Enhancing internal capacity – flexible response in a volatile market

The 2025 Annual General Meeting (AGM) season occurs amid challenges facing Vietnam’s textile and garment industry, from escalating geopolitical tensions to tariff fluctuations. Business results from 2024 indicate that although many enterprises have shown positive signs of recovery, others are still struggling to regain growth momentum. Against an unpredictable global supply chain and rising competition pressure, enhancing internal capacity and flexible responsiveness has become the key for enterprises to maintain their positions and for Vinatex to break through in the 2025–2030 term.

Hue Textile and Garment Joint Stock Company (Hugatex):

In 2024, amid geopolitical conflicts and intense price competition, the Board of Directors and Executive Board of Hue Textile regularly coordinated to issue timely and flexible directives, stabilizing operations and ensuring growth. Total revenue reached VND 2,010 billion, achieving 104.7% of the year’s plan and up 6.7% compared to 2023; pre-tax profit hit VND 137.3 billion, 25% above the plan and 13.3% higher year-on-year; average income per worker was VND 9.7 million/month, up 9.1%.

For 2025, considering ongoing conflicts and tariff fluctuations, the company set targets of VND 2,070 billion in revenue (+3%), USD 112.9 million in export turnover (+4%), VND 140 billion in pre-tax profit (+2%), expected dividends of 20–40% of charter capital, and average worker income of VND 10 million/month (+3%). To reach these goals, Hugatex will implement key measures across four pillars: organizational stability, governance enhancement, new product development, and capital assurance.

At the AGM, Mr. Le Tien Truong – Chairman of Vinatex, praised Hugatex’s bold reforms in 2024, noting balanced development across four pillars: yarn–dyeing, garment sectors, finance, human resources, and internal activities. Besides, it is highlighted that the smooth leadership transition occurred with unity and consensus.

Looking ahead to 2025, Mr. Truong agreed with the company’s proposed direction. In today’s uncertain business environment, adaptability is essential. While labor productivity remains a key competitive factor, Hugatex must focus on technological, managerial, and innovative productivity. He emphasized evaluating the current organizational model and fostering a learning culture to avoid lagging. He also encouraged development in dyeing–finishing as a strategic response to stricter origin requirements.

Hung Yen Garment Corporation – JSC (Hung Yen Garment):

In 2024, Hung Yen Garment achieved revenue of VND 678.3 billion (123% of the plan, 98% of 2023), pre-tax profit of VND 73.2 billion (133% of plan, 87% of 2023), and average monthly income of VND 12 million for over 1,800 employees (+8.1% yoy). The company invested in new equipment, completed a five-story warehouse, and upgraded its factories, improving working conditions.

In 2025, facing global market volatility, the company targets revenue of VND 616 billion, pre-tax profit of VND 50 billion, and average worker income of VND 12.5 million/month. To achieve this, Hung Yen Garment will focus on fulfilling US-bound orders, monitoring US-China trade disputes and US-Vietnam tariff negotiations, and maintaining markets in Japan, Europe, Korea, while expanding into Russia, the Middle East, and South Asia. The company seeks customers using Vietnam-sourced materials and plans to strengthen staff training, especially mid- and senior-level managers in technical, managerial, and foreign language skills. Investment in equipment and digital transformation, including digital technology, AI applications in production management, will be expanded.

Eight strategic solutions for 2025–2030 include:

1. Flexible adjustment of business strategies per market developments.
2. Expanding export and domestic markets, gradually shifting from CM to FOB.
3. Capital contribution and investment in worker housing projects.
4. Strengthening linkages within the system to enhance competitiveness.
5. Human resource training and development.
6. Applying digital and advanced technology in production.
7. Expanding production facilities and upgrading to green standards.
8. Improving employee livelihoods with a 5% annual income growth.

The AGM elected a 5-member Board of Directors and a 3-member Supervisory Board. Mr. Le Tien Truong was elected as Chairman of the Board; Ms. Truong Thi Phuong was elected Head of the Supervisory Board.

In his speech at the Congress, Chairman Le Tien Truong outlined the key strategic directions that the Board of Directors of Hung Yen Garment Corporation plans to implement in the upcoming term. He emphasized a consistent viewpoint: preserving and sustaining the company’s core strengths—from corporate culture to its production and business foundations—while maintaining stability and gradually improving the growth rate. Strategic innovation will be applied selectively, with appropriate steps taken in areas ranging from organizational structure and management methods to technology and equipment. The company will also diversify its customer base and markets, and focus on developing human resources in both management and operations to meet the demands of the new environment. This includes building a pipeline of capable successor leaders for the next 20 years of Hung Yen Garment’s development.

