Covid causes first monthly loss for garment giant Thanh Cong
Covid causes first monthly loss for garment giant Thanh Cong
Major garment company Thanh Cong has reported its first monthly loss this year in August as housing workers at its plants as a precaution against Covid-19 spread increased costs.
A worker examines a spinning chain at a factory of Thanh Cong Textile Garment Investment. Photo courtesy of the company
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The company, formally known as Thanh Cong Textile Garment Investment, also saw revenues plummet by 26 percent year-on-year to $10 million, and, together with the ballooning expenses, this caused a loss of $282,000 for the month.
The company said production fell due to a shortage of workers amid the tightened social distancing requirements in HCMC despite having many of them stay on-site.
Its monthly net profit has not dipped below $600,000 this year. Its year-to-date profit is $5.48 million, only 44 percent of the full-year target.
Thanh Cong’s biggest export markets are the U.S., South Korea, Japan, and China.
It is looking for new buyers in Europe and countries that have signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
It is also pushing head with e-commerce sales after tying up with U.S. e-commerce giant Amazon last year.
