Struggling garment firm in Ho Chi Minh City ventures into pickleball business
Struggling garment firm in Ho Chi Minh City ventures into pickleball business
Facing a prolonged shortfall of orders, Ho Chi Minh City-based apparel manufacturer Garmex Saigon Corporation (GMC) has decided to repurpose part of its land for a pickleball court business in partnership with VinaPrint Joint Stock Company.
Once a prominent textile exporter in Ho Chi Minh City, Garmex Saigon Corporation employed up to 4,000 workers at its peak. Photo: Quang Dinh / Tuoi Tre |
The GMC board of directors recently approved a contract with VinaPrint to utilize 1,000–3,000 square meters of GMC-managed land for the construction and operation of pickleball courts -- a sport gaining popularity worldwide.
Under their agreement, VinaPrint will fully manage and operate the courts while ensuring legal compliance.
The partnership is set for an initial 12-month period, with an option to extend based on business conditions.
Garmex Saigon will receive a fixed monthly payment from VinaPrint, regardless of the court’s financial results.
According to Garmex Saigon, its board member Bui Minh Tuan also serves as the chairman and legal representative of VinaPrint.
The deal reflects Garmex Saigon’s urgent need to diversify revenue streams, as the company's core textile business continues to struggle.
Its revenue plummeted to just VND856 million (US$33,500) in 2024, a dramatic drop from VND8.3 billion ($325,400) in 2023.
After deducting expenses, the garment firm recorded a pre-tax loss of nearly VND30 billion ($1.2 million) -- a slight improvement from its VND44-billion ($1.7 million) loss the previous year.
Once a prominent textile exporter in Ho Chi Minh City with 4,000 employees, Garmex Saigon has drastically downsized to just 31 staff members by the end of 2024, according to its Q4/2024 financial statements.
Prior to the COVID-19 pandemic, this apparel manufacturer enjoyed peak after-tax profits exceeding VND100 billion ($4 million) in both 2018 and 2019.
However, since 2023, persistent order shortages have forced mass lay-offs and sent GMC’s stock price into a downward spiral.
With no new garment orders, Garmex Saigon is exploring alternative revenue streams for long-term survival, said a Garmex leader.
Plans include liquidating unused assets, completing the Phu My housing project to recover investment capital, running a pharmacy business, and leasing out existing properties.
- 10:36 23/02/2025
