Vietnam's textile and garment exports reached $17.1 billion in the first nine months of this year, of which exports to the TPP's 12 member countries accounted for around 66 percent, according to the Ministry of Industry and Trade. Out of the total eight listed Vietnamese garment companies, two biggest listed garment companies, TNG Investment and Trading Co (TNG) and Thanh Cong Trade Textile Garment Investment Co (TCM) have reported positive results in the first nine months of this year, foreshadowing perhaps a bright future for the country's textile industry under the potential Trans Pacific Partnership (TPP) trade agreement.
On Monday, TNG Investment and Trading Co (TNG) reported year-on-year increases of 24 per cent in both revenue and net profit in the third quarter which were VND627 billion ($28 million) and VND25 billion ($1.1 million), respectively.
Through the first nine months of the year, TNG posted a combined revenue of VND1.42 trillion ($63.4 million), up 38 percent over the same period of last year, while its net profit reached almost VND59 billion ($2.6 million), up 47 per cent year-on-year.
Since garment and textile sector is expected to be one of the industries which will benefit the most from TPP, garment firms are proactively putting in place measures to capitalise on this opportunity.
Thanh Cong Trade Textile Garment Investment Co (TCM) is investing in a weaving and dying garment factory with a total investment of $30 million during the 2014-17 period. Meanwhile, TNG has put into operation another cotton production line, worth more than VND40 billion ($1.8 million) to raise capacity 300 per cent.
TCM estimated its sales reached VND825 billion ($36.8 million), up 32 per cent from the same period a year earlier, while profit is estimated at VND80 billion ($3.6 million), up 74 percent from a year ago.
The company's nine-month net sales rose 12 percent to VND2.16 trillion (US$96.4 million), equivalent to 78 per cent of the company's target for the whole year.
Of total eight listed garment firms, TCM is the largest one with a market value of VND1.84 trillion ($82 million) as of October 13. It was also the most profitable firm in the first half of the year with sales and profit accounting for 33 per cent and 39 per cent, respectively, of the entire sector.
TCM price rose 1.4 percent yesterday after the news to VND37,500 ($1.67) a share. The share price has climbed over 10 per cent in the past month, fueled by expectations of the success of TPP negotiations.
According to a report by brokerage Bao Viet Securities Co's this month, TCM's total revenue could reach over VND2.76 trillion ($123.2 million) and after-tax profit is projected at VND171 billion ($7.6 million) by year-end, up 7.5 per cent and 6.2 per cent year-on-year, respectively.
As per the World Bank's latest report, if the TTP takes effect, Vietnam's garment and textile sector could grow 41 percent, equivalent to an increase of $11.5 billion, by 2020.
Each country and members of the TPP, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam must endorse the pact for it to take effect.
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