VIETNAM TEXTILE AND APPAREL INDUSTRY REPORT Q2/2018

Transcription

1 VIETNAM TEXTILE AND APPAREL INDUSTRY REPORT Q2/2018 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 the first quarter of 2018 is estimated to increase by 7.38%, compared to the same period of GDP growth rate by quarter, 2015 Q1/2018 Source: VIRAC, GSO GDP by current price and GDP per capita, 2013 Q1/2018 VND Trillion In 2016, sales from the textile and apparel industry was 33 billion USD, accounting for 16.7% GDP. Source: VIRAC, GSO 8

9 Part I. Business environment 1. Macroeconomic situation Foreign Direct Investment (FDI) FDI attracted 618 new projects over the period from January to March 20, Billion USD FDI capital, 2014 Q1/208 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 Q1/2018 reached billion USD Imports and exports of commodity, 2015 Q1/2018 Billion USD Billion USD Sources: VIRAC, GDVC 10

11 Part I. Business environment 1. Macroeconomic situation USD billion Main imported products from China, Q1/2018e USD billion Source: VIRAC, GDVC Main exported products to China, Q1/2018e VND/CNY exchange rate, 2/1016 3/2018 Source: VIRAC, GDVC Source: VIRAC 11

12 Part I. Business environment 1. Macroeconomic situation The VND / USD exchange rate has been quite stable and still supported by a plentiful supply of foreign currencies VND/USD exchange rate, /2018 Source: VIRAC, SBV 12

13 Part I. Business environment 1. Macroeconomic situation Impact of related sectors Petrochemical refining projects being implemented in Vietnam Project Capacity (barrel/day) Situation Year of project completion Source: VIRAC 13

14 Part I. Business environment 1. Macroeconomic situation Impact of related sectors In the first three months of 2018, the total retail sales of consumer goods and services are estimated at trillion VND Retail sales of goods, 2010 Q1/2018 Source: VIRAC, GSO 14

15 Part I. Business environment 1. Macroeconomic situation Impact of related sectors Leading retailers in Vietnam market, 2016 Q1/2018 Brand Company Number of stores Q1/2018 Revenue in Q1/2018 (billion VND) 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 These regulations have an important influence on the sector of textile and apparel. 18

19 Part I. Business environment 2. Legal framework 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 Market size 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, 9/2012 3/2018 Source: VIRAC, Indexmundi 34

35 Part II. Industry overview 1. World textile and apparel market 1.3. Input materials Price fluctuations of PTA, MEG, PET Chip and PSF in Asia, 3/2016 3/2018e Source: VIRAC, TextileBeacon 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, USDA Source: VIRAC, USDA

37 37 Part II. Industry overview 1. World textile and apparel market 1.3. Input materials Kg/ha Cotton productivity in some countries, 2015/ /2018e There are two method of producing cotton in the world: Source: VIRAC, USDA, Brazil's cotton productivity has been greatly improved thanks to technological improvements. 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 Bangladesh China 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, e Fiber consumption by type, 2017 Source: VIRAC, The fiber year, FRED Source: VIRAC, Statista World fiber import and export, e Nguồn: VIRAC, CIRFS 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, Q1/2015 Q2/2017 Source: VIRAC, ITMF Global textile trade, e billion USD 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, 2017e billion USD In 2017, 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, 2017e 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 billion USD 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. billion USD 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 billion USD World's top 10 largest apparel exporting countries, 2017e billion USD Source: VIRAC, WTO Secreteriat World's top 10 largest apparel importing countries, 2017e 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, 2017e billion USD 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 billion USD Scale of global apparel market f These days, EU, the USA, China and Japan are the biggest consumption markets Sale growth rates of developed markets such as EU, the USA and Japan are relatively lower than sale growth rate of China. 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 billion USD 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 thousand USD World's top largest textile machinery importing countries, 2016e thousand USD 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, GSO 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 Thousand tons Cotton supply by quantity, 2016/ /2019e Because of the ongoing development of textile and apparel industry, the number of cotton consumption in Vietnam is projected to grow Source: VIRAC, Vietrade, Cotton, inc Cotton demand by quantity, 2016/ /2019e Thousand tons Source: VIRAC, USDA 70

