How do businesses adjust their business plans under the impact of Covid-19?

VCN - As the third quarter comes to an end, many businesses have announced the adjustment of their business targets for 2021. Notably, in addition to businesses that have lowered their revenue and profit targets due to the impacts of the Covid-19 pandemic, many other enterprises went against the tide, sharply increasing their business targets thanks to the positive results achieved in the last nine months, far exceeding initial expectations.
Businesses in Dong Nai want new loans to resume production Businesses in Dong Nai want new loans to resume production
How to achieve breakthrough in specialized inspection? How to achieve breakthrough in specialized inspection?
Businesses must be well equipped to fully take advantage of EVFTA Businesses must be well equipped to fully take advantage of EVFTA
An Tien Industries benefits positively from the upward trend of plastic resin prices. Source: Internet.
An Tien Industries benefits positively from the upward trend of plastic resin prices. Source: Internet.

On November 10, An Tien Industries Joint Stock Company held an extraordinary General Meeting of Shareholders (AGM) to discuss the adjustment of business targets in 2021. According to the report of the Board of Directors (Board of Directors) An Tien Industries Joint Stock Company, the target of total consolidated revenue will increase from VND4,000 billion to VND7,000 billion. Consolidated profit after tax was also adjusted to increase from VND70 billion to VND90 billion, up by 75% and 29%, respectively.

By the end of the third quarter of 2021, An Tien Industries' consolidated net revenue reached VND5,508 billion, up sharply by 88% over the same period in 2020; profit after tax reached VND79 billion, up 88%. With this result, the company exceeded 38% of the revenue target and 13% of the profit after tax target approved at the Annual General Meeting of Shareholders at the beginning of the year.

Along with the adjustment of business targets, An Tien Industries also plans to increase the dividend payout ratio from 10-15% according to the previous plan to 20%.

An Tien Industries is a large plastic additive manufacturer with products serving the domestic market and exported to more than 50 countries and territories. In a recent report, Stanley Brother Securities (SBSI) said that the price of plastic resins recovered from June 2021 due to the sudden increase in demand for plastic packaging in Southeast Asia during the Covid-19 pandemic and is expected to remain stable until the end of the year.

Accordingly, the average price of plastic resins this year is 30-45% higher than in 2020. This is a very positive signal for businesses dealing in plastic materials such as An Tien Industries. On that basis, SBSI forecasts that An Tien Industries' profit will double in 2020, reaching VND106 billion.

The Board of Directors of Vietnam Container Joint Stock Company (VSC) has just agreed to adjust the business targets for 2021. In which, this company still maintains the revenue plan for 2021 set out at the beginning of the year at VND1,700 billion, but raised the pre-tax profit target to VND445 billion, an increase of nearly 33% compared to the previous plan. According to the Board of Directors of VSC, this adjustment is based on the results of production and business activities in the first nine months of 2021 and the actual market situation.

Accordingly, the company achieved very positive business results in the first nine months of 2021 with revenue and pre-tax profit of VND1,386 billion and VND358 billion, respectively, up 13% and 49% compared to the same period in 2020.

Thus, compared to the adjusted plan, VSC has completed nearly 82% of the revenue plan and 80% of the full year profit plan.

Benefiting from the demand for studying and working online, the consumption of laptops, tablets, office equipment of Digital World Joint Stock Company (Digiworld) recorded very strong growth, helping the company record revenue in the third quarter of 2021 of VND3,825 billion, up 5.5% on the basis of the already high results of the third quarter of 2020 (VND3,624 billion). Profit after tax in the period also increased by 43%, reaching VND107 billion.

In the nine months of 2021, Digiworld earned VND13,050 billion in net revenue and VND330 billion in profit after tax, up 53% and 96% respectively over the same period last year. This result also helps the company complete 86% of the revenue plan and exceed 10% of the full year profit plan.

As a result, the company raised its full-year revenue target to VND19,225 billion and profit to VND500 billion, up 26% and 67% compared to the previous plan. With this plan, Digiworld has completed 68% of revenue target and 66% of profit target. Enterprises are confident to complete the new targets set out when the last months of the year are the time when Apple, Xiaomi, and Huawei launch key products.

