Vietnam National Textile and Garment Group (Vinatex) has officially surpassed its full-year profit target in the first nine months of 2026, with a full quarter still remaining in the year. The group's consolidated revenue for the first nine months is estimated at VND 15,501 billion, up nearly 7% year-on-year and completing 72% of the annual plan; consolidated pre-tax profit is estimated at VND 1,470 billion, up 41% year-on-year and exceeding the full-year target by about 7%.

Key Points

  • Vinatex's first-nine-month consolidated pre-tax profit reached VND 1,470 billion, up 41% year-on-year, exceeding the 2026 full-year profit target by about 7% a quarter early.
  • The garment segment posted first-nine-month consolidated revenue of VND 5,853 billion and pre-tax profit of over VND 679 billion, with a profit margin approaching 12%, above the expected 10%.
  • The yarn segment recorded revenue of VND 6,661 billion, up 16% year-on-year; profit reached VND 382 billion, up 168% year-on-year, hitting 152% of the full-year target.

Growth at the parent company level was even more pronounced. First-nine-month parent company revenue is estimated at VND 1,598 billion, with pre-tax profit of VND 337 billion, up 219% year-on-year and nearly 30% above the annual profit target. The group attributed this to continued cash flow optimization and strict cost control measures.

In terms of business structure, the garment segment continues to play the primary profit-contributing role within the group ecosystem. The segment's first-nine-month consolidated revenue was VND 5,853 billion, up slightly 3% year-on-year; pre-tax profit exceeded VND 679 billion, with a profit margin approaching 12%, above the expected 10% level, maintaining its position as the group's largest cash flow and profit segment. However, efficiency varies among garment business units, and declining unit prices and increasingly complex order requirements are putting downward pressure on profit margins, remaining a management challenge.

The yarn segment emerged as another highlight in the first nine months. The segment's revenue reached VND 6,661 billion, up 16% year-on-year; profit surged to VND 382 billion, up 168% year-on-year, reaching 152% of the full-year target. All 12 yarn enterprises significantly improved profitability, mainly thanks to effective use of the price spread between selling prices and raw material prices as well as improved production management capabilities, the latter contributing 27% of profit.

Despite the strong performance, Vinatex management remains cautious, believing that the raw material price advantage in the yarn industry is temporary and difficult to sustain long-term. Facing shrinking market expansion opportunities and continuously rising input costs, the group has decided to shift its 2027 development focus toward quality growth, no longer relying on cyclical advantages but instead concentrating on improving the profitability of core production and business activities. Meanwhile, the parent company prioritizes financial autonomy, balancing income and expenditure, and reducing dependence on dividends from subsidiaries.

On the external front, analysts predict a bleak business outlook for 2026. The global economy and trade continue to slow, with geopolitical conflicts and persistent inflation bringing uncertainty. The United States, Vietnam's largest export market, accounting for 44% to 45% of Vietnam's total exports (according to Vinatex data), may intensify investigations and impose additional tariffs on imported goods, which is seen as a direct threat to profit margins. In addition, rising logistics, energy, interest and labor costs, as well as fierce price competition with lower-labor-cost countries such as India, Indonesia and Cambodia, are also putting pressure on Vietnam's textile industry.

Vinatex's proposed response directions include improving production efficiency, digital transformation and building a closed-loop supply chain, hoping to consolidate profit growth in future turbulent economic cycles. For the industry, this means that in an environment of pressured order unit prices and volatile trade policies, maintaining profitability through cost control and industrial chain collaboration is becoming the main response path for Vietnamese textile and garment export enterprises.

Source: Exceeding the annual target in nine months: The garment industry as a springboard. · Originally published on 2026-10-04