According to the Vietnam Textile and Apparel Association (VITAS), the country’s textile exports grew by 17.7 per cent to $22.3 billion in the first six months of the year.
The after-tax profit of Vietnam National Textile and Garment Group (Vinatex) grew by 49 per cent to VNĐ573 billion Q2.
The firm attributed the rise in profit to its high volume of cotton in storage, which resulted in low production costs amid mounting cotton prices.
The revenues and after-tax profits of TNG Investment and Trading JSC grew by 35.7 per cent and 42.3 per cent to VNĐ2 trillion and VNĐ87 billion, respectively.
The PhongPhú Corporation raked in over VNĐ160 billion in profit, surpassing the figure in Q2/2021 by 11 per cent.
Although many firms were riding high in the second quarter, some others saw their profits eroded by rising costs.
The ThànhCông Textile Garment Investment Trading JSC earned just VNĐ55 billion in Q2, down 6 per cent against Q2/2021. The company said higher overheads and exchange rate fluctuations cost it over VNĐ75 billion, eating into its profits.
Century Synthetic Fiber Corporation’s profits fell by 2 per cent in profit due to soaring financial costs. The costs ballooned from VNĐ320 million to over VNĐ15 billion, driving its profits down to VNĐ69.4 billion.
The Hanoi Textile Garment JSC ran unprofitably as it incurred higher financial costs and elevated costs of sales. It made a loss of VNĐ5.4 billion in Q2, a stark contrast to the profit of VNĐ6.2 billion in the same period last year.
According to VITAS, the outlook of Vietnamese textiles is not very optimistic in the second half of the year as the risk of COVID-19 resurgence is still high.
On top of that, many of Việt Nam's commercial partners have been tightening up their preventive measures against COVID-19, fuelling the situation, it adds.
