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Large companies in Vietnam suffering from huge losses

Large companies in Vietnam suffering from huge losses

Monday 25, 10 2021
The past period of large-scale social distancing has caused many well-established companies in Vietnam to record losses for the first time.

BINH MINH PLASTICS JOINT STOCK COMPANY

In the third quarter of 2021, Binh Minh Plastic Joint Stock Company recorded a revenue of only 529 billion VND, which is 53% lower than that in the same period last year. This means the company suffered from a loss of 26 billion VND. As one of the leading companies in the plastic industry, this is the first time Binh Minh Plastics has reported a loss since going public.

BINH MINH PLASTICS

The main cause of the loss came from the impact of the Covid-19 epidemic. In the third quarter, the output of this company decreased by more than 60%, reaching less than 11,000 tons. In the first 9 months of the year, the company's net profit was only 100 billion VND, down 76% over the same period and just fulfilled 19% of the year plan.

THANH CONG TEXTILE GARMENT INVESTMENT TRADING JOINT STOCK COMPANY

The fourth outbreak of the Covid-19 epidemic has severely impacted Vietnam’s economy in general and Thanh Cong Textile - Investment - Trading JSC in particular, which is one of the largest textile and garment exporters in Vietnam. In the third quarter, the company reported a loss of 3 billion VND.

THANH CONG TEXTILE GARMENT

The company has never experienced such huge loss since the dawn of the pandemic. Before the fourth wave of the Covid-19 pandemic in Vietnam, the company had still maintained a stable operation with an average quarterly profit of from a few dozen to nearly a hundred billion dongs.

For the first 9 months of the year, Thanh Cong Textile recorded net revenue of 2,707 billion VND, equivalent to the same period last year, while its net profit reached 118 billion VND, down 41% compared to the same period last year.

THE SOUTHERN RUBBER INDUSTRY JOINT STOCK COMPANY (CASUMINA)

The "3 on-site" model, which involves eating, sleeping, and working without leaving, has proved inefficient when it created a huge cost burden. The Southern Rubber Industry Joint Stock Company (Casumina) - an enterprise established in 1976, also reported a quarterly loss for the first time due to this.

THE SOUTHERN RUBBER INDUSTRY

Casumina shared that in the third quarter, its sales faced a lot of difficulties, resulting in a 21% drop in net sales. As for production, the high cost of input materials have affected production costs. As a result, the company's net loss was 28 billion VND in the third quarter. For the first 9 months, the company's profit decreased by 88% over the same period.

Retail companies also suffered

Hang Xanh Motors Service Joint Stock Company, the largest distributor of Mercedes-Benz in Vietnam, recorded a 59% decrease in revenue in the last 3 months with a net loss of more than 33 billion VND.

Similarly, PNJ - the leading jewelry retailer in Vietnam also had a not-so-good business performance when it reported a net loss of 158 billion VND. The main reason came from the fact that 80% of PNJ stores had to close due to social distancing.

PNJ

Despite experiencing a difficult quarter, businesses are still optimistic that production and business will soon improve when the epidemic is under control.

Leaders of Binh Minh Plastic said that they have prepared resources to return to production when the epidemic is under control. Currently, the rate of workers ready to work is 95%. About 98% of employees have received the 1stdose of vaccine and 92% the 2nd dose.

The most difficult time has passed and the company recorded better results in October. Specifically, the average revenue in July was about 11 billion VND per day, in August it decreased to 4.7 billion VND, and September 9.8 billion VND. In nearly 20 days in October, the average daily revenue is about 21 billion VND. This makes the company believe in better business results in the fourth quarter.

Similarly, Thanh Cong Textile and Garment also said that it has received orders until the end of 2021 and the first quarter of 2022. At present, the company is promoting the construction of Thanh Cong Vinh Long 2 garment factory in order to promptly handle orders for 2022, bringing revenue and profit to the company in the near future.

Source: vnexpress

Compiled by VietnamCredit

 

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