VIETNAM TEXTILE AND APPAREL INDUSTRY REPORT Q1/2018

Transcription

1 VIETNAM TEXTILE AND APPAREL INDUSTRY REPORT Q1/2018 1

2 TABLE OF CONTENTS Contents Page Contents Page ABBREVIATIONS Textile dyeing 43 SUMMARY Apparel 47 I. Business environment Distribution and export system Macroeconomic situation Machinery of textile apparel industry Legal framework Vietnam textile and apparel market Trade agreements Vietnam textile and apparel market's overview 59 II. Industry overview Input materials World textile and apparel market Spinning Value chain of textile and apparel industry Textile dyeing Input materials Apparel Spinning Distribution and export system 92 2

3 TABLE OF CONTENTS Contents Page Contents Page III. Industry outlook and risk 95 IV. Enterprise analysis Industry risk Garment enterprise analysis forces analysis Textile and fiber enterprise analysis SWOT analysis 99 IV. Conclusion Risks 101 Appendix Industry outlook Industry planning Forecast and assessment of industry outlook 107 3

4 ABBREVIATIONS ABBREVIATIONS Shortened form Full form Shortened form Full form CAGR Compounded Annual Growth Rate PET Polyethylene terephthalate CMT Cut Make Trim GDVC General Department of Vietnam Customs CNTAC China National Textile & Apparel Council GSO General Statistics Office of Vietnam CPI Consumer Price Index CI Corporate Income JCS Joint Stock Company Co., Ltd. Company Limited NR Net Revenue FA Fixed Assets EU European Union LTA Long-term Assets GDP Gross Domestic Product LSA Short-term Assets OBM Original brand manufacturer UAE The United Arab Emirates ODM Original design manufacturer VCOSA Vietnam Cotton and Spinning Association OEM Original Equipment Manufacturer VINATEX Vietnam Textile Corporation VITAS Vietnam Textile and Apparel Association 4

5 SUMMARY WORLD TEXTILE AND APPAREL MARKET The world textile and apparel industry is deeply influenced by macroeconomic fluctuations. China, The United States, Germany and Japan are the largest textile and apparel consuming countries in the world. 5

6 SUMMARY VIETNAM TEXTILE AND APPAREL MARKET Textile and apparel industry is one of the key sectors of Vietnam and has the second largest export turnover with export value contributing 10-15% to GDP. Domestic textile and apparel enterprises are weak in the knowledgeintensive stages such as building distribution system, exporting, designing and branding.. Vietnam is one of the top 10 textile and apparel exporting countries in the world. 6

7 TABLE OF CONTENTS Part I. Business environment 1. Macroeconomic situation 2. Legal framework 3. Trade agreements 4. Trans-Pacific Partnership Agreement 7

8 Part I. Business environment 1. Macroeconomic situation Gross domestic product in 2017 is estimated to increase by 6.81% over 2016, GDP growth rate by quarter, Source: VIRAC, GSO GDP by current price and GDP per capita, VND Trillion Source: VIRAC, GSO 8

9 Part I. Business environment 1. Macroeconomic situation FDI in 2017 had a strong growth Billion USD FDI capital, FDI attraction by sector, 2017 Sources: VIRAC, FIA Sources: VIRAC, FIA 9

10 Part I. Business environment 1. Macroeconomic situation Total value of exported and imported commodity of Vietnam in 2017 reached billion USD Imports and exports of commodity, Billion USD Billion USD Sources: VIRAC, GSO 10

11 Part I. Business environment 1. Macroeconomic situation USD million Main imported products from China, 2017e USD million Source: VIRAC, GDVC Main exported products to China, 2017e VND/CNY exchange rate, 2/ /2017 Source: VIRAC, GDVC Source: VIRAC 11

12 Part I. Business environment 1. Macroeconomic situation In 2017, the VND / USD exchange rate was quite stable around VND 22,400 VND/USD exchange rate, Source: VIRAC, SBV 12

13 Part I. Business environment 1. Macroeconomic situation Impact of related sectors Petrochemical refining projects being implemented in Vietnam Project Location Investment capital (USD billion) Capacity (million tons/year) Source: VIRAC 13

14 Part I. Business environment 1. Macroeconomic situation Impact of related sectors For the whole of 2017, the total retail sales of consumer goods and services are estimated at 3,934.2 VND trillion, Retail sales of goods, Source: VIRAC, GSO 14

15 Part I. Business environment 1. Macroeconomic situation Impact of related sectors Leading retailers in Vietnam market, 2016 Brand Company Number of stores Revenue in 2016 (USD million) Boom of modern retail systems: (*) estimated Source: VIRAC, Retail Asia Publishing 15

16 TABLE OF CONTENTS Part I. Business environment 1. Macroeconomic situation 2. Legal framework 3. Trade agreements 4. Trans-Pacific Partnership Agreement 16

17 Part I. Business environment 2. Legal framework Group of regulations and standards on textile and apparel production: 17

18 Part I. Business environment 2. Legal framework Group of policies and regulations affecting the industry 18

19 Part I. Business environment 2. Legal framework The social insurance law of 2014 stipulates that from January 1, 2018, women workers pay social insurance for 30 years to receive 75% of pension. 19

20 Part I. Business environment 2. Legal framework Group of regulations on import and export: Group of tax regulations: Import Tax Corporate Income Tax 20

