Textile companies hope for better days ahead

Textile and garment companies have made big strides in the industry for the past decade, but 2020 was a challenge.

Textile companies hope for better days ahead

Workers at Viet Tien Garment Corporation (VGG). From 2010 to 2020, the total revenue of Vietnamese textile and garment enterprises has increased four times from VND12.35 trillion to VND54.14 trillion.

Viet Tien Garment Corporation (VGG) recorded a sharp decline in net profit by 65 per cent in 2020 ​​to VND143 billion (US$6.2 million), the lowest profit rate in the last 10 years.

VGG attributed the decline to the negative impact of the COVID-19 pandemic around the world, especially in Japan, the US and the EU, the main export market of the corporation. Importers in these countries reduced their orders, leading to a decrease in VGG’s sales.

DamSan Joint Stock Company (ADS) reported net profit rising sharply to VND23 billion, nearly three times higher than the previous year, thanks to the increase in the price of finished cotton fibre products and sales of fixed assets.

Thanh Cong Textile Garment Investment Trading Joint Stock Company (TCM) during the pandemic in 2020 invested heavily in masks, medical protective gear and developed antibacterial fabrics. Thus its net profit in 2020 increased by 28 per cent to VND275 billion.

For the first year in 25 years, Vietnam's textile and garment export growth was negative 10.5 per cent, only reaching US$35.2 billion compared to $39 billion in 2019.

In the context of a decline in global demand by more than 22 per cent, from $740 billion to $600 billion, competing countries all witnessed an export decrease between 15-20 per cent, making Vietnam's reduction rate small.

From 2010 to 2020, the total revenue of Vietnamese textile and garment enterprises has increased four times from VND12.35 trillion to VND54.14 trillion.

Among large garment firms, the revenue of Vietnam National Garment and Textile Group (Vinatex) increased from VND489 billion to a five-digit number during the period 2014 - 2020 and peaked at VND19.1 trillion in 2018.

 

The Vietnam Textile and Apparel Association (VITAS) forecasts that export value in 2021 may recover to 2019 levels, reaching $39 billion, equivalent to a growth rate of 10.6 per cent year-on-year.

According to the Ministry of Industry and Trade, the textile and garment industry has great development opportunities from new free trade agreements, especially the potential to expand exports to major markets around the world. High-end brands will benefit greatly.

Notably, in 2021, many new features of the supply chain will be established such as the falling prices trend that dominates the whole market and the online business model which requires digital communication with all components of the supply chain.

Many businesses plan to invest in new projects in 2021 to improve production capacity. Vinatex will focus on supplementing, training and developing high-quality human resources, connecting chains in member enterprises and increasing the performance of subsidiaries.

Thanh Cong Textile Garment Investment Trading Joint Stock Company (TCM) plans to boost investment to expand its factories to serve export orders, while at the same time meeting the increasing orders for yarn and fabric for domestic textile enterprises to benefit from trade deals.

In terms of fashion items, the company plans to develop online instead of opening a retail chain to catch up with modern shopping trends.  VNS

Garment and textile industry targets US$39 million export turnover in 2021

Garment and textile industry targets US$39 million export turnover in 2021

The garment and textile sector is targeting an export turnover of US$38-39 billion in 2021, said Le Tien Truong, general director of the Vietnam Textile and Garment Group (Vinatex).

Textile and garment production struggles due to lack of fabric

Textile and garment production struggles due to lack of fabric

Vietnam’s underdeveloped fabric production is making it difficult for textile and garment businesses to take advantage of free trade agreements, including the Europe – Vietnam FTA (EVFTA).

 
 

Other News

.
Black Friday 2021 launched in HCM City
Black Friday 2021 launched in HCM City
BUSINESSicon  20/11/2021 

The shopping festival Black Friday was kicked off on November 19 in Ho Chi Minh City.

Decrease in in seafood exports expected as a result of new Chinese policy
Decrease in in seafood exports expected as a result of new Chinese policy
BUSINESSicon  20/11/2021 

Vietnam’s seafood exports to China are likely to decrease sharply as Chinese customs are tightening control over imports.

Consumers more prudent with post-pandemic personal finances
Consumers more prudent with post-pandemic personal finances
BUSINESSicon  20/11/2021 

After giving birth to their second daughter, Thanh Van, a 39-year-old office worker in Hanoi, had to quit her job because she could not afford the cost of hiring a babysitter after a 30 per cent pay-cut due to the COVID-19 pandemic. 

Digital transformation to create new growth engine for Vietnam's agriculture
Digital transformation to create new growth engine for Vietnam's agriculture
BUSINESSicon  19/11/2021 

As digital transformation will help overcome most of the weaknesses faced by the local agriculture sector, it should be considered a breakthrough solution for sustainable growth and development in Vietnam.

