Viet Glory Co., Ltd (Vietnam)

Founded in late 2019, the subject is a 100% foreign direct investment project by MOLD SOLUTION INC, aiming to process shoes for export. It started building the factory in mid-year 2020 in Hamlet 8, Dien Truong Commune, Dien Chau District, Nghe An Province, Vietnam, which was put into commercial production in Apr 2021 and has generated revenue since May of the same year as a revelation from the female Chief Accountant. It is mainly processing in accordance with orders from POWER EXCELLENCE INTERNATIONAL LIMITED (for footwear brands like SKECHERS), which brings in about 80% - 90% of its total turnover now. Accordingly, most main materials are supplied by this client, and it sometimes buys auxiliary materials and tools serving the operation itself. After that, products are directly exported overseas following the directions of the clients, and destinations can be mentioned such as the USA, Hong Kong, China, Japan, Thailand, UAE, Belgium, Mexico, etc. In addition, it processes for some domestic customers, added the Chief Accountant.The subject is running the first factory with 04 workshops, using a total labor force of over 6,600 people. Noticeably, it has been also investing in an expanded factory project (in the same location) with a total registered investment capital of USD 22 million. According to the Chief Accountant, the expanded factory has completed construction and needs time for machinery installation and accomplishment of several necessary legal procedures, which is expected to be put into operation in Jun 2024 and to employ around 6,000 workers as well.This year, due to the negative impact of the economic recession, the subject's operation has not gained growth as expected. There was a period when the number of orders dropped, therefore, it had to implement an alternative working plan, resulting in a decrease in business results, yet the costs (particularly salary costs) did not decline proportionately. Furthermore, investing in the expanded factory caused considerable expenses, so, the company is estimated to still lose this year, the Chief Accountant revealed. For reference, its turnover for the first 10 months has attained around VND 470 billion, and it can achieve from VND 60 billion to VND 70 billion per month for the last two months, added she.