Positive signal
Thieu Nien Tien Phong Plastic Joint Stock Company witnessed an impressive comeback when reporting its financial report for the second quarter of 2024, net revenue increased by 37% to VND 1,680 billion. Gross profit reached VND 553 billion, up 63% over the same period, thereby helping to improve gross profit margin, increasing from 28% to 33%.
In addition, selling expenses increased by 56% to VND205 billion, financial expenses increased by 39% to VND43 billion, and business management expenses decreased slightly compared to the same period. As a result, the company reported a profit after tax of VND238 billion, an increase of 86% compared to the second quarter of 2023.
In the first 6 months of the year, the company recorded VND2,629 billion in revenue, up 4% over the same period. The company's pre-tax profit was VND415 billion and post-tax profit was VND347 billion. At the same time, after two quarters, the company has achieved 75% of its profit plan.
As for another "big guy" in the plastic industry, Binh Minh Plastic Joint Stock Company, in the second quarter of 2024, net revenue reached 1,153 billion VND, down 14% over the same period last year. Cost of goods sold in the period decreased by 15%, so gross profit reached nearly 506 billion VND; profit margin reached 43.84%.
After deducting expenses arising from business operations, Binh Minh Plastics recorded after-tax profit of more than VND280 billion, down 5% over the same period last year.
In the first 6 months of the year, this enterprise earned 2,156 billion VND in revenue and 470 billion VND in profit after tax, down 22% and 18% respectively compared to the same period last year. Thereby, completing 39% of the revenue target and 46% of the profit target for the whole year.
Efforts to seek and apply advanced technology
Assessing the market prospects in the second half of this year, many experts believe that the Vietnamese plastics industry will face many challenges, but also have many opportunities for development. Business activities of enterprises in the industry will be more positive when the real estate and construction markets improve.
According to statistics, each year, Vietnam discharges about 1.8 million tons of plastic waste, but only 27% of this is recycled. However, plastic is also an important manufacturing and supporting industry with great potential because plastic products are used in all areas of life. Applying the circular economy to the plastic sector will bring many benefits, including reducing pollution, reducing greenhouse gas emissions and creating green livelihoods.
Vietnam's plastics industry is considered a processing industry because it depends largely on imports, about 70 - 80%. In recent years, machinery and equipment have also been imported almost 100%. The production capacity of enterprises in the industry has been significantly improved since the end of 2019 and is expected to be able to meet 30 - 40% of domestic demand in the coming time.
Currently, the traditional export markets of Vietnamese plastic enterprises are European countries, the US, Japan and ASEAN. In the context of more and more markets requiring CBAM (Carbon Border Adjustment Mechanism) reporting and sustainability reporting, the Vietnamese plastic industry needs to activate and exploit the potential of carbon credits. By participating in the carbon credit market, the Vietnamese plastic industry can both minimize environmental impacts and improve competitiveness and promote the circular economy.
Mr. Win Sim Tan - VERRA Regional Representative for East and Southeast Asia shared: “Plastic waste has become an important concern for companies, governments and consumers around the world . VERRA's Plastic Pollution Reduction Program can assess the impact of waste collection and recycling projects. Qualified projects are awarded plastic credits. This is also an effective and powerful means to reduce plastic waste in the environment.”
Industry experts recognize that the business community plays an important role in environmental protection in general. Responsibility includes not only complying with the law but also innovating and improving technology to optimize production materials and reduce waste.
During the period from 2023 to 2028, the recycled plastics industry is expected to grow at a compound annual growth rate (CAGR) of 8.36%. In addition, the Vietnamese plastics industry is expected to reach a scale of 409.9 thousand tons by 2028.
Manufacturers in the Vietnamese plastics industry are making efforts to seek and apply advanced technology and new materials to protect the environment. The strategies set out will be in line with the goal of developing a circular economy, moving towards a sustainable and environmentally friendly production.
Source: https://kinhtedothi.vn/doanh-nghiep-nganh-nhua-tim-kiem-co-hoi-trong-thach-thuc.html
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