National textile group Vinatex sees year profit up 15% to $46 mln

Vietnam's largest garment maker Vinatex has estimated a consolidated profit of VND1.09 trillion ($46.22 million) in 2022, up 15% year-on-year and exceeding the year target by 14.6%.

The group's consolidated revenue is estimated at VND19,535 billion ($828.3 million), up 15% year-on-year and reaching 108% of the plan, Vinatex announced at a meeting on Thursday.

For 2022, Vinatex has set a consolidated profit target of VND951 billion ($40.32 million) on a consolidated revenue of VND18,067 billion ($766 million), equivalent to 65.3% and 106.4% of 2021's achievements, respectively.

According to Vuong Duc Anh, chief of office of Vinatex's board of directors, the textile and garment industry and Vinatex experienced many difficulties in 2022, with many uncertainties in the market.

At the start of the year, the group made early forecasts regarding problems that were likely to arise in the second half of the year, but in the face of unpredictable situations, along with the rapid reversal of the market, Vinatex's members were still surprised by the market fallout, he noted.

Despite this, Vietnam's textile and garment exports in the first 11 months of the year still reached more than $41 billion, up 14% over the same period in 2021. With this result, Vinatex forecasts that export turnover in 2022 will reach $44-44.5 billion, up 8.6% year-on-year.

Anh said that in the first nine months of 2022, Vinatex's profit reached VND1,186 billion ($50.29 million), 24% higher than the target. However, in August the market dropped.

At the start of the fourth quarter, the yarn market fell to near-zero liquidity, with losses reported due to a decline in orders, especially among fiber units. This partly caused the operating results of some units in the group to slow down.

Pham Thi Thanh Tam, chairwoman of Vinatex's trade union, said many enterprises inside and outside the industry have had to cut labor because of a lack of orders, but members of Vinatex have not had to postpone or cut labor contracts.

However, overtime is no longer available and working hours have been cut by about 20% compared to the average peak of previous years.

"Vinatex still ensures employees have from 40-48 hours per week. On average, across Vinatex's network, the average income in 2022 is estimated at VND9.69 million ($410) per person per month, up 15% compared to 2021," she added.