A 'big guy' in the textile industry still has no orders

Inside the Garmex Saigon factory during normal operation - Photo: QUANG DINH

Once a leading enterprise in the textile industry in Ho Chi Minh City with 4,000 employees and annual revenue of thousands of billions of VND, Garmex Saigon Company continues its gloomy business days, with no orders and all workers laid off.

According to the recently released second quarter financial report, Garmex Saigon's net revenue reached nearly 1.5 billion VND. It is worth mentioning that this revenue includes up to 1.4 billion VND from the sale of used liquidated machines.

Since there is no revenue from selling finished products, the company also does not record cost of goods sold.

After deducting expenses, the company had a net loss of VND484 million, a significant improvement compared to the loss of more than VND12.4 billion in the same period last year.

In the first 6 months of the year, Garmex Saigon had 1.7 billion VND in revenue, other income increased by 6 billion, mainly thanks to interest on bank deposits and liquidation of unused assets.

Thanks to that, pre-tax profit reduced loss from 27 billion VND in 2023 to 10.6 billion VND.

Profit after tax reached 755 million VND while in the same period there was a loss of 33 billion VND, mainly thanks to income from liquidation of unused assets.

Regarding the future of Garmex Saigon, the company’s leaders said they have not been able to recruit workers for the traditional industry yet. Whether or not to invest in restoring the garment industry will depend on the market situation.

In the coming time, the company will continue to optimize existing resources, cut costs, and seek partners to transfer and sell unused assets.

The textile industry began facing difficulties last year due to the general impact of the world economic situation, geopolitical instability...

According to the Vietnam Textile and Apparel Association (VITAS), the order situation has improved in the first 6 months of the year, but although orders have increased, the industry's concerns have not decreased.

Accordingly, the increase in orders is mainly due to the shift from other countries to the Vietnamese market, but in reality, global consumption has not increased.

Along with that, in the last months of the year, the textile and garment industry is forecast to face many challenges as more and more markets are introducing new mandatory regulations related to human rights and environmental assessment in the supply chain...

Source: https://tuoitre.vn/mot-ong-lon-nganh-det-may-toi-nay-van-trang-don-hang-20240805174855529.htm