Textile firms sew up growth targets

Century Synthetic Fiber Corp (CSF), a Ho Chi Minh City-based firm with the annual net revenue of VND1 trillion ($48 million), has announced its 2013 plan with targets of output, revenue and profit significantly higher than 2012.

The firm’s CEO Dang Trieu Hoa said  CSF in 2012 achieved sales revenue of nearly VND995 billion ($47.8 million), up VND60 billion ($2.9 million) against 2011.

However, its net profit was much lower than the previous year.  In the first 11 months of 2012, the figure reached only VND93 billion ($4.5 million), VND14 billion ($0.67 million) lower than 2011.

Hoa said that even though the company forecast economic difficulties in 2013, CSF still expected to reach net sales turnover of nearly VND1.6 trillion ($76.9 million) and pre-tax profit of VND124.5 billion ($5.98 million).

Hoa said the coming operation of phase-two investment of Trang Bang Fabric Factory would be a driveto help CFS generate its planned revenues for 2013. With expected sales of VND450 billion ($21.6 million), the factory’s phase two will add 10,000 tonnes of DTY and FDY yarn to the output of the company, lifting it up to 35,000 tonnes per year.

In early 2011, the $17.3 million phase-one investment of Trang Bang factory was put into operation,
contributing 11,000 tonnes of POY/DTY yarn to the annual total production of 25,000 tonnes of yarn, yielding a turnover of VND450 billion ($21.6 million).

Meanwhile, Donagamex is planning to increase production capacity as it puts its new Dong Phuoc Garment Factory into operation after the Lunar New Year.

“We are finalising the import of machineries and specialised equipment worth about $550,000, in order to increase our labour productivity to fulfill the orders signed until the end of June 2013,” said Bui The Kich, the company’s general director.

Although Donagamex achieved consolidated profit of VND70 billion ($3.37 million) in 2012, up 12 per cent on-year, it only targets a VND5 billion ($240,000) rise for 2013.

Kich said the profit  growth in 2012 was mainly thanks to selling the company’s shares.  Due to the global economic crisis, Donagamex faced unfavourable situations in production and business, leading to the corporation reaching consolidated revenue of only 96 per cent of its yearly plan, equivalent to VND1.05 trillion ($50.5 million), he said.