Duc Thanh Wood records abundance of orders: chairwoman

Duc Thanh Wood JSC has received orders until August this year and “we’ve had to choose the most beneficial ones,” said La Hai Lieu, its chairwoman.

This year’s situation was in sharp contrast to last year, when orders were hard to come by, she said Saturday at the firm’s AGM.

Duc Thanh Wood JSC, listed on the HCMC Stock Exchange (HoSE) as GDT, manufactures wooden children's toys, household appliances, and furniture.

According to Lieu, 2023 was a challenging period for the world economy as well as Vietnam. The difficulties stemmed from several unpredictable, long-lasting factors including the Russia-Ukraine conflict and the violence in Gaza, which caused financial market fluctuations. The world economy experienced high inflation, leading to reduced consumption, especially in Europe. In Asia, depreciation of local currencies against the U.S. dollar adversely impacted spending.

In the face of many difficulties and challenges in the macroeconomic environment, Duc Thanh Wood managed to find orders to maintain production, nurture workers and keep customers, she added.

With the improved situation this year, the company expects revenues of VND365 billion ($14.3 million) and a pre-tax profit and VND75 billion ($2.9 million), up 18% and 64% year-on-year, respectively.

Profit plunge

Duc Thanh Wood earned revenues of VND310 billion ($12.2 million) in 2023, down 22% year-on-year, only reaching 60% of the annual plan. It earned a pre-tax profit of VND46 billion ($1.8 million), down 47% year-on-year, just 49% of the 2023 plan.

Lieu said the company had targeted 30% revenue growth in 2023 in the expectations of positive domestic and international economic development. However, this did not happen.

Talking to The Investor about future plans, Lieu said the company will buy a 3.6 hectare factory in Binh Duong, close to its third factory in the southern province, for VND158 billion ($6.2 million). She said the purchase of the new factory, to which no repairs were needed at present, was part of preparations for the company’s next phase of development.