Thanh Cong textile firm set for return to full capacity operations: chairman

By My Ha, Minh Hue
Thu, January 11, 2024 | 8:14 am GMT+7

Thanh Cong Textile-Garment Investment Trading JSC (TCM) has received enough orders for Q1/2024 to operate at full capacity after stagnating for a year, said chairman Tran Nhu Tung.

Tung told investors in a recent meeting that the firm could not operate at full capacity in 2023 due to a lack of orders, and revenues reached just 85% of the year plan.

“However, the situation has improved recently as the company has received about 95% of orders for the first quarter, meaning it can operate at full capacity again,” he noted.

Chairman of Thanh Cong Textile-Garment Investment Trading JSC Tran Nhu Tung. Photo courtesy of the company.

Chairman of Thanh Cong Textile-Garment Investment Trading JSC Tran Nhu Tung. Photo courtesy of the company.

Tung said he believed that 2024 will be better than 2023. "The recovery of the textile industry depends heavily on the U.S, Vietnam's largest export market. The U.S. Federal Reserve has signaled that interest rates have peaked and would soon decrease. When this happens, demand will surge, and textile and garment orders in particular and exports in general will increase again."

However, the TCM chairman emphasized that the industry will continue to face challenges related to sustainable development and ESG (environmental, social and corporate governance) standards. Currently, some countries in Europe such as Germany have applied regulations requiring imported products to meet ESG standards. If Vietnamese businesses cannot meet them, they will find it very difficult to get orders.

10% growth target

TCM was formerly a state enterprise established in 1967 with 500 employees. After equitization, it listed its shares on the Ho Chi Minh Stock Exchange (HoSE) as TCM in 2006. In 2009, the company welcomed a foreign strategic shareholder – E-land Asia Holdings Pte.Ltd Singapore – a subsidiary of South Korea’s E-land Group.

After 57 years, TCM has become one of the few enterprises that have developed a closed chain from yarn to sewing, with revenues of VND3.5-4 trillion ($164 million) per year.

Its products have been exported to more than 20 countries, including the U.S., Japan and South Korea. In 2023, thanks to market diversification, the business's orders did not fall as much as many industry peers.

While the two major markets of Japan and South Korea went almost flat, the main decline came from the U.S. market. Tung expected the U.S. market to stage a good recovery in 2024.

He said TCM will try to find as many orders as possible, not only in the U.S. but also in all other markets that Vietnam has signed a free trade agreement, like Canada and Australia in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) bloc and a number of European signatories to the EU-Vietnam Free Trade Agreement (EVFTA).

In 2023, TCM achieved 85% and 90% of its revenue and profit plan, respectively. However, the company maintained a stable income for employees with a 13th month salary (Lunar New Year holiday bonus) and also handed out performance-based bonuses.

This year, the company's leadership aims for a 10% growth over 2023. "This is a prudent plan that matches the industry's overall growth potential," Tung said.

In the stock market, TCM closed Wednesday at VND40,700 ($1.67) per share.

Vietnam's textile and garment industry faced many difficulties in 2023 due to shrinking orders and falling prices. Many businesses had to lay off employees as they did not have enough orders or had to accept losses to keep workers.

According to the Vietnam Textile and Apparel Association (Vitas), as of mid-December 2023, the country’s textile and garment export turnover had reached about $40.3 billion, 10% lower than 2022. However, the industry saw signs of recovery in the last months of the year.

Vitas has set an export turnover target of $44 billion for 2024, approaching the record level reached in 2022.

Comments (0)
  • Read More
VSIP starts work on industrial park project in northern Vietnam province Thai Binh

VSIP starts work on industrial park project in northern Vietnam province Thai Binh

Construction of the Vietnam-Singapore Industrial Park (VSIP) Thai Binh commenced on Wednesday in northern Vietnam, with the witness of Vietnamese Prime Minister Pham Minh Chinh and his Singaporean counterpart Lawrence Wong.

Industrial real estate - Wed, March 26, 2025 | 10:41 pm GMT+7

Vingroup starts building mega urban project in Vietnam's Mekong Delta

Vingroup starts building mega urban project in Vietnam's Mekong Delta

Vietnam’s leading private conglomerate Vingroup on Wednesday embarked on construction of the VND28 trillion ($1.1 billion) Vinhomes Green City, the first mixed-use urban development in its ecosystem in the Mekong Delta province of Long An.

Real Estate - Wed, March 26, 2025 | 10:11 pm GMT+7

Indonesia, China cooperate in digital technology

Indonesia, China cooperate in digital technology

Indonesia and China are expanding cooperation in the field of AI to promote digital transformation, especially in the fields of agriculture and smart cities.

Southeast Asia - Wed, March 26, 2025 | 10:01 pm GMT+7

Indonesia decides to join BRICS New Development Bank

Indonesia decides to join BRICS New Development Bank

Indonesian President Prabowo Subianto has announced the Government's decision to become a member of the New Development Bank (NDB), a multilateral development bank established by the five founding member states of the BRICS group.

