VIETNAM TEXTILE AND APPAREL INDUSTRY REPORT Q2/2018 … · III. Industry outlook and risk 95 IV....

VIETNAM TEXTILE AND APPAREL INDUSTRY REPORT Q2/2018

1

TABLE OF CONTENTS

2

Contents Page Contents Page

ABBREVIATIONS4

1.4. Textile dyeing 43

SUMMARY 5 1.5. Apparel 47

I. Business environment 7 1.6. Distribution and export system 54

1. Macroeconomic situation 7 1.7. Machinery of textile apparel industry 56

2. Legal framework 16 2. Vietnam textile and apparel market 59

3. Trade agreements 21 2.1. Vietnam textile and apparel market's overview 59

II. Industry overview 27 2.2. Input materials 67

1. World textile and apparel market 27 2.3. Spinning 74

1.1. Value chain of textile and apparel industry 29 2.4. Textile dyeing 80

1.2. Input materials 33 2.5. Apparel 86

1.3. Spinning 40 2.6. Distribution and export system 92

TABLE OF CONTENTS

3

Contents Page Contents Page

III. Industry outlook and risk 95 IV. Enterprise analysis 110

1. Industry risk 95 1. Garment enterprise analysis 110

1.1. 5-forces analysis 95 2. Textile and fiber enterprise analysis 125

1.2. SWOT analysis 99 IV. Conclusion 138

1.3. Risks 101 Appendix 140

2. Industry outlook 104

2.1. Industry planning 104

2.2. Forecast and assessment of industry outlook 107

ABBREVIATIONS

ABBREVIATIONS

4

Shortened

formFull form

Shortened

formFull form

CAGR Compounded Annual Growth Rate PET Polyethylene terephthalate

CMT Cut – Make – Trim GDVC General Department of Vietnam Customs

CNTAC China National Textile & Apparel Council GSO General Statistics Office of Vietnam

CPI Consumer Price Index CI Corporate Income

JCS Joint Stock Company Co., Ltd. Company Limited

NR Net Revenue FA Fixed Assets

EU European Union LTA Long-term Assets

GDP Gross Domestic Product LSA Short-term Assets

OBM Original brand manufacturer UAE The United Arab Emirates

ODM Original design manufacturer VCOSA Vietnam Cotton and Spinning Association

OEM Original Equipment Manufacturer VINATEX Vietnam Textile Corporation

VITAS Vietnam Textile and Apparel Association

SUMMARY

5

• The world textile and apparel industry is deeply influenced by

macroeconomic fluctuations.

• China, The United States, Germany and Japan are the largest textile

and apparel consuming countries in the world.

WORLD TEXTILE AND APPAREL MARKET

Content is intentionally removed for demo purpose

SUMMARY

6

• Textile and apparel industry is one of the key sectors of Vietnam and

has the second largest export turnover with export value contributing

10-15% to GDP.

• Vietnam is one of the top 10 textile and apparel exporting countries in

the world.

• Domestic textile and apparel enterprises are weak in the knowledge-

intensive stages such as building distribution system, exporting,

designing and branding..

VIETNAM TEXTILE AND APPAREL MARKET


TABLE OF CONTENTS

Part I. Business environment

1. Macroeconomic situation

2. Legal framework

3. Trade agreements

4. Trans-Pacific Partnership Agreement

7

8

Source: VIRAC, GSO

VND Trillion

GDP growth rate by quarter, 2015 – Q1/2018

GDP by current price and GDP per capita, 2013 – Q1/2018

Source: VIRAC, GSO


• Gross domestic product in the first quarter of 2018 is estimated to increase

by 7.38%, compared to the same period of 2017.

• In 2016, sales from the textile and apparel industry was 33 billion USD,

accounting for 16.7% GDP.



9

Sources: VIRAC, FIA

FDI capital, 2014 – Q1/208Billion USD

FDI attraction by sector, 2017

Sources: VIRAC, FIA




Foreign Direct Investment (FDI)

FDI attracted 618 new projects over the period from January to March 20, 2018.

