The Vietnam National Textile and Garment Group (Vinatex) has reported a 20.7% drop in first-half post-tax profits to VND276bn (US$11.8m) after being severely affected by the Covid-19 pandemic.
The business performance of most of the group’s member companies declined, leading to a negative result in the second quarter. Specifically, in the second quarter alone, the group’s net revenue fell 36% year-on-year to VND3trn.
Le Tien Truong, group general director of Vinatex, predicts the third and fourth quarters of 2020 will be a challenge for the Vietnamese textile and garment industry. Currently, he adds, for Vinatex, there are “almost no orders” for the fourth quarter. Orders for face masks are also falling.
“However, the group will make best efforts, stick to all even the smallest business opportunities, accept flexible production organisation, and produce never-before-made items to limit decline as well as maintain jobs for employees.
Nguyen Duc Tri, deputy general director of the group and chairman of the board, adds: “The Covid-19 epidemic happened globally, causing many damages to the business community in general and the textile and garment enterprises in particular. In the first 7 months of the year, the export turnover has decreased by over 12%, with no effectiveness, many enterprises are facing difficulties. However, Vietnam National Textile and Garment Group has identified from the beginning, the two most important assets that the group is determined to protect are its human resources and position in the global supply chain.”
According to the General Statistics Office of Vietnam, Vietnam overall earned $13.2bn in garment and textle exports during the first six months of the year, a 26% fall in export earnings year-on-year.
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