LEE EUN HONG
Year 2020 is considered the difficult year for the export industries in general and the textile garment industry in particular due to the Covid 19 epidemic happened worldwide. The shortage situation and cancellation of orders make Vietnamese textile and apparel companies face many difficulties and challenges and Thanh Cong Company is no exception. However, in the risks there are chances, in past times with the continuous efforts of the Board of Directors and whole the employees, the Company has quickly researched and produced antibacterial fabrics for sewing masks and medical protective clothes as well as antibacterial fabric orders for export to the US, EU, Japan markets…to replace the shortage of traditional orders. This has contributed significantly to creating revenue and profits as well as protecting community health, at the same time, creating jobs and stable incomes for 7,500 employees. In the past time, none of the Company’s employees have been laid off or had their wages cut due to the Covid 19 pandemic. Estimated turnover in the first 6 months of 2020 is about 1,721 billion VND, equivalent to 73.2 million USD, achieving 93% of the target, the after-tax profit is about 111 billion VND, equivalent to 4.7 million USD, achieving 117% of the target.
Beside the general difficulties of the world economy caused by the epidemic since the beginning of the year, Vietnam has well controlled the epidemic. The Vietnam – EU Free Trade Agreement, which was signed and will come into effect on August 1, 2020. This will open opportunities for Vietnam Textile and Garment Exporters in general and Thanh Cong in particular. Although the trade agreements bring benefits to the textile and garment industry, we understand that only internal efforts are the most crucial to help the Company grow quickly and sustainably. To achieve the business results set for 2020 with a turnover of 3,780 billion VND and an after-tax profit of 188 billion VND, the Company will focus on the following issues:
Firstly, on the basis of building the R&BD center in 2015, we continue to coordinate with the Korean Textile Testing Institute KOTITI to develop qualified human resources to serve research and development work. In order to export to the US, Japan, EU, and South Korea markets, our prices are very competitive, however, we will not compete by reducing prices but instead we will focus on quality improvement through research and development activities to serve customers and catch up the world fashion trend. In the coming time, the Company continues to research and produce high quality products with outstanding features, environmentally friendly, cutting costs and shortening delivery time to meet rigorous and increasingly requirements of customers.
Secondly, improve efficiency and production speed through the application of technology, technical improvements and management methods. Labor cost advantage will no longer be the opportunity in the near future. To ensure competition in the game with countries and businesses in the same industry, cutting costs based on improving production efficiency will be the prerequisite.
Thirdly, the trend of business on e-commerce platform has become an indispensable trend now and in the future, more visible after the last Covid-19 pandemic, so besides exporting business by the traditional ways, we are approaching and seeking partners to promote investment in online business through famous e-commerce channels Amazon, Alibaba, Cosco…
Fourthly, to take advantages of the verticle production system and EVFTA and CPTPP free trade agreements bring, we plan to continue investing in the sewing factory 2, the knitting factory and the dyeing factory in the 2021-2023 period in Hoa Phu industrial park, Vinh Long province on area 13 ha land fund invested in 2014.
Doing business on the knowledge base and catching up with the trend in the new era, we understand that the constant effort and innovation are the factors those bring success. In times of crisis, the history has left that ordinary companies go bankrupt, good companies hope to survive and only great companies can transform and thrive.
On behalf of the Company, I would like to express my sincere thanks to the shareholders, customers, partners who have put their trust, the employees who have worked hard and devoted their great efforts to the development of the Company. We will try our best to create more values, bring trust to customers, shareholders, and contribute to the Company’s sustainable and strong development.
LEE EUN HONG
CEO / General Director
CEO / General Director