Vinatex Phu Hung Joint Stock Company (Vietnam)

VINATEX PHU HUNG is a member of VIETNAM NATIONAL TEXTILE AND GARMENT GROUP (VINATEX). It specializes in manufacturing and spinning types of fibers (CVCM fiber, CVCD fiber, TCCD fiber, TCCM fiber, and Recycled fiber). About 90% of its products are directly exported overseas, and the largest export market in 2022 was still South Korea with about 30% of total turnover, subsequently the Philippines with 26%, the other export markets are China, Taiwan, Malaysia, Japan, Thailand, South America, etc. In the domestic market, it mainly supplies to South Korean textile factories.  It is noticeable that the fiber industry met significant difficulties in the second half of last year due to the impact of the post-COVID economic recession. The selling price was lower than the product cost, additionally, the number of orders was reduced because over-purchasing in the first quarter of 2022 made the inventory high. In the first half of last year, the main export market of the subject was still South Korea, however, there was a change of the major export area from South Korea to the Philippines in the last 06 months due to a depression in the garment & textile in South Korea. As a result, the average export ratio to South Korea in 2022 declined to 30% from 40% in 2021, meanwhile, the export ratio to the Philippines highly increased to 26% from 13%, as stated. Furthermore, thanks to successfully signing a CVC Recycled fiber order to on-spot export to a South Korean dying & textile factory in Vietnam with a considerable volume and a good price, the consumption activity was improved, and the firm still obtained revenue growth of 63.72% in 2022. Despite that, the higher costs of goods sold, operating expenses, and financial expenses caused a deep depression in the profit.