This information was shared by Le Tien Truong, Chairman of the Board of Directors of the Vietnam Textile and Apparel Group (Vinatex, UPCoM: VGT), at the Party Executive Committee Conference held last weekend.
According to a preliminary report on the business results for the first nine months of 2024, Vinatex estimated consolidated revenue of VND 13,036 billion, a nearly 1% increase compared to the same period last year, and pre-tax profit of VND 490 billion, an over 70% surge. With these results, the Group has achieved nearly 73% of its revenue target and more than 89% of its profit goal for the year.
“The market context remains challenging and unstable in 2024,” said Chairman Le Tien Truong. The only difference between 2024 and 2023 is that the market has become more favorable quarter by quarter.
In the first six months of 2024, the entire textile and garment industry only exported approximately $20 billion. However, subsequent instability in competing countries like Bangladesh and Myanmar created short-term advantages for Vietnam’s textile industry.
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“Businesses need to continue taking decisive actions, enhancing production capacity, and practicing savings to ensure stable production and business operations, especially for companies producing raw materials, which have been facing difficulties for the past 30 months,” emphasized Mr. Truong.
Vinatex targets niche markets with flame-retardant fabric
Commenting on the Group’s website recently, Chairman Le Tien Truong stated, “The goal is to achieve $44 billion in exports in 2024, a 10% increase compared to 2023. Achieving this target heavily depends on market signals in the fourth quarter of 2024.”
Based on his experience, Mr. Truong observed that long-term forecasts of 6 to 12 months have been highly inaccurate since 2022. Therefore, the biggest challenge for Vietnam’s textile industry is the unpredictability of the market.
“We may experience excellent months, but immediately afterward, there could be one or two terrible months,” said the leader of Vinatex. The market’s fluctuations since 2022 have taught the industry’s managers an important lesson: always make shorter-term predictions, update them frequently, and make management decisions more swiftly and flexibly to ride the waves of short-term growth spurts in the global market.
Chairman of the Board of Directors of Vinatex Le Tien Truong sharing at an event in May 2024
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To meet their annual plan, Vinatex and its member companies have implemented unique solutions and strategies. One such approach is to venture into niche markets by trading and manufacturing flame-retardant fabrics to increase product value.
To this end, Vinatex has entered into a joint venture with the Coats Group to invest in producing flame-retardant fabrics. They are expediting production and aim to export the first batches to Indonesia, India, the Middle East, and the USA in the third quarter and the beginning of the fourth quarter.
“For this collaboration, Vinatex sets a target of $2-2.5 million in revenue for 2024 and aims to double it annually over the next five years. The primary goal is to meet the demands of the US market, and from there, we will expand to the EU, Japan, South Korea, and other global markets,” shared Mr. Truong.
