The revenue and profit of state-owned Vietnam National Textile and Garment Group (Vinatex) will fall significantly this year, according to the company, which expects total revenue this year will reach VNÐ14.6 trillion ($632 million), down from last year’s figure of VNÐ20.14 trillion. Its profit is projected to drop by half to VNÐ381.6 billion from 2019's number of VNÐ765.5 billion.
According to chief executive officer Le Tien Truong, Vinatex has fulfilled half of the year’s total revenue goal but there is still a long way to go to reach the profit target.The revenue and profit of state-owned Vietnam National Textile and Garment Group will significantly fall this year, according to the firm, which expects total revenue this year will reach VNĐ14.6 trillion, down from last year's figure of VNĐ20.14 trillion. Its profit is projected to drop by half to VNĐ381.6 billion from 2019's number of VNĐ765.5 billion.#
Total revenue dropped nearly a quarter year on year (YOY) to VNÐ7.04 trillion in the first six months and profit fell a fifth YOY to VNÐ276 billion.
The prolonged US-China trade war has hurt domestic fabric companies, including two affiliates of Vinatex, he said at the annual shareholders’ meeting recently.
In addition, the company had no earnings in April as it had to scale down production due to social distancing measures and the spread of the coronavirus, he was quoted as sayig by Vietnamese media reports. Selling financial investments helped the company offset losses in its core business, he added.
In the six-month period, Vinatex recorded VNÐ69 billion worth of income from selling financial assets, up 25 per cent YoY. Its financial expenses were halved to VNÐ88.6 billion from VNÐ174 billion.
Vinatex’s expects its earnings will recover and hit the level of 2019’s figures in the middle of the 2020-25 period. To achieve that target, Vinatex will optimise its governance system, improve its competitive competency and build an environmentally-friendly supply chain using Industry 4.0 technologies.
Fibre2Fashion News Desk (DS)
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