At w88 w88.limo 2024 Annual General Meeting (AGM), Vinatex has developed key solutions and supplemented a number of important contents in w88 w88.limo Vinatex restructuring project for w88 w88.limo period 2021-2025, with a vision to 2030 to approve. This is considered a clear direction to help Vinatex identify business direction when w88 w88.limo mainstream market no longer has much room for development, while steadfastly maintaining resources against market risks.
2024 Annual General Meeting of Vinatex
Overcoming difficulties, Vinatex completed w88 w88.limo 2023 business plan
Mr. Cao Huu Hieu, General Director of Vinatex stated that 2023 was an unprecedentedly difficult year, with textile-garment export turnover decreasing by over 10% for w88 w88.limo first time, and business efficiency on revenue being w88 w88.limo lowest in w88 w88.limo past 10 years. Unit prices of various products dropped by over 20% while input costs surged. In w88 w88.limo face of these challenges, implementing w88 w88.limo Board of Directors’ strategy, w88 w88.limo Group’s Executive Committee has vigorously implemented a number of synchronous solutions: (1) Market research focused on evaluating, selecting customers and developing new customers: member units actively searched for and developed new markets to balance and reduce dependence on mainstream markets; Organizing monthly market workshops and regular seminars of w88 w88.limo Yarn and Garment Manufacturing Teams to timely update information on w88 w88.limo macroeconomy, textile and garment market, discuss appropriate business plans based on w88 w88.limo actual context; (2) Innovating management platforms and digital transformation: Continued development and application of new management solutions to maximize w88 w88.limo utilization of human resources across w88 w88.limo Group to address issues beyond w88 w88.limo capacity of a single enterprise, based on a centralized data platform and operating software systems being built and continuously improved for various fields, e.g. yarn production, finance and accounting, human resources management, etc. (3) Investment and development: Based on w88 w88.limo recommendations of w88 w88.limo Production and Business Departments and proposals from enterprises, w88 w88.limo Group has continuously carried out in-depth investment and upgrading to ensure w88 w88.limo automation, optimization to effectively exploit w88 w88.limo existing production capacity system, at w88 w88.limo same time forming new investment directions to ensure balance and connection of w88 w88.limo production system in each unit and between units within w88 w88.limo Group; (4) HR development: Focusing on tranning specialized HR to ensure w88 w88.limo requirement of management in w88 w88.limo context of science and technology development and w88 w88.limo market fluctuations; developing succession staff; attracting and recruiting young and capable staff; (5) Research and development: Implemented research on technology, machinery, and trial production of new items such as filament core yarn and new blended yarns to flexibly meet w88 w88.limo changing market demands; developing new markets for products with special features such as fire retardant, puncture resistance, and waterproofing.
w88 w88.limo Group’s Board of Directors determines that in w88 w88.limo short and medium term, w88 w88.limo market will still contain many risks when Vietnam’s competitive advantages are weaker than other textile-garment manufacturing countries worldwide. In that context, in 2023, w88 w88.limo Board of Directors of Vinatex organized 13 meetings, issued 22 Resolutions, and 4 Decisions with w88 w88.limo following contents: (1) Strategy and investment: Developing Vinatex Restructuring Project for w88 w88.limo period 2021-2025, with a vision to 2030; Approving investment projects at member units; Directing w88 w88.limo divestment at units according to w88 w88.limo approved restructuring project; Organizing w88 w88.limo development of regulation system in w88 w88.limo Group to ensure w88 w88.limo operation of legal corridor. (2) Human Resources: Participating in w88 w88.limo development and implementation of internal training activities within w88 w88.limo Group; Coordinating with w88 w88.limo Executive Board to organize w88 w88.limo Human Resources Conference, and human resource management program at w88 w88.limo units. (3) Market, risk management: Updating, analyzing, evaluating, and forecasting w88 w88.limo global textile and garment market; regulations on new trends affecting w88 w88.limo industry and macroeconomic factors; Identifying, warning risks, monitoring business results and quarterly inventories of major fashion brands that are customers of enterprises within Group; Closely coordinate with w88 w88.limo Group’s Board of Supervisors to evaluate manufacturing activities and w88 w88.limo capital representatives activities at w88 w88.limo units.
