Many businesses continue to adjust their revenue and profit targets

	Try to keep labor force waiting for the Covid-19 pandemic to pass
	Businesses looking forward to lower interest rates due to heavy debt burden
	Footwear businesses adapt to COVID-19 pandemic

In 2020, Vinatex set a target of consolidated revenue of 14,640.6 billion VND andconsolidated pre-tax profit at 381.6 billion VND, down 50% compared to 2019. Photo: Nguyen Thanh

Difficult

One of the professions most affected by the Covid-19 pandemic must include the textile and apparel industry. Recently, a large enterprise in the textile and garment industry - Vietnam National Textile and Garment Group (Vinatex) had to decrease by 50% compared to 2019.

Planning for 2020, Vinatex sets a target of consolidated revenue expected to reach 14,640.6 billion, consolidated pre-tax profit estimated at 381.6 billion VND, down 50% compared to 2019; parent company revenue at 1,327.79 billion VND; parent company pre-tax profit in 2020 is estimated at 130.43 billionVND.

The production and business situation in the first half of 2020 recorded negative results and the influence of Covid-19 made the business results of its affiliates seriously decline. Accordingly, the production and business activities of most of the group's member companies decreased, leading to poor results in the second quarter.

Specifically, in Q2/2020 alone, net revenue of the group reached 3,082 billion VND, down 36% year-on-year, cost of goods sold accounted for 91% of net revenue, so gross profit was 280 billion VND, down 36% compared to quarter 2/2019.While the first sixmonths of 2020 decreased by 24.5% over the same period, reaching 7,046 billion VND, after-tax profit hit 276 billionVND, down 20.7% compared to the first half of 2019. April mostly for example, there is no revenue due to the very limited social gap in the north and very limited production and business in the south.

According to Le Tien Truong, Chairman of Vinatex's Board of Directors, the first six months of the year was not the most difficult time, because the economy still traded and the number of infected cases had not increased as high as today. However, compared to the present time when the world is entering a period of uncontrollable pandemic, jobs have not been created again, money in all countries is in a state of exhaustion and consumer demand is decreasing, then the last months of 2020 will really be a challenge for the textile and garment industry. There are almost no orders for the 4th quarter and is a huge challenge for the group's business plan. Meanwhile, the orders for masks have also reversed; the quantity is not much, while the price has decreased to alevel just enough to cover production costs.

Many targets fell deeply

The complicated and unpredictable developments of the Covid-19 pandemic are forecast to continue to upset many businesses. Recently, Petrolimex Import - Export Joint Stock Company announced to consult shareholders in writing to approve the adjustment of the production - business plan in 2020. This enterprise is expected toadjust the 2020 plan with post-adjusted revenue of 443 billion VND, down 231 billion VND, corresponding to a 34.3% decrease in the revenue plan at the 2020 AGM. Profit before tax is 1, 5 billion VND, down 6 billion VND, equivalent to a reduction of 80% compared to the plan approved by the General Meeting of Shareholders in 2020.

In the second quarter, the business situation of Petrolimex Import and Export Joint Stock Company was also significantly affected by Covid-19 when it recorded a decrease of 60% in revenue in the second quarter. The reason is that the market of the enterprise has seen reduced purchasing power, and at times, exports are restricted. Exports to India and the curfew policies of India cause the company's export goods to be stagnant at the port, causing many costs and interest on loans and causing the company to lose more than 1 billion VND. Thanks to the profit result in Q1, the company is earning 675 million VND after tax profit after the first six months of 2020.

HoaBinh Construction Group has also approved the 2020 revenue plan of 12,500 billion, down 33% and profit after tax of 125 billion, down 70%. At the beginning of 2020, the Board of Directors of the company set out a revenue plan of 20,200 billion VND, profit of 720 billion VND. However, due to the Covid-19 pandemic, it has had a serious direct impact on the world economic situation and Vietnam’s from January to now, affecting the business situation of the company. The company plans to win the bid for the whole year about 16,200 billion VND. By May, the number of new signed contracts was 3,100. The potential for winning this year is about 13,100 VND. Contracts moved from previous year to this year and next year (backlog) are about 16,000 billion VND. To overcome thesedifficulties, the company plans to actively collect debts; strengthening strategic relationships with banks (debt restructuring and extended debt payment time); plan to issue bonds; sell off shares in several subsidiaries to recover capital to maintain the core segment.

Are businesses sanctioned for administrative violations due to the impact of the Covid-19 pandemic? VCN - During the pandemic, import and export goods were stuck at the border, leading to administrative ...

Le Viet Hai, Chairman of the Board of Directors cum General Director of HoaBinh Construction said that the Covid -19 pandemic will be a great opportunity for the Company to accelerate the digitisation process in governance. After the pandemic, not only Vietnam but also other countries in the world chose to invest in public investment to restore the economy. However, HoaBinh cannot have many projects right away, but must wait until at least 2021 to hope the wave of investment shifting into Vietnam will be stronger.