71 Part II. Industry overview 2. Vietnam textile and apparel industry 2.2. Input materials USD/ton Cotton import price, 8/2014 2/2018 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, 2013 Q1/2018 million USD In the first quarter of 2018, the quantity of imported cotton was approximately thousand tons Source: VIRAC, GDVC Import market structure of cotton in Vietnam, Q1/2018e Vietnam imports cotton mainly from the US, India, Australia, Brazil, Ivory Coast... in which America is the main market, 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, 2013 Q1/2018e million USD Source: VIRAC, GDVC Import market structure of textile, leather and foot-wear materials and auxiliaries, Q1/2018e Export market structure of textile, leather and foot-wear materials and auxiliaries, Q1/2018e 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, 2010 Q1/2018e In Q1/2018, number of produced yarn is estimated about thousand tons Source: VIRAC, GSO Thousand tons Yarn volume and consumption value, 2010 Q1/2018e billion VND Source: VIRAC, GSO 75

76 Part II. Industry overview 2. Vietnam textile and apparel industry 2.3. Spinning million USD Yarn import and export in Vietnam, 2010 Q1/2018e Source: VIRAC, GDVC 76

77 Part II. Industry overview 2. Vietnam textile and apparel industry 2.3. Spinning In Q1/2018, China is the main yarn export market of Vietnam, Export structure of yarn by volume, Q1/2018e Import structure of yarn by volume, Q1/2018e 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 (million USD) 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, 2010 Q1/2018e 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, 2012 Q1/2018e Production structure of Vietnamese fabrics, 2012 Q1/2018e Source: VIRAC, GSO Source: VIRAC, GSO 81

82 Part II. Industry overview 2. Vietnam textile and apparel industry 2.4. Textile dyeing Fabric export-import turnover of Vietnam, 2011 Q1/2018e million USD Vietnam's fabric import market structure, Q1/2018e 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, 2012 Q1/2018e 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 million USD Apparel exports (including fabric) of Vietnam, 2010 Q1/2018e 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, Q1/2018e The United States, the EU, Japan, Korea are the four largest importers of textiles and garments in Vietnam. Source: VIRAC, GDVC Export value of textiles and apparel to some countries, 2013 Q1/2018e billion USD 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 billion USD enterprises, Q1/2018e 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 Entrance barriers: Sources: VIRAC collects Factors Opinions Assessment 96

97 Part III. Industry outlook and risk 1. Industry risk 1.1. Five Forces analysis Market competitiveness Factors Opinions Assessment Bargaining power of customers Factors Opinions Assessment 97

98 Part III. Industry outlook and risk 1. Industry risk 1.1. Five Forces analysis Bargaining power of suppliers Factors Opinions Assessment Threats of substitutes: 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 billion USD Forecast for textile and garment export turnover, f Source: VIRAC, VINATEX 108

109 TABLE OF CONTENTS Part IV. Enterprise analysis 1. Garment enterprise analysis 2. Textile and fiber enterprise analysis 109

110 Part IV. Enterprise analysis 1. Garment enterprise analysis Top 8 enterprises in Vietnam apparel industry with the largest net revenue in 2017 Enterprise Address Net revenue (billion VND) Total assets (billion VND) Viet Tien Garment Corporation Nha Be Garment Corporation JSC Hoa Tho Textile Garment JSC Garment Corporation 10 TNG Investment and Trade JSC Duc Giang Corporation Sai Gon Garment Manufacturing Trade JSC Dong Nai Garment Corporation 110

111 Part IV. Enterprise analysis 1. Garment enterprise analysis VIET TIEN GARMENT CORPORATION Production capacity of Viet Tien Corporation Export market structure of Viet Tien, 2017 Source: VIRAC, Viet Tien Garment Company 111

112 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, 2017 Source: VIRAC, Hoa Tho Textile and Garment JSC 112

113 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, 2017 Source: VIRAC, Nha Be Garment JSC 113

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

115 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, 2017 Source: VIRAC, Duc Giang Garment Corporation 115

116 Part IV. Enterprise analysis 1. Garment enterprise analysis THAI NGUYEN INVESTMENT AND TRADING JOINT STOCK COMPANY Production capacity of TNG, 2017 Structure of textile export market of TNG, 2017 Source: VIRAC, TNG 116

117 Part IV. Enterprise analysis 1. Garment enterprise analysis SAI GON GARMENT MANUFACTURING TRADING JOINT STOCK COMPANY 117

118 Part IV. Enterprise analysis 1. Garment enterprise analysis Dong Nai Garment Corporation System of Machine of Dong Nai Garment, 2016 Structure of textile export market of Dong Nai Garment, 2014 Source: VIRAC, Dong Nai Garment JSC 118

119 Part IV. Enterprise analysis 1. Garment enterprise analysis Net revenue, billion VND Source: VIRAC Viet Tien Garment Corporation had the highest net revenue in selected businesses. 119

