Import demand for textiles and garments in major markets recovered well in the first 6 months of 2021, the total world textile and garment demand (including apparel and medical protective equipment) increased by about 3% over the same period last year. 2020 (while in 2021, the global demand for protective gear will not be as good as in 2020, so the actual demand for apparel will increase higher than the above 3% figure).
The widespread vaccination in the US and EU and the economic stimulus packages of the Governments of these countries have been effective, and the suppressed consumer demand throughout 2020 has returned relatively quickly and strongly in other markets. this school. For the first time in 3 years, the World Bank’s forecast on GDP growth rate in the June 2021 report is higher than the forecast made in January 2021, in which the main breakthrough is in the US market with the annual growth rate. 2021 forecasts 6.8% – the highest level since 1984.
In addition to the recovery demand factor, there are also a number of other factors that influence the trend of shifting orders to Vietnam such as the fact that Vietnam has well controlled the disease until the end of April 2021 while the disease rages in other countries. major textile and garment exporters such as India, Bangladesh, Cambodia; China’s import restrictions on Xinjiang cotton products and the US-China trade war are not over.
The Group’s business results in the first 6 months of 2021 are as follows:
- Consolidated revenue is estimated at 7,250 billion VND, approximately the same period last year, reaching 43.1% of the whole year plan. Although the market in the first 6 months of the year recovered well, the revenue was only equivalent to the same period last year due to the lack of revenue from medical protective equipment and to prevent risks in the first 6 months of the year. CM orders instead of FOB orders (FOB orders have higher turnover than CM)
- Consolidated profit is estimated at 557.8 billion dong, equaling 195.6% over the same period, reaching 79.7% of the whole year plan.
Although consolidated revenue was on par with the same period last year, the profit margin improved significantly, 2.3 times higher than the same period last year because the yarn industry had good results, contributing 60% of the consolidated efficiency of the company. Corporation, group. After 2 consecutive years of difficulties, low demand, and many times when the selling price is below cost, from October 2020, the situation of the yarn industry has had many positive changes, demand and selling price have increased. It is estimated that the profit of the yarn industry in the first 6 months of 2021 is about 320 billion VND (while the same period lost 69 billion VND). In the garment industry, most of the Group’s businesses have had enough orders until the end of September and partly until December.
For the first time after 25 years of establishment, the Group had a high consolidated profit growth in the first 6 months as in 2021, equaling 195% of the same period last year and exceeding 50% of the same period in 2019. – the year before the Covid-19 pandemic.
In the last 6 months of the year, the textile and garment market is facing many risks and uncertain factors, the yarn market is quieter, disease outbreaks in the South… However, the Group strives to complete the plan. consolidated revenue is 17,365 billion dong; consolidated profit reached over 700 billion dong.