Textile Industry 2025 - SLOW PROGRESS AND ACCELERATION IN 2H2025
Building on the recovery momentum from 2H2023, the textile and garment (T&G) sector achieved double-digit export growth over 11M2024, driven by improved macroeconomic conditions in key markets. In 2025, export growth is expected to decelerate as the low-base effect dissipates. However, positive growth is still anticipated, supported by rising real incomes and monetary easing policies by central banks, likely stimulating household consumption in the US and EU. The sector’s outlook is expected to progressively brighten each quarter as monetary easing effects permeate the economy.Vietnamese companies have reduced unit prices by approximately 30% since the peak in Q3/2022 to enhance competitiveness against regional peers. According to Vitas, most garment companies have secured orders through the end of Q1/2025, but unit prices remain stagnant. As a result, the overall industry profit margin outlook is unlikely to improve significantly compared to 2024.
The stock price performance of the companies under our coverage has fully reflected their medium-term outlook, precisely: TNG (Neutral, TP: VND 26,700/share), MSH (Accumulate, TP: VND 56,300/share), TCM (Observe, TP: N.R), and STK (Observe, TP: N.R).
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