The year 2020 is considered a quite special and difficult year for the export industry in general and the textile and garment industry in particular when the Covid 19 epidemic occurred, affecting to the entire global economy. The shortage of orders, canceling orders have made Vietnam textile garment companies must face many difficulties and challenges and Thanh Cong Company is no exception. However, in the difficulty emerged wisdom, over the past time with flexible improvisation and the continuous efforts of the Board of Directors and whole staffs, the Company has quickly researched and produced antibacterial fabrics and PPE orders for export to the US market. This activity both compensated for the lack of traditional orders and contributed significantly to the revenue and profitability as well as contributed to the measures to prevent the spread of the disease, joining hands to protect community health, at the same time creating jobs and stable income for more than 7,500 employees of the Company. The happiest thing is that in the past time, no employees of the Company have been laid off or have their salary cut due to Covid 19. The Company’s revenue in 2020 reached 3,469 billion VND, completed 92% of the plan, after-tax profit achieved 276 billion, 46% higher than the plan.
According to forecasts of international organizations, the Covid-19 epidemic is still a threat in 2021. Therefore, the world economy is forecasted to still face many difficulties, especially in the last months of 2020 and early 2021, the shortage of containers have affected to export businesses, including textiles and garments. However, the year 2021 is also seen as the opportunity for the textile and garment industry when the EVFTA trade agreement is approved in August 2020 and begins to take effect. The domestic fabric demand is gradually increasing, big brands are also tend to buy fabric in Vietnam for production instead of having to import from China as before. In addition, yarn prices in the first months of 2021 are gradually increasing, helping to improve profit margins compared to previous years. In order to realize the target set for 2021 with revenue of 4,218 billion dong and after-tax profit of 290 billion dong, the Company will continue to focus on the following three strategies:
Firstly, continue to improve the efficiency and speed of production through modern techniques and management methods. Searching for new customers, expanding the EU market and other countries in the CPTPP bloc alongside existing customers.
Secondly, improve efficiency and production speed through the application of technology, technical improvements and management methods. Labor cost advantage will no longer be the opportunity in the near future. To ensure competition in the game with countries and businesses in the same industry, cutting costs based on improving production efficiency will be the prerequisite.
Third, build the garment factory No. 2 in Vinh Long with a capacity of 9 million products/year, equivalent to the garment factory No. 1 to increase production capacity for the garment industry.
Regarding the real estate project, the Company is cooperating with domestic partners to soon complete legal procedures for TC Tower project at 37 Tay Thanh, Tan Phu district and start the project in the shortest time.
Doing business on the knowledge base and catching up with the trend in the new era, we understand that the constant effort and innovation are the factors those bring success. In times of crisis, the history has left that ordinary companies go bankrupt, good companies hope to survive and only great companies can transform and thrive.
On behalf of the Company, I would like to express my sincere thanks to the shareholders, customers, partners who have put their trust, the employees who have worked hard and devoted their great efforts to the development of the Company. We will try our best to create more values, bring trust to customers, shareholders, and contribute to the Company’s sustainable and strong development.
JUNG SUNG KWAN
CEO / General Director