewer: In the context of the textile and garment industry facing increasingly pressing demands for digital transformation and green transition, how do you assess the role of the media in supporting enterprises as they adapt to these trends?

Mr. Le Trong Minh: I believe that the media is not merely a communication channel for promoting products; it also serves as a catalyst that amplifies the values enterprises strive to create. Through media coverage, efforts related to digital transformation, green transition, corporate social responsibility, and corporate culture can gain broader recognition and stronger public trust than through self-promotional communications.

More importantly, the media also plays the role of a constructive watchdog. Objective perspectives from the press help businesses identify shortcomings, improve governance practices, and strengthen operational performance. At the same time, timely reporting on non-transparent business practices contributes to fostering a healthier business environment.

In the context of the global shift toward green growth and sustainable development, I believe the relationship between the media and businesses should be regarded as a strategic partnership rather than merely a channel for publicity. The media helps enterprises communicate meaningful stories and long-term values to society, while businesses contribute practical experiences, emerging trends, and industry expertise that enhance the quality and relevance of media coverage.

In todayтАЩs environment, where information spreads rapidly, businesses must also take a more proactive approach to communications. Whenever issues arise or explanations are needed, timely, accurate, and transparent disclosure is critical. Silence or delayed responses can create an information vacuum, allowing unverified narratives to influence public perception and potentially damage trust in the business.

To maximize the effectiveness of green transformation and sustainable development initiatives, businesses need to partner with reputable media organizations that possess a strong understanding of their industries and can effectively reach the intended audience. When communication is delivered through trusted channels and reaches the right audience, the influence and resonance of new strategies, commitments, and development goals are greatly amplified.

In my view, the partnership between the media and businesses delivers its greatest value when it is grounded in transparency, responsibility, and a shared vision for sustainable growth. Under these conditions, the media not only reports on corporate activities but also helps communicate the broader economic and social value that businesses generate through their development efforts.

In your view, how should the media adapt its approach and communication methods so that it not only reports on sustainability initiatives but also encourages textile and garment enterprises to pursue sustainable development in a more substantive manner? How can green transformation be presented as a compelling and engaging topic that resonates with the public while helping audiences gain a comprehensive and accurate understanding of this trend?

Green transformation is no longer optional, it has become a prerequisite for textile and garment enterprises that wish to remain competitive and continue accessing global export markets. However, one of the greatest challenges is that concepts related to sustainable development are often highly technical and difficult for the public to fully understand.

I believe the media should act as a тАЬbridgeтАЭ between technical expertise and public understanding. Complex concepts related to sustainability need to be translated into practical, relatable stories that resonate with people’s daily lives. Instead of focusing exclusively on emissions targets or circular economy indicators, the conversation should highlight how green transformation influences jobs, incomes, business resilience, and long-term economic development. To achieve this, communication efforts should place greater emphasis on storytelling and adopt a people-centered approach. Through relatable examples, visual illustrations, and real-world experiences, the media can help audiences connect with the purpose and value of the green transition. When the public understands and supports these initiatives, sustainable development goals can be implemented far more effectively.

Instead of focusing solely on a new production line or a major capital investment, we should tell the stories of workers who benefit from safer and better working conditions, and businesses that are able to conserve resources, reduce costs, and secure orders through their green transition efforts. When audiences can see the tangible benefits and practical value of these initiatives, they are far more likely to relate to them and embrace the message.

The media should also take a comprehensive view of the global sustainability standards, which is undoubtedly becoming an essential part of international trade and development, there are instances where environmental requirements may function as technical trade barriers or protection tools. This issue should be reported objective to help businesses make more informed decisions and support state management agency in formulating appropriate policies.

To make communication on green transformation more effective, businesses must also take a proactive role in partnering with the media, through providing background information, sharing transparent data, and facilitating factory visits and press trips with clearly defined objectives. Companies should also engage journalists who possess relevant expertise and a strong understanding of both the business and the industry. When the media has a clear understanding of the underlying issues, stories about sustainability and green transformation become more vivid and compelling, enabling them to generate a stronger impact and broader resonance across society.

Many textile and garment enterprises are currently under pressure to invest in both green transformation and digital transformation while facing limited financial resources. In your view, what approach should companies take to ensure that these transformation efforts meet market requirements while also delivering effective returns on investment? At the same time, what role can the media play in helping businesses strengthen their credibility and transparency in the eyes of investors and financial institutions, thereby improving access to green financing and other sustainable development funding solutions?