120 Part IV. Enterprise analysis 1. Garment enterprise analysis billion VND Gross profit margin, Source: VIRAC 120

121 Part IV. Enterprise analysis 1. Garment enterprise analysis Financial expenses of businesses tended to decrease in billion VND Financial expenses and financial expenses/net revenue ratio, 6 The average financial expenses/ net revenue ratio of selected group was 1.2% in Source: VIRAC 121

122 Part IV. Enterprise analysis 1. Garment enterprise analysis Debt/Equity ratio, Source: VIRAC The majority of garment businesses have high debt/equity ratio 122

123 Part IV. Enterprise analysis 1. Garment enterprise analysis Solvency ratio, Content is intentionally removed Source: for VIRAC demo purpose % Profit Ratio, Source: VIRAC 123

124 TABLE OF CONTENTS Part IV. Enterprise analysis 1. Garment enterprise analysis 2. Textile and fiber enterprise analysis 124

125 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Vietnam's top 5 textile and yarn enterprises with the largest net revenue, 2017 (billion VND) Enterprise Address Net revenue (billion VND) Total assets (billion VND) 125

126 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Thanh Cong Textile Garment Investment Trading JSC Investment projects in 2017 Production, 2017 Products Unit Produced, compared to 2016 Nguồn: VIRAC, TCG Source: VIRAC, TCG Nguồn: VIRAC, TCG 126

127 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 127

128 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 128

129 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Viet Thang Corporation Product Description 129

130 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Hue Textile Garment JSC Production capacity of Hue Textile Garment JSC 130

131 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Century Synthetic Fiber Corporation Ton Fiber consumption structure of Century Synthetic Fiber Corporation, 2017 Ton Fiber production of Century Fiber, 2017 Source: VIRAC, Centery Fiber Source: VIRAC, Century Fiber 131

132 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis billion VND Net revenue of textile and fiber enterprises, Source: VIRAC 132

133 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Gross profit margin, billion VND Source: VIRAC Source: VIRAC 133

134 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis VND billion Financial expenses and financial expenses/ net profit, Source: VIRAC 134

135 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Round Total asset turnover, Source: VIRAC Day Days in inventory, Source: VIRAC 135

136 Part IV. Enterprise analysis 2. Textile and fiber enterprise analysis Solvency Ratio, Profit Ratio, Source: VIRAC Source: VIRAC 136

137 TABLE OF CONTENTS Part V: Conclusion 137

138 Part V: Conclusion 138

139 TABLE OF CONTENTS Appendix 139

140 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 IV. Inventories Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses V. Other current assets B. LONG-TERM ASSETS Administrative expenses Net profit from operating activities II. Fixed assets Total Accounting Profit Before Tax Content is intentionally removed Current Corporate Income Tax demo Expenses purpose TOTAL ASSETS Deferred Corporate Income Tax Expenses A. LIABILITIES I. Short-term Liabilities II. Long-term liabilities B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY Profit After Enterprise Income Tax 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

141 VIII. Appendix Financial statements - Hoa Tho Textile Garment JSC 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 IV. Inventories Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses V. Other current assets B. LONG-TERM ASSETS Administrative expenses Net profit from operating activities II. Fixed assets Total Accounting Profit Before Tax Content is intentionally removed Current Corporate Income Tax demo Expenses purpose TOTAL ASSETS Deferred Corporate Income Tax Expenses A. LIABILITIES I. Short-term Liabilities II. Long-term liabilities B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY Profit After Enterprise Income Tax 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 134

142 VIII. Appendix Financial statements Nha Be 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 IV. Inventories Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses V. Other current assets B. LONG-TERM ASSETS Administrative expenses Net profit from operating activities II. Fixed assets Total Accounting Profit Before Tax Content is intentionally removed Current Corporate Income Tax demo Expenses purpose TOTAL ASSETS Deferred Corporate Income Tax Expenses A. LIABILITIES I. Short-term Liabilities II. Long-term liabilities B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY Profit After Enterprise Income Tax 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

143 VIII. Appendix Financial statements Garment Corporation 10 - JSC 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 IV. Inventories Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses V. Other current assets B. LONG-TERM ASSETS Administrative expenses Net profit from operating activities II. Fixed assets Total Accounting Profit Before Tax Content is intentionally removed Current Corporate Income Tax demo Expenses purpose TOTAL ASSETS Deferred Corporate Income Tax Expenses A. LIABILITIES I. Short-term Liabilities II. Long-term liabilities B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY Profit After Enterprise Income Tax 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

