Vietnam textile firms expect energy cuts to ease cost pressures
Vinatex Phu Hung expects to save around ₫180 million in November and December, while manufacturers want the relief extended through 2027.
Vietnamese textile manufacturers expect a 2% electricity price cut and a reduction in the special consumption tax on petrol to 0% to help offset higher production expenses. Industry executives welcomed the measures as yarn producers face pressure from more expensive raw materials.
Nguyen Thi To Trang, general director of Vinatex Phu Hung Joint Stock Company, said the measures would provide timely support, particularly during the fourth quarter. The company expects expenses to decline by around ₫180 million over the final two months of the year, partly cushioning the increase in raw material costs.
Electricity represents about 30% of yarn-processing costs. Higher cotton and polyester staple fibre prices have pushed projected profits well below target, making the electricity reduction particularly important for production in November and December.
Do Thanh Tung, deputy general director of March 8 Textile Company, said cheaper electricity would help exporters compete and encourage further investment in automated equipment to reduce employees’ workloads.
Cao Huu Hieu, general director of the Viet Nam National Textile and Garment Group (Vinatex), warned of continuing risks from volatile cotton and fibre prices, exchange-rate movements, weaker US and EU demand, and higher logistics expenses.
Textile and garment businesses hope the Government will keep both cuts in place through the end of 2027 to help sustain production as competition and input-cost pressures persist.