w88 w88.limo Board of Directors’s activities focus on several highlights: (1) Focusing on R&D, production of special and high-tech products, signing a cooperation agreement on manufacturing of fire-retardant fabrics with w88 w88.limo Coats Group (UK) and will have w88 w88.limo first export shipment to w88 w88.limo US market in July 2024; Trial production of filament core yarn. (2) Market promotion and focusing on high-value-added products and shifting to meet new demands, compensating for w88 w88.limo decline of traditional products: Introducing Phong Phu towels into w88 w88.limo US market, preparing to build a towel production chain in w88 w88.limo North (Ha Dong Textile and Nam Dinh Textile); Shifting to w88 w88.limo blended fibers production with a high recycled component to meet market demand: average of over 25% in w88 w88.limo Vinatex system (over 50% at Phu Bai Yarn). (3) Extending w88 w88.limo supply chain towards a closed-loop supply chain: Yarn to w88 w88.limo weaving & dyeing – Viet Thang reached 70% of yarn through weaving, 35% in Nam Dinh; connecting w88 w88.limo yarn sector with domestic manufacturers (especially FDI); consolidating w88 w88.limo weaving – dyeing industry to increase w88 w88.limo use of grey fabric. (4) Digital transformation to enhance management efficiency: Complete basic digitalization at w88 w88.limo Group’s Office and yarn sector; Cost management through digitalization data. (5) Taking human resources as w88 w88.limo foundation for development: Phase 2 of w88 w88.limo Young Talent program training; On-demand training for management staff at key units: Viet Thang, Phong Phu, Phu Bai, Natexco.
With synchronous and effective solutions, Vinatex has completed and surpassed w88 w88.limo targets set by AGM 2023. Specifically, consolidated revenue reached VND 17,612 billion, equivalent to 106.7% of w88 w88.limo plan, with w88 w88.limo separate financial result reaching VND 2,008 billion, equivalent to 105.7% of w88 w88.limo plan; Consolidated profit reached VND 538 billion, equivalent to 145.5% of w88 w88.limo plan, with w88 w88.limo separate financial result reaching VND 133 billion, equivalent to 102.9% of w88 w88.limo plan.
Chairman of w88 w88.limo Board of Directors of Vinatex, Mr. Le Tien Truong, shared that w88 w88.limo common spirit of textile workers is always steadfast, united, brave, and creative in all situations. w88 w88.limo efforts of w88 w88.limo Group’s Executive Committee and member units during recent times are highly commendable because w88 w88.limo decisions of w88 w88.limo leaders are all crucial ones. w88 w88.limo Board of Directors understands that w88 w88.limo decisions of 2023 were all difficult. Most yarn and weaving enterprises had to sell below production cost. Without w88 w88.limo bravery, passion for w88 w88.limo job, and ultimate responsibility towards w88 w88.limo enterprise they manage, just stopping production for 1-2 months would have made it impossible to achieve w88 w88.limo business results of 2023. We need to maintain this spirit to overcome difficult periods and if any element is missing from w88 w88.limo slogan “RESILIENT – BRAVE – UNITED – CREATIVE” it will also be an obstacle to achieve success.
Determined to achieve 5 key goals and tasks
w88 w88.limo Vinatex leadership assessed that w88 w88.limo market in 2024 is still full of uncertainties and unpredictable while signs of recovery from w88 w88.limo market are not sustainable and risky. Therefore, Vinatex has set a target of consolidated revenue for 2024 of VND 17,900 billion, accounting for 101.63% of w88 w88.limo same period, of which w88 w88.limo revenue of w88 w88.limo Holding Company is VND 2,070 billion, equivalent to 103.06% of w88 w88.limo same period; Consolidated profit reached VND 550 billion, equivalent to 102.13% of w88 w88.limo same period, profit of w88 w88.limo Holding Company reached VND 150 billion, equivalent to 112.17% of w88 w88.limo same period in 2023.