10

Total value of exported and imported commodity of Vietnam in Q1/2018 reached 108.43 billion USD

Sources: VIRAC, GDVC

Billion USDBillion USD

Imports and exports of commodity, 2015 – Q1/2018






Source: VIRAC

11

Source: VIRAC, GDVC

Source: VIRAC, GDVC

USD billion

USD billion

Main imported products from China, Q1/2018e

Main exported products to China, Q1/2018e VND/CNY exchange rate, 2/1016 – 3/2018




12

Source: VIRAC, SBV

VND/USD exchange rate, 2013-3/2018


The VND / USD exchange rate has been quite stable and still supported by a plentiful supply of foreign currencies


1. Macroeconomic situation – Impact of related sectors

Project Capacity (barrel/day) Situation Year of project completion

Petrochemical refining projects being implemented in Vietnam

13

Source: VIRAC




• In the first three months of 2018, the total retail sales of consumer goods and services are estimated at 1.048 trillion VND

14

Source: VIRAC, GSO

Retail sales of goods, 2010 – Q1/2018


Brand Company

Number of stores Revenue in

Q1/2018

(billion

VND)2016 2017 Q1/2018

Source: VIRAC, Retail Asia Publishing

Boom of modern retail systems:

(*) estimated



15


Leading retailers in Vietnam market, 2016 – Q1/2018

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16



2. Legal framework

3. Trade agreements



2. Legal framework

Group of regulations and standards on textile and apparel production:

17


18

Group of policies and regulations affecting the industry

These regulations have an important influence on the sector of textile and apparel.


2. Legal framework


19


2. Legal framework



2. Legal framework

• Corporate Income Tax

20

Group of regulations on import and export:

Group of tax regulations:

• Import TaxContent is intentionally removed for demo purpose

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21



2. Legal framework

3. Trade agreements



3. Trade agreements

22



3. Trade agreements

23

Vietnam – South Korea Free Trade Agreement



3. Trade agreements

24

Vietnam – EU Free Trade Agreement


25

Comprehensive and Progressive Agreement for Trans-Pacific Partnership


3. Trade agreements



3. Trade agreements

26

Regional Comprehensive Economic Partnership (RCEP)


TABLE OF CONTENTS

Part II. Industry overview

1. World textile and apparel market

1.1. Industry size

1.2. Value chain of global textile and apparel market

1.3. Input materials

1.4. Spinning

1.5. Textile dyeing

1.6. Apparel

1.7. Distribution and export system

1.8. Machinery of textile apparel industry

27


1.1 Industry size

• In 2017, the global textile and garment turnover is estimated at about USD 1,400 million.

28

Sources: VIRAC, Euromonitor Passport Data 2017

Market size of global textile and apparel industry, 2012 – 2021f


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29



1.1. Industry size



1.4. Spinning

1.5. Textile dyeing

1.6. Apparel




1. World textile and apparel market – 1.2. Value chain of global textile and apparel market

30


Value chain of global textile and apparel industry is divided into 5 basic stages

31






CMT OEM/FOB

ODM

OBM

32


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33



1.1. Industry size



1.4. Spinning

1.5. Textile dyeing

1.6. Apparel




1. World textile and apparel market – 1.3. Input materials

• Cotton is the input material of the textile and apparel industry to produce natural fibers. Cotton is grown in more than 100 countries around the world

and is highly concentrated in three major producing countries: India, China and the United States.

34

Source: VIRAC, Indexmundi

USD/kgWorld cotton price, 9/2012 – 3/2018




35

Price fluctuations of PTA, MEG, PET Chip and PSF in Asia, 3/2016 – 3/2018e

Source: VIRAC, TextileBeacon




36

Million tons Million tonsGlobal cotton production, 2012/2013 - 2017/2018e Global cotton consumption, 2012/2013 - 2017/2018e

Content is intentionally removed for demo purposeSource: VIRAC, USDA

Source: VIRAC, USDA



37

There are two method of producing cotton in the world:

Brazil's cotton productivity has been greatly improved thanks to technological improvements.

