Vietnam National Textile And Garment Group Expects Profit Cut In 2020

Affected by the epidemic, the European and American economies are plunged into depression, which makes Vietnam's garment industry dependent on European and American orders stagnate and layoffs.

Many Vietnamese small and medium-sized garment factories lacking risk resistance have collapsed in large areas. Vietnam's largest state-run garment sewing enterprise, Vietnam's national textile and Garment Group (Vinatex), is also facing a difficult decline in profits.

Vinatex recently predicted that due to the negative impact of the new coronavirus pneumonia epidemic, its pre tax comprehensive profits will drop by half this year to 382 billion Dong Dong (16 million 500 thousand US dollars), which is the lowest level of pre tax comprehensive profits in the past four years. Its combined income is estimated at 14 trillion and 640 billion Dong Dong, down 27% from last year.

Vinatex chairman tran Quang Nghi said the group had to adjust its development strategy because it faced competition in technology rather than price competition 10 years ago. Vinatex group will enhance mergers and acquisitions and improve business efficiency.

Vietnam Textile Group's pre tax profit in 2019 was 765 billion 500 million Dong Dong, accounting for 91.2% of the annual plan, an increase of 0.5% over the same period last year.

According to Vietnam customs statistics, the total export value of domestic textile and garment industry decreased by 13.6% over the first 5 months of this year, which was 10 billion 560 million US dollars. However, export data in May increased by sixteen percent, to $1 billion 870 million.