Gilimex (GIL) Loses $280M Amazon Lawsuit, Stock Plunges 47% in Year

Overview

Gilimex (GIL), a Vietnamese textile and garment manufacturer, has confirmed that a US federal court dismissed its lawsuit against Amazon.com Services LLC, rejecting the company’s claim for $280 million in damages. The lawsuit, filed in late 2022, alleged contract violations and unfair trade practices after Amazon cut orders following the COVID-19 pandemic. The ruling marks a significant legal setback for Gilimex, which has seen its business shrink and stock price fall sharply since the dispute began.

Key Facts

• Gilimex (GIL) lost its lawsuit against Amazon in the US District Court for the Southern District of New York; all claims were dismissed.
• The company had sought approximately $280 million in damages for alleged contract violations and unilateral order reductions.
• Gilimex stated it will continue legal actions to protect its rights and interests.
• GIL stock closed at VND 10,650 on July 12, 2026, down 6.58% on the day and nearly 47% over the past year.
• Revenue fell from VND 3,166 billion in 2022 to VND 936 billion in 2023, then to VND 713 billion in 2025 (roughly flat from VND 711 billion in 2024).
• Net profit in 2025 was only VND 36 billion, compared to over VND 300 billion annually in 2020-2021.
• Gilimex has a charter capital of over VND 1,016 billion and is headquartered in Ho Chi Minh City.

What Happened

In a disclosure to the State Securities Commission, Gilimex confirmed it received a ruling from the US District Court for the Southern District of New York dismissing its entire lawsuit against Amazon.com Services LLC. The company had initiated legal action in late 2022, accusing Amazon of breaching contracts, engaging in unfair trade practices, and unilaterally slashing orders after the COVID-19 pandemic. Gilimex sought approximately $280 million in compensation.

A representative of Gilimex stated that the company “will continue to carry out necessary work in accordance with legal regulations to protect the company’s rights and legitimate interests.” The company did not provide details on next legal steps but indicated it would pursue further remedies.

Market Context

Gilimex (GIL) trades on the Ho Chi Minh Stock Exchange (HOSE). The stock closed at VND 10,650 on July 12, 2026, down 6.58% on the day with heavy volume of 935,300 shares. Over the past year, GIL has lost nearly 47% of its market value. The legal defeat compounds a severe business downturn: revenue collapsed from VND 3,166 billion in 2022 to VND 936 billion in 2023, and has since stabilized at around VND 710-713 billion. Net profit in 2025 was just VND 36 billion, a fraction of the VND 300 billion-plus earned in 2020-2021. The company’s reliance on Amazon as a major customer proved costly when the relationship soured.

Strategic Significance

The lawsuit loss underscores the risks of customer concentration for Vietnamese export manufacturers. Gilimex’s heavy dependence on Amazon left it vulnerable when the e-commerce giant reduced orders post-pandemic. The failed legal claim also highlights the difficulty of enforcing contract rights across jurisdictions. For Gilimex, the focus now shifts to rebuilding its business without Amazon and managing the financial strain of prolonged litigation. The company’s expansion into industrial real estate may provide a new growth avenue, but the textile segment remains challenged.

What to Watch

• Gilimex’s next legal filing or announcement regarding further appeals or alternative dispute resolution.
• Q2 2026 earnings release for signs of revenue stabilization or improvement in the textile segment.
• Any new major customer contracts or diversification efforts disclosed by the company.
• Updates on the industrial real estate development projects and their contribution to revenue.
• Foreign ownership changes or major shareholder moves following the legal setback.