Export businesses upbeat about 2025

According to Ho Chi Minh City Union of Business Associations (HUBA), after enduring difficulties caused by the pandemic and economic hardships, export orders began returning in the fourth quarter (Q4) of 2024.

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Many firms have already secured orders for the first two quarters of 2025.

In the textile and garment sector, Thanh Cong Textile Garment Investment Trading JSC (TCM) has nearly filled its Q1 order book and is preparing to accept orders for Q2.

In November, TCM's parent company reported approximately $13.5 million in revenue and more than $870,000 in post-tax profit, marking on-year increases of 18 per cent and 151 per cent, respectively.

Cumulatively, for the first 11 months of 2024, TCM recorded $145 million in revenue, up 10 per cent on-year, equal to 94 per cent of its full-year target. Post-tax profit approximated $11 million, up 49 per cent on-year increase and 63 per cent above its full-year target.

Similarly, TNG Investment and Trading JSC experienced a clear recovery in orders from the US and EU markets during Q4, the peak holiday shopping season.

The company has already secured enough orders for Q1 thanks to increased demand from regular clients such as Decathlon, Asmara, and Haddad.

As such, its profits are expected to improve in 2025 compared to 2024.

According to Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association, with the strong recovery in orders, the textile and garment sector aims to expand around 10 per cent in 2025, targeting an export value reaching $47-48 billion.

"Thanks to its stable production and social-political stability, Vietnam has become one of the preferred alternative sourcing destinations for textile and garment buyers. Many businesses have invested in modern machinery, equipment, and automation to improve productivity and reduce labour costs, while also meeting quality standards and ensuring faster delivery requirements," said Giang.

In the seafood sector, Le Hang, communications director of the Vietnam Association of Seafood Exporters and Producers (VASEP), noted that seafood exports were more vibrant at the end of 2024 compared to several years ago, driven by positive market trends.

Notably, demand is rising in key markets like China as the Lunar New Year approaches.

Le Hang, however, noted that input materials for the shrimp and basa fish sectors might face shortages due to rising demand. This could drive up raw material prices, while export prices might not increase correspondingly.

"Therefore, businesses need to remain flexible in utilising reserve materials and alternative sources to maximise market opportunities," said Hang.

Additionally, president-elect Donald Trump's proposed increase to US import tariffs has prompted American businesses to accelerate imports and stockpiling, including seafood, before the policy takes effect.

In November, Vinh Hoan Corporation, the top tra fish exporter, raked in $40.3 million in revenue, up 13 per cent on-year. Revenue from the US market touched $12.4 million, up 40 per cent, while the EU market surged 32 per cent to $6.8 million and the Chinese market shot up 32 per cent to $3.3 million.

Sao Ta Foods JSC (FMC), a major seafood exporter in the Mekong Delta region, reported sales of nearly $18.4 million in November, up 5 per cent on-year. Cumulatively, for the first 11 months of 2024, FMC achieved $228.63 million in sales, surpassing its full-year target of $210 million.

In the wood and wooden product export sector, Vietnam's total export value for the first 11 months reached $14.7 billion, showing a 21.2 per cent jump on-year.

According to the Vietnam Timber and Forest Products Association, the sector's total export value for 2024 is estimated at $16.3 billion, with total forest product exports exceeding $17 billion, if non-wood export items are included.

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