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Viet Tien Garment recorded high profits

Released at: 20:00, 06/02/2017

Viet Tien Garment recorded high profits

Photo: viettien

Even without the TPP Vietnam's textiles exports are still on track.

by Quynh Nguyen

Viet Tien Garment Joint Stock Corporation has recorded high profits since its equitization, up 59 per cent compared to its target set for 2016.    

Viet Tien JSC has announced its financial report for the fourth quarter and for all of 2016. The company’s net revenue for the fourth quarter was over VND1.8 trillion ($79.2 million), up 11 per cent compared to the same period of last year.

Its pre-tax profit stood at VND143.7 billion ($6.3 million) and its profit after tax was VND119.3 billion ($5.2 million) for the fourth quarter, up 53 per cent year-on-year.  

For all of 2016, the company’s net revenue reached over VND7.5 trillion ($330 million), up 17 per cent year-on-year and 12 per cent compared to its target.

The corporation’s pre-tax profit reached VND485 billion ($21.3 million), up 18 per cent year-on-year and 59 per cent compared to its target. Its profit after tax reached VND402.4 billion ($17.7 million), of which the parent company’s profit accounted for VND380 billion ($16.7 million).

By the end of 2016, the total assets of the corporation had increased from VND420 billion ($18.4 million) to VND3.8 trillion ($167.2 million).  

Viet Tien Garment listed 28 million shares on UPCoM on March 10, 2016. The corporation has four subsidiaries: Thuan Tien Garment Ltd (where it holds 82.5 per cent of charter capital), Tien Thuan Garment Ltd (85.9 per cent), Nam Thien Ltd (83.6 per cent), and Viet Tien Meko Ltd (51 per cent).

Vietnam’s textile and garment exports have failed to reach the targeted $29 billion in export turnover that was set for 2016.

Export turnover is estimated at $28.5 billion, up 5.4 per cent year-on-year, according to Mr. Le Tien Truong, CEO of the Vietnam National Textile and Garment Group and Chairman of the Vietnam Textile and Apparel Association. However, it’s just short of the $29 billion target for the year, which was previously $30-$31 billion. “Growth is at its lowest since 2010,” Mr. Truong told VET, “but growth in absolute value was higher than in previous years.”

The decline stems from difficulties in global markets. Total global demand in 2016 did not increase and key markets for Vietnam’s major imports fell. In the US they fell by 4.5 per cent and in the EU by 3 per cent. Only Japan had an increase with more than 1 per cent.

Vietnam’s textile and garment sector was to be a major beneficiary of the TPP, but the future of the trade deal is now uncertain. This has raised concerns among some enterprises but many others believe that they will benefit with or without the TPP.

Exports to the US and Japan are still on the increase, at $11 billion and $3.5 billion, respectively. “Even without the TPP, Vietnam’s textile exports are still on track,” Mr. Truong said. “Vietnam also has other free trade agreements with the EU, South Korea and Japan, which are expected to bring benefits to textile and garment enterprises.”

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