Anticipating a new term marked by continuous uncertainty, the entire Hung Yen Garment system must enhance its capability to manage unpredictability.
In this context, flexibility and strong internal capacity are decisive factors for sustainable development. Flexibility is defined by four key elements:

1. A workforce that is adaptable and sufficiently skilled to perform multiple functions.
2. More diversified business models, markets, and customer segments.
3. Highly automated machinery and equipment capable of adapting to different products and order sizes.
4. A reduced ratio of indirect labor.

Hung Yen Garment will continue to lead with superior labor productivity, while also exploring ways to improve equipment efficiency, innovation-driven productivity, and new product development in the next phase. These efforts aim to enhance overall labor productivity and solidify the company’s role as the cultural center of the entire system, in alignment with the development of its 13 member enterprises

Duc Giang Corporation – JSC (Duc Giang Garment):

In 2024, facing sluggish market recovery, high inventories, and delayed payments, Duc Giang achieved VND 2,396 billion in revenue (99% of plan) and VND 24 billion in pre-tax profit (+26% compared to the plan). For 2025, amid anticipated trade tensions and retaliatory tariffs from the US, the company targets VND 2,700 billion in revenue, USD 85 million in exports, VND 25 billion in profit, and 15% dividend.

To achieve this, Duc Giang will:

• Adapt to volatile tariffs,
• Enhance marketing and integrate AI across operations,
• Continuously improve product quality,
• Control costs and risks,
• Develop high-skilled young talent.

Speaking at the Congress, Chairman of Vinatex, Mr. Le Tien Truong, highly commended the efforts of the Board of Directors, Executive Management, and the entire staff and labor force of the Corporation during the 2020–2025 term.

This past term witnessed unprecedented challenges due to the COVID-19 pandemic, geopolitical conflicts, economic recession, and trade wars. However, it also provided an opportunity for Duc Giang to demonstrate its resilience and implement significant reforms.

“Entering the new term, Vinatex directs Duc Giang to focus on improving labor productivity through investment in modern technology, automation of production processes, and enhancement of management capabilities. Vinatex also places special emphasis on developing a young, dynamic workforce capable of adapting to rapid market changes. The goal is to streamline the workforce while ensuring steady revenue growth and aiming to increase the average income of employees. In an increasingly competitive landscape, labor productivity will be the key factor for Duc Giang’s survival and sustainable development”, Mr Chairman emphasized.

Hoa Tho Textile & Garment Corporation – JSC (Hoa Tho):

In 2024, Hoa Tho reached VND 5,241 billion in revenue (+9% YoY, 116% of plan), VND 353 billion in consolidated pre-tax profit (+67%, 160% of plan), and USD 255 million in exports (103% of plan). For 2025, the company targets VND 5,050 billion in revenue, VND 350 billion in separate profit, VND 360 billion in consolidated profit, USD 255 million in exports, and 5–7% average income growth, 25-50% dividend.

To achieve the 2025 goal, Hoa Tho set nine key strategies, including:

1. Closely monitor global tax and trade policy changes,
2. Diversify and expand raw material sources,
3. Enhance R&D for proactive design and sourcing,
4. Drive digital transformation,
5. Improve HR policies and training,
6. Invest in green, sustainable projects (e.g., solar energy, wastewater recycling),
7. Strengthen internal audit and risk management,
8. Revise and update internal regulations,
9. Promote internal communication and corporate culture.

Speaking at the Congress, Mr. Le Tien Truong, Chairman of Vinatex highly praised the 2024 business performance of the Corporation. He acknowledged it as the result of the relentless effort, creativity, and dedication of the Board of Directors, Executive Management, and all employees and workers of Hoa Tho. The Corporation has now risen to become the top contributor of dividends to the Group within the Vinatex system, and ranks second in terms of dividend payout ratio among all listed textile and garment enterprises.

Looking ahead, Hoa Tho should focus on three key areas:

1. Establishing a leading smart manufacturing facility in Vietnam and the region.
2. In terms of production orientation, not aiming to engage in weaving-dyeing-finishing at Hoa Tho, but instead focusing on developing products that meet higher quality and technical standards, thereby increasing the value added within the value chain.
3. Given the upcoming period of uncertainty, the ability to manage flexibly, both at the leadership level and across the production and market systems, will be crucial. This calls for a strong focus on training, development, and attracting talent to build a high-quality workforce capable of meeting the fast-changing demands of the market.

Phu Bai Spinning JSC (Phu Bai Yarn):

In a tough year for the yarn sector, Phu Bai Yarn still achieved notable results with VND 1,327 billion in revenue (+26.4% compared to plan) and VND 15.5 billion in pre-tax profit (+55% compared to plan). The company excelled in market development, a consistent strength. This was also one of the key points reported by the leadership of Phu Bai Yarn at the Annual General Meeting of Shareholders, alongside the objectives and tasks set for 2025.

