Gain Lucky (Viet Nam) Limited (Vietnam)

The subject - Gain Lucky (Viet Nam) Limited belongs to Shenzhou International Group with 100% investment capital from Gain Lucky Limited, specializing in manufacturing knitted fabrics and processing kinds of knitted apparel. Shenzhou International Group is now a leading enterprise in China's knitting industry and is listed on the Hong Kong Stock Exchange. This group set up representative offices in Shanghai, Hong Kong, Sydney, and Osaka and built factories in China, Cambodia, and Vietnam. Shenzhou International Group's main customers include Uniqlo, Nike, Puma, Adidas...In recent years, the prolonged pandemic situation as well as conflicts in the world have affected the subject's production and business situation. Accordingly, the continuous decrease in orders caused the company to suspend recruitment in the last months of 2022. Thanks to the management's efforts to find new orders, the order situation also gradually recovered in the first months of 2023.Based on media information, the difficulties caused by economic and political instability continuously cause inflation and inhibit consumption from Vietnam's major export markets. Most noticeably, the textile and garment products are not an essential product group so the decline rate is quite high in the context of the global economic downturn. By the end of Sep 2023, Vietnam's textile and garment exports reached USD 29.7 billion, down by 14% compared to the same period in 2022. USA was the largest market, accounting for over 40% of the market share of the textile and garment industry, followed by Japan, EU countries, South Korea, China... However, these markets recorded a decrease in export turnover due to weak demand. In the final months of 2023, the global economy contains many uncertainties for its recovery because the geopolitical tensions are seriously escalating in many regions in the world, especially between Hamas and Israel and may spread throughout the Middle East countries. As a part of the supply chain of the textile and garment industry, the subject's business operation could be affected by unfavorable market conditions.