Textile companies expand and profit in the first quarter of 2022

DNHN - According to the Vietnam National Textile and Garment Group (Vinatex), overall consolidated sales reached around VND 4,900 billion in the first quarter, up 45 per cent from the same period last year.

Pre-tax profit was 376.7 billion dongs, a 74% increase over the previous period and 39.6% of the full-year target. Over the same era, the yarn industry rose by 139 per cent, while the clothing sector increased by 167 per cent.

After deducting expenditures and taxes, the net profit after tax of the parent company's shareholders is almost 200 billion dongs, approximately twice the same in 2021. 

According to Vinatex, this strong growth result is attributable to the group's yarn units receiving orders with favourable selling prices as well as solid forecasts, beginning at the end of 2021. The units made sound judgments and kept a large volume of cotton at cheap costs, resulting in extremely excellent financial outcomes.

Furthermore, at the start of 2022, the group's garment units all had favourable production and commercial results, owing to steady labour since the epidemic was mostly under control, and orders were full, even if there were many orders. You signed the contract till the third quarter of 2022.

With the first quarter's strong business results, the yarn sector has accomplished 63 per cent of the year's goal. In the clothing industry, the market is pretty well thought of, and Vietnam's strong goods are brought back to order by partners with long orders and big volumes.

According to the data, the average income of units in Vinatex's garment manufacturing system in the southern area has climbed by 1.2-1.5 times, with certain units growing by 2 times compared to the same period last year.

Specifically, Vietnam Tien Corporation's revenue increased by 10% in the first quarter, Nha Be increased by 20%, Dong Nai Garment increased by 100%, Southern Corporation's revenue increased by 100%, and the number of employees increased by more than 400 people, and Vinatex Investment and Development Joint Stock Company increased by 70% over the same period last year.

Sources in the textile and clothing industry say that most companies have orders to fill until the third quarter, and this is expected to grow quickly in 2022.

According to statistics released by the Ministry of Industry and Trade, the export value of this category of items reached 8.68 billion USD in the first quarter of 2022, a rise of 1.46 billion dollars over the same period the previous year. This is the greatest year-on-year gain since 2012.

PV