Hanoi (VNA) – The fluctuations in orders, markets, and tariffs from major trading partners force textile and garment enterprises to adapt quickly and flexibly to seize opportunities, and achieve their business goals for 2025.
Adapt flexibly, seize opportunities
It is estimated that by the end of May, the total textile and garment industry's exports reached nearly 16.8 billion USD, including nearly 15 billion USD from exports of textiles and garments. Exports to key markets such as the US, Japan, and Europe all saw double-digit growth. However, it’s hard to predict market moves.
Hoang Manh Cam, Deputy Chief of the Office of the Vietnam National Textile and Garment Group (Vinatex), said that the International Monetary Fund (IMF) has recently lowered its forecast for world economic growth in 2025 to 2.8% (down 0.5 points compared to the forecast released in January), and in 2026 to 3%. Along with that, major economies in the world have also adjusted their growth forecasts for 2025 such as the US down from 2.8% to 1.8%; Europe down to 0.8% (0.2% lower than the forecast in January). Germany zero; China down to 4% (0.6% lower than the previous forecast); Japan up 0.6% (0.5% lower compared to the previous forecast).
Cam said textile and garment enterprises are still trying to accelerate exports, especially when the US-China trade relationship tends to cool down with some agreements reached; freight rates are decreasing, the VND/USD exchange rate is developing more positively; actual inventories in the US, according to Sourcing Journal, are at a very low level, many brands are only enough for the next six to eight weeks.
The number of orders and export sales after the first 5 months of the year continue to strengthen the motivation for the business community. It is estimated that by the end of May, the total textile and garment exports reached nearly 16.8 billion USD.
Meanwhile, some countries competing with Vietnam in textiles and garments such as Pakistan or Bangladesh seem to have no signs of promoting negotiations with the US on reciprocal tariffs.
Nguyen Hung Quy, General Director of the Vinatex Southern Corporation (VSC), said that it has received enough orders until the end of August. In response to developments related to export tariffs to the US, VSC has proactively developed the EU and UK markets. The proportion of orders from these markets has increased significantly compared to the beginning of the year.
Speeding up delivery progress
Understanding the psychology of customers wanting to goods to be delivered quickly within the 90-day period of temporary suspension of US tariffs, Vietnamese businesses have improved their ability to respond and coordinate production to deliver goods early.
Hung Yen Garment Corporation said that from now until the end of July, its buyers require on-time delivery, not accepting delays like previous years. This request from the buyers has forced the entire production system to concentrate highly to complete the orders.
Meanwhile, for May10 Corporation, orders are full until the end of July, some types such as jackets until the end of August, and some others until the end of the year.
Commenting on the market, Vinatex leaders said that the garment industry still has many opportunities for orders until the end of the third quarter of 2025.
Therefore, businesses need to be proactive and flexible to make the most of market opportunities, completing at least two thirds of the annual profit plan to have reserves for production organisation, avoiding risks when the market reverses.
|It is forecast that from now until July 10, the US will have a temporary reciprocal tariff policy for Vietnam. On the positive side, US inventories are low, so orders in the third quarter of 2025 are expected to remain good, but in the fourth quarter of 2025 they may decrease by about 10% due to reduced US consumer demand.
In addition to advantages, the textile and garment industry also faces challenges as the negotiation results between Vietnam and the US have not been finalised. The US tariff policy is still uncertain; consumption in the Republic of Korea (RoK) and China is still weak, and demand cannot recover immediately. Increased electricity prices also affect production costs for businesses.
At this time, businesses are trying to take advantage of free trade agreements (FTAs) that have come into effect to get tariff incentives and diversify markets./.
VNA
