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|TNG has set the target of 15 per cent annual growth in 2019-2024|
Before the annual shareholders’ meeting of TNG is organised on April 21, the company's Board of Directors released the target of an annual increase of 15 per cent in both revenue and profit for the next five years, 1.5 times higher than the previous plan for 2018-2022.
In 2018, TNG reported a revenue of VND3.61 trillion ($156.96 million) and after-tax profit of VND181 billion ($7.87 million), signifying increases of 45 and 57 per cent on-year, respectively. This year, the company expects to acquire VND4.15 trillion ($180.4 million) in revenue and VND208 billion ($9.04 million) in after-tax profit.
As of now, TNG signed contracts for orders until September this year. If the company maintains its current growth speed, it may reach VND4.5 trillion ($195.65 million) in revenue.
Along with existing customers like Zara, Mango, GAP, and CK, the company has signed with names like G-III from the US, Imperal from Canada, and Chois from South Korea.
According to CEO Nguyen Van Thoi, there are massive orders from the US and Canada, opening opportunities for local garment and textile enterprises, including TNG, to select the most promising customers to create more added value. TNG’s export turnover to the US makes up more than 50 per cent of the company’s total export turnover, while the runner up is Europe with 45 per cent.
“The CPTPP also opens massive opportunities for TNG to approach new markets like Japan and Singapore, while simultaneously reinforcing its presence in Canada. TNG has advantages in export tax because it is transferring to Freight on Board (FOB) operations. Besides, the company imports materials from CPTPP member countries, thus, its products ensure the ‘yard forward’ requirement,” Thoi added.
The company currently has 11 garment facilities and two garment production auxiliary facilities with a total of 220 sewing lines. The number of sewing lines is expected to increase to 250 units by 2020. Besides, the company plans to decrease CMT (Cut, Make & Trim) product volume and simultaneously increase the proportion of FOB production, leading to an increase in the gross profit margin.
In addition, TNG has been paying more attention to the original design manufacturing (ODM) activities of the TNG Fashion brand to increase the gross profit margin of this operation segment by 30-40 per cent.
Thoi said that TNG has adopted numerous solutions to improve the quality and capacity of its products, including building detailed manufacturing and business plans, hiring foreign experts, and motivating employees to improve their performance.
Besides, the company invested in technology and machinery. In 2018 alone, the company recruited 2,400 employees.
Vietnam is the second largest export partner of the US in garment and textiles, with a market share of 13.2 per cent, just behind China with 36 per cent.