Full orders until the end of the year
Mr. Tran Nhu Tung - Chairman of the Board of Directors of Thanh Cong Textile - Investment - Trading Joint Stock Company (HOSE: TCM) said that the company is lucky to have a "crowded" number of orders, and business results have improved.
At the end of the second quarter of 2024, TCM recorded consolidated net revenue of VND847 billion, an increase of 19% over the same period last year. Gross profit in the period increased by 60%, to VND153 billion. After deducting expenses and taxes, the company earned VND72 billion in after-tax profit, more than 31 times higher than the low base level of the same period last year. This is also the highest profit in the past 7 quarters of this company.
According to the Vietnam Textile and Apparel Association (Vitas), many businesses have already booked orders until the end of the year and are negotiating for the first phase of 2025. For example, Song Hong Garment Company plans to put Xuan Truong 2 factory into operation by the end of this year, which shows confidence in the return of orders. Last quarter, Song Hong Garment had revenue of more than VND1,300 billion, 14% lower than the same period last year, but net profit improved by 7%, to nearly VND92 billion.
Mr. Phi Ngoc Trinh - General Director of Ho Guom Garment Joint Stock Company - said that the company has many orders until the end of September, even some types have orders until the third quarter and is taking advantage of even the smallest opportunities from the market, expanding the customer base to gain more revenue. This year, the company sets a revenue target of 1,000 billion VND and will certainly achieve it.
The economy grew very positively in the fourth quarter of 2024
Speaking with Lao Dong Newspaper reporters, Associate Professor Dr. Dinh Trong Thinh - an economic expert, predicted that economic growth will be very positive in the fourth quarter of 2024; businesses have orders until the end of the fourth quarter of 2024, or even the first quarter of 2025.
“At the beginning of the year, I forecasted two GDP growth scenarios for 2024. Scenario 1, growth of 5.5-6.5%, inflation of 3.2-3.5% if commodity prices increase and world trade is difficult. Scenario 2, growth of 6.3-7%, inflation of 3.5-3.8% if the world economy improves and Vietnam takes advantage of the opportunity. However, since June and up to now, the second scenario is considered almost certain to be achieved, with GDP growth of 6.8-7.3% and inflation of 3.8-4.1%. In addition, according to the assessment of businesses with many orders until the end of the fourth quarter of 2024, profits tend to increase. The growth trend of business production is expected to be good in 2024 due to the Government's stimulus policies, tax reduction and salary increase" - Associate Professor, Dr. Dinh Trong Thinh predicted.
Overall, according to this expert, Vietnam's economic growth is forecast to be very positive by the end of 2024, with export growth and GDP expected to reach high levels. Businesses are expected to achieve their targets in the remaining time of 2024, thanks to the Government's support policies and positive prospects of some key export industries.
Dr. Nguyen Quoc Viet - Deputy Director in charge of the Vietnam Institute for Economic and Policy Research (VEPR) - said that many bright spots have appeared in our country's economic picture, creating the premise for growth in the remaining months of this year. Trade maintains its role as an economic pillar; industrial production has recovered and is stable; foreign investment disbursement is higher than the same period last year; domestic consumption has increased again...
"Vietnam's economic growth picture at the end of 2024 is expected to have more positive results, with strong development potential in the medium and long term. International organizations such as the WB, IMF, and AMRO all forecast that Vietnam's growth in 2024 will increase compared to 2023, reaching about 5.5 - 6%," said Dr. Viet.
However, to achieve the economic growth target in 2024, Dr. Viet said that we need to synchronously implement support solutions such as increasing public investment disbursement to ensure progress; focusing on prioritizing policies and reforms to remove difficulties and reduce burdens for businesses. At the same time, ensure harmony and efficiency in the target of credit growth to support production and business. Enhance the independence and autonomy of the economy and of Vietnamese enterprises. In addition, perfect the national digital transformation strategy, promote factors that create real added value of the digital economy.