144 VIII. Appendix Financial statements Duc Giang 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 IV. Inventories Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses V. Other current assets B. LONG-TERM ASSETS Administrative expenses Net profit from operating activities II. Fixed assets Total Accounting Profit Before Tax Content is intentionally removed Current Corporate Income Tax demo Expenses purpose TOTAL ASSETS Deferred Corporate Income Tax Expenses A. LIABILITIES I. Short-term Liabilities II. Long-term liabilities B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY Profit After Enterprise Income Tax 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

145 VIII. Appendix Financial statements - TNG Investment and Trade JSC 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 IV. Inventories Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses V. Other current assets B. LONG-TERM ASSETS Administrative expenses Net profit from operating activities II. Fixed assets Total Accounting Profit Before Tax Content is intentionally removed Current Corporate Income Tax demo Expenses purpose TOTAL ASSETS Deferred Corporate Income Tax Expenses A. LIABILITIES I. Short-term Liabilities II. Long-term liabilities B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY Profit After Enterprise Income Tax 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

146 VIII. Appendix Financial statements Sai Gon Garment Manufacturing Trading 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 IV. Inventories Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses V. Other current assets B. LONG-TERM ASSETS Administrative expenses Net profit from operating activities II. Fixed assets Total Accounting Profit Before Tax Content is intentionally removed Current Corporate Income Tax demo Expenses purpose TOTAL ASSETS Deferred Corporate Income Tax Expenses A. LIABILITIES I. Short-term Liabilities II. Long-term liabilities B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY Profit After Enterprise Income Tax 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 139

147 VIII. Appendix Financial statements Dong Nai 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 IV. Inventories Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses V. Other current assets B. LONG-TERM ASSETS Administrative expenses Net profit from operating activities II. Fixed assets Total Accounting Profit Before Tax Content is intentionally removed Current Corporate Income Tax demo Expenses purpose TOTAL ASSETS Deferred Corporate Income Tax Expenses A. LIABILITIES I. Short-term Liabilities II. Long-term liabilities B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY Profit After Enterprise Income Tax 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 140

148 VIII. Appendix Financial statements Phong Phu 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 IV. Inventories Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses V. Other current assets B. LONG-TERM ASSETS Administrative expenses Net profit from operating activities II. Fixed assets Total Accounting Profit Before Tax Content is intentionally removed Current Corporate Income Tax demo Expenses purpose TOTAL ASSETS Deferred Corporate Income Tax Expenses A. LIABILITIES I. Short-term Liabilities II. Long-term liabilities B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY Profit After Enterprise Income Tax 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

149 VIII. Appendix Financial statements Viet Thang 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 IV. Inventories Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses V. Other current assets B. LONG-TERM ASSETS Administrative expenses Net profit from operating activities II. Fixed assets Total Accounting Profit Before Tax Content is intentionally removed Current Corporate Income Tax demo Expenses purpose TOTAL ASSETS Deferred Corporate Income Tax Expenses A. LIABILITIES I. Short-term Liabilities II. Long-term liabilities B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY Profit After Enterprise Income Tax 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

150 VIII. Appendix Financial statements Thanh Cong Textile Garment Investment Trading JSC 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 IV. Inventories Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses V. Other current assets B. LONG-TERM ASSETS Administrative expenses Net profit from operating activities II. Fixed assets Total Accounting Profit Before Tax Content is intentionally removed Current Corporate Income Tax demo Expenses purpose TOTAL ASSETS Deferred Corporate Income Tax Expenses A. LIABILITIES I. Short-term Liabilities II. Long-term liabilities B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY Profit After Enterprise Income Tax 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

151 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 IV. Inventories Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses V. Other current assets B. LONG-TERM ASSETS Administrative expenses Net profit from operating activities II. Fixed assets Total Accounting Profit Before Tax Content is intentionally removed Current Corporate Income Tax demo Expenses purpose TOTAL ASSETS Deferred Corporate Income Tax Expenses A. LIABILITIES I. Short-term Liabilities II. Long-term liabilities B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY Profit After Enterprise Income Tax 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 144

152 VIII. Appendix Financial statements Hue Textile Garment JSC 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 IV. Inventories Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses V. Other current assets B. LONG-TERM ASSETS Administrative expenses Net profit from operating activities II. Fixed assets Total Accounting Profit Before Tax Content is intentionally removed Current Corporate Income Tax demo Expenses purpose TOTAL ASSETS Deferred Corporate Income Tax Expenses A. LIABILITIES I. Short-term Liabilities II. Long-term liabilities B. OWNER'S EQUITY I. Owner's equity II. Other funding sources TOTAL LIABILITIES AND OWNER'S EQUITY Profit After Enterprise Income Tax 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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