The apparel sector is in a final sprint to complete its 2025 targets, with total export value estimated at $46 billion, against the backdrop of sharp fluctuations in the global market.

Although this figure falls short of the original $48 billion target, it still represents a 5.6 per cent increase on-year, helping Vietnam retain its position among the world’s top three garments and textiles exporters.

“A shortfall of $2 billion was unavoidable in 2025 due to a series of disruptions stemming from global market shifts and international policy changes,” said Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), at a press conference in Hanoi on December 10.

Escalating US-China trade tensions have pushed up tariffs on many textile-based products, while a complex geopolitical environment has directly affected global orders and purchasing power. On the demand side, consumers have continued to tighten spending, forcing manufacturers to accept smaller orders with faster delivery requirements and compressed production timelines.

This has significantly eroded profit margins. Businesses have had to constantly juggle fragmented orders, adjust production plans and increase investment to meet green standards and traceability requirements to retain international clients.

The business picture at Thanh Cong Textile Garment Investment Trading JSC (TCM) clearly reflects the sector’s growing divergence. Over the first 10 months of the year, TCM recorded profits approximating $9.5 million, down 2 per cent on-year, while revenue came to around $120.1 million, a decline of 5 per cent.

Its operating cash flow for the first nine months contracted approximately $3.8 million, compared with a positive $12.2 million in the same period last year. Even so, the company has secured additional orders through the first quarter of 2026, supported by seasonal holiday demand and a competitive edge as the US imposes higher tariffs on imports from several other exporting countries.

“As profit margins narrow and cash flows weaken, the industry is being forced to reassess internal capabilities, from production organisation to the level of autonomy within supply chains,” said Cao Huu Hieu, general director of the Vietnam National Textile and Garment Group, noting that the sector’s most enduring challenge remains dependence on imported raw materials.

The yarn segment totally relies on imported cotton, along with 90-95 per cent of fibres and a wide range of chemicals and dyes, posing a major risk should the US tighten tariffs on products with a high proportion of third-country origin.

According to VITAS, the Middle East and Africa are emerging as new growth destinations for Vietnamese garments and textiles exports, as traditional markets become increasingly volatile.

In the Middle East alone, the sector’s exports generated around $1 billion in 2024 and reached $700 million in just the first seven months of 2025. These results highlight the industry’s adaptability, as Vietnamese firms not only defended their mass-market segments but also gradually moved into higher value-added product lines with greater technological and design content.

Alongside export market expansion, many local garment manufacturers, including foreign-backed firms, are accelerating overseas investments.

Currently, nearly 30 companies in the sector have established a presence in Indonesia, Myanmar, and parts of Africa, South Asia, and Latin America. Pioneers such as May Song Hong and Phong Phu International Textile Group are gradually building multinational production networks, enhancing competitiveness and gaining greater resilience against global shocks.

“The multi-site production model allows companies to spread political and trade risks, optimise labour and transportation costs, and strengthen their reputation and ability to retain international customers,” said Vu Duc Giang, chairman of VITAS.

In practice, labour costs at factories in countries such as Indonesia and Egypt are significantly lower than in Vietnam, offering a clear advantage in product pricing.

Beyond labour considerations, many host countries enjoy favourable trade relations with major markets, with low or even zero tariffs, allowing firms to benefit from preferential treatment at the export stage. In addition, logistics costs and access to raw materials in some markets are better aligned with long-term production scale expansion strategies.

“We are gradually reducing our reliance on the US market, which is particularly vulnerable to policy shifts and tariff changes,” said Tran Nhu Tung, chairman of the Board at TCM.

Instead, TCM is intensifying its focus on the EU and markets covered by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership to capitalise on tariff incentives and access orders with higher technical requirements.

This strategy is expected to help TCM protect profit margins, improve cash flow in the short term, and create additional growth momentum from late 2025 into the first half of 2026.

Textile apparel firms see mixed performance Amid a rebound in momentum, businesses in the textile and apparel sector have delivered a mixed business picture so far this year.

Apparel sector players being proactive to surmount hard times Despite being bottomed-out, textile and garment firms remain prudent in business performance for the rest of this year to weather stormy times.

Garment giants post robust Q1 profits despite global trade headwinds Vietnamese textile apparel producers saw impressive profit growth in the first quarter (Q1) of 2025, signaling a strong recovery in the sector.

Siemens Mobility will serve as a technology partner, responsible for the design, supply, and integration of modern Velaro Novo trains and key railway subsystems, including ETCS level 2 signalling with automatic train operation (ATO), telecommunications, and electrification systems.

Siemens Mobility is also exploring opportunities to deliver advanced maintenance services.

Both parties are committed to close collaboration, laying the foundation for the development of a modern, international-standard rail infrastructure in Vietnam.

Giving remarks at the agreement signing ceremony, Michael Peter, CEO of Siemens Mobility, said, “We are proud that the global frontrunner VinSpeed ​​has selected Siemens Mobility to deliver Vietnam’s first high-speed rail lines. This confidence in our turnkey expertise and technology underscores Siemens’ position as the partner of choice for ambitious mobility projects worldwide.”