Indian cotton productivity is low due to unfavorable natural conditions.

Source: VIRAC, USDA,

Cotton productivity in some countries, 2015/2016 - 2017/2018e

Kg/ha




38

Bangladesh

Turkey

India

The United States

China




39

Thousand tons Thousand tons

Source: VIRAC, USDASource: VIRAC, USDA

World cotton exports, 2012/13 - 2017/18e World cotton imports, 2012/13 - 2017/18e


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40



1.1. Industry size



1.4. Spinning

1.5. Textile dyeing

1.6. Apparel




1. World textile and apparel market – 1.4. Spinning

Source: VIRAC, Statista

41

Source: VIRAC, The fiber year, FRED

Fiber consumption by type, 2017Million tons

Fiber production and consumption worldwide, 2000 – 2017e


World fiber import and export, 2010 - 2017e

Nguồn: VIRAC, CIRFS


1. World textile and apparel market – 1.4. Spinning

Cotton and polyester fibers are the two main types of fibers.

42

Global demand for types of fiber 1980 – 2030e

Source: VIRAC, PCI Fibres

Million tons

Source: VIRAC, ICAC, CIRFS, TFY, FEB

Global fiber consumption structure, 2016 Structure of global consumption purpose of fiber, 2014


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43



1.1. Industry size



1.4. Spinning

1.5. Textile dyeing

1.6. Apparel




1. World textile and apparel market – 1.5. Textile dyeing

Source: VIRAC, UNcomtrade

44

Global fiber and fabric production index, Q1/2015 –Q2/2017

billion USD

Source: VIRAC, ITMF

Global textile trade, 2010 – 2016e




45


46

Sources: VIRAC, WTO Secreteriat

Sources: VIRAC, WTO Secreteriat

In 2017, in terms of the textiles exports, China, EU28 and India are still the

three countries and regions with the largest export turnover,

Billion USD

billion USD

Top 10 largest textile exporters in the world, 2017e

Top 10 largest importers of textiles in the world, 2017e




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47



1.1. Industry size



1.4. Spinning

1.5. Textile dyeing

1.6. Apparel




1. World textile and apparel market – 1.6. Apparel

Source: VIRAC, Marketline

48

billion USD

Scale of global textile production 2014-2018e




Global textile and apparel trade is heavily influenced by major

economies such as Europe and the United States.

Source: VIRAC, UN Comtrade

49

billion USD

Global textile and apparel import and export value, 2010 – 2023e




Source: VIRAC, WTO Secreteriat

50

Source: VIRAC, WTO Secreteriat

billion USD

billion USD

World's top 10 largest apparel exporting countries,

2017e

World's top 10 largest apparel importing countries,

2017e





51


billion USD

Export structure of textile and apparel worldwide, 2017e

Global apparel trade value 2003-2018F


There is a huge gap in annual spending on apparel per capita between

developing and developed countries.

52



billion USD

USD/year

Source: VIRAC, Euromonitor

Scale of global apparel market 2015-2025f

Spending on apparel per capita 2014-2019F


These days, EU, the USA, China and Japan are the biggest consumption

markets

Sale growth rates of developed markets such as EU, the USA and Japan

are relatively lower than sale growth rate of China.


1. World textile and apparel market – 1.6 Apparel

53

• Currently, the textile and apparel industry is gradually improving, but there

are still big gap among countries.

Source: VIRAC, Jobstreet

Source: VIRAC, Jobsteet

USD/month

USD/month

Average wage of textile and apparel industry in some countries, 2016

Average wage in some countries, 2016


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54



1.1. Industry size



1.4. Spinning

1.5. Textile dyeing

1.6. Apparel




1. World textile and apparel market – 1.7. Distribution and export system

Export and marketing

Commercialization


55

billion USD

The value of global apparel retail industry 2014-2019eContent is intentionally removed for demo purpose

