Producing medical gloves at a factory in Binh Duong province.(Photo: plo.vn) VRG Khai Hoan JSC said it was in a state of full capacity and often had torefuse orders. The company's orders were only enough to run 70-80 percent offactory capacity before 2019.
When the COVID-19 pandemic started last year, the company's traditional foreignpartners quickly ordered a large number of medical gloves for storage, alongwith orders from new customers.
Duong Duy Phu, general director of VRG Khai Hoan, said that the company hasclosed production orders until the end of next year. Most of the goods areexported to the US, Europe, Japan and the rest serve the domestic market.
“As a manufacturing company in the medical field, the pandemic has boostedproduction and prices, therefore our profit surged suddenly last year, up 500billion VND (21.7 million USD), an unprecedented number, because of our averageprofit was only about 5-10 billion VND each year," Phu told the PhapluatThanh pho Ho Chi Minh (HCM City Law) newspaper.
Seeing the market prospects in the coming years, the company decided to buildmore factories to increase capacity from 2.5 billion to 5 billion gloves peryear.
The investment did not mean they expect the pandemic to continue, but thepandemic means many people have started to wear gloves to protect themselvesand family members, while many countries are building up national reserves ofmedical products, said Phu.
Wood products also received a lot of good news. Le Thi Xuyen, general directorof Thuan An Wood Processing JSC, expressed her surprise at the increasingorders in the early months of this year.
Many of its customers cancelled orders in the same period last year and thecompany went more than a month without work because of the pandemic, she said.
Orders exceeded more than 30 percent of the company’s capacity, she said. Dueto COVID-19, people were working more from home, so they needed to buy new bedsor wardrobes to create a nicer space and they also spend more time onlineshopping, so demand increased,” said Xuyen.
She said that her company’s wood products mainly go to high-end markets such asthe US, accounting for 40 percent of production, and 15 percent exported to theUK and the rest are to other markets.
Explaining this, Michael Kokalari, chief economist of VinaCapital Group, saidthat due to social distancing, employees in developed countries were forced towork from home, so they had to increase their purchase of goods for work.
Vietnam was in a good position to supply these products. The country's exportsales soared in electronics and furniture products./.
VNA