“Velaro Novo, our most advanced high-speed train platform, delivers up to 30 per cent lower energy consumption, 10 per cent higher passenger capacity, and proven reliability, tailored for Vietnam’s challenging terrain. Together, we are setting new standards for rail travel, driving innovation, and helping position Vietnam as a leader in high-speed mobility,” he noted.

Pham Thieu Hoa, CEO of VinSpeed, said the strategic cooperation with Siemens Mobility marks an important step in VinSpeed’s roadmap for developing modern transport infrastructure in Vietnam.

“The combination of VinSpeed’s execution capabilities and deep understanding of the domestic market with Siemens Mobility’s global experience and advanced technology will create a strong foundation for delivering international-standard high-speed rail lines, contributing to propelling economic development and improving quality of life for the Vietnamese people,” he added.

The Velaro Novo high-speed train will get exposure across Vietnam

Two high-speed routes have already been proposed: the Hanoi-Quang Ninh (Halong) line, covering 121 km with four stations; and the Ben Thanh-Can Gio line, spanning 54 km with two stations. All lines will be equipped with state-of-the-art rail technologies.

Active in Vietnam since 1993, Siemens has played a pivotal role in supporting Vietnam’s industrialisation, providing advanced technologies and solutions across sectors such as energy, healthcare, and transportation.

In the rail sector, Siemens is a partner to deliver modern passenger and freight transportation, enabling operators to shape today’s and tomorrow’s mobility.

With a strong local presence, including offices in Hanoi, Danang, and Ho Chi Minh City, Siemens offers digital solutions and software, rail infrastructure, rail services, rolling stock and components, and turnkey rail solutions, continuing to contribute to Vietnam’s growth, innovation, and integration into the global economy.

Siemens leads technology transformation towards sustainability in Vietnam Siemens is harnessing advanced digital technologies and AI to drive global sustainability, enhancing efficiency, reducing emissions, and supporting Vietnam’s transition towards a smarter, cleaner future.

Siemens and AIT unveil digital switchboard tailored for high-end clients Siemens Vietnam and AIT Corporation have launched the SIVACON S8, a next-generation digital main switchboard, in Ho Chi Minh City.

Harnessing technology for a sustainable future in Vietnam Siemens is driving Vietnam’s green growth through digital innovation. From advanced automation to digital twin technology, the company industries helps boost efficiency, cut emissions, and build resilience. Thai-Lai Pham, president & CEO of Siemens ASEAN & Vietnam, shared with VIR’s Olivia Bui how company global sustainability strategies are shaping Vietnam’s transformation.

The law comprises eight chapters and 48 articles, stipulating the principles, policies, coordination mechanisms, and responsibilities of agencies, organisations, and individuals in digital transformation activities. It also clarifies key aspects of digital government, digital economy, and digital society.

The NA adopted the Law on Digital Transformation. Photo: MST

The law affirms that data is central, and that data must be collected, managed, shared, declared once, and used efficiently to improve decision-making and service quality. The system must be designed based on open standards and architecture, supporting connectivity and integration from the outset, with standardised application programming interfaces that facilitate data sharing and interoperability between systems.

Users are placed at the centre of the digital system design process, ensuring convenience, accessibility, ease of use, and suitability for a wide range of target groups, including marginalised and vulnerable populations.

Article 9 of the law stipulates the state’s policy system on digital transformation, emphasising the development of a unified, secure, reliable, and scalable digital infrastructure. The state promotes the formation and development of digital data, and encourages the development and use of shared digital platforms, open digital platforms, and digital technology products and services to serve governance and socioeconomic development.

The state’s policy on digital transformation also includes ensuring cybersecurity and data protection, and encouraging innovation, controlled pilots, and the application of new digital technologies. The state supports businesses, cooperatives, and business households in implementing digital transformation, especially small- and medium-sized enterprises and businesses operating in areas with difficult or extremely difficult socioeconomic conditions.

Regarding attracting and utilising talent for digital transformation, Article 18 stipulates that state agencies and enterprises are allowed to hire experts and collaborators from both within and outside the country. Individuals with outstanding achievements in this field will be honoured and rewarded.

At the same time, officials and employees working on digital transformation in agencies within the political system will enjoy special benefits in terms of salary, allowances, working conditions, and career development opportunities.

To ensure effective implementation, the law stipulates that state management agencies responsible for digital transformation are tasked with developing a unified set of indicators to assess the level of digital transformation. Annual assessments of the national, ministerial, and local levels of digital transformation will be conducted.

The Law on Digital Transformation will come into effect on July 1, 2026.

New policy momentum powers Vietnam’s digital economy Vietnam’s digital transformation is entering a decisive new phase, as AI, 5G, and bold institutional reforms converge to propel the country towards one of the fastest-growing digital economies in the region, driven by strong government commitment and rising confidence from leading local tech enterprises.