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56



1.1. Industry size



1.4. Spinning

1.5. Textile dyeing

1.6. Apparel




1. World textile and apparel market – 1.8. Machinery of textile apparel industry

Source: VIRAC, ITC

57

Source: VIRAC, ITC

thousand USD

World's top largest textile machinery importing countries, 2016e World's top largest textile machinery exporting countries, 2016e


thousand USD


1. World textile and apparel market – 1.8. Machinery of textile apparel industry

Country Manufacturer

Some of the largest textile manufacturers in the world

58


TABLE OF CONTENTS


2. Vietnam textile and apparel industry

2.1. Industry overview


2.3. Spinning

2.4. Textile dyeing

2.5. Apparel


59


2. Vietnam textile and apparel industry – 2.1. Industry overview

Indicator Value

INDUSTRY OVERVIEW

60


Number of enterprises of Vietnam textile and apparel industry, 2012 - 2016

61

Sectors 2012 2013 2014 2015 2016

Sources: VIRAC, GSO






The South East region is home for the largest number of textile and

apparel enterprises in the country with three major cities: Ho Chi

Minh City, Binh Duong and Dong Nai.

Source: VIRAC, GSO

62

Textile and apparel enterprises distributed by region, 2016


At present, Vietnam has 8,149 private enterprises in the textile and apparel

industry, mainly located in the South East,

Sources: VIRAC, GSO

63

Sources: VIRAC, Enterprise Survey 2014

Textile and apparel private enterprises distributed by region, 2016

The proportion of turnover of types of apparel enterprises, 2014




Sources: VIRAC, GSO

Sectors 2012 2013 2014 2015 2016

Proportion of textile

and apparel sectors in

2016

Numbers of laborers in Vietnam textile and apparel industry, 2012 - 2016

64

Textile and apparel is currently the most labor-intensive industry. The labor force of the textile and apparel industry accounts for more than 20% of the

labor force in the industrial sector and nearly 5% of the total labor force.




• Textile and apparel industry responds to industrial revolution 4.0 :

65




The import-export balance of Vietnam's textile and apparel commodity,

2013 - 2017

66

No. Type 2013

(Million USD)

2014

(Million USD)

2015

(Million USD)

2016

(Million USD)

2017

(Million USD)

2017

compared to

2016 (%)

Sources: VIRAC, VITAS




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67





2.3. Spinning

2.4. Textile dyeing

2.5. Apparel



2. Vietnam textile and apparel industry – 2.2. Input materials

68

Source: VIRAC, Vietrade, Cotton, inc

Thousand tons

Thousand hectares

Cotton planting area in some major regions

Source: VIRAC, MARD, GSO

Thousand hectares

Tình hình sản xuất bông của Việt Nam, 2013/2014 -

2016/2017e




69

Region Features


Method of cultivation and cotton growing regions of Vietnam



Source: VIRAC, Vietrade, Cotton, inc

70

Thousand tons


• Because of the ongoing development of textile and apparel industry, the

number of cotton consumption in Vietnam is projected to grow

Cotton demand by quantity, 2016/2017 – 2018/2019e

Source: VIRAC, USDA

Cotton supply by quantity, 2016/2017 – 2018/2019e

Thousand tons



71

Source: VIRAC, GDVC

USD/tonCotton import price, 8/2014 – 2/2018




Source: VIRAC, GDVC

72

million USDThousand tons

Source: VIRAC, GDVC

Cotton imports in Vietnam, 2013 – Q1/2018

Import market structure of cotton in Vietnam, Q1/2018e


• In the first quarter of 2018, the quantity of imported cotton was

approximately 408.8 thousand tons

• Vietnam imports cotton mainly from the US, India, Australia, Brazil,

Ivory Coast ... in which America is the main market,



73

• Import and export of some other raw materials:

