Vinatex’s revenue nosedives 36 percent in Q2

Hanoi (VNA) - The COVID-19 pandemic dragged down the revenue of the Vietnam National Textile and Garment Group (Vinatex) by 36 percent year-on-year in the second quarter, to just over 3.08 trillion VND (133 million USD).

Profit stood at 280 billion VND, down 36 percent against the same period last year, according to Vinatex Director General Le Tien Truong.

The State-owned group earned more than 7.04 trillion VND in revenue in the first half and posted 276 billion VND in profit, year-on-year falls of 24.5 percent and 20.7 percent, respectively.

Most of Vinatex’s subsidiaries have also seen revenue and profit plummet, Truong said, adding that the pandemic has slashed the stock price of two of its member companies - the Viet Tien Garment JSC and the Phu Bai Spinning Mill JSC - by half and one quarter, respectively.

The worst is yet to come, he went on, with the third and fourth quarters of the year likely to present the greatest challenges to the textile and garment industry.

The company has not had any orders for three months and there has been a fall in the number of orders for masks, with prices sinking to a level that is just enough to cover costs, he said.

Production of masks and personal protective equipment rescued many domestic manufacturers in the second quarter of the year, he noted, but now prices are going down as a result of global oversupply./.