In my view, businesses should view green and digital transformation as a business imperative. They are no longer merely matters of environmental responsibility or sustainable development; they have become essential requirements for maintaining competitiveness, securing orders, and deepening participation in global supply chains. As export markets continue to tighten requirements related to environmental performance, emissions, and sustainable governance, companies that are slow to adapt risk losing their competitive edge and, potentially, access to customers altogether. For this reason, investing in green transformation is necessary, but does not require large-scale investments from the outset. In practice, many international brands have already brought criteria such as carbon emissions, renewable energy usage, supply chain traceability, and social responsibility into their supplier selection processes. As a result, green transformation is evolving from a compliance requirement into a new source of competitive advantage for textile and garment enterprises.

What is important is that businesses should develop a transformation roadmap that aligns with their scale, capabilities, and available resources. Priority should be given to initiatives that deliver clear and measurable benefits, such as energy-efficiency improvements, operational optimization, the digitalization of management processes, or solutions that directly address customer requirements. Early wins provide both proof of concept and additional capacity, allowing companies to pursue the next stages of transformation more effectively.

In addition, compliance with green standards is increasingly becoming an important factor in accessing capital. Today, many investors and financial institutions evaluate not only a companyтАЩs business performance but also its commitments to ESG (Environmental, Social, and Governance) principles before deciding whether to invest, establish partnerships, or extend credit.

In this process, the media plays a crucial role as a bridge connecting businesses, financial institutions, and regulatory authorities. Through forums, thematic seminars, and networking initiatives, the media helps bring these stakeholders closer together, enabling businesses to gain access to information on green finance, financial support programs, and emerging requirements from international markets. At the same time, the media contributes to strengthening corporate transparency and credibility by providing objective coverage of companiesтАЩ efforts in green transformation and sustainable development. Such visibility serves as an important basis for investors, banks, and business partners when assessing a company’s governance capabilities.

I believe that the role of the media today extends far beyond simply reporting the news. It has become a platform for connecting knowledge, resources, and opportunities for collaboration. When businesses, media organizations, and financial institutions work together, the textile and garment industry’s green transformation journey can be advanced in a more effective, practical, and meaningful manner.

Thank you very much for sharing your insights!

In the United States, the United States Department of Agriculture (USDA) has launched the “Great American Cotton Plan” to promote domestic cotton consumption, support cotton growers, and revitalize the country’s textile supply chain. The program encourages the use of natural fibers, expands credit support, modernizes the textile industry, and prioritizes the use of U.S. cotton throughout supply chains. This trend could increase demand for U.S. cotton, potentially affecting raw material competition and international cotton prices.

In India, the government has exempted all cotton import duties from June 1 to October 31, 2026, in an effort to ease supply shortages and lower domestic cotton prices. This policy is expected to significantly reduce raw material costs for Indian spinning mills, thereby enhancing their competitiveness relative to Vietnamese yarn exporter in major markets such as China, Bangladesh, and Turkey.

Meanwhile, China has extended its target price support policy for Xinjiang cotton at CNY 18,600 per ton through 2028 and continues to accelerate the development of its domestic spinning industry. This policy is expected to help sustain cotton supply and expand China’s yarn production capacity, thereby maintaining competitive pressure on Vietnam’s spinning sector.

Against this backdrop, Vietnamese textile and yarn producers need to closely monitor global cotton policy developments and price movements, capitalize on favorable opportunities to lock in raw material purchases, and keep track of yarn price trends in India in order to formulate appropriate pricing strategies and safeguard their export competitiveness.

Latest Regulations on Administrative penalties in the Customs sector

On May 15, 2026, the Government issued Decree No. 169/2026/ND-CP on administrative penalties in the customs sector. The Decree will take effect on July 1, 2026, and introduces several significant changes compared with Decree No. 128/2020/ND-CP.

The new Decree introduces a definition of┬а object and instrumentalities involved in administrative violations, extends the statute of limitations for imposing administrative penalties by an additional year for cases referred by judicial authorities, and adds 6 circumstances in which enterprises will not be subject to penalties when they make supplementary declarations and fulfill their tax obligations in accordance with the guidance of competent authorities.

In addition, the Decree introduces several new categories of customs-related violations and establishes provisions for handling administrative violations in the electronic environment to support digital transformation. It also removes a number of provisions under Decree No. 128 that are no longer considered appropriate. Enterprises should promptly update and familiarize themselves with these changes to ensure compliance with customs regulations from July 1, 2026 onward.

Government accelerates decentralization, reduction and simplification of Administrative procedures and Business requirements

On May 18, 2026, the Government issued Resolution No. 66.18/NQ-CP on decentralization and the reduction and simplification of administrative procedures and business conditions, effective from July 1, 2026. Under the Resolution, several procedures relating to fire prevention and firefighting (FPF) have been abolished, including acceptance inspection and commissioning procedures for projects that have already undergone FPF design appraisal. In addition, documentation requirements for FPF design appraisal have been simplified.

In the area of occupational safety and health (OSH), the procedures for reviewing and assessing the operating conditions of enterprises conducting self-training in occupational safety and health have been abolished.

