Driven by pull-forward shipping demand ahead of new US tariffs taking effect, major textile and apparel exporters listed on the Vietnam Stock Exchange generally saw higher revenue in the second quarter. According to company financial reports, eight companies posted year-on-year growth of more than 10%. Vietnam National Textile and Garment Group (Vinatex, VGT) led with VND 5,008 billion, up 13.1% year-on-year; Damsan Joint Stock Company (ADS) saw the highest increase at 39.2%. Vinatex said customers wanted to receive goods before the new tariffs landed, and its member units accelerated production and delivery, with order completion significantly higher than the same period last year. TNG's Q2 revenue rose 15.3% (versus 29.2% in Q1), and the company attributed part of its first-half growth to business expansion, an increase in sewing line workers, and accelerated export orders. Song Hong Garment (MSH) saw Q2 revenue rise 13% on ample orders; Viet Tien Garment (VGG) and Viet Thang (TVT) grew only 1.9% and 0.6%, respectively.

On tariffs, starting February 24, 2026, most Vietnamese goods exported to the US are subject to a temporary 10% tariff, which expires on July 24, 2026, after which the US will impose a 12.5% tariff on Vietnamese goods. At the same time, 17 economies are subject to a 10% rate, 2.5 percentage points lower than Vietnam. US Department of Commerce data show that in the first seven months of this year Vietnam was the largest apparel supplier to the US, with exports of USD 9.37 billion; Bangladesh followed with USD 4.66 billion, also subject to 10%. Indonesia, Cambodia, and India are also within the 10% range, each exporting more than USD 2.4 billion in apparel to the US.

Brokerages have differing views on the impact. ACB Securities (ACBS) believes textiles, footwear, handbags, toys, seafood, and some consumer goods will bear a more direct burden, because many key technology product lines are exempt; compared with competitors that only pay 10%, Vietnam is relatively disadvantaged, and these industries absorb a large amount of domestic labor and have not seen rapid export growth this year. Vietnam Joint Stock Commercial Bank for Industry and Trade Securities (VCBS) believes exports may slow, but a 2.5 percentage point tariff gap is unlikely to cause a major overall shock in the short term: Vietnam has a more complete man-made fiber apparel manufacturing ecosystem and complex product lines, and can quickly obtain raw materials and components from China; customers also need time to test products and build trust when switching suppliers, so orders will not shift immediately. However, VCBS warns that competitors are expanding toward high-value products, long-term pressure remains, and being unable to enjoy the lower tax preference will put Vietnam at a price disadvantage. Tianyue Securities (TVS) points out that due to contract and shipping lags, the 12.5% rate will not be fully reflected until September, and product groups directly competing with Ecuador, India, and Indonesia (currently at 10%) will face pressure to renegotiate prices.

Customs data show that in August 2026 Vietnam's textile and apparel exports rose 3.2% year-on-year, approaching USD 4 billion. TNG's July revenue was VND 1,252 billion, up 29.2% year-on-year, and August was VND 1,114 billion, up 22.1%. Nguyen Ngoc Binh, general director of Hoa Tho Textile and Garment (HTG), said in late August that orders in the garment division were booked through the end of October 2026, but many customers were still watching tariff trends before signing, and Q4 orders were being finalized slowly. Vinatex Group CEO Cao Huu Hieu said the group's consolidated revenue for the first eight months is expected to grow 8.3%, with garment sales up 3.9% and yarn up 18.8%; the garment business is basically locked in through the end of Q4, but price competition is fierce, order volumes are small, and delivery times are tight, so pressure remains significant.

Source: Second-quarter textile and apparel sales surged, but what will the last six months of the year look like as the US raises tariffs to 12.5%? · Originally published on 2026-09-17