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TOP 10 TEXTILE COMPANIES IN VIETNAM (PART 1)

Friday 25, 09 2020
The list of top 10 textile companies in Vietnam is prepared by VietnamCredit based on independent research and evaluation by our experts.
TOP 10 TEXTILE COMPANIES IN VIETNAM (PART 1)

Top 10 companies in the textile industry in Vietnam are ranked based on financial indicators including gross profit margin (GPM), total assets, and owner’s equity. Non-financial indicators including credit ratings and reputation are also used to assess these companies.

Top 10 textile companies in Vietnam 

Top 10 textile companies in Vietnam
 

1. VIETNAM NATIONAL TEXTILE AND GARMENT GROUP 

VINATEX is now the leading textile company in Vietnam. Its charter capital is 216 million USD. In addition to serving the domestic market, this company has also penetrated many other countries in the world, including USA, EU, Japan, Canada, South Africa, South America, Turkey, and Taiwan. Currently, it has 33 subsidiaries and 34 affiliated companies with total employees of 85,000. 

VIETNAM NATIONAL TEXTILE AND GARMENT GROUP

By 2019, Vinatex’s total sales was 8xx billion USD, and owner’s equity of the company was 3xx million USD. Its total-debt-to-total-assets ratio is 55.89%, which was lower than the industry average. Both current and quick liquidity ratios were also better than the industry average. 

In the second quarter of 2020, Vinatex’s turnover reached 3xx million USD, and the profit after tax was 1xx million USD, which is a decrease compared to the same previous in 2019. It is expected that its business result for 2020 will experience a downward trend, partly because of the Covid-19 epidemic.

2. PHONG PHU CORPORATION

Phong Phu Corporation specializes in manufacturing yarn products, sewing threads, fabrics, cotton towels, household products, garments and fashion in a closed process. It is the owner of famous brands Mollis, Hai Van, Macio, Acom, and Pelife. Besides, it also trades in textile machinery and accessories, chemicals and dyes. The company currently has 3 factories, which are equipped with modern machinery and equipment from Japan, America and some countries in Europe. Its products are widely distributed in major supermarkets such as Coop mart, Big C, Metro, E-Mart, Aeon, and many others.

In general, the company still faces many difficulties due to the negative impacts from the trade war between the US and China, intense competition in the domestic and international markets, and especially the COVID-19 pandemic. It has had to cease operation of many branches since the end of 2019.

PHONG PHU CORPORATION

According to its 2020’s mid-year financial report, the profit after tax has increased by more than 10% compared to the same period in 2019 because the company has restructured production and business activities, and divested from some ineffective investments to take the capital back. 

Phong Phu’s total assets in 2019 was 1xx million USD, which is a 16.45% decrease over the same period in 2018. Its 2019’s liabilities also declined by 20.06% over 2018.

3. VIET TIEN GARMENT CORPORATION

Viet Tien Garment Corporation’s major business activities are manufacturing garment products, and trading equipment, materials and accessories for garment, household electric appliances and import-export services. It possesses high-end brands such as Viettien, San Siaro, Manhattan, Smart Casual, and Viet Long. Viet Tien has a wide range of products from shirt, T-shirt, jacket, trousers, khaki trousers to pullover, sport wears. In 2017, it began distributing shoes made by Skechers. 

Its products are also exported to Japan, the USA and the EU. Thanks to Vietnam's participation in multilateral free trade agreements such as CPTPP and EVFTA, this company will enjoy a growth motivation.
VIET TIEN GARMENT CORPORATION
Since the beginning 2020, the Covid-19 pandemic has negatively impacted the number of export orders, and interrupted the supply of raw materials. Therefore, many businesses have not had enough production materials. The closure of the three largest markets (the US, the EU and Japan, which accounted for about 65% of export turnover of Vietnam’s textile industry) has also greatly affected the production and business plans of textile companies.

Viet Tien is not exempt from such negative impacts so it has changed business plan for this year.Its total assets in 2019 stood at around 2xx million USD, which is a slight increase over 2018. Its turnover and net profit in 2019 dropped by 7% and 13.7%, respectively, over the figures for 2018. 

In the first three months of 2020, the revenue of the company was 6x million USD. However, it suffered a loss of nearly 1 million USD due to the high operating costs. This was the first time that this company had reported losses.

4. NHA BE GARMENT CORPORATION - JOINT STOCK COMPANY

Nha Be Garment Corporation JSC is a member of Vinatex. It specializes in manufacturing and trading in textile products, raw materials, machinery, equipment and spare parts for the textile industry.

The company’s products include suits, jackets and pants with brand names De Celso, Mattana, Novelty, Style of Living, and Navy Blue, which are distributed throughout the country. Besides, this company also processes products for famous brands in the USA, Japan, Canada, the EU, and ASEAN countries.
NHA BE GARMENT CORPORATION - JOINT STOCK COMPANY

In 2019, Nha Be witnessed a decrease of 10.91% in profit after tax, which was explained by the loss of its subsidiaries and associates such as Nha Be - Duc Linh Garment, Nha Be Laundry, and the newly established company Nha Be- Soc Trang Garment. Its total consolidated sales in 2019 decreased by 1.34%.

The capital structure consisted of 87.67% of liabilities and 12.33% of owner’s equity. Nha Be’s GPM and ROE were large, while the opposite was true for other profit ratios. In addition, the 2019’s quick liquidity ratio was only 0.5 times compared to 0.85 times of the industry average.
Because of the negative impacts caused by the Covid-19 pandemic, Nha Be current business result is much worse than that in the previous year. 

5. SONG HONG GARMENT JOINT STOCK COMPANY

Founded in 1988, Song Hong Garment JSC mainly engages in manufacturing and processing bedding products and women, men and children clothes. It is one of the largest garment exporters in Vietnam. Although the textile industry is severely suffering from the negative impacts of the Covid-19 epidemic, the company is still operating normally, and employing over 10,000 people. 

The General Director of the company informed that there were not many delayed or canceled orders. Over the past time, the company has maintained the orders from Walmart and Costco. Moreover, to make up for the decline in garment orders, the company has partly turned to manufacturing masks and medical protective gears.

Currently, Song Hong’s major export market is the USA, whose demand for garment goods has decreased due to the Covid-19 pandemic. Therefore, it is understandable that the company’s revenue has gone down. 
SONG HONG GARMENT JOINT STOCK COMPANY
In 2019, total sales of the company increased by 11.7% over 2018, and its profit after tax also increased by 21.6%. However, in 2020 when the Covid-19 broke out, business result of the company will not as good as expected.Its total assets and owner’s equity in 2019 were 1xx million USD and 5x million USD, respectively.

Source: VietnamCredit

Categories:
Textile Industry

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