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.

Recruitment Trends: From Academic Qualifications to Practical Performance

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

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

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

Building Competencies for Future Career Goals

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

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

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

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

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

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