Tkg Eco Material Vina Corporation (Vietnam)

The subject is a member of TKG Group, which specializes in manufacturing PU synthetic leather, decorative plastic parts and fabric materials used for the footwear industry. Over 90% of the subject's products are exported overseas, to South Korea, China, the USA, Indonesia, India. Currently, it mainly imports materials from South Korea, China for production.The subject's chief accountant shared that this company's business situation in 2023 was not bright when it continued to sink into the loss status. She confirmed that the order quantity in 2023 dropped leading to a 20% y-o-y decrease in revenue over data in 2022, to around VND 1.2 trillion. Accordingly, this company got a heavier loss of about VND 115 billion that year. Entering 2024, the order quantity seems to be more stable in the first month of this year. She added that the subject will manufacture new products, air cushions for shoes, in order to diversify products more to help improve the business situation and hope to reduce loss this year.In the fourth quarter of 2023, the export turnover of Vietnamese leather and footwear was improved, but there were still many difficulties. The orders received by leather and footwear enterprises nationwide have increased by 10-20% compared to the first half of the year, but have not yet returned to the level at the beginning of 2022. According to the Vietnam Leather, Footwear and Handbag Association, the industry recovered slightly in the fourth quarter, but export growth for the whole year decreased by about 7.5% compared to the previous year. It is forecast that the difficulties of Vietnam's leather and footwear industry will last until nearly mid-2024.