Profits of the textile industry flourished
According to the July investor newsletter of Thanh Cong Textile - Investment - Trading Joint Stock Company (Hose: TCM), in June 2024, this enterprise recorded revenue of 10,294,861 USD, an increase of 10% compared to the same period last year. June 2023 term.
Profit after tax in June 2024 is 1,123,541 USD, an increase of 624% compared to the same period in June 2023.
TCM's accumulated revenue in the first 6 months of 2024 is 74,381,667 USD, an increase of 12% over the same period in 2023, reaching 47% of the 2024 plan.
Accumulated profit after tax in the first 6 months of 2024 is 5,842,524 USD, an increase of 29% over the same period in 2023, reaching 85% of the 2024 plan.
According to TCM, the company's textile and garment revenue in the first 6 months of 2024 comes from 3 main segments, of which garment products account for 74%, fabric accounts for 14% and yarn accounts for 8% of total revenue.
Regarding the order situation, up to now, TCM said it has received about 90% of the revenue plan for orders in the third quarter of 2024 and about 86% of the order revenue plan for the fourth quarter of 2024. TCM's 2024 revenue target is about 3,707 billion VND (157.7 million USD), an increase of about 12% compared to 2023 results.
The planned profit after tax in 2024 is 161.2 billion VND (6.68 million USD), an increase of about 21% compared to 2023 results.
Also a large enterprise in the textile and garment industry, Mr. Pham Minh Duc - General Director of Nam Dinh Garment Joint Stock Company said that currently the enterprise has enough export orders for 2024, and is starting to work on orders in the first and second quarter of 2025. With orders improving in the coming months and this year, the company's revenue is expected to increase by about 35% compared to 2023.
There are still many worries
Export is one of Vietnam's important growth drivers. After a gloomy period, many key export products such as textiles, garments, footwear... have gradually prospered with double-digit growth. However, there are still many concerns.
Ms. Hoang Thuy Oanh - Deputy General Director of Hoa Tho Textile and Garment Joint Stock Corporation - said that in the first months of 2024, the quantity of goods has many positive signs; Orders at Hoa Tho are better than the same period last year. If in 2023, most customers only placed orders for 3-4 months, then at the beginning of this year, there was a longer plan of 5-6 months.
However, Ms. Hoang Thuy Oanh said that "this is just an estimate of the order plan, and most customers are relatively cautious. Therefore, units in the corporation must closely monitor the situation." order configuration to have good production preparation to meet the delivery schedule."
Regarding the order plan for the last 6 months of the year, Ms. Hoang Thuy Oanh said that most of the unit's customers do not have further plans because they need to continue to monitor market developments.
"We will closely follow customer and market developments to have order plans for the last months of the year," Ms. Hoang Oanh said.
According to her, besides market characteristics, price competition is also one of the issues of concern to Hoa Tho. Many customers set lower target prices to accelerate sales or offer promotional programs to stimulate demand.
To be able to follow customers' prices to the market, all members in the supply chain must try very hard to meet such low unit prices.
"At Hoa Tho, some orders are required to reduce prices by 8-14%. This is also pressure on our garment industry in organizing production to have competitive prices. To be effective As a result, our top priority is practicing savings and improving productivity," said Ms. Hoang Oanh.
Along with that, the tension in the Red Sea has also made delivery time 10-14 days longer than before, customers asked the unit to deliver goods earlier to limit the impact.
Therefore, the unit must prepare well for production conditions as well as maintain flexibility in the order deployment process to meet partners' requirements.