21 TABLE OF CONTENTS Part I. Business environment 1. Macroeconomic situation 2. Legal framework 3. Trade agreements 4. Trans-Pacific Partnership Agreement 21

22 Part I. Business environment 3. Trade agreements 22

23 Part I. Business environment 3. Trade agreements Vietnam South Korea Free Trade Agreement 23

24 Part I. Business environment 3. Trade agreements Vietnam EU Free Trade Agreement 24

25 Part I. Business environment 3. Trade agreements Comprehensive and Progressive Agreement for Trans-Pacific Partnership 25

26 Part I. Business environment 3. Trade agreements Regional Comprehensive Economic Partnership (RCEP) 26

27 TABLE OF CONTENTS Part II. Industry overview 1. World textile and apparel market 1.1. Industry size 1.2. Value chain of global textile and apparel market 1.3. Input materials 1.4. Spinning 1.5. Textile dyeing 1.6. Apparel 1.7. Distribution and export system 1.8. Machinery of textile apparel industry 27

28 Part II. Industry overview 1.1 Industry size Revenue growth of global textile and apparel industry, f Sources: VIRAC, Euromonitor Passport Data 2017 In 2017, the global textile and garment turnover is estimated at about USD 1,400 million. 28

29 TABLE OF CONTENTS Part II. Industry overview 1. World textile and apparel market 1.1. Industry size 1.2. Value chain of global textile and apparel market 1.3. Input materials 1.4. Spinning 1.5. Textile dyeing 1.6. Apparel 1.7. Distribution and export system 1.8. Machinery of textile apparel industry 29

30 Part II. Industry overview 1. World textile and apparel market 1.2. Value chain of global textile and apparel market 30

31 Part II. Industry overview 1. World textile and apparel market 1.2. Value chain of global textile and apparel market Value chain of global textile and apparel industry is divided into 5 basic stages 31

32 Part II. Industry overview 1. World textile and apparel market 1.2. Value chain of global textile and apparel market CMT OEM/FOB ODM OBM 32

33 TABLE OF CONTENTS Part II. Industry overview 1. World textile and apparel market 1.1. Industry size 1.2. Value chain of global textile and apparel market 1.3. Input materials 1.4. Spinning 1.5. Textile dyeing 1.6. Apparel 1.7. Distribution and export system 1.8. Machinery of textile apparel industry 33

34 Part II. Industry overview 1. World textile and apparel market 1.3. Input materials Cotton is the input material of the textile and apparel industry to produce natural fibers. Cotton is grown in more than 100 countries around the world and is highly concentrated in three major producing countries: India, China and the United States. USD/kg World cotton price, 9/ /2017 Source: VIRAC, Indexmundi 34

35 Part II. Industry overview 1. World textile and apparel market 1.3. Input materials MEG price fluctuations in Asia, 4/2016 1/2017 MEG In the first months of 2017, prices of MEG, PTA, Chip and other products in Asian polyester chains such as PX, PSF tended to increase significantly. Polyester Chip Price Fluctuations in China, 4/2016-1/2017 USD/ton PTA price fluctuations, 4/2015 4/2017 Source: VIRAC, EmergingTextiles Chip Source: VIRAC, EmergingTextiles Source: VIRAC, EmergingTextiles 35

36 36 Part II. Industry overview 1. World textile and apparel market 1.3. Input materials Million tons Global cotton production, 2012/ /2018e Global cotton consumption, 2012/ /2018e Million tons Source: VIRAC, Cotton inc Source: VIRAC, Cotton inc

37 37 Part II. Industry overview 1. World textile and apparel market 1.3. Input materials Cotton productivity in some countries, 2015/ /2018e There are two method of producing cotton in the world: Kg/ha Brazil's cotton productivity has been greatly improved thanks to technological improvements. Cotton productivity in Vietnam is low compared to that of many other countries in the world. Source: VIRAC, USDA, Indexmundi Indian cotton productivity is low due to unfavorable natural conditions.

38 38 Part II. Industry overview 1. World textile and apparel market 1.3. Input materials The United States China Bangladesh Turkey India

39 Part II. Industry overview 1. World textile and apparel market 1.3. Input materials Thousand tons World cotton exports, 2012/ /18e World cotton imports, 2012/ /18e Thousand tons Source: VIRAC, USDA Source: VIRAC, USDA 39

40 TABLE OF CONTENTS Part II. Industry overview 1. World textile and apparel market 1.1. Industry size 1.2. Value chain of global textile and apparel market 1.3. Input materials 1.4. Spinning 1.5. Textile dyeing 1.6. Apparel 1.7. Distribution and export system 1.8. Machinery of textile apparel industry 40

41 Part II. Industry overview 1. World textile and apparel market 1.4. Spinning Million tons Fiber production and consumption worldwide, Price index of fiber and oil up to 4/2016 Source: VIRAC, The fiber year, FRED Source: VIRAC, Emerging Textile 41

42 Part II. Industry overview 1. World textile and apparel market 1.4. Spinning Global fiber consumption structure, 2016 Structure of global consumption purpose of fiber, 2014 Content Source: is VIRAC, intentionally ICAC, CIRFS, TFY, FEB removed for demo purpose Global demand for types of fiber e Cotton and polyester fibers are the two main types of fibers. Million tons Source: VIRAC, PCI Fibres 42

