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Vinatex transfers Hanosimex holding to new subsidiary

Released at: 08:40, 28/11/2016

Vinatex transfers Hanosimex holding to new subsidiary

Photo: Duc Anh

Textile giant transfers 57.5% holding to recently-established Northern Corporation.

by Quynh Nguyen

The Vietnam National Textile and Garment Group (Vinatex) has announced the transfer of 11.8 million shares in the Hanoi Textile and Garment JSC (Hanosimex) to the recently-established Northern Corporation (VNC Corp), to contribute capital to the new company.

The number of shares transferred is equivalent to 57.5 per cent of Hanosimex’s charter capital, meaning Vinatex is no longer its major shareholder.

Vinatex launched VNC Corp on April 12. The new company has charter capital of VND500 billion ($22.4 million) and was formed following a merger of four Vinatex subsidiaries: the Dong Xuan Knitting Sole Member Limited Liability Company, the Vinatex Hong Linh JSC, the Ha Noi Textile and Garment Joint Stock Corporation, and the 8-3 Textile Limited Company.

Vinatex’s revenue in the third quarter stood at VND4.1 trillion ($18.4 million) and after-tax profit VND152 billion ($6.6 million). In the first nine months of this year revenue reached VND11.3 trillion ($497.2 million) and after-tax profit VND455 billion ($20 million).

Vinatex has targeted export turnover of $2.6 billion this year, representing growth of 10 per cent. “The US, Japan and the EU will remain key markets for Vinatex,” Ms. Pham Ngoc Han, Head of the Shareholder Relations and Information Communications Department at Vinatex, told VET in June.

The group also aims to develop the original equipment manufacturer (ODM) - free-on-board (FOB) model as a breakthrough in increasing its competitiveness domestically and with textile exporters in other countries such as China, India, and Bangladesh.

Last year it established a Supply Chain Development Center (SCDC) and two corporations in the north and the south of the country to create a supply chain from raw materials to finished products, making the most of production capacity at its subsidiaries.

CEO Mr. Le Tien Truong told its annual general meeting that the group will implement a range of solutions to record growth of 10 per cent this year, including supporting its subsidiaries to expand markets and improve market share and establishing an FTA research team to develop business plans and avoid internal competition.

Vinatex now has 85,000 employees earning an average monthly income of VND6.3 million ($284). Last year its industrial production value stood at over VND36 trillion ($1.62 billion), revenue VND39.5 trillion ($1.77 billion), and pre-tax profit VND628 billion ($28.2 million).

Vietnam’s textile sector was expected to benefit from the TPP, but after US President-elect Donald Trump said the country would withdraw from the deal the future is now uncertain.

“If the TPP is implemented it will bring many benefits to Vietnam in many sectors,” said Minister of Industry and Trade Tran Tuan Anh. “Vietnam’s key export products like textiles, garments, footwear, and seafood will likely see breakthroughs in export value to the US, Japan and Canada. If the TPP is not implemented, Vietnam still has other export markets.”

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