Vietnam empowers private sector through reform and green-digital transformation Sweeping reforms in 2025 are reshaping Vietnam’s growth model, with innovation, high technology, and private-sector dynamism at the center. Through digitalisation, green finance, and supportive policies, the Ministry of Finance (MoF) aims to unlock new opportunities for businesses and strengthen Vietnam’s position in global green supply chains.

Vietnam sets pace for dual transition in industry and trade Vietnam’s industry and trade sector is accelerating its digital transformation and pursuing greener growth, while confronting the challenges of deploying technology, restructuring energy systems, and managing cyber risks at the same time.

Cervical cancer is the fourth most common cancer in women worldwide, with a woman dying from it every two minutes. In 2022, nearly 350,000 women lost their lives to this preventable disease, most in low- and middle-income countries where access to HPV vaccines, routine screening and early treatment remains limited.

HPV (Human Papillomavirus) is an extremely common virus worldwide and can infect people of all genders. While most infections clear naturally, persistent HPV infection can lead to cancer and other HPV-related diseases in both men and women, including genital warts, pre-cancerous lesions, and cancers of the cervix and anogenital region.

In Vietnam, according to the 2022 report, cervical cancer and HPV-related diseases remain a public health burden with approximately 4,600 new cancer cases and over 2,500 deaths each year. Although vaccines and screening tests have demonstrated clear effectiveness and benefits, access rates remain low, highlighting the urgent need for a comprehensive, sustainable and prevention strategy based on scientific evidence.

The World Health Organisation’s (WHO) 2020 strategy for eliminating cervical cancer as a public health problem emphasises the inclusion of HPV vaccination in all national immunisation programmes, aiming to achieve the following targets by 2030: 90 per cent of girls fully vaccinated with the HPV vaccine; 70 per cent of women screened using HPV testing by the ages 35 and 45; and 90 per cent of women with pre-cancer or cervical cancer receiving treatment.

Full HPV vaccination for adolescent girls, combined with cervical cancer screening and timely treatment for all women with lesions, can help realise this goal within our generation. In Vietnam, the coverage of HPV vaccination and cervical cancer screening remains low, underscoring the need to strengthen prevention and control efforts.

In line with the World Health Organisation’s global strategy to eliminate cervical cancer, the Ministry of Health earlier this year launched a nationwide communication campaign to raise awareness of HPV. The initiative reflects Vietnam’s strong commitment under the National Action Plan for Cervical Cancer Prevention towards 2030, which aims to remove the disease as a public-health threat.

After more than a decade in over 100 countries, HPV vaccines have proven highly effective in reducing pre-cancerous lesions and cervical cancer. The 2-dose and 3-dose regimens have been approved by the US Food and Drug Administration and the European Commission based on rigorous scientific data.

“Like other subunit vaccines, the HPV vaccine uses a prime-boost mechanism to generate strong, long-lasting immune memory,” said Nguyen Hien Minh, deputy head of the Vaccination Unit at the University Medical Centre in Ho Chi Minh City. “The two- or three-dose regimen has been validated through rigorous clinical trials with long-term follow-up. Although single-dose evidence is being reviewed, it is not yet sufficient to change FDA-approved guidance, so Vietnam and many other countries continue to recommend the approved regimen for optimal protection.”

Screening is a key element in preventing cervical cancer, although it cannot prevent new HPV infections. Even with a current negative HPV test result, women may still contract high-risk HPV in the future. In Vietnam, barriers such as screening costs and travel difficulties in remote areas cause many women to miss important screening milestones, increasing the risk of the disease silently progressing to advanced stages. Even in effective screening programmes, missed follow-ups, delayed treatment due to cost or work, or false negatives occur, the risk of progression to cancer remains present.

“HPV vaccines prevent new high-risk infections and lay the foundation for long-term community protection,” said Le Thi Anh Dao, head of the A5 Gynecologic Surgery Department at Hanoi Obstetrics and Gynecology Hospital and senior lecturer at Hanoi Medical University. “HPV testing every five years allows early detection of new or persistent infections and timely follow-up when abnormalities appear. Together, these three pillars bring the community closer to eliminating cervical cancer.”

Cervical cancer is almost entirely preventable when women have proper, timely access to vaccination, regular HPV testing and prompt treatment. Following approved vaccine regimens, screening at recommended intervals and addressing abnormalities immediately are not just awareness messages but evidence-based measures aligned with national strategy. Together, they give Vietnam a realistic pathway toward the WHO’s 2030 goal of eliminating cervical cancer as a public-health problem.

First AI exhibition on HPV prevention held in Vietnam ‘Love Your Future Self’, the first health exhibition in Vietnam to apply AI and 3D projection technology, is being held in Ho Chi Minh City from October 18 to 20.

MSD ties with Ministry of Health on HPV projects On March 29, the Ministry of Health (MoH) officially launched the national communication campaign “For a Vietnam Free from the Burdens of HPV” to raise awareness and encourage the prevention of HPV-related diseases and cancers.

MSD brings HPV Holobox tour to Vietnam As immersive technologies reshape how information is shared and absorbed, a new community initiative is using 3D and AI to transform public health education.