Meanwhile, securities is the industry with the most companies adjusting to increase business targets with names like Agriseco, APG securities, VNDirect, SmartInvest.

Positive movements of the stock market and strong participation from new investors have brought impressive revenue and profit growth results for securities companies. By the end of the third quarter of 2021, many securities companies have achieved profits many times higher than the same period last year.

Contrary to the joy of the above enterprises, when discussing raising production and business plan targets, many other enterprises have seen poor production and business results from the beginning of the year. Many businesses are forced to adjust a series of revenue and profit targets to match the actual situation.

Ben Thanh Service Joint Stock Company (BTSC) has just lowered its revenue target by 20% compared to the original plan, to VND11 billion in 2021; expected profit is zero while the old plan was VND1.8 billion.

BTSC's management said that the company's business activities were affected by the Covid-19 pandemic and the setting up of provisions for joint ventures and associates led to a decrease in revenue and profit. According to the company's financial report for the third quarter of 2021, by the end of the third quarter of 2021, net revenue was VND5.9 billion, down nearly half compared to the same period last year. Profit after tax was negative VND230 million, while in the same period last year it was VND1 billion. Particularly in the third quarter of 2021, BTSC net lost VND292 million due to the impact of social distancing measures, leading to a decrease in revenue.

Nam Viet Joint Stock Company also adjusted down 13% of the revenue target and 44% of the profit target compared to the original plan, back to VND3,900 billion and VND250 billion.

The production and business situation of Nam Viet has faced many difficulties since the beginning of the year due to the outbreak of the Covid-19 pandemic, the sea freight rate has continuously increased along with the high price of raw materials for food production.

In the financial statements of the third quarter of 2021, Nam Viet recorded a net loss of VND13 billion. The reason is due to the decrease in revenue when the number of workers decreases when implementing the "3 on-site" option, leading to a decrease in sales volume. Selling expenses also increased by 73% over the same period last year, mainly due to freight costs and transportation costs. The costs of “3 on-site” services are high such as: food costs, Covid-19 testing costs and facilities to serve employees who stay at the company.

In nine months, Nam Viet has only reached VND74 billion in profit after tax, down 36% over the same period last year.

Similarly, many other enterprises have also announced the adjustment of business targets due to the impacts of the Covid-19 pandemic such as Saigon Real Estate Joint Stock Company, HUDLAND Real Estate Investment and Development Joint Stock Company, and HIPT Group Joint Stock Company.

By Khai Ky/ Huu Tuc

Related News

The government seeks approval for revised GDP, CPI targets

The government seeks approval for revised GDP, CPI targets

VCN - The Government submitted to the National Assembly for consideration and comments on adjusting the target for the growth rate of gross domestic product (GDP) to 8% or more; the average growth rate of the consumer price index (CPI) to about 4.5-5%.
US$10.5 million in trade flows through Binh Duong Customs during Tet  During the 2025 Lunar New Year

US$10.5 million in trade flows through Binh Duong Customs during Tet During the 2025 Lunar New Year

VCN - During the 2025 Lunar New Year holiday, the Binh Duong Customs Department arranged for staff to be on duty, ensuring quick and timely customs clearance, helping import and export businesses avoid interruptions and maintaining a smooth flow of goods.
Vietnam Customs kicks off campaign for innovation, breakthrough, and growth

Vietnam Customs kicks off campaign for innovation, breakthrough, and growth

VCN - To concentrate on leadership, guidance, and vigorous implementation of goals, targets, and tasks towards the objectives of Digital Customs and Green Customs by 2025, the General Department of Vietnam Customs has launched a competition campaign with the theme: "Innovation - Breakthrough – Development”
Ba Ria - Vung Tau Customs: A strategic partner in business success

Ba Ria - Vung Tau Customs: A strategic partner in business success

VCN - Businesses have highly appreciated the administrative reforms and support provided by the Ba Ria - Vung Tau (BR-VT) Customs Department, recognizing these efforts as a critical factor in fostering growth amid ongoing challenges.
Comment

