The Vietnam National Textile and Garment Group (Vinatex) has forecasted its consolidated profit before tax this year will fall by half to VND 382 billion year on year due to the negative impact of the COVID-19 pandemic. This is the lowest consolidated profit before tax over the past four years, according to the company. Consolidated revenue is estimated to decline 27 per cent to VND 14.64 trillion compared to last year’s figures, according to reports presented at its annual general meeting this year.
In the report, Vinatex has also reduced its revenue targets of parent company by 5 per cent to about VND 1.33 trillion and profit before tax by 56 per cent at 130 billion compared to 2019 because of difficulties in production and business during and after the pandemic. In the 2020-25 period, the group must adjust its development strategy because it faced competition in technology but not in price 10 years ago.
For its development in this period, Vinatex plans to promote mergers and acquisitions, and restructure its businesses because the group's current business and production model will become inefficient, according to a Vietnamese media report.
Besides continuing divestment, it would also buy shares of other companies as well as invest in newly-established enterprises necessary for the development strategy.