A worker at a factory of Thanh Cong Textile Garment Investment Trading. — Photo thanhcong.com.vn

HÀ NỘI — Following a year of hardships in 2023, the transition to 2024 has witnessed a remarkable surge in the activities of businesses. With a strong start in the first quarter, numerous enterprises expect to experience a more prosperous year ahead.

A recent report from the General Statistics Office showed that Việt Nam’s exports reached an estimated US$93.06 billion in the first quarter of 2024, a 17% increase year-on-year, while imports amounted to $84.96 billion. 

During the period, the country posted a trade surplus of over $8 billion. Key contributors were businesses involved in exporting mobile phones and components, textiles and garments, aquaculture, wood and wooden products, footwear and leather goods.

Thành Công Textile Garment Investment Trading reported a 6 per cent revenue increase in the first quarter, reaching an estimated $39 million. Its projected profit for the same period is $2.5 million, up 9 per cent from last year. 

The company expects to fulfil its annual targets for 2024, with 85 per cent of the second quarter orders confirmed and 80 per cent for the third quarter, said Trần Như Tùng, Chairman of the Board of Directors of Thành Công Textile. 

At its recent annual general meeting, shareholders approved the 2024 business plan, targeting a revenue of over VNĐ3.7 trillion ($145.8 million) and a profit after tax of over VNĐ161.2 billion. 

These ambitious goals represent growth rates of 12 per cent and 21 per cent respectively, over last year. The company has already attained 26 per cent of its revenue target and 38.4 per cent of its profit target in the first three months.

Garment 10 Corporation, another textile company, also witnessed positive financial results for the first quarter. Its total revenue reached over VNĐ1.1 trillion, a 24.2 per cent increase from the same period last year. Particularly, export revenue saw significant growth to VNĐ1.02 trillion, up nearly 29 per cent. 

PetroVietnam Oil Corporation (PVOIL) experienced improved business performance last quarter, thanks to a more favourable economic outlook and positive developments in the petroleum industry. 

PVOIL's petroleum trading volume reached nearly 1.4 million cubic metres/tonne, a 22 per cent increase. The company’s consolidated revenue rose 41 per cent to VNĐ29.4 trillion, while consolidated profit before tax reached VNĐ300 billion, up 5 per cent. 

It expanded with 33 new gas stations during the quarter, bringing the total to 789.

PVOIL has set ambitious targets for 2024, aiming for a revenue of VNĐ83 trillion and a profit before tax of VNĐ740 billion. They have already achieved 41 per cent of their annual profit target in just three months.

Some banks have reported optimistic financial results for Q1. SeABank recorded a profit before tax of over VNĐ1.5 trillion, up 41 per cent year-on-year. Vietnam International Commercial Joint Stock Bank (VIB) announced a profit before tax of VNĐ2.6 trillion, matching the previous year.

Mobile World Investment Corporation showed positive performance in the early months of 2024, with a gain of 14 per cent on-year in revenue to VNĐ21.6 trillion.

The enterprise continued to review and improve the profitability of their Mobile World and Điện Máy Xanh retail chains. After five months of restructuring, positive changes in operational efficiency are seen.

Growth expectations

Saigon General Service Corporation (Savico) has set ambitious business targets for 2024. It aims to achieve a sales volume of 36,595 vehicles, revenue of VNĐ24.23 trillion, a 16 per cent growth from 2023, and a profit after tax of VNĐ124.9 billion, a significant 181 per cent increase from 2023. 

The company also plans to distribute 5 per cent dividends.

Savico's leadership predicts 5-7 per cent growth in the automotive market for 2024, focusing on improving pricing, reducing inventory and optimising operations to enhance profitability.

Positive factors for the automotive market include the continued 2 per cent VAT reduction, low interest rates and the development of the North-South expressway infrastructure project. 

Moreover, Việt Nam’s low vehicle ownership rate compared to neighbouring countries presents a significant long-term opportunity.

In the short term, Savico needs a stringent policy to ensure business effectiveness and drive value-added growth. For a long-term prospect, it aims to capitalise on market opportunities and continue collaborating with partners to expand their showroom presence, with a target of 120 showrooms nationwide by 2026.

In the textile and garment sector, businesses acknowledge the challenging landscape of high competition, tight deadlines and a potential decrease in prices for orders in the second half of 2024.

Despite the challenging business conditions, Thành Công Textile has devised plans for strong growth in the current and future years. They have invested in the SY Vina dyeing plant, which offers a cost-effective solution for obtaining dyeing permits and exporting products to the US market. 

It is also actively seeking project transfer partners in Vĩnh Long Province and Trảng Bàng Town, with potential profit recognition this year.

Meanwhile, Garment 10 Corporation highlights the proactive measures undertaken by enterprises to foster growth this year. 

These measures include market exploration and expansion, both domestically and internationally, as well as diversifying products and customer bases. The company is investing resources in production, research, product innovation and exploring new designs, determining to seize every opportunity to expand its market presence. — VNS