In the accounting sector, regulations governing the conditions, examinations, issuance, and revocation of accountant certificates will no longer be applied. Individuals who obtained certificates before March 1, 2027, will remain eligible to sit for the auditor examination.

For the construction sector, the processing time for construction permit applications has been reduced to 10 working days, while applications for amendments to construction permits will be processed within 9 working days, provided that the files are complete and valid.

Detailed guidelines for the implementation of regulations on Electronic Employment Contracts

On May 15, 2026, the Ministry of Home Affairs of Vietnam issued Circular No. 08/2026/TT-BNV providing guidance on the implementation of electronic employment contracts (e-contracts) in accordance with Decree No. 337/2025/ND-CP. Effective from July 1, 2026, e-contracts are encouraged as a replacement for paper-based contracts in order to enhance human resource management efficiency and simplify administrative procedures.

Under the new regulations, both employees and employers are required to register accounts on the e-contract platform through the national electronic identification system (VNeID). Each e-contract will be assigned a unique identification number (ID). The platform will also be used to report workforce changes and facilitate the transition from paper-based contracts to electronic contracts. All electronic employment contracts and their appendices will be stored on the system for a period of 10 years from the date of contract termination.

Sharp increase in sea freight rates requires Textile and Garment firms to re-examine logistics costs

International ocean freight rates are rising sharply as the peak shipping season has arrived earlier than expected, with rates for 40-foot containers increasing by 23% to USD 3,433 per container. Freight rates on the routes from Shanghai to Los Angeles and New York have risen by 31% and 20%, reflecting a strong recovery in global shipping demand.

The increase has been driven primarily by companies accelerating shipments ahead of potential U.S. tariff adjustments scheduled for July 2026, rising import demand related to the 2026 FIFA World Cup, and geopolitical risks in the Middle East that have forced many shipping lines to reroute around Africa. Freight rates are expected to remain elevated at least through the end of July 2026.

Under these circumstances, textile and garment enterprises need to review and update logistics costs within their cost structures, proactively plan delivery schedules, secure shipping space early, and fully account for freight rate volatility to avoid unexpected expenses and protect the profitability of their orders.

A Turning Point in the Supply Chain

According to Haluk Demirtel, Vice President of Operations at Li & Fung, Vietnam’s Textile and Garment industry is experiencing a fundamental structural shift тАУ from a pure contract manufacturing model to an FOB model characterized by greater autonomy and higher value creation. This transformation represents a critical turning point in strengthening Vietnam’s role and upgrading its position in global supply chains.

This transformation has been clearly reflected in trade performance. In 2024, Vietnam surpassed China for the first time to become the largest exporter of textiles and garments to the U.S. market during the first 5 months of the year. Free trade agreements, together with global sourcing trends favoring flexible manufacturing and smaller order volumes, are creating new opportunities for domestic designers and manufacturers.

However, Vietnam’s Textile and Garment industry continues to face significant challenges, particularly its heavy dependence on imported raw materials, which account for approximately 70% of total demand, as well as mounting pressures to achieve sustainable development and enhance competitiveness within global supply chains.

Making Sustainability a Daily Practice

According to Nguyen Lien Chi, Content Director of ELLE Vietnam, Vietnam’s fashion industry continues to face a gap between its manufacturing capabilities for international brands and the development of its domestic fashion labels. Although Vietnam has emerged as a major manufacturing hub, many local brands still rely on low-cost imported materials and have yet to fully understand the principles and processes of responsible production.

She believes that the media should play a critical role in raising awareness and driving behavioral change by “localizing” the concept of sustainability, making its values more accessible, practical, and applicable to everyday business practices. At the same time, Vietnam’s fashion industry needs to establish stronger platforms for┬а networking, communication, and collaboration among designers, suppliers, and industry experts in order to foster sustainable development.

Slow Fashion and the Redefinition of Value

Fashion designer Vu Thao, founder of Kilomet109, said that the brand has built a network of direct partnerships with artisan communities and ethnic minority groups across Vietnam, utilizing natural fibers and dyes while preserving traditional weaving techniques. According to her, fashion is not merely a product; it also plays a role in safeguarding cultural heritage and improving the livelihoods of local communities.

However, many traditional weaving crafts are facing the risk of disappearing, with only a handful of families in some areas continuing to practice these traditions. At the same time, the understanding of value in fashion is evolving тАУ from a focus on chasing trends to one that places greater emphasis on identity, sustainability, and more meaningful values.

She emphasized that tradition should not be romanticized, as the communities themselves also aspire to innovate and modernize their traditional products. In her view, building sustainable fashion is a long-term journey that requires time, trust, and sustained commitment, because there are “no shortcuts” to┬а building a truly sustainable fahsion industry.