HÀ NỘI — The Vietnam National Textile and Garment Group (Vinatex) expects consolidated revenue to rise 7.3 per cent year-on-year in the first nine months of 2026, while pre-tax profit is forecast to increase 37.8 per cent and exceed its full-year target.

The group said improved efficiency and adaptability among its subsidiaries had supported growth despite continued volatility in global textile and garment markets. Its pre-tax profit margin is expected to rise to 9.5 per cent from 7.4 per cent a year earlier.

The yarn business was the main growth driver, with revenue rising 18.8 per cent and profit nearly tripling year-on-year. The towel segment recorded revenue growth of 19.4 per cent and profit growth of 37.3 per cent, while the textile and dyeing business also improved its efficiency.

Garment revenue rose 3.9 per cent but margins remained under pressure from fierce price competition, smaller orders and shorter delivery times.

Export markets have remained relatively stable, with most garment businesses under the group securing orders through the fourth quarter of 2026. Some subsidiaries have already received orders for early 2027.

The Vietnam Southern Textile and Garment Corporation (VSC) has secured orders through the fourth quarter, while May 10 Corporation has ensured jobs through November and expects its main orders to cover the rest of the year. May Nhà Bè Corporation and Huế Textile-Garment Joint Stock Corporation have also secured production plans through the end of 2026.

However, Vinatex General Director Cao Hữu Hiếu said the market remained exposed to risks, including volatile cotton and fibre prices, a rising VNĐ/USD exchange rate, weaker demand in major markets such as the US and EU and higher logistics and input costs.

The group also faces stricter origin requirements, trade-remedy measures and stronger competition from Bangladesh, China and other textile-producing countries.

For 2027, Vinatex expects cautious market sentiment and uncertain orders from traditional customers. Tighter G7 requirements on origin, environmental standards and labour conditions are expected to increase the importance of supply-chain transparency and higher localisation.

Vinatex Chairman Lê Tiến Trường has called on the group to shift its focus from scale expansion to efficiency and margin improvement. The group will tighten controls over cash flow, receivables and inventories, raise productivity, cut costs and prepare operating scenarios for 2027.

It will also diversify customers and export payment currencies, expand technology use and reduce reliance on bank borrowing by increasing funding from equity, partners and major customers. — BIZHUB