Southeast Asia - Wed, March 26, 2025 | 9:57 pm GMT+7

Major Vietnamese broker SHS to double charter capital

Major Vietnamese broker SHS to double charter capital

Saigon-Hanoi Securities Corporation (SHS) plans to issue 894 million shares to increase its charter capital from VND8.13 trillion to VND17.07 trillion ($667.6 million), making it one of the top three securities firms in term of charter capital.

Companies - Wed, March 26, 2025 | 8:30 pm GMT+7

Elon Musk company okayed to pilot Starlink satellite internet service in Vietnam

Elon Musk company okayed to pilot Starlink satellite internet service in Vietnam

Vietnam has allowed the U.S.'s SpaceX to pilot Starlink low-orbit satellite internet service in the country on a pilot basis until January 1, 2031.

Industries - Wed, March 26, 2025 | 5:18 pm GMT+7

Danish toymaker Lego to open $1.3 bln Vietnam plant next month

Danish toymaker Lego to open $1.3 bln Vietnam plant next month

Denmark's Lego will officially open its factory in VSIP III Industrial Park in Vietnam's southern province of Binh Duong on April 9.

Industries - Wed, March 26, 2025 | 4:18 pm GMT+7

Top Singaporean firms earn high incomes in Vietnam

Top Singaporean firms earn high incomes in Vietnam

Singapore is the second-biggest foreign investor in Vietnam, with over $84 billion in registered investment capital as of end-January and many prominent investors raking in high incomes.

Companies - Wed, March 26, 2025 | 3:45 pm GMT+7

Vietnam, Singapore ink significant deals in Hanoi

Vietnam, Singapore ink significant deals in Hanoi

Vietnamese Prime Minister Pham Minh Chinh and his Singaporean counterpart Lawrence Wong on Wednesday witnessed the signing of many cooperation deals between agencies and enterprises of the two countries.

Economy - Wed, March 26, 2025 | 2:51 pm GMT+7

Vietnam's major policies are reshaping economic development

Vietnam's major policies are reshaping economic development

Major policies are reshaping Vietnam's approach to economic development, which focuses on science, technology, and private enterprises, said a leader at the Vietnam Chamber of Commerce and Industry (VCCI).

Economy - Wed, March 26, 2025 | 12:11 pm GMT+7

PM okays over $10 bln urban area project in central Vietnam

PM okays over $10 bln urban area project in central Vietnam

The over VND260.3 trillion ($10.16 billion) Cam Lam New Urban Area project in the south-central province of Khanh Hoa has received in-principle approval from Prime Minister Pham Minh Chinh.

Real Estate - Wed, March 26, 2025 | 8:58 am GMT+7

S Korea's KIM Fund raises stake in Vietnam's marine transportation firm VIPCO

S Korea's KIM Fund raises stake in Vietnam's marine transportation firm VIPCO

South Korea’s KIM Fund has increased its stake in Hai Phong city-based Vietnam Petroleum Transport JSC (VIPCO, HoSE: VIP) to 2.73%, making it the latter’s second-largest shareholder.

Companies - Wed, March 26, 2025 | 8:30 am GMT+7

Vietnam, Singapore seek cooperation chances in semiconductor industry

Vietnam, Singapore seek cooperation chances in semiconductor industry

The Vietnam Trade Office in Singapore, in collaboration with the Singapore Semiconductor Industry Association (SSIA), organized a hybrid seminar on Monday to introduce Vietnam's potential, advantages, and development strategies for the semiconductor industry.

Southeast Asia - Tue, March 25, 2025 | 10:55 pm GMT+7

OV intellectuals in UK suggest blueprint for Vietnam’s int’l financial hub ambition

OV intellectuals in UK suggest blueprint for Vietnam’s int’l financial hub ambition

Vietnam can rise as a major international financial centre, both regionally and globally, with a strategic vision that highlights transparency, a skilled workforce, modern infrastructure, robust financial markets, and strong international branding, the Vietnam Intellectual Society in the UK and Ireland (VIS) told visiting Vietnamese Permanent Deputy Prime Minister Nguyen Hoa Binh in a recent meeting.

Southeast Asia - Tue, March 25, 2025 | 10:55 pm GMT+7

Vietnam Deputy PM discusses financial center development with ECB

Vietnam Deputy PM discusses financial center development with ECB

Vietnam's Standing Deputy Prime Minister Nguyen Hoa Binh on Monday met with representatives of the European Central Bank (ECB) to discuss plans for the establishment of financial centers in Vietnam, as part of his working visit to Germany – the final stop in his European tour.

Southeast Asia - Tue, March 25, 2025 | 10:52 pm GMT+7

Indonesia keeps commitment on energy transition

Indonesia keeps commitment on energy transition

Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto on Monday affirmed that the U.S. decision to pull out of the Just Energy Transition Partnership (JETP) will not impact the other partners' commitment to it.

Southeast Asia - Tue, March 25, 2025 | 10:35 pm GMT+7