Amidst difficulties for the textile industry, Ho Chi Minh City-based Viet Tien Garment Corporation is bucking the trend, looking to hire more than 1,000 workers to fulfil orders.
The need for workers was mentioned at a recent Ho Chi Minh City job fair by Ngo Thanh Phat, CEO of Viet Tien Garment. He said they needed sewing line managers, sample machinists and other workers with monthly wages of VND10-30 million ($410-1,240).
The company has 20 factories across the country employing 31,000 people, he said, adding that the average income of workers at the company was VND11.5 million ($475), along with social insurance, health insurance, unemployment insurance and Tet (New Year holiday) bonuses.
Established in 1975, Viet Tien is a leading name in the Vietnamese garment industry. Headquartered in HCMC’s Tan Binh district, it is the owner of many famous fashion brands and a partner of many big international brands like Nike, Skechers, Converse and Uniqlo.
The company's net revenue in the third quarter of 2023 increased 18% year-on-year at more than VND2,264 billion ($93.55 million). Its net profit, however, went down 16% to VND50.77 billion ($2.01 million).
In the first nine months of 2023, the company recorded net revenues of VND6,389 billion ($264 million), an increase of 10% over the same period last year. Its after-tax profits of over VND126 billion ($5.2 million) marked a 9% year-on-year decrease.
In 2023, Viet Tien aims at revenues of VND8,030 billion ($331.8 million) and pre-tax profits of VND200 billion ($8.26 million), or 95% and 96% of its 2022 figures, respectively. The average income of workers for the year is estimated at VND11.5 million ($474) per person per month. By the end of the third quarter, the company’s revenue and pre-tax profit reached about 80% of the yearly plan.
On September 30, 2023, Viet Tien Garment's total assets value was VND5,276 billion ($218 million), down 8% from the beginning of the year. Inventories of over VND1,423 billion ($58.8 million), marked a decrease of 16%, while short-term receivables decreased slightly by 3% to VND1,412 billion ($58.35 million), including VND674 billion from Uniqlo Vietnam Co. Ltd.
Viet Tien Garment, registered on the Unlisted Public Companies Market (UPCoM) as VGG, closed Monday at VND35,200 ($1.45) per share.
According to Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), the textile and garment industry has faced many challenges this year due to the domestic and international economic situations, including high inflation in key markets such as the U.S. and Europe, which has resulted in decreasing purchasing power and orders, rising interest rates and exchange rate differences.
In the rather gloomy picture, there were still a few "bright spots" such as an increase in textile and garment exports to some markets like Japan, Australia, Russia and India. Besides, Vietnam’s textile enterprises have also shipped their products to a number of new markets in Africa and the Middle East. This has helped prevent the industry’s export turnover from falling deeply, Giang said.
The VITAS chairman asserted that despite the difficulties, the textile and garment industry is recovering.
Thanks to efforts by companies to boost business, the sector’s export value is expected at about $40.3 billion this year and $44 billion in 2024, up more than 9 % year-on-year, he said.