Vinatex targets export turnover up
Vinatex targets export turnover up
Viet Nam National Garment and Textile Group (Vinatex) posted revenue of nearly VND48.7 trillion (US$2.08 billion) and pre-tax profit of VND1.53 trillion in 2018, a year-on-year increase of 6.6 per cent and 6.2 per cent, respectively.
The statement was made by Cao Huu Hieu, managing director of Vinatex, at a conference held by the group on Thursday in Ha Noi to review its operations in 2018 and set plans for 2019.
In 2018, Vinatex achieved an industrial production value of VND46.1 trillion, an increase of 3 per cent compared to the year’s plan and up 9.7 per cent compared to the previous year.
The group’s export turnover is estimated at US$3.05 million, exceeding the plan by 2.3 per cent for an increase of 10.9 per cent against 2017. Especially, profit of its parent company increased by 35 per cent year-on-year.
Hieu attributed these positive results to the transfer of high quality orders and a series of Vinatex projects invested in the 2015-16 period, such as Phu Hung fibre plant (Hue), Nam Dinh fibre plant and Phu Cuong fibre plant (Dong Nai).
The three projects that Vinatex directly poured capital into, till date, have exceeded the loss point before the approval time (after three years of investment), so the parent company’s profitability increased significantly.
Notably, if there was no trade war between the US and China, according to Hieu, these fibre projects "would have been even more successful", because most of these factories have completed the whole year’s target in the first nine months of 2018.
“In the last three months of 2018, the fibre market was gloomy; fibre factories were profitable but not as expected and affected by objective factors. In this period, yarn enterprises still have to wait for opportunities next year," Hieu said.
Hieu emphasised that Vinatex had focused on the quality of orders, customer satisfaction, and striving to keep its position among Viet Nam’s leading manufacturers. At the same time, the group focused on upgrading equipment and devices in line with international standards so that the products can achieve higher accuracy.
In addition, Vinatex boosted labour productivity, increasing employee income and attracting a large number of workers. The group also selects difficult orders that require high technology to minimise fluctuations that may come to businesses when the general market is in trouble, Hieu added.
In 2019, Vinatex strives to increase export turnover by 6 to 8 per cent compared to 2018. Besides, the group also targets to increase industrial production value by 5 per cent, revenue by 5-7 per cent and profit up 12 per cent, respectively.
