|Workers make clothes for export at Da Nang Texitle Manufacturing Export Import Co, a subsidiary of Viet Nam National Textile and Garment Group (Vinatex). This year, Vinatex will equitise its remaining affiliates. — VNA/VNS Photo Viet Y
HA NOI — The Viet Nam National Textile and Garment Group (Vinatex) would equitise its remaining affiliates and holding group this year in a bid to raise capital, expand scale and sharpen its competitive edge in the global market, said the group's deputy director general, Le Tien Truong.
The group reported its business performance at an online press conference in HCM City, Ha Noi and Da Nang yesterday.
"Vinatex charter capital is around VND3.4 trillion (US$162 million) while its export turnover is 14 times higher, so privatisation plays a significant role in the group's development strategy this year," he said.
It should be easier to privatise the remaining affiliates because most of them are small firms, but it is not going to be easy to complete the entire equitisation of the group this year, but we will strive to realise the target, Truong said.
Another key point in the group's development plans is to improve the market forecasting that helped them achieve good business results last year, despite the global economic crisis.
Vinatex is looking to boost exports to new markets including Russia and Canada, while exploiting free trade agreements with China, South Korea and Japan.
This was vital, given the economic woes in the world's largest economies including the EU, the US and Japan, which are some of Viet Nam's major clothing importers, Truong said.
The group also plans to withdraw all capital from non-core businesses to focus on the textile and garment sector alone this year.
Its total capital in non-core fields was only VND170 billion, much lower than other groups, according to Truong.
The group will also expand distribution in the local market by adding 14 Vinatex-Mart outlets to the existing 61.
In addition, the group will bolster training and invest in advanced equipment and technologies.
Vinatex earned $2.4 billion from exports in 2011, up 26 per cent against the previous year. Its pre-tax profit reached VND1.34 trillion ($64 million), a success in the current economic climate.
This year, the group expects 14 per cent growth in export value against last year.
Vinatex exports account for about 17 per cent of the country's textile and apparel industry. — VNS