Minh Long International Commercial Investment Joint Stock Company (Vietnam)

The subject has a long time in the field of manufacturing yarns and towels, mostly for export to China (yarns) and Japan (towels). About 90% of its sales came from exporting yarns so the company's business activities were affected considerably when the Chinese government issued its strict zero-COVID policies in 2022. In the first months of 2023, the situation had not yet improved because the world macro economy has been still in a state of uncertainty, leading to a decrease in export orders. According to the Press, it is forecasted that the yarn industry will not be able to recover until the end of the second quarter of 2023. The market demand is still very low, the world yarn inventories are still high and cotton prices have fallen so low that yarn prices are unlikely to improve in the short term. The Chief accountant also shared that currently, the subject's factory has operated at 70% of total capacity. Notably, the board of directors is going to lift the charter to about VND 300 billion to fund for construction of a new office area and investment in production.