Apparel sector players being proactive to surmount hard times
Apparel sector players being proactive to surmount hard times
Despite being bottomed-out, textile and garment firms remain prudent in business performance for the rest of this year to weather stormy times.
Thanh Cong Textile Garment Investment Trading (TCG), based in Ho Chi Minh City’s Tan Phu district, has signed about 90 per cent of revenue for Q3’s order intake and about 86 per cent for Q4.
TCG chairman Tran Nhu Tung said, “We have secured more orders, yet the export price remains quite low. Hence, we are cautious with order placement. In my view, this time is not so optimistic, but still better compared to one year ago.”
Tung revealed that for textile and garment firms, it is now essential to constantly improve to reduce costs and accelerate the pace of production, as well as boost green and digital transformation to keep abreast of new consumption trends.
“In the recent past, TCG has put into operation an enterprise resource planning project for optimisation of production, business, and the management process, from there connecting to more customers while brining utmost benefits to shareholders and investors,” said Tung.
In the first six months of 2024, TCG raked in $74.4 million in cumulative revenue, up 12 per cent on-year and equal to 47 per cent of full-year revenue. Its cumulative post-tax profit surpassed $5.8 million in H1, showing a 29 per cent jump on-year and equal 85 per cent of the full-year plan.
Elsewhere, TNG Investment and Trading, based in Thai Nguyen province in Vietnam’s northeast, has released its Q2’s business results, counting $90.5 million in net revenue, up 9 per cent on-year, and nearly $3.6 million in post-tax profit, soaring 62 per cent on-year.
Generally in H1, the company posted $147 million in revenue and $5.3 million in post-tax profit, up 6 per cent in revenue and 37 per cent in profit compared to one year ago.
A TNG source revealed that a spike in the company’s operational revenue in H1 was attributable to its concentration on executing complex product line-ups. Exports to new markets made a remarkable contribution to the company’s revenue growth during the period, the source said.
Meanwhile, Dony Garment Co., Ltd., based in Ho Chi Minh City’s Binh Chanh district, gained a 20-30 per cent hikeinrevenue in H1.
According to the company’s marketing director Dao My Linh, the upbeat results were the fruition of the leadership’s strenuous efforts for trade promotion since last year.
Linh also noted that the continued complexity of the global geopolitical situation and importers’ cautious approach have made export firms like them keep a close eye on the order intake situation, transport fees, and input material factors to ensure production and meeting partners’ requirements.
“In recent years, we took on export orders of big volumes and accepted lower profits to maintain long-term cooperation. Keeping a good price following the value chain is an advantage to bolster the product competitiveness. We have been working with the suppliers in the value chain; each firm willingly presents a good price and accepts a lower profit for a win-win in the whole value chain,” said Linh.
Figures from the Vietnam General Department of Customs show that Vietnam’s total export value of textile and garment items in H1 this year surpassed $16.52 billion, up 5.04 per cent on-year.
The Vietnam Textile and Apparel Association forecasts the textile and garment sector will continue to enjoy positive signs in the second half and the sector’s total export value might exceed the $44 billion mark this year.
