Vietnam National Textile and Garment Group (Vinatex) expects consolidated pre-tax profit of VND 1,470 billion for the first nine months of 2026, completing 106.5% of the full-year plan and up 40.7% from the same period in 2025; consolidated revenue was about VND 15,501 billion, equivalent to 72.3% of the full-year plan and up 6.8% year-on-year. At the parent company level, performance was even stronger: pre-tax profit of VND 336.6 billion, completing 129.5% of the full-year plan and surging 218.7% year-on-year.

Key points

  • Vinatex's consolidated pre-tax profit in the first nine months reached VND 1,470 billion, up 40.7% year-on-year and already exceeding the full-year plan.
  • The yarn business posted revenue of VND 6,661 billion and profit of VND 381.8 billion, with profit up 168.1% year-on-year; all 12 yarn units under it were profitable.
  • The garment business recorded pre-tax profit of VND 679.2 billion, with a pre-tax profit margin of 11.6%, above the annual target of 10%.

The above figures were reported by Vinatex General Director Cao Huu Hieu at the group's meeting. The meeting was co-chaired by group Chairman Le Tien Truong, Cao Huu Hieu and Standing Deputy General Director Pham Van Tan, and was attended by executive board leaders, heads of functional departments and general directors/directors of member units.

Yarn segment: an engine of simultaneous volume and profit growth

The yarn business was the most outstanding growth driver in the first nine months. The segment's operating revenue was VND 6,661 billion, completing 78.1% of the annual plan and up 15.9% year-on-year; profit was VND 381.8 billion, completing 152.1% of the annual plan and up 168.1% year-on-year. The group said the yarn system maintained high availability and, together with proper management, helped units seize advantages in prices and raw material costs to maximize profit; improved production management contributed about 27% to profit growth. However, the group also cautioned that efficiency among production units remains uneven, and the advantages in prices and raw material costs are difficult to replicate.

Garment segment: largest source of profit, but margin under pressure

Garment remained Vinatex's largest profit contributor. In the first nine months, consolidated revenue was VND 5,853 billion, up 2.7% year-on-year, and pre-tax profit was VND 679.2 billion, with a pre-tax profit margin of 11.6%, exceeding the annual target of 10%, though differences among business divisions were pronounced. The group noted that the overall trend is continued revenue growth alongside gradually declining profit margins, due to factors including unit prices, cost pressures, and the challenges that small-batch, high-difficulty orders pose to production management efficiency.

Fourth-quarter tasks and preparation for 2027

When deploying key fourth-quarter tasks, Cao Huu Hieu asked units to first consolidate the results of the first nine months and effectively respond to various situations that may arise in the fourth quarter to optimize efficiency. While completing the 2026 plan, the group will begin preparations for 2027: the yarn business department and the garment business department will continue to complete systematic assessments as the basis for formulating the 2027 plan; at the same time, they will closely monitor U.S. tariff policies and market developments and update input assumptions to support plan preparation.

The meeting also set targets for the 2026-2030 medium-term investment plan for each business segment, with priorities including formulating a detailed 2027 plan, improving management dashboards to support proactive operations from 2027, and introducing plans to retain employees and ensure sufficient labor for 2027. The yarn segment presented a method for building synchronized production and business plans based on data from 12 yarn production units; the garment segment reported on its production and business results in the first nine months, key fourth-quarter tasks for each unit and measures to improve profit margins.

Management sets the tone: cautious forecasts, pursuit of sustainable profitability

In his concluding remarks, group Chairman Le Tien Truong said that entering 2027, the business environment is expected to remain full of uncertainty: market growth potential is limited, while labor costs, capital costs and requirements for production efficiency and quality continue to rise. Therefore, 2027 planning should adhere to the principles of cautious forecasting, active scenario planning and decisive improvement of management efficiency, pursuing substantive, sustainable growth. Based on an assessment of 2026 performance and excluding temporary favorable factors, Vinatex aims to maintain profit growth in 2027, placing greater emphasis on creating sustainable profitability from core business activities and reducing dependence on unpredictable market factors. For the parent company, the top priority is to strengthen financial autonomy, balance revenue and expenditure, conduct financial planning independently, and reduce reliance on dividends from member companies.

For the second-hand clothing trade and the textile supply chain, the simultaneous rise in volume and profit in Vinatex's yarn segment and the declining profit margin in the garment segment reflect how changes in upstream raw material costs and order structures affect the entire textile and apparel industry chain; its attention to U.S. tariff policy and input assumptions in its fourth-quarter and 2027 plans is also worth noting for export-oriented textile enterprises.

Source: In the first nine months of 2026, Vinatex's pre-tax profit increased 40% compared with the same period last year. · Originally published on 2026-09-29