Vietnam Textile Q2 Revenue Jumps; US 12.5% Tariff Looms for VGT, TNG, MSH

Overview

Vietnamese listed textile exporters reported broad Q2 revenue growth, led by Vinatex (VGT) at VND 5,008 billion (+13.1%) and Damsan (ADS) at +39.2%, as buyers accelerated orders ahead of a US tariff change. From after July 24, 2026, Vietnamese goods entering the US face a 12.5% tariff, up from the temporary 10% rate, while 17 economies including Bangladesh, India, Indonesia and Cambodia remain at 10%.

Key Facts

• Vinatex (VGT) Q2 revenue reached VND 5,008 billion, up 13.1% year on year, the largest among listed peers.
• Damsan (ADS) posted the fastest growth at 39.2%; TNG rose 15.3% after a 29.2% increase in Q1.
• May Song Hong (MSH) revenue rose 13%; Viet Tien (VGG) added 1.9% and Viet Thang (TVT) 0.6%.
• Eight listed textile companies recorded revenue growth above 10% in Q2.
• The US temporary 10% tariff on Vietnamese goods expires July 24, 2026, after which the rate rises to 12.5%.
• Vietnam was the largest apparel supplier to the US in the first seven months, at USD 9.37 billion, versus Bangladesh at USD 4.66 billion.
• Bangladesh, Indonesia, Cambodia and India each shipped more than USD 2.4 billion in apparel to the US under the 10% tariff group.

What Happened

According to Q2 financial statements released by the companies, most large listed textile exporters recorded higher revenue than a year earlier. Vinatex said member units accelerated production and delivery to capture customers’ requests for earlier shipments before the new US tariff policy took effect, lifting executed order volumes sharply. TNG attributed part of its first-half result to expanded capacity, additional sewing-line workers and early export progress on orders, while MSH cited a larger order book.

The tariff timeline is central to the second-half outlook. Vietnam’s goods entered the US under a temporary 10% rate from February 24, 2026, applied broadly to most imports. When that rate expires on July 24, 2026, the US moves Vietnam to 12.5%, while 17 economies remain at 10%. ACB Securities (ACBS) said the direct burden falls more heavily on textiles, footwear, bags, toys, seafood and some consumer categories, since many key technology product lines are exempt. Vietcombank Securities (VCBS) said textile exports may slow but are unlikely to be materially affected in the short term, given the 2.5 percentage point gap.

Market Context

VGT trades on UPCOM at VND 10,900 (September 17, 2026), while peers on HOSE and HNX include MSH at VND 29,950, TNG at VND 16,200 and ADS at VND 7,950. The sector has been a laggard in Vietnam’s 2026 export acceleration, and the tariff differential adds a valuation overhang even as Q2 revenue prints remain solid. The broader Vietnamese market has been sensitive to US trade policy headlines, with labor-intensive exporters among the most directly exposed groups.

Strategic Significance

Vietnam’s textile advantage rests on a more complete production ecosystem, from synthetic yarn to complex finished garments, and fast access to Chinese raw materials, as VCBS notes. That makes an immediate order shift unlikely, because buyers need time to qualify new suppliers and build trust. The longer-term risk is that competitors at 10% use the 2.5 percentage point gap to move up into higher-value categories, eroding Vietnam’s mix and pricing power. For VGT, TNG, MSH and ADS, the strategic question is whether early shipments in 2026 pull forward demand and leave a softer second half, and whether tariff-exposed buyers diversify anyway.

What to Watch

• Confirmation of the US tariff schedule and any exclusions before the July 24, 2026 deadline.
• Q3 and Q4 2026 revenue and order-book disclosures from VGT, TNG, MSH and ADS.
• US import data on Vietnamese apparel volumes versus Bangladesh, India and Indonesia.
• Any shift in product mix toward higher-value garments among 10% tariff competitors.
• Foreign-ownership and block-trade filings in textile tickers as tariff headlines evolve.