Hanoi (VNS/VNA) – The Vietnam National Textile and Garment Group(Vinatex), stock code VGT, predicts its consolidated profit before tax thisyear to fall by half to 382 billion VND (16.5 million USD) year on year due tothe negative impacts of the COVID-19 pandemic.

This is the lowest consolidated profit before tax over the past four years,according to Vinatex.

Its business reports for its annual general meeting of shareholders this yearhave also revealed that its consolidated revenue is estimated at 14.64 trillionVND, down 27 percent compared to last year.

Vinatex said the reductions were due to the impact of the COVID-19 pandemic onits member companies' production and business.

In the report, Vinatex has targeted this year’s revenue of the parent companyat about 1.33 trillion VND, down by 5 percent and profit before tax at 130billion, down by 56 percent compared to 2019 because of difficulties inproduction and business during and after the pandemic.

Tran Quang Nghi, chairman of the Vinatex board of directors, said in the2020-25 period, the group must adjust its development strategy because it facedcompetition in technology but not in price 10 years ago.

In its development plan for this period, Vinatex would promote mergers andacquisitions, and restructure its businesses because the group's currentbusiness and production model will become inefficient.

Accordingly, the group would renew management and business models, as well astechnology and products. Besides continuing divestment, it would also buyshares of other companies as well as invest in newly-established enterprisesnecessary for the development strategy.

Vinatex's consolidated revenue in 2019 reached 20.14 trillion VND,similar to 2018, fulfilling 91 percent of the 2019 plan. Its profit before taxwas 765.5 billion VND, or 91.2 percent of the yearly plan and up 0.5 percentover the same period last year.

With these business results, the Board of Directors has submitted toshareholders the cash dividend payment plan at a rate of 5 percent with a totalpayment of 250 billion VND.

According to the General Department of Customs, in the first five months of thisyear, the domestic textile and garment industry saw a year on year reduction of13.6 percent in total export value to 10.56 billion USD due to the impacts ofthe pandemic.

However, this export value in May surged by 16 percent to 1.87 billion USD againstthe previous month.

In the first five months, the US remained the largest textile and garmentexport market of Vietnam, with an export value of 4.84 billion USD, down by14.9 percent over the same period last year.

Japan was the second largest export market with a value of 1.39 billion USD,down by 4.1 percent and the EU ranked third with an export value of 1.26billion USD, down by 19 percent./.