CEO Cao Huu Hieu acknowledged and highly appreciated the comprehensive efforts of Phu Bai Yarn in 2024. In terms of production and quality management, Phu Bai maintained product quality and its reputation despite a highly volatile market. Notably, the company proactively adjusted its product structure, shifting 60–70% of its output to recycled product lines with clear traceability. This demonstrates decisive and flexible management as well as the company’s ability to respond quickly to market changes.

In 2024, the organization of technical staff training not only enhanced professional capabilities but also fostered a positive learning environment. This initiative should be further expanded and deepened, especially in preparation for the new factory’s operation. It lays the foundation for employees to become more confident and proactive, thereby optimizing production and improving cost-efficiency.

Looking ahead to 2025, besides maintaining its two core export markets, Phu Bai needs to proactively expand into new markets, including a consideration of the Chinese market. Additionally, it is necessary to implement a comprehensive set of solutions, such as product diversification, with a focus on high-value-added items; remaining steadfast in the direction of developing recycled products with clear origin traceability, particularly in fiber materials; setting clear quarterly goals and maintaining a flexible response to changes in tariff policies.

In terms of management, the CEO of Vinatex emphasized that maintaining quality must remain the top priority, alongside improving productivity to expand profit margins. The development of technical tools should be conducted reasonably to reduce costs, closely monitor categories with rising expenses, and assign production norms to each factory based on specific criteria per kilogram of yarn produced. Better control of input cotton prices is needed, along with accelerating digital transformation and increasing investment in human resource training, not only at the factory level but also for senior management.

Vinatex’s leadership expressed the expectation that Phu Bai Spinning will become the research and development hub for new products under the Yarn Division, serving as the origin of differentiated, high-value-added products to lead not only the Vinatex system but also the entire Vietnamese yarn industry.

Nam Dinh Textile and Garment Corporation (Natexco)

At the 2025 Annual General Meeting of Shareholders, Nam Dinh Textile and Garment Corporation (Natexco) reported its 2024 business performance. The parent company’s revenue reached 92.34%, and consolidated revenue reached 94.74% compared to 2023. Despite continuing difficulties, the Corporation made efforts to maintain stable operations and gradually improve operational efficiency.

With a strong commitment to innovation, the Corporation has clearly defined its strategy to strengthen internal capabilities, improve operational effectiveness, and lay the groundwork for a solid recovery in the coming period. The strategic directions include: achieving the 2025 business targets and those of subsequent years; expanding markets, especially exports, and diversifying customer base; increasing internal supply chain consumption; promoting the production and export of flame-retardant fabrics; implementing advanced production management and restructuring to streamline the management system; researching and applying modern management models to improve productivity, quality, and efficiency; investing in production capacity, particularly in weaving and towel weaving; maximizing the advantages of service and auxiliary units; developing human resources for investment projects, creating mechanisms to recruit young, highly qualified managers, rejuvenating the workforce, and focusing on training; improving working conditions, enhancing material and spiritual life, and welfare policies for employees.

Speaking at the meeting, Mr. Cao Huu Hieu, CEO of Vinatex, acknowledged the efforts of the Board of Directors, Executive Board, and all employees in overcoming challenges amidst market volatility. He expressed understanding of shareholders’ concerns and expectations and emphasized that Vinatex would always accompany and support Natexco in strengthening its internal resources and advancing in the new phase.

In 2024, one strategic move made by Vinatex leadership was selecting Nam Dinh Textile to implement the Flame-Retardant Fabric Project, opening up a new development direction for the company. In the coming year, the Corporation needs to focus on core sectors such as yarn and dyeing, which hold special advantages thanks to an existing wastewater treatment system and 13 hectares of undeveloped land in the industrial zone.

Mr. Cao Huu Hieu shared that from 2025–2030, Vinatex will continue to invest in Natexco based on its current human resources and infrastructure. A new factory is expected to be launched in 2026. Additionally, the Group is researching the potential introduction of home textile products – a promising but new field for Natexco – into its development plan to better utilize available resources. In light of ongoing tariff fluctuations in 2025, Vinatex’s leadership called for flexibility and shared commitment from shareholders to maintain business stability.

Hanoi Textile and Garment Joint Stock Corporation (Hanosimex)

In 2024, Hanoi Textile and Garment Joint Stock Corporation (Hanosimex) achieved consolidated revenue of VND 1,173 billion. Average employee income reached VND 9.12 million/person/month, equivalent to 115% of the 2023 figure and 108% of the year’s plan. In 2025, with continued market volatility, Hanosimex aims for consolidated revenue of VND 1,192 billion, consolidated profit of VND 9 billion, and average employee income of VND 10.8 million/person/month.