Setting out w88 w88.limo missions throughout 2024, Mr Chairman clearly stated 5 key tasks including:
- Closely following w88 w88.limo Group’s development orientations in w88 w88.limo medium and long term;
- Frankly recognizing w88 w88.limo position in w88 w88.limo supply chain;
- Transparency of difficulties and development opportunities;
- Thoroughly analyzing market information and competitors to direct and manage;
- Innovation, creativity, and flexibility in production to seize opportunities and adapt to w88 w88.limo market.
At w88 w88.limo same time, continue to implement 5 commitments including:
- Implementing commitments and initiatives on environment, society, and corporate governance (ESG);
- Participating in w88 w88.limo supply chain with a firm position, being a preferred partner of major manufacturers and distributors in w88 w88.limo world;
- Continuously forecasting w88 w88.limo market and providing adaptation solutions;
- Building w88 w88.limo strategic goal within w88 w88.limo Group of ” One-stop destination for comprehensive textiles and fashion solution”;
- Training staff to meet new market and technology requirements.
2024 Annual General Meeting of Vinatex
General Director Cao Huu Hieu stated that in 2024, w88 w88.limo Vinatex Board of Directors’ Office will also focus on implementing a number of key tasks and solutions to improve productivity and product quality; in-depth investment, technical innovation, and enhance production capacity based on existing infrastructure; strengthening w88 w88.limo capacity of w88 w88.limo garment industry in design and marketing to increase w88 w88.limo proportion of high-value export goods such as OEM/FOB in total revenue; continuing research and development programs for new products like fire-retardant fabric, filament core yarn, and yarn and fabric with special features; accelerating w88 w88.limo operation and implementation of digital transformation; completing and updating w88 w88.limo risk management handbook to prevent and provide timely operational solutions, limiting risks for w88 w88.limo Group and its member units; continuously updating regulations and mandatory requirements on sustainable development and green production to proactively apply into w88 w88.limo manufacturing; monitoring w88 w88.limo compliance of units regarding environmental protection, occupational safety and health, and carbon emission management.
Regarding w88 w88.limo challenges of Vinatex as a labor-intensive enterprise, Mr. Pham Van Son – General Director of w88 w88.limo Department of General Affairs, Commission for w88 w88.limo Management of State Capital at Enterprises, highly appreciated w88 w88.limo management results of w88 w88.limo Board of Directors and w88 w88.limo Executive Board of Vinatex in 2023. w88 w88.limo state capital at Vinatex, managed by SCIC, was preserved, and a dividend of 3% was distributed, which was a success when many businesses struggled with an unfavorable market. As a labor-intensive Group, with social security responsibility for more than 62,000 direct employees of level 1 and over 150,000 employees of level 2, ensuring w88 w88.limo living and income of employees with an average of nearly VND 9.5 million/person/month was one of w88 w88.limo highlights of Vinatex in 2023.
“Many economic experts predict that 2024 and 2025 will still face many risks and unpredictable developments. Therefore, Vinatex needs to consolidate resources and build quick, efficient, and decisive policies to effectively implement w88 w88.limo restructuring plan for w88 w88.limo 2021-2025 period, orientation to 2030, and stabilize w88 w88.limo living conditions and employment for employees through salary and income solutions. Most importantly, given w88 w88.limo characteristic of w88 w88.limo textile-garment industry where profits depend on labor productivity, this will be w88 w88.limo guiding principle for Vinatex to propose to w88 w88.limo Government regarding w88 w88.limo salary mechanisms for management staff and employees,” Mr. Pham Van Son emphasized
Reporters
Translated from w88 w88.limo article published in w88 w88.limo May 2024 issue of Textile-Garment and Fashion Vietnam Magazine.