Source: VIRAC, GDVC

million USD

Source: VIRAC, GDVC Source: VIRAC, GDVC

Import-export turnover of textile, leather and foot-wear

materials and auxiliaries, 2013 – Q1/2018e

Import market structure of textile, leather and foot-wear

materials and auxiliaries, Q1/2018eExport market structure of textile, leather and foot-wear

materials and auxiliaries, Q1/2018e


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74





2.3. Spinning

2.4. Textile dyeing

2.5. Apparel



2. Vietnam textile and apparel industry – 2.3. Spinning

Source: VIRAC, GSO

75

Source: VIRAC, GSO

Thousand tons

Thousand tonsbillion VND

Yarn production volume, 2010 – Q1/2018e

Yarn volume and consumption value, 2010 – Q1/2018e


In Q1/2018, number of produced yarn is estimated about

549.1 thousand tons



Source: VIRAC, GDVC

76

million USD

Yarn import and export in Vietnam, 2010 – Q1/2018e




Source: VIRAC, GDVC

77

• In Q1/2018, China is the main yarn export market of Vietnam,

Source: VIRAC, GDVC

Export structure of yarn by volume, Q1/2018e

Import structure of yarn by volume, Q1/2018e




Company name Capacity Product segment

Source: VIRAC, VITAS

78


Number of yarn piles and rotors in Vietnam yarn industry, 2010 – 2017e


Long fiber producing enterprises in Vietnam



79

Time Company name Country Investment Value (million USD) Location

Some fiber projects in Vietnam in the period 2014 - 2016

Source: VIRAC


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80





2.3. Spinning

2.4. Textile dyeing

2.5. Apparel



2. Vietnam textile and apparel industry – 2.4. Textile dyeing

Vietnam's fabric production only meets 15-16% of demand.

Source: VIRAC, GSO

81

Source: VIRAC, GSO

Source: VIRAC, GSO

Million m²

VND trillion

Fabric production volume in Vietnam, 2010 – Q1/2018e

Fabric consumption value, 2012 – Q1/2018e

Production structure of Vietnamese fabrics, 2012 – Q1/2018e




Source: VIRAC, GDVC

82

Source: VIRAC, GDVC

million USD

Fabric export-import turnover of Vietnam, 2011 – Q1/2018e Vietnam's fabric import market structure, Q1/2018e




Textile dyeing and finishing process

83




General assessment of textile machinery and technology in Vietnam

General assessment of dyeing technology in Vietnam

Material and power Unit Vietnam Germany Finland

Source: VIRAC

77




Causes leading to the nondevelopment of Vietnam textile dyeing industry:

85


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86





2.3. Spinning

2.4. Textile dyeing

2.5. Apparel



2. Vietnam textile and apparel industry – 2.5. Apparel

Garment production volume is increasing but mostly for export.

Source: VIRAC, GSO

87

Million units

Apparel production volume, 2012 – Q1/2018e

Market share of domestic apparel market, 2016e




• In general, the domestic apparel market is still rather modest due

to people's low living standards.

88

million USD

Source: VIRAC, GDVC


Apparel exports (including fabric) of Vietnam, 2010 –

Q1/2018e

Structure of apparel for export, 6M/2017eContent is intentionally removed for demo purpose



• The United States, the EU, Japan, Korea are the four largest

importers of textiles and garments in Vietnam.

89

Source: VIRAC, GDVC

Source: VIRAC, GDVC

billion USD

Export market structure of textiles and apparel in Vietnam,

Q1/2018e

Export value of textiles and apparel to some countries, 2013 – Q1/2018e




90

Source: VIRAC, GDVC

billion USD

Textile and apparel exports of FDI enterprises and domestic

enterprises, Q1/2018e




91

Countries US EU Japan

China

India

Vietnam

Source: VIRAC, GSO

Source: VIRAC

Average time of order production in some countries (day)Average time of order production in Vietnam (day)

Inventory index of textile and apparel industry, 8/2016 -

12/2017


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92





2.3. Spinning

2.4. Textile dyeing

2.5. Apparel



2. Vietnam textile and apparel industry – 2.6. Distribution and export system

Export, distribution and marketing activities

Domestic textile and apparel enterprises do not have a large distribution system to the consumers, especially in the international market.

In the domestic market, the distribution system is still very limited and the distribution channel development strategy is still problematic.

93


Method of export of textiles and apparel

94

Payment methods


2. Vietnam textile and apparel industry – 2.6. Distribution and export system


TABLE OF CONTENTS

Part III. Industry outlook and risk

1. Industry risk

1.1. Five Forces analysis

1.2. SWOT analysis

1.3. Risks

95

96

In general, competition in the textile and apparel industry in Vietnam

is high.