43 TABLE OF CONTENTS Part II. Industry overview 1. World textile and apparel market 1.1. Industry size 1.2. Value chain of global textile and apparel market 1.3. Input materials 1.4. Spinning 1.5. Textile dyeing 1.6. Apparel 1.7. Distribution and export system 1.8. Machinery of textile apparel industry 43

44 Part II. Industry overview 1. World textile and apparel market 1.5. Textile dyeing Global fiber and fabric production index, Q1/2014 Q3/2016 Source: VIRAC, ITMF Global textile trade, e USD billion Source: VIRAC, UNcomtrade 44

45 Part II. Industry overview 1. World textile and apparel market 1.5. Textile dyeing 45

46 Part II. Industry overview 1. World textile and apparel market 1.5. Textile dyeing Top 10 largest textile exporters in the world, 2016 Billion USD In 2016, in terms of the textiles exports, China, EU28 and India are still the three countries and regions with the largest export turnover, Sources: VIRAC, WTO Secreteriat Top 10 largest importers of textiles in the world, 2016 Billion USD Sources: VIRAC, WTO Secreteriat 46

47 TABLE OF CONTENTS Part II. Industry overview 1. World textile and apparel market 1.1. Industry size 1.2. Value chain of global textile and apparel market 1.3. Input materials 1.4. Spinning 1.5. Textile dyeing 1.6. Apparel 1.7. Distribution and export system 1.8. Machinery of textile apparel industry 47

48 Part II. Industry overview 1. World textile and apparel market 1.6. Apparel Scale of global textile production e USD billion Source: VIRAC, Marketline 48

49 Part II. Industry overview 1. World textile and apparel market 1.6. Apparel Global textile and apparel trade is heavily influenced by major economies such as Europe and the United States. USD billion Global textile and apparel import and export value, e Source: VIRAC, UN Comtrade 49

50 Part II. Industry overview 1. World textile and apparel market 1.6. Apparel World's top 10 largest apparel exporting countries, 2016 USD billion Source: VIRAC, WTO Secreteriat World's top 10 largest apparel importing countries, 2016 USD billion Source: VIRAC, WTO Secreteriat 50

51 Part II. Industry overview 1. World textile and apparel market 1.6. Apparel Export structure of textile and apparel worldwide 2016e USD billion Global apparel trade value F Source: VIRAC, Marketline Source: VIRAC, Marketline 51

52 Part II. Industry overview 1. World textile and apparel market 1.5. Apparel Scale of global apparel market f USD billion There is a huge gap in annual spending on apparel per capita between developing and developed countries. Spending on apparel per capita F USD/year Source: VIRAC, Euromonitor 52

53 Part II. Industry overview 1. World textile and apparel market 1.6 Apparel USD/month Average wage in some countries, 2016 Currently, the textile and apparel industry is gradually improving, but there are still big gap among countries. Source: VIRAC, Jobstreet Average wage of textile and apparel industry in some countries, 2016 USD/month Source: VIRAC, Jobsteet 53

54 TABLE OF CONTENTS Part II. Industry overview 1. World textile and apparel market 1.1. Industry size 1.2. Value chain of global textile and apparel market 1.3. Input materials 1.4. Spinning 1.5. Textile dyeing 1.6. Apparel 1.7. Distribution and export system 1.8. Machinery of textile apparel industry 54

55 Part II. Industry overview 1. World textile and apparel market 1.7. Distribution and export system Export and marketing Commercialization USD billion The value of global Content apparel retail is industry intentionally e removed for demo purpose Source: VIRAC, Marketline 55

56 TABLE OF CONTENTS Part II. Industry overview 1. World textile and apparel market 1.1. Industry size 1.2. Value chain of global textile and apparel market 1.3. Input materials 1.4. Spinning 1.5. Textile dyeing 1.6. Apparel 1.7. Distribution and export system 1.8. Machinery of textile apparel industry 56

57 Part II. Industry overview 1. World textile and apparel market 1.8. Machinery of textile apparel industry World's top largest textile machinery importing countries, 2016e USD thousand USD thousand World's top largest textile machinery exporting countries, 2016e Source: VIRAC, ITC Source: VIRAC, ITC 57

58 Part II. Industry overview 1. World textile and apparel market 1.8. Machinery of textile apparel industry Some of the largest textile manufacturers in the world Country Manufacturer 58

59 TABLE OF CONTENTS Part II. Industry overview 2. Vietnam textile and apparel industry 2.1. Industry overview 2.2. Input materials 2.3. Spinning 2.4. Textile dyeing 2.5. Apparel 2.6. Distribution and export system 59

60 Part II. Industry overview 2. Vietnam textile and apparel industry 2.1. Industry overview INDUSTRY OVERVIEW Indicator Value 60

61 Part II. Industry overview 2. Vietnam textile and apparel industry 2.1. Industry overview Number of enterprises of Vietnam textile and apparel industry, Sectors Sources: VIRAC, GSO 61

62 Part II. Industry overview 2. Vietnam textile and apparel industry 2.1. Industry overview The South East region is home for the largest number of textile and apparel enterprises in the country with three major cities: Ho Chi Minh City, Binh Duong and Dong Nai. Textile and apparel enterprises distributed by region, 2016 Source: VIRAC, MOIT 62