Flower farmers do not dare grow large quantities for Tet amid Covid uncertainty
Flower farmers do not dare grow large quantities for Tet amid Covid uncertainty
BUSINESSicon  19/11/2021 

Many flower and bonsai farmers in HCM City and the Cuu Long (Mekong) Delta have reduced production for Tet (Lunar New Year) which falls early next year since they are worried the COVID-19 pandemic will affect demand.

Vietnam may have new USD billionaires
Vietnam may have new USD billionaires
BUSINESSicon  19/11/2021 

If assets are calculated according to the value of the stock market, Vietnam will have more USD billionaires.

Vietnam among top 10 countries with largest installed solar power capacity
Vietnam among top 10 countries with largest installed solar power capacity
BUSINESSicon  19/11/2021 

Visual Capitalist has listed Vietnam among the world’s top 10 for largest installed solar power capacity.

Global energy crisis: another concern for Vietnam's economy
Global energy crisis: another concern for Vietnam's economy
FEATUREicon  19/11/2021 

Disrupted coal mining in Ordis in Inner Mongolia, the most important coal mining hub in the world, is posing huge risks that could stifle global growth.

Too many traceability apps confuse farm-produce buyers
Too many traceability apps confuse farm-produce buyers
FEATUREicon  19/11/2021 

The farm produce traceability system in Vietnam still doesn’t match GS1 standards (the most widely used system of standards in the world), and, as such, the existing traceability apps are just for internal use.

More businesses seek black credit as cash flow plummets
More businesses seek black credit as cash flow plummets
FEATUREicon  19/11/2021 

Seventy-one percent of businesses anticipate revenue decreases in 2021, higher than the 65 percent figure in 2020, according to a survey.

VIETNAM BUSINESS NEWS NOVEMBER 19
VIETNAM BUSINESS NEWS NOVEMBER 19
BUSINESSicon  19/11/2021 

Seafood stocks surge on business recovery

Overspend in the works for reboot of national economy
Overspend in the works for reboot of national economy
BUSINESSicon  19/11/2021 

Vietnam may not be able to increase its budget deficit next year in order to ensure state budget spending, with the economy still sabotaged and business revenues still dented.

Captivating incentives target FDI from Europe
Captivating incentives target FDI from Europe
BUSINESSicon  18/11/2021 

Vietnam will continue considering foreign investment one of its important drivers for socioeconomic development over the next four years, with its ambitious plan to attract more high-quality funding. 

VN to strengthen financial foundation in the next ten years
VN to strengthen financial foundation in the next ten years
BUSINESSicon  19/11/2021 

Vietnam's top priority for 2021-30 is to build a financial foundation for the country's sustainable development, said policymakers and experts during a conference to discuss finance strategy for the 2021-30 period.

Pandemic makes 85 percent of Vietnamese consumers more likely to use digital banking in future
Pandemic makes 85 percent of Vietnamese consumers more likely to use digital banking in future
BUSINESSicon  18/11/2021 

Around 85 percent of Vietnamese banking consumers are more likely to use online and digital banking services compared to 18 months ago, according to a new report from SaaS cloud banking platform Mambu.

Food shopping trends change due to social distancing
Food shopping trends change due to social distancing
BUSINESSicon  18/11/2021 

The way people buy food in HCM City has changed after a period of social distancing amid the COVID-19 pandemic, with more food products bought online, according to online sellers.

The cost of reopening the economy
The cost of reopening the economy
FEATUREicon  18/11/2021 

Nearly two months have passed since Ho Chi Minh City and 18 southern provinces have lifted lockdown measures and set up the "new normal", with the operations of people and enterprises gradually resuming.

More gyms close as membership dwindles
More gyms close as membership dwindles
FEATUREicon  18/11/2021 

More and more gyms have shut down or have been transferred to others, sometimes for free.

Coffee, vegetable industries agree on codes of conduct to encourage sustainability
Coffee, vegetable industries agree on codes of conduct to encourage sustainability
BUSINESSicon  17/11/2021 

As many as 42 enterprises from the coffee and fruit-vegetable industries have signed a pledge to show their commitment to support and implement the codes of conduct (CoCs) 

Pandemic will have long-lasting impact on business operations in Vietnam
Pandemic will have long-lasting impact on business operations in Vietnam
BUSINESSicon  17/11/2021 

Many factories, including about 200 contracted factories that make sportwear for Nike Corporation, resumed production in Vietnam earlier this month. 

 
 
 
Leave your comment on an article

OR QUICK LOGIN