Factors Opinions Assessment

Sources: VIRAC collects

Competition level of textile and apparel industry in Vietnam


1. Industry risk – 1.1. Five Forces analysis


• Entrance barriers:

97






• Market competitiveness

• Bargaining power of customers

98






• Bargaining power of suppliers

• Threats of substitutes:

TABLE OF CONTENTS

99


1. Industry risk


1.2. SWOT analysis

1.3. Risks

Strengths Weaknesses

Opportunities Threats

100


1. Industry risk – 1.2. SWOT analysis


MỤC LỤC

101


1. Industry risk


1.2. SWOT analysis

1.3. Risks


1. Industry risk – 1.3. Risks

Risk of economic integration

Legal framework risk

Competitive risk

93



1. Industry risk – 1.3. Risks

Risk of input materials

Labor risk

Economic risk

94



2. Industry outlook

2.1. Industry planning

2.2. Forecast and assessment of industry outlook

104

TABLE OF CONTENTS


2. Industry outlook – 2.1. Industry planning

105

On April 11, 2014, the Ministry of Industry and Trade issued Decision No. 3128/QD-BCT approving the master plan for the development of Vietnam's

textile and apparel industry to 2020 with a vision to 2030..



2. Industry outlook – 2.1. Industry planning

Indicator Unit 2015 2020 2030

106

Specific targets of the textile and apparel industry to 2030


MỤC LỤC

107


2. Industry outlook

2.1. Industry planning

2.2. Forecast and assessment of industry outlook


2. Industry outlook – 2.2. Forecast and assessment of industry outlook

Source: VIRAC, VINATEX

108

billion USDForecast for textile and garment export turnover, 2016 - 2020f


TABLE OF CONTENTS

Part IV. Enterprise analysis

1. Garment enterprise analysis

2. Textile and fiber enterprise analysis

109



Top 8 enterprises in Vietnam apparel industry with the largest net revenue in 2017

Enterprise AddressNet revenue

(billion VND)

Total assets

(billion VND)

Viet Tien Garment Corporation

Nha Be Garment Corporation JSC

Hoa Tho Textile Garment JSC

Garment Corporation 10

TNG Investment and Trade JSC

Duc Giang Corporation

Sai Gon Garment Manufacturing Trade JSC

Dong Nai Garment Corporation

110




111

VIET TIEN GARMENT CORPORATION

Production capacity of Viet Tien Corporation

Source: VIRAC, Viet Tien Garment Company

Export market structure of Viet Tien, 2017




112

Production capacity of Hoa Tho Textile and Garment Corporation

HOA THO GARMENT CORPORATION

Source: VIRAC, Hoa Tho Textile and Garment JSC

Source: VIRAC, Hoa Tho Textile and Garment JSC

Textile export market structure of Hoa Tho, 2017




113

NHA BE GARMENT CORPORATION JSC

Structure of textile export market of Nhà Bè, 2017

Source: VIRAC, Nha Be Garment JSC

Source: VIRAC, Nha Be Garment JSC

USD million

Production capacity of Nha Be Garment JSC

Export turnover of Nha Be, 2011-2017




114

GARMENT CORPORATION 10

Production capacity of Garment Corporation 10

Source: VIRAC, Garment Corporation 10




115

Production capacity of Duc Giang Corporation

Duc Giang Corporation

Source: VIRAC, Duc Giang Garment Corporation

Structure of textile export market of Duc Giang, 2017




116

Production capacity of TNG, 2017

THAI NGUYEN INVESTMENT AND TRADING JOINT STOCK COMPANY

Source: VIRAC, TNG

Structure of textile export market of TNG, 2017Content is intentionally removed for demo purpose



117

SAI GON GARMENT MANUFACTURING TRADING JOINT STOCK COMPANY




118

Dong Nai Garment Corporation

Source: VIRAC, Dong Nai Garment JSC

Structure of textile export market of Dong Nai Garment,

2014


System of Machine of Dong Nai Garment, 2016



119

Source: VIRAC

billion VND

Net revenue, 2016 - 2017


• Viet Tien Garment Corporation had the highest net revenue in selected businesses.



