The export revenue of Vinatex increased by VND2 trillion ($88 million), while Itochu Corporation poured $47 million into the company. However, Vintaex’s liabilities in the end of 2017 were still VND13.085 trillion ($576 million), 62.6 per cent of its total assets.

According to the company’s consolidated financial statement in 2017, the total assets of state-run Vietnam National Textile and Garment Group (Vinatex) were VND20.906 trillion ($921 million), equity was VND7.821 trillion ($344.5 million), while liabilities were VND13.085 trillion ($576 million), equivalent to 62.6 per cent of the total assets and 167 per cent of the equity. 

Liabilities included VND4.826 trillion ($212.6 million) in short-term loans and VND5.088 trillion ($224.14 million) in mid- and long-term loans.

Vinatex currently operates around 200 factories with the annual capacity of over 300 million products. In 2017, Vinatex’s revenue was VND18.464 trillion ($813.4 million), up 12 per cent compared to 2016. 

Pre-tax profit was VND748.5 billion ($33 million), up 9 per cent compared to 2016. After-tax profit was VND685 billion ($30.2 million).

Net revenue from sales and services in 2017 was VND14.446 trillion ($636.4 million), equalling 94.5 per cent, rising by VND1.985 trillion ($87.4 million) in comparison with 2016.

This included VND14.296 trillion ($630 million) of net revenue from the textile industry, accounting for 81.9 per cent, while revenue from export, import, and trade was VND1.709 trillion ($75.3 million), capturing 9.8 per cent.

With these business results, Vinatex’s board of management plans to pay a dividend of 5 per cent, equivalent to a total of VND250 billion ($11 million).

At the end of March, Itochu Corporation bought 50 million Vinatex (code: VGT) shares for around $46.9 million, raising its ownership to 13 per cent and becoming the second biggest shareholder after the Ministry of Industry and Trade (holding 53 per cent). 

Earlier, Itochu Corporation owned nearly 3 per cent of Vinatex’s stakes after the initial public offering (IPO) in 2014.

The Japanese partner bought Vinatex’s shares from strategic shareholder VNTEX JSC and foreign investment funds through transactions on the stock market. On March 26, VNTEX offered selling 35 million shares to reduce its ownership in Vinatex to 35 million shares, equivalent to 7 per cent.

The Itochu acquisition is expected to strengthen high-quality textile production and exports to Japan, Europe, and the US. 

According to Nikkei, Itochu exports around $543 million of textile products annually—and 50 per cent of these are made by Vinatex. 

The Japanese corporation expects to raise exports to approximately $905 million by 2021.

In the first quarter of 2018, Vinatex gained nearly VND4.4 trillion ($194 million) in consolidated revenue and VND178.5 billion ($7.86 million) in after-tax profit, up 31 per cent on-year.

VIR