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 profits 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,” noted 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 about 20 billion USD worth of goods. However, subsequent instability in competing countries such as 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 those producing raw materials who have been facing difficulties for the past 30 months”, emphasized Mr. Truong.
Tapping into a Niche Market with Flame-Retardant Fabric
Commenting on the goal to achieve 44 billion USD in exports for 2024, a 10% increase compared to 2023, Chairman Le Tien Truong stated in a recent article on the Vinatex website: “Achieving this target heavily relies 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 uncertainty of future projections.
“We may experience excellent months, but right after, there could be one or two terrible ones”, 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 faster and more 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 targets, Vinatex and its member companies have devised strategies and embarked on unique paths. One such approach is the venture into the niche market of flame-retardant fabrics, aiming 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 plan 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 aims for a revenue target of 2-2.5 million USD in 2024, with a goal to double this figure annually over the next five years. The primary objective 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.