Latest News

Embracing green exports: a pathway to enter global supply chains

Embracing green exports: a pathway to enter global supply chains

This shift presents both a challenge and an opportunity for Vietnamese businesses to innovate and enhance their competitive edge in the international arena.
New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

The ministry proposes to issue a decree on the establishment, management and use of the Investment Support Fund to stabilise the investment environment, encourage and attract strategic investors and multinational corporations.
Việt Nam’s durian exports to China plummet by 80%

Việt Nam’s durian exports to China plummet by 80%

This sharp decline has had a direct impact on Việt Nam’s fruit and vegetable export revenue, which stood at US$416 million in January 2025, marking a 11.3 per cent decrease month-on-month and a 5.2 per cent drop year-on-year.
Coconut exports reach 14-year high

Coconut exports reach 14-year high

In 2024, fresh coconut and coconut product exports surpassed US$1 billion, marking the highest figure in the past 14 years.

More News

Shrimp exports grow in the first month of 2025

Shrimp exports grow in the first month of 2025

According to data from the Việt Nam Association of Seafood Exporters and Producers (VASEP), shrimp products recorded a 13 per cent increase in export value in January 2025, reaching a total of $273.3 million.
Rice export prices drop, but decline expected to be short-term

Rice export prices drop, but decline expected to be short-term

Việt Nam’s rice export prices have declined, reaching their lowest level in three years.
Key agro products expected to maintain export growth this year

Key agro products expected to maintain export growth this year

At present, agricultural exports, such as rice, coffee and seafood, have steadily secured a stable place in major global markets.
EU issues 12 warnings against Việt Nam’s food and agricultural exports

EU issues 12 warnings against Việt Nam’s food and agricultural exports

The Việt Nam SPS Office has reported that some Vietnamese export products failed to meet the EU’s stringent standards.
Việt Nam to impose VAT on low-value express-imported goods

Việt Nam to impose VAT on low-value express-imported goods

Việt Nam will end a previous policy that exempted imported goods valued under VNĐ1 million (US$39.4) from taxes when shipped via express delivery.
Exchange rate risks need attention in near future

Exchange rate risks need attention in near future

VCN - Exchange rate developments in 2025 are considered to be quite complicated due to US policies related to trade and investment.
Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

VCN - Data from the General Department of Vietnam Customs indicates a softening of both exports and imports in January 2025, relative to the same month in 2024.
Import and export turnover reaches about US$29 billion in the second half of January 2025

Import and export turnover reaches about US$29 billion in the second half of January 2025

VCN - Vietnam's total import and export turnover in the second half of January 2025 (January 16-31, 2025) reached US$28.9 billion, the latest preliminary statistics of the General Department of Vietnam Customs reported.
Market edges up slightly as liquidity remains low

Market edges up slightly as liquidity remains low

Market breadth remained positive, with 161 gainers outnumbering 144 decliners.
Read More

Your care

The system has not recorded your reading habits.

Please Login/Register so that the system can provide articles according to your reading needs.

Latest Most read
Embracing green exports: a pathway to enter global supply chains

Embracing green exports: a pathway to enter global supply chains

This shift presents both a challenge and an opportunity for Vietnamese businesses to innovate and enhance their competitive edge in the international arena.
New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

The ministry proposes to issue a decree on the establishment, management and use of the Investment Support Fund to stabilise the investment environment, encourage and attract strategic investors and multinational corporations.
Việt Nam’s durian exports to China plummet by 80%

Việt Nam’s durian exports to China plummet by 80%

This sharp decline has had a direct impact on Việt Nam’s fruit and vegetable export revenue, which stood at US$416 million in January 2025, marking a 11.3 per cent decrease month-on-month and a 5.2 per cent drop year-on-year.
Coconut exports reach 14-year high

Coconut exports reach 14-year high

In 2024, fresh coconut and coconut product exports surpassed US$1 billion, marking the highest figure in the past 14 years.
Shrimp exports grow in the first month of 2025

Shrimp exports grow in the first month of 2025

According to data from the Việt Nam Association of Seafood Exporters and Producers (VASEP), shrimp products recorded a 13 per cent increase in export value in January 2025, reaching a total of $273.3 million.
Mobile Version