63 Part II. Industry overview 2. Vietnam textile and apparel industry 2.1. Industry overview At present, Vietnam has 8,149 private enterprises in the textile and apparel industry, mainly located in the South East, Textile and apparel private enterprises distributed by region, 2016 Sources: VIRAC, GSO The proportion of turnover of types of apparel enterprises, 2014 Sources: VIRAC, Enterprise Survey

64 Part II. Industry overview 2. Vietnam textile and apparel industry 2.1. Industry overview Numbers of laborers in Vietnam textile and apparel industry, Sectors Proportion of textile and apparel sectors in 2016 Sources: VIRAC, GSO Textile and apparel is currently the most labor-intensive industry. The labor force of the textile and apparel industry accounts for more than 20% of the labor force in the industrial sector and nearly 5% of the total labor force. 64

65 Part II. Industry overview 2. Vietnam textile and apparel industry 2.1. Industry overview Textile and apparel industry responds to industrial revolution 4.0 : 65

66 Part II. Industry overview 2. Vietnam textile and apparel industry 2.1. Industry overview No. Type 2013 (Million USD) The import-export balance of Vietnam's textile and apparel commodity, (Million USD) 2015 (Million USD) 2016 (Million USD) 2017 (Million USD) 2017 compared to 2016 (%) Sources: VIRAC, VITAS 66

67 TABLE OF CONTENTS Part II. Industry overview 2. Vietnam textile and apparel industry 2.1. Industry overview 2.2. Input materials 2.3. Spinning 2.4. Textile dyeing 2.5. Apparel 2.6. Distribution and export system 67

68 Part II. Industry overview 2. Vietnam textile and apparel industry 2.2. Input materials Thousand tons Tình hình sản xuất bông của Việt Nam, 2013/ /2017e Thousand hectares Cotton planting area in some major regions Thousand hectares Source: VIRAC, Vietrade, Cotton, inc Source: VIRAC, MARD, GSO 68

69 Part II. Industry overview 2. Vietnam textile and apparel industry 2.2. Input materials Method of cultivation and cotton growing regions of Vietnam Region Features 69

70 Part II. Industry overview 2. Vietnam textile and apparel industry 2.2. Input materials Million tons Cotton consumption value in Vietnam, 2010/ /2017e The area of cotton plantation in the Northwest and the South West has fallen sharply since the 2014/2015 season as farmers move to more productive crops. Source: VIRAC, Vietrade, Cotton, inc 70

71 Part II. Industry overview 2. Vietnam textile and apparel industry 2.2. Input materials USD/kg Cotton import price, 10/ /2017 Source: VIRAC, GDVC 71

72 Part II. Industry overview 2. Vietnam textile and apparel industry 2.2. Input materials Thousand tons Cotton imports in Vietnam, e USD million Vietnam imports cotton mainly from the US, India, Australia, Brazil, Ivory Coast... in which America is the main market, Source: VIRAC, GDVC Import market structure of cotton in Vietnam, 2017e Source: VIRAC, GDVC 72

73 Part II. Industry overview 2. Vietnam textile and apparel industry 2.2. Input materials Import and export of some other raw materials: Import-export turnover of textile, leather and foot-wear materials and auxiliaries, e USD million Source: VIRAC, GDVC Import market structure of textile, leather and foot-wear materials and auxiliaries, 2017e Export market structure of textile, leather and foot-wear materials and auxiliaries, 2017e Source: VIRAC, GDVC Source: VIRAC, GDVC 73

74 TABLE OF CONTENTS Part II. Industry overview 2. Vietnam textile and apparel industry 2.1. Industry overview 2.2. Input materials 2.3. Spinning 2.4. Textile dyeing 2.5. Apparel 2.6. Distribution and export system 74

75 Part II. Industry overview 2. Vietnam textile and apparel industry 2.3. Spinning Thousand tons Yarn production volume, e Source: VIRAC, GSO Thousand tons Yarn volume and consumption value, e VND billion Source: VIRAC, GSO 75

76 Part II. Industry overview 2. Vietnam textile and apparel industry 2.3. Spinning USD million Yarn import and export in Vietnam, e Source: VIRAC, GDVC 76

77 Part II. Industry overview 2. Vietnam textile and apparel industry 2.3. Spinning In 2017, China is the main yarn export market of Vietnam, Export structure of yarn by volume, 2017e Import structure of yarn by volume, 2017e Source: VIRAC, GDVC Source: VIRAC, GDVC 77

78 Part II. Industry overview 2. Vietnam textile and apparel industry 2.3. Spinning Number of yarn piles and rotors in Vietnam yarn industry, e Long fiber producing enterprises in Vietnam Company name Capacity Product segment Source: VIRAC, VITAS Source: VIRAC, VITAS 78

79 Part II. Industry overview 2. Vietnam textile and apparel industry 2.3. Spinning Some fiber projects in Vietnam in the period Time Company name Country Investment Value (USD million) Location Source: VIRAC 79

80 TABLE OF CONTENTS Part II. Industry overview 2. Vietnam textile and apparel industry 2.1. Industry overview 2.2. Input materials 2.3. Spinning 2.4. Textile dyeing 2.5. Apparel 2.6. Distribution and export system 80

