According to Vietnamese media reports, the Success Textile Trade and Investment Joint Stock Company is organizing overtime work to mobilize maximum production capacity to shorten the delivery time to the United States.
On April 18th, at the annual general meeting of shareholders, the leaders of Success Textile Trade and Investment Co., LTD. (stock code: TCM) stated that currently, the US market accounts for approximately 30% of the company's export volume. The company's advantage lies in that it hardly imports fabrics and raw materials from China, thus being able to remain proactive in the face of fluctuations in international tariffs.
Chen Rusong, the chairman of the company, said that the biggest concern of the United States at present is to eliminate textiles originated from China. Our production processes from cotton to yarn and fabric are all closed. We hardly import any raw materials from China. Moreover, we control the origin of the raw materials, so they fully meet the origin standards and enjoy the import tax preferences of the United States. Mr. Chen Rusong emphasized.
According to Mr. Chen Rusong, as many international partners are concerned about the high tariffs on Chinese goods, some enterprises have shifted their orders to Vietnam. Therefore, the demand for finding Vietnamese suppliers is increasing. This is an opportunity for Vietnamese enterprises. If they take the initiative, they can occupy 20% to 30% of China's share in the US market. Mr. Chen Rusong said.
Success Textile Group itself is preparing for this plan, with a focus on developing higher-value products and accelerating the digital transformation of factories. By applying new technologies and artificial intelligence (AI), the factories will become smarter and faster.
Some customers originally intended to cancel their orders after the US government announced the imposition of a reciprocal tax of up to 46% on Vietnamese goods, but after obtaining a 90-day tax deferral in Vietnam, they changed their minds. Some partners have increased their orders and arranged delivery times in advance to ensure that the goods arrive in the United States during the "golden time" before the tax deferral ends. Mr. Chen Rusong disclosed.
Facing this situation, the company is stepping up efforts to expedite orders in order to export 90 days in advance. "Our factory is increasing its production capacity to take advantage of these 90 days, because after that, the tax rate on textiles imported from Vietnam will definitely increase compared to now," said Mr. Chen Rusong.
At the conference, the company's leadership stated that the company's revenue in 2024 would reach 3.81 trillion Vietnamese dong, representing a growth of 14.6%. The after-tax profit reached 278 billion Vietnamese dong, doubling that of 2023. With positive performance, the company adjusted the dividend from 12% to 15%, which includes an advance of 5% cash on April 4th and the issuance of 10% bonus shares. The company also plans to issue over 10.2 million shares in July and August, increasing its registered capital to 1,211 billion Vietnamese dong.
According to the plan, TCM's net income target for 2025 is over 4.525 trillion Vietnamese dong, an increase of 19% compared to 2024. Profits are expected to remain stable at 279 billion Vietnamese dong.
At the conference, the company also announced its first-quarter 2025 financial results, with revenue increasing by 8% year-on-year and after-tax profit rising by 25% year-on-year. This is regarded as a positive signal against the backdrop that Vietnam's textile and garment industry is under great pressure due to the US reciprocal tariff policy.
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