120

Source: VIRAC

billion VNDGross profit margin, 2016 - 2017




Financial expenses of businesses tended to decrease in 2017.

121

Source: VIRAC

billion VND

Financial expenses and financial expenses/net revenue ratio, 6


The average financial expenses/ net revenue ratio of selected group was 1.2% in 2017.



122

Source: VIRAC

Debt/Equity ratio, 2016 - 2017


• The majority of garment businesses have high debt/equity ratio



123

Source: VIRAC

Source: VIRAC

%

Solvency ratio, 2016 - 2017

Profit Ratio, 2016 - 2017


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124






Vietnam's top 5 textile and yarn enterprises with the largest net revenue, 2017 (billion VND)

Enterprise AddressNet revenue

(billion VND)

Total assets

(billion VND)

125




126

Thanh Cong Textile Garment Investment Trading JSC

Source: VIRAC, TCG

Products UnitProduced,

2017

2017

compared to

2016

Production, 2017

Nguồn: VIRAC, TCGNguồn: VIRAC, TCG

Investment projects in 2017




127

Product Production capacity Machinery, input materials

Production capacity of Thanh Cong Textile Garment Investment Trading JSC




128

Production capacity of Phong Phu Corporation

Phong Phu Corporation

Source: VIRAC, Phong Phu Corp

Structure of textile export market of Phong Phú 2014




129

Product Description

Viet Thang Corporation




130

Hue Textile Garment JSC

Production capacity of Hue Textile Garment JSC




131

Century Synthetic Fiber Corporation

Source: VIRAC, Centery Fiber Source: VIRAC, Century Fiber

Ton

TonFiber consumption structure of Century Synthetic Fiber

Corporation, 2017

Fiber production of Century Fiber, 2017




132

Source: VIRAC

billion VNDNet revenue of textile and fiber enterprises, 2016 - 2017




133

Source: VIRAC

Source: VIRAC

billion VND

Gross profit margin, 2016 - 2017




134

Source: VIRAC

VND billion Financial expenses and financial expenses/ net profit, 2016 - 2017




135

Source: VIRAC

Source: VIRAC

Round

Day

Total asset turnover, 2016 - 2017

Days in inventory, 2016 - 2017




136

Source: VIRAC

Content is intentionally removed for demo purposeSource: VIRAC

Solvency Ratio, 2016 - 2017 Profit Ratio, 2016 - 2017

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Part V: Conclusion

137

Part V: Conclusion

138


TABLE OF CONTENTS

Appendix

139

BALANCE SHEET

Unit: VND million 2016 2017

A. CURRENT ASSETS

I. Cash and cash equivalents

II. Short-term financial investments

III. Short-term receivables

IV. Inventories

V. Other current assets

B. LONG-TERM ASSETS

II. Fixed assets

TOTAL ASSETS

A. LIABILITIES

I. Short-term Liabilities

II. Long-term liabilities

B. OWNER'S EQUITY

I. Owner's equity

II. Other funding sources

TOTAL LIABILITIES AND OWNER'S EQUITY

133

INCOME STATEMENT


Net Revenue from Sales and services provided

Cost of goods sold and services provided

Gross Profit from sales and services provided

Financing income

Financial expenses

Interest expenses

Sales expenses

Administrative expenses

Net profit from operating activities

Total Accounting Profit Before Tax

Current Corporate Income Tax Expenses

Deferred Corporate Income Tax Expenses

Profit After Enterprise Income Tax

CASH FLOW STATEMENT


I. Cash Flow From Operating activities

Depreciation of fixed assets

Unrealized gain/loss from exchange rate differences

Net Cash Flow From Operating activities

II. Cash Flow From Investing activities

Expenditures on purchase and construction of fixed assets

and long-term assets

Net Cash Flow From Investing activities

III. Cash Flow From Financial activities

Net Cash Flow From Financial activities

Effect of exchange rate fluctuations

Net cash flow during the fiscal year

VIII. Appendix

Financial statements - Viet Tien Garment Corporation


134

VIII. Appendix

Financial statements - Hoa Tho Textile Garment JSC

BALANCE SHEET


A. CURRENT ASSETS




IV. Inventories


B. LONG-TERM ASSETS

II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER'S EQUITY

I. Owner's equity



INCOME STATEMENT





Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT















135

VIII. Appendix

Financial statements – Nha Be Garment Corporation

BALANCE SHEET


A. CURRENT ASSETS