81 Part II. Industry overview 2. Vietnam textile and apparel industry 2.4. Textile dyeing Fabric production volume in Vietnam, e Million m² Vietnam's fabric production only meets 15-16% of demand. Content is intentionally Source: VIRAC, GSO removed for demo purpose VND trillion Fabric consumption value, e Production structure of Vietnamese fabrics, e Source: VIRAC, GSO Source: VIRAC, GSO 81

82 Part II. Industry overview 2. Vietnam textile and apparel industry 2.4. Textile dyeing USD million Fabric export-import turnover of Vietnam, e Vietnam's fabric import market structure, 2017e Source: VIRAC, GDVC Source: VIRAC, GDVC 82

83 Part II. Industry overview 2. Vietnam textile and apparel industry 2.4. Textile dyeing Textile dyeing and finishing process 83

84 Part II. Industry overview 2. Vietnam textile and apparel industry 2.4. Textile dyeing General assessment of textile machinery and technology in Vietnam General assessment of dyeing technology in Vietnam Material and power Unit Vietnam Germany Finland Source: VIRAC 77

85 Part II. Industry overview 2. Vietnam textile and apparel industry 2.4. Textile dyeing Causes leading to the nondevelopment of Vietnam textile dyeing industry: 85

86 TABLE OF CONTENTS Part II. Industry overview 2. Vietnam textile and apparel industry 2.1. Industry overview 2.2. Input materials 2.3. Spinning 2.4. Textile dyeing 2.5. Apparel 2.6. Distribution and export system 86

87 Part II. Industry overview 2. Vietnam textile and apparel industry 2.5. Apparel Million units Apparel production volume, e Garment production volume is increasing but mostly for export. Content is intentionally Source: VIRAC, removed GSO for demo purpose Market share of domestic apparel market, 2016e 87

88 Part II. Industry overview 2. Vietnam textile and apparel industry 2.5. Apparel USD million Apparel exports (including fabric) of Vietnam, e In general, the domestic apparel market is still rather modest due to people's low living standards. Source: VIRAC, GDVC Structure of apparel for export, 6M/2017e Source: VIRAC, VITAS 88

89 Part II. Industry overview 2. Vietnam textile and apparel industry 2.5. Apparel Export market structure of textiles and apparel in Vietnam, 2017e The United States, the EU, Japan, Korea are the four largest importers of textiles and garments in Vietnam. Source: VIRAC, GDVC USD billion Export value of textiles and apparel to some countries, e Source: VIRAC, GDVC 89

90 Part II. Industry overview 2. Vietnam textile and apparel industry 2.5. Apparel Textile and apparel exports of FDI enterprises and domestic USD billion enterprises, 2017e Source: VIRAC, GDVC 90

91 Part II. Industry overview 2. Vietnam textile and apparel industry 2.5. Apparel Average time of order production in Vietnam (day) Average time of order production in some countries (day) Countries US EU Japan China India Vietnam Source: VIRAC Inventory index of textile and apparel industry, 8/ /2017 Source: VIRAC, GSO 91

92 TABLE OF CONTENTS Part II. Industry overview 2. Vietnam textile and apparel industry 2.1. Industry overview 2.2. Input materials 2.3. Spinning 2.4. Textile dyeing 2.5. Apparel 2.6. Distribution and export system 92

93 Part II. Industry overview 2. Vietnam textile and apparel industry 2.6. Distribution and export system Export, distribution and marketing activities Domestic textile and apparel enterprises do not have a large distribution system to the consumers, especially in the international market. In the domestic market, the distribution system is still very limited and the distribution channel development strategy is still problematic. 93

94 Part II. Industry overview 2. Vietnam textile and apparel industry 2.6. Distribution and export system Method of export of textiles and apparel Payment methods 94

95 TABLE OF CONTENTS Part III. Industry outlook and risk 1. Industry risk 1.1. Five Forces analysis 1.2. SWOT analysis 1.3. Risks 95

96 Part III. Industry outlook and risk 1. Industry risk 1.1. Five Forces analysis In general, competition in the textile and apparel industry in Vietnam is high. Competition level of textile and apparel industry in Vietnam Sources: VIRAC collects Factors Opinions Assessment 96

97 Part III. Industry outlook and risk 1. Industry risk 1.1. Five Forces analysis Factors Opinions Assessment Factors Opinions Assessment 97

98 Part III. Industry outlook and risk 1. Industry risk 1.1. Five Forces analysis Factors Opinions Assessment Factors Opinions Assessment 98

99 TABLE OF CONTENTS Part III. Industry outlook and risk 1. Industry risk 1.1. Five Forces analysis 1.2. SWOT analysis 1.3. Risks 99

100 Part III. Industry outlook and risk 1. Industry risk 1.2. SWOT analysis Strengths Weaknesses Opportunities Threats 100

101 MỤC LỤC Part III. Industry outlook and risk 1. Industry risk 1.1. Five Forces analysis 1.2. SWOT analysis 1.3. Risks 101

102 Part III. Industry outlook and risk 1. Industry risk 1.3. Risks Risk of economic integration Competitive risk Legal framework risk 93

103 Part III. Industry outlook and risk 1. Industry risk 1.3. Risks Risk of input materials Economic risk Labor risk 94

104 TABLE OF CONTENTS Part III. Industry outlook and risk 2. Industry outlook 2.1. Industry planning 2.2. Forecast and assessment of industry outlook 104