At the 2025 Annual General Meeting, the Corporation proposed a set of comprehensive solutions to address challenges in the yarn sector, including developing new customers for traditional cotton yarn, expanding the domestic customer base, attracting FDI clients, and securing FOB garment orders. Focus is also placed on strengthening high-demand yarns like CM, TCM, CVCM…

In the garment sector, Hanosimex is focusing on developing high-quality human resources and experienced market officers, streamlining management and production structures to enhance market exploitation. Simultaneously, the company continues maintaining existing and traditional customers, expanding to other markets like Japan, and targeting FOB clients to avoid dependency on a single export market. Production management will be enhanced to balance product lines and supply sources with existing factory capacity.

In the towel weaving segment, aside from the traditional Japanese market, Hanosimex will also boost domestic market efforts, aiming for 5% growth in 2025. The company will also establish flexible pricing frameworks to increase orders, reduce production costs, and improve profitability.

In addition to market and production operations, Hanosimex’s 2025 goals include stabilizing its workforce, recruiting enough workers for the yarn sector, and maintaining a stable workforce to ensure 20 sewing lines per factory. It plans to recruit and train new management personnel, continue building and refining the wage and labor management system in line with legal standards and customer evaluations, and concentrate labor to establish centralized production hubs: for the yarn sector in Dong Van (Ha Nam), and the garment sector in Nghe An.

Viet Tien Garment Joint Stock Corporation (Viet Tien)

In 2024, Viet Tien Garment Joint Stock Corporation (Viet Tien) exceeded all operational targets set out in the resolutions of the Shareholders’ Meeting and Board of Directors. Specifically, revenue reached over VND 9,749 billion – 16.6% above the year’s target and up 13% from the same period last year. Pre-tax profit reached VND 303.7 billion – 51.8% above the target and up 44% year-over-year. Average employee income was VND 12.5 million/person/month, ensuring job security and livelihood. The dividend payout rate was 30%.

For 2025, despite projected global and domestic economic difficulties such as ongoing conflicts, inflation, and rising costs, Viet Tien is determined to meet its goals, thanks to the flexibility and resolve of its leadership and staff. Targets for 2025 include: total revenue of VND 9,800 billion, pre-tax profit of VND 330 billion, and average income of VND 13 million/person/month.

In 2025, Viet Tien plans to invest around VND 40 billion in automation, specialized machinery, digital transformation, workspace upgrades, and office/warehouse construction at 458 Minh Khai, Hanoi. The company will continue restructuring, reorganizing personnel and management models, improving productivity, focusing on human resource development, organizing production, reforming wage systems, investing in advanced technology, and especially applying RFID for sales and inventory management. It will also launch new branded products under “T-Up,” expand e-commerce and social media platforms, and apply Lean manufacturing comprehensively to boost productivity. Viet Tien will also promote innovation and production efficiency in celebration of its 50th anniversary in 2026.

Mr. Vu Duc Giang – Chairman of the Vietnam Textile and Apparel Association (VITAS) and Viet Tien’s Board of Directors – praised the responsibility and support of shareholders for the company’s strategies. He noted that 2025 will continue to be challenging for the Vietnamese textile industry and Viet Tien in particular, due to increasingly stringent customer standards, requirements for automation, digitalization, and circular economy implementation. Global political and economic instability, increasing pressure from small-volume, fast-delivery orders, intense labor competition, and especially U.S. tariffs, all pose additional risks. In response, Viet Tien will implement timely solutions, accelerate restructuring, and reorganize operations to ensure flexibility, efficiency, and a strong brand. The company is aiming to produce ODM and OBM orders and export Viet Tien-branded products to regional and global markets. Continued strong partnerships, quick adaptability, and solidarity among all employees and shareholders will be key to overcoming challenges and achieving sustainable development.

 

Vinatex Phu Hung JSC

In 2024, Vinatex Phu Hung JSC achieved total revenue at 107.87% of the plan, up 11.99% from 2023. Export turnover reached 100.84% of the plan, up 8.93% from 2023. Pre-tax profit reached VND 9.867 million. Thanks to lower raw material prices compared to 2023 and a recovering yarn market after the sector’s downturn, along with high-value orders, the company’s profits exceeded the 2024 plan by 493.35%.

For 2025, Vinatex Phu Hung has set targets including total revenue of over VND 806 billion, export turnover of USD 29 million, and profit of VND 10.5 billion. Key solutions include: continuing market research, expanding and maintaining customer lists in traditional markets such as China, the Philippines, and South Korea; exploring potential markets by approaching customers in brand supply chains and understanding the blended yarn needs of major importing countries like Pakistan and Bangladesh. The company will also build and train a capable sales team to adapt to a volatile market, update and complete certifications on traceability, sustainability, and green production, and focus on high-value orders to ensure profit in a fiercely competitive market. It will also strengthen cost and quality management, promote energy and material savings, and improve labor efficiency through better production management systems. Recruitment and training of high-quality personnel will also be a focus, with hopes for continued support from the Group in developing future management talent.