IV. Inventories


B. LONG-TERM ASSETS

II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER'S EQUITY

I. Owner's equity



INCOME STATEMENT





Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT















136

VIII. Appendix

Financial statements – Garment Corporation 10 - JSC

BALANCE SHEET


A. CURRENT ASSETS




IV. Inventories


B. LONG-TERM ASSETS

II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER'S EQUITY

I. Owner's equity



INCOME STATEMENT





Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT















137

VIII. Appendix

Financial statements – Duc Giang Corporation

BALANCE SHEET


A. CURRENT ASSETS




IV. Inventories


B. LONG-TERM ASSETS

II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER'S EQUITY

I. Owner's equity



INCOME STATEMENT





Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT















138

VIII. Appendix

Financial statements - TNG Investment and Trade JSC

BALANCE SHEET


A. CURRENT ASSETS




IV. Inventories


B. LONG-TERM ASSETS

II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER'S EQUITY

I. Owner's equity



INCOME STATEMENT





Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT















139

VIII. Appendix

Financial statements – Sai Gon Garment Manufacturing Trading Corporation

BALANCE SHEET


A. CURRENT ASSETS




IV. Inventories


B. LONG-TERM ASSETS

II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER'S EQUITY

I. Owner's equity



INCOME STATEMENT





Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT















140

VIII. Appendix

Financial statements – Dong Nai Garment Corporation

BALANCE SHEET


A. CURRENT ASSETS




IV. Inventories


B. LONG-TERM ASSETS

II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER'S EQUITY

I. Owner's equity



INCOME STATEMENT





Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT















141

VIII. Appendix

Financial statements – Phong Phu Corporation

BALANCE SHEET


A. CURRENT ASSETS




IV. Inventories


B. LONG-TERM ASSETS

II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER'S EQUITY

I. Owner's equity



INCOME STATEMENT





Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT















142

VIII. Appendix

Financial statements – Viet Thang Corporation

BALANCE SHEET


A. CURRENT ASSETS




IV. Inventories


B. LONG-TERM ASSETS

II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER'S EQUITY

I. Owner's equity



INCOME STATEMENT





Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT















143

VIII. Appendix

Financial statements – Thanh Cong Textile Garment Investment Trading JSC

BALANCE SHEET


A. CURRENT ASSETS




IV. Inventories


B. LONG-TERM ASSETS

II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER'S EQUITY

I. Owner's equity



INCOME STATEMENT





Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT















144

VIII. Appendix

Financial statements – Century Synthetic Fiber Corporation

BALANCE SHEET


A. CURRENT ASSETS




IV. Inventories


B. LONG-TERM ASSETS

II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER'S EQUITY

I. Owner's equity



INCOME STATEMENT





Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT















145

VIII. Appendix

Financial statements – Hue Textile Garment JSC

BALANCE SHEET


A. CURRENT ASSETS




IV. Inventories


B. LONG-TERM ASSETS

II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER'S EQUITY

I. Owner's equity



INCOME STATEMENT





Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT















REPORT DISCLAIMER

153

Report disclaimer

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be reliable and made to ensure the accuracy of the contents of the pages of the report at the time of preparation. Such information has not been independently

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materials. The content found in this report is proprietary to VIRAC and is provided solely for your personal and non-commercial use. You agree that you will not

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VIETNAM TEXTILE AND APPAREL INDUSTRY REPORT Q2/2018 … · III. Industry outlook and risk 95 IV....

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