105 Part III. Industry outlook and risk 2. Industry outlook 2.1. Industry planning On April 11, 2014, the Ministry of Industry and Trade issued Decision No. 3128/QD-BCT approving the master plan for the development of Vietnam's textile and apparel industry to 2020 with a vision to

106 Part III. Industry outlook and risk 2. Industry outlook 2.1. Industry planning Specific targets of the textile and apparel industry to 2030 Indicator Unit

107 MỤC LỤC Part III. Industry outlook and risk 2. Industry outlook 2.1. Industry planning 2.2. Forecast and assessment of industry outlook 107

108 Part III. Industry outlook and risk 2. Industry outlook 2.2. Forecast and assessment of industry outlook USD billion Forecast for textile and garment export turnover, f Source: VIRAC, VINATEX 108

109 Part III. Industry outlook and risk 2. Industry outlook 2.2. Forecast and assessment of industry outlook 109

110 TABLE OF CONTENTS Part IV. Enterprise analysis 1. Garment enterprise analysis 2. Textile and fiber enterprise analysis 110

111 Part IV. Enterprise analysis 1. Garment enterprise analysis Top 8 enterprises in Vietnam apparel industry with the largest net revenue in 2016 Enterprise Address Net revenue (VND billion) Total assets (VND billion) Viet Tien Garment Corporation Hoa Tho Textile Garment JSC Nha Be Garment Corporation JSC Garment Corporation 10 Duc Giang Corporation TNG Investment and Trade JSC Sai Gon Garment Manufacturing Trade JSC Dong Nai Garment Corporation 111

112 Part IV. Enterprise analysis 1. Garment enterprise analysis VIET TIEN GARMENT CORPORATION Production capacity of Viet Tien Corporation Export market structure of Viet Tien, 2015 Source: VIRAC, Viet Tien Garment Company 112

113 Part IV. Enterprise analysis 1. Garment enterprise analysis HOA THO GARMENT CORPORATION Production capacity of Hoa Tho Textile and Garment Corporation Source: VIRAC, Hoa Tho Textile and Garment JSC Textile export market structure of Hoa Tho, 2015 Source: VIRAC, Hoa Tho Textile and Garment JSC 113

114 Part IV. Enterprise analysis 1. Garment enterprise analysis NHA BE GARMENT CORPORATION JSC Export turnover of Nha Be, USD million Source: VIRAC, Nha Be Garment JSC Production capacity of Nha Be Garment JSC Structure of textile export market of Nhà Bè, 2014 Source: VIRAC, Nha Be Garment JSC 114

115 Part IV. Enterprise analysis 1. Garment enterprise analysis GARMENT CORPORATION 10 Production capacity of Garment Corporation 10 Source: VIRAC, Garment Corporation

116 Part IV. Enterprise analysis 1. Garment enterprise analysis Duc Giang Corporation Production capacity of Duc Giang Corporation Structure of textile export market of Duc Giang, 2015 Source: VIRAC, Duc Giang Garment Corporation 116

117 Part IV. Enterprise analysis 1. Garment enterprise analysis THAI NGUYEN INVESTMENT AND TRADING JOINT STOCK COMPANY Production capacity of TNG Structure of textile export market of TNG, 2015 Source: VIRAC, TNG 117

118 Part IV. Enterprise analysis 1. Garment enterprise analysis SAI GON GARMENT MANUFACTURING TRADING JOINT STOCK COMPANY 118

119 Part IV. Enterprise analysis 1. Garment enterprise analysis Dong Nai Garment Corporation Structure of textile export market of Dong Nai Garment, 2014 Source: VIRAC, Dong Nai Garment JSC 119

120 Part IV. Enterprise analysis 1. Garment enterprise analysis Net revenue, VND billion Source: VIRAC 120

121 Part IV. Enterprise analysis 1. Garment enterprise analysis VND billion Gross profit margin, VND billion Net profit and net profit margin, Source: VIRAC 121

122 Part IV. Enterprise analysis 1. Garment enterprise analysis Financial expenses of businesses tended to decrease in VND billion Financial expenses and financial expenses/net revenue ratio, Source: VIRAC 122

123 Part IV. Enterprise analysis 1. Garment enterprise analysis VND billion Debt/Equity ratio, Source: VIRAC 123

124 Part IV. Enterprise analysis 1. Garment enterprise analysis Solvency ratio, Content is intentionally removed Source: for VIRAC demo purpose % Profit Ratio, Source: VIRAC 124

125 TABLE OF CONTENTS Part IV. Enterprise analysis 1. Garment enterprise analysis 2. Textile and fiber enterprise analysis 125

126 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Vietnam's top 5 textile and yarn enterprises with the largest net revenue, 2016 (VND billion) Enterprise Address Net revenue (VND billion) Total assets (VND billion) Thanh Cong Textile Garment Investment Trading JSC Phong Phu Corporation Viet Thang Corporation Hue Textile Garment JSC Century Synthetic Fiber Corporation 126

127 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Thanh Cong Textile Garment Investment Trading JSC Yarn quality of Thanh Cong Textile Garment Investment Trading JSC Product Volume Structure of textile export market of TCG, 2014 Source: VIRAC, TCG 127

128 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Production capacity of Thanh Cong Textile Garment Investment Trading JSC Product Production capacity Machinery, input materials 128

