The COVID-19 pandemic dragged down the revenue of the Vietnam National Textile and Garment Group (Vinatex) by 36 percent year-on-year in the second quarter, to just over 3.08 trillion VND (133 million USD).
Hanoi (VNA) - The COVID-19 pandemic dragged down the revenue of the VietnamNational Textile and Garment Group (Vinatex) by 36 percent year-on-year in thesecond quarter, to just over 3.08 trillion VND (133 million USD).
Profit stoodat 280 billion VND, down 36 percent against the same period last year,according to Vinatex Director General Le Tien Truong.
TheState-owned group earned more than 7.04 trillion VND in revenue in the firsthalf and posted 276 billion VND in profit, year-on-year falls of 24.5 percentand 20.7 percent, respectively.
Most ofVinatex’s subsidiaries have also seen revenue and profit plummet, Truong said,adding that the pandemic has slashed the stock price of two of its membercompanies - the Viet Tien Garment JSC and the Phu Bai Spinning Mill JSC - byhalf and one quarter, respectively.
The worstis yet to come, he went on, with the third and fourth quarters of the yearlikely to present the greatest challenges to the textile and garment industry.
Thecompany has not had any orders for three months and there has been a fall inthe number of orders for masks, with prices sinking to a level that is justenough to cover costs, he said.
Productionof masks and personal protective equipment rescued many domestic manufacturersin the second quarter of the year, he noted, but now prices are going down as aresult of global oversupply./.
Vietnam’s textile industry faces many difficulties with both export and production on the decrease due to effects of an intensified China-US trade war, said industry experts.
The Vietnam National Textile and Garment Group (known as Vinatex) is exerting efforts to produce around 6 million antibacterial face masks in February to meet increasing demand amid the novel coronavirus disease outbreak.
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Illustrative image (Photo: VNA) 
