Bao Minh Textile Joint Stock Company (Vietnam)

The subject operates in the field of manufacturing woven fabrics (including weaving, yarn dye, piece dye, and finishing process). According to the chief accountant, about 70% of products are exported overseas to the USA, Canada, Japan, Netherlands... Currently, its two major customers are TORAY INTERNATIONAL INC and TOOTAL FABRICS HOLLAND BV.Thanks to expanding export markets continuously, the subject kept increasing net revenue remarkably with a compound annual growth rate of 77% during the period of 2019-2022. Anyway, as a revelation from the chief accountant, because the company kept applying low pricing strategies in order to stimulate demand and gain market share, its gross profit margin was thin last year and was negative in the past years. Hence, the company continuously suffered losses in recent years but of descending figures.Additionally, in our investigation, the chief accountant shared that the subject still received export orders regularly in the first eight months of this year. As a result, despite being significantly affected by the rotating power outage schedule from the Nam Dinh Department of Electricity from June to early July of 2023 due to power shortages caused by El Nino, the subject generated about VND 800 billion of revenue for the first three quarters of this year, up by nearly 10% over the same period last year and it continued suffered a noticeable loss but at a lower figure. However, orders from foreign clients have been reduced gradually since September due to the negative effects of the post-COVID economic recession. Hence, the subject's target net revenue for the whole year 2023 is about VND 1,100 billion, a slight increase of 6% compared to last year and it is expected to start gaining a humble profit after tax this year, she added.