129 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Phong Phu Corporation Production capacity of Phong Phu Corporation Structure of textile export market of Phong Phú 2014 Source: VIRAC, Phong Phu Corp 129

130 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Viet Thang Corporation Product Description 130

131 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Hue Textile Garment JSC Production capacity of Hue Textile Garment JSC 131

132 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Century Synthetic Fiber Corporation Ton Fiber consumption structure of Century Synthetic Fiber Corporation, Ton Fiber production of Century Fiber, Source: VIRAC, Centery Fiber Source: VIRAC, Century Fiber 132

133 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis VND billion Net revenue of textile and fiber enterprises, Source: VIRAC 133

134 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Gross profit of textile and fiber enterprises, VND billion Source: VIRAC VND billion Net profit of textile and fiber enterprises, Source: VIRAC 134

135 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis VND billion Financial expenses, 2016 Source: VIRAC 135

136 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Round Total asset turnover, Source: VIRAC Day Days in inventory, Source: VIRAC 136

137 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Some financial indicators in 2016 Source: VIRAC 137

138 TABLE OF CONTENTS Part V: Conclusion 138

139 Part V: Conclusion 139

140 TABLE OF CONTENTS Appendix 140

141 VIII. Appendix Financial statements - Viet Tien Garment Corporation BALANCE SHEET INCOME STATEMENT Unit: VND million Unit: VND million Net Revenue from Sales and services provided A. CURRENT ASSETS I. Cash and cash equivalents II. Short-term financial investments III. Short-term receivables 1. Receivables from customers Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses IV. Inventories B. LONG-TERM ASSETS Administrative expenses Net profit from operating activities I. Long-term receivables Total Accounting Profit Before Tax Content is intentionally removed Current Corporate Income Tax demo Expenses purpose II. Fixed assets TOTAL ASSETS Deferred Corporate Income Tax Expenses Profit After Enterprise Income Tax A. LIABILITIES I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 133

142 VIII. Appendix Financial statements - Hoa Tho Textile Garment JSC BALANCE SHEET INCOME STATEMENT Unit: VND million Unit: VND million A. CURRENT ASSETS Net Revenue from Sales and services provided Cost of goods sold and services provided I. Cash and cash equivalents Gross Profit from sales and services provided II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities I. Long-term receivables Total Accounting Profit Before Tax II. Fixed assets Current Corporate Income Tax Expenses TOTAL ASSETS Deferred Corporate Income Tax Expenses Content is intentionally removed Profit After Enterprise for Income demo Tax purpose A. LIABILITIES CASH FLOW STATEMENT I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY I. Owner's equity II. Other funding sources Unit: VND million I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities TOTAL LIABILITIES AND OWNER'S EQUITY Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 134

143 VIII. Appendix Financial statements Nha Be Garment Corporation BALANCE SHEET INCOME STATEMENT Unit: VND million Unit: VND million A. CURRENT ASSETS Net Revenue from Sales and services provided Cost of goods sold and services provided I. Cash and cash equivalents II. Short-term financial investments III. Short-term receivables 1. Receivables from customers Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses IV. Inventories Administrative expenses B. LONG-TERM ASSETS Net profit from operating activities I. Long-term receivables II. Fixed assets TOTAL ASSETS Total Accounting Profit Before Tax Current Corporate Income Tax Expenses Deferred Corporate Income Tax Expenses Profit After Enterprise Income Tax A. LIABILITIES Revenue from Sales and services provided I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 135

144 VIII. Appendix Financial statements Garment Corporation 10 - JSC BALANCE SHEET INCOME STATEMENT Unit: VND million Unit: VND million A. CURRENT ASSETS I. Cash and cash equivalents II. Short-term financial investments III. Short-term receivables Net Revenue from Sales and services provided Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses 1. Receivables from customers Interest expenses IV. Inventories B. LONG-TERM ASSETS I. Long-term receivables II. Fixed assets Sales expenses Administrative expenses Net profit from operating activities Total Accounting Profit Before Tax Current Corporate Income Tax Expenses TOTAL ASSETS Deferred Corporate Income Tax Expenses A. LIABILITIES Profit After Enterprise Income Tax I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 136

145 VIII. Appendix Financial statements Duc Giang Corporation BALANCE SHEET INCOME STATEMENT Unit: VND million Unit: VND million A. CURRENT ASSETS Net Revenue from Sales and services provided Cost of goods sold and services provided I. Cash and cash equivalents Gross Profit from sales and services provided II. Short-term financial investments Financing income III. Short-term receivables Financial expenses 1. Receivables from customers Interest expenses IV. Inventories B. LONG-TERM ASSETS Sales expenses Administrative expenses Net profit from operating activities I. Long-term receivables Total Accounting Profit Before Tax II. Fixed assets TOTAL ASSETS Current Corporate Income Tax Expenses Deferred Corporate Income Tax Expenses Profit After Enterprise Income Tax A. LIABILITIES Revenue from Sales and services provided I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 137

146 VIII. Appendix Financial statements - TNG Investment and Trade JSC BALANCE SHEET INCOME STATEMENT Unit: VND million Unit: VND million A. CURRENT ASSETS Net Revenue from Sales and services provided Cost of goods sold and services provided I. Cash and cash equivalents Gross Profit from sales and services provided II. Short-term financial investments III. Short-term receivables 1. Receivables from customers Financing income Financial expenses Interest expenses Sales expenses IV. Inventories B. LONG-TERM ASSETS I. Long-term receivables II. Fixed assets Administrative expenses Net profit from operating activities Total Accounting Profit Before Tax Current Corporate Income Tax Expenses TOTAL ASSETS Deferred Corporate Income Tax Expenses Profit After Enterprise Income Tax A. LIABILITIES I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 138

147 VIII. Appendix Financial statements Sai Gon Garment Manufacturing Trading Corporation BALANCE SHEET INCOME STATEMENT Unit: VND million Unit: VND million A. CURRENT ASSETS Net Revenue from Sales and services provided Cost of goods sold and services provided I. Cash and cash equivalents Gross Profit from sales and services provided II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities I. Long-term receivables Total Accounting Profit Before Tax II. Fixed assets Current Corporate Income Tax Expenses TOTAL ASSETS Deferred Corporate Income Tax Expenses Content is intentionally removed Profit After Enterprise for Income demo Tax purpose A. LIABILITIES CASH FLOW STATEMENT I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables Unit: VND million I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets B. OWNER'S EQUITY I. Owner's equity and long-term assets Net Cash Flow From Investing activities II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 139

148 VIII. Appendix Financial statements Dong Nai Garment Corporation BALANCE SHEET INCOME STATEMENT Unit: VND million Unit: VND million A. CURRENT ASSETS Net Revenue from Sales and services provided Cost of goods sold and services provided I. Cash and cash equivalents Gross Profit from sales and services provided II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities I. Long-term receivables Total Accounting Profit Before Tax II. Fixed assets Current Corporate Income Tax Expenses TOTAL ASSETS Deferred Corporate Income Tax Expenses Content is intentionally removed Profit After Enterprise for Income demo Tax purpose A. LIABILITIES CASH FLOW STATEMENT I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities Unit: VND million I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Long-term provisions for payables B. OWNER'S EQUITY I. Owner's equity II. Other funding sources Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities TOTAL LIABILITIES AND OWNER'S EQUITY Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 140

149 VIII. Appendix Financial statements Phong Phu Corporation BALANCE SHEET INCOME STATEMENT Unit: VND million Unit: VND million A. CURRENT ASSETS Net Revenue from Sales and services provided Cost of goods sold and services provided I. Cash and cash equivalents Gross Profit from sales and services provided II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities I. Long-term receivables Total Accounting Profit Before Tax II. Fixed assets Current Corporate Income Tax Expenses TOTAL ASSETS Deferred Corporate Income Tax Expenses Content is intentionally removed Profit After Enterprise for Income demo Tax purpose A. LIABILITIES I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 141

150 VIII. Appendix Financial statements Viet Thang Corporation BALANCE SHEET INCOME STATEMENT Unit: VND million Unit: VND million A. CURRENT ASSETS Net Revenue from Sales and services provided Cost of goods sold and services provided I. Cash and cash equivalents Gross Profit from sales and services provided II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities I. Long-term receivables Total Accounting Profit Before Tax II. Fixed assets Current Corporate Income Tax Expenses TOTAL ASSETS Deferred Corporate Income Tax Expenses Content is intentionally removed Profit After Enterprise for Income demo Tax purpose A. LIABILITIES I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 142

151 VIII. Appendix Financial statements Thanh Cong Textile Garment Investment Trading JSC BALANCE SHEET INCOME STATEMENT Unit: VND million Unit: VND million A. CURRENT ASSETS Net Revenue from Sales and services provided Cost of goods sold and services provided I. Cash and cash equivalents Gross Profit from sales and services provided II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities I. Long-term receivables Total Accounting Profit Before Tax II. Fixed assets Current Corporate Income Tax Expenses TOTAL ASSETS Deferred Corporate Income Tax Expenses Content is intentionally removed Profit After Enterprise for Income demo Tax purpose A. LIABILITIES I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 143

152 VIII. Appendix Financial statements Century Synthetic Fiber Corporation BALANCE SHEET INCOME STATEMENT Unit: VND million Unit: VND million Net Revenue from Sales and services provided A. CURRENT ASSETS I. Cash and cash equivalents II. Short-term financial investments III. Short-term receivables Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS I. Long-term receivables Sales expenses Administrative expenses Net profit from operating activities Total Accounting Profit Before Tax Current Corporate Income Tax Expenses II. Fixed assets Deferred Corporate Income Tax Expenses TOTAL ASSETS Profit After Enterprise Income Tax A. LIABILITIES I. Short-term Liabilities CASH FLOW STATEMENT 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities Unit: VND million I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities Long-term provisions for payables B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 144

153 VIII. Appendix Financial statements Hue Textile Garment JSC BALANCE SHEET INCOME STATEMENT Unit: VND million Unit: VND million A. CURRENT ASSETS Net Revenue from Sales and services provided Cost of goods sold and services provided I. Cash and cash equivalents Gross Profit from sales and services provided II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities I. Long-term receivables Total Accounting Profit Before Tax II. Fixed assets Current Corporate Income Tax Expenses TOTAL ASSETS Deferred Corporate Income Tax Expenses Content is intentionally removed Profit After Enterprise for Income demo Tax purpose A. LIABILITIES Revenue from Sales and services provided I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 145

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