VCN - Business results in October 2021 have shown positive recovery after four months of implementing social distancing. Although the difficulties are not over, with the pandemic under control, businesses have made optimistic forecasts about the prospects in 2022.
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The implementation of social distancing during the outbreak of the Covid-19 pandemic in the southern provinces has severely affected the production activities of many enterprises when they had to suspend operations because they did not meet the conditions to do "three on the spot" or "one route with two destinations".
For enterprises that can maintain operations, capacity also decreases sharply, at only about 30% compared to normal conditions. As a result, the business results of enterprises in the third quarter of 2021 dropped sharply, many businesses even made losses.
Since the beginning of October 2021, when the pandemic was brought under control, the economy gradually reopened to a new normal state, and business activities were gradually restored. Accordingly, business results of enterprises in October showed positive recovery.
Specifically, after two consecutive months of losses, Thanh Cong Trading Investment Joint Stock Company was profitable in October 2021 with revenue recorded at $11.6 million, up nearly 19% compared to October 2020 and increased by 46% compared to September 2021; profit after tax reached US$79,034.
Although profitable again, this profit of Garment Thanh Cong decreased by 90% compared to the same period last year. They said that although the company has gradually abandoned the "three on-site" working model since the beginning of October, revenue has improved, but production and management costs are high compared to the same period last year because export orders in October were from September when the company was still working under the "three on the spot" method. In addition, the number of workers returning to work in the first two weeks of October was only about 86%, so productivity has not recovered compared to before the pandemic, leading to the profit margin of the garment segment not meeting expectations.
The positive point is that the company has received orders until the end of 2021 and the second quarter of 2022. Currently, the company is promoting construction of Thanh Cong Vinh Long 2 garment factory, which is expected to go into operation in early March 2022 to promptly produce orders for 2022 and bring in revenue for the company. In addition, this enterprise has just completed the factory assessment and signed a contract with a major American fashion brand, so it is expected that the company will have large orders in the near future.
Vinh Hoan Seafood Joint Stock Company also announced that export revenue in October 2021 increased by 6% compared to the same period in 2020 and increased by 19% compared to September 2021, reaching VND780 billion. In which, pangasius revenue increased 11% compared to October 2020, reaching VND596 billion and by-products increased by 18%, reaching VND121 billion. The US market recorded the strongest recovery with a growth of 95% over the same period last year and an increase of 37% compared to the previous month, reaching VND473 billion.
Trade and services are bustling again
Similar to the manufacturing sector, the retail sector also had a positive recovery when stores reopened. According to the General Statistics Office, the total retail sales of consumer goods and services in October 2021 increased by 18% compared to the previous month, estimated at VND358 billion. Accordingly, the business results of retail enterprises have corresponding growth. For example, at Phu Nhuan Jewelry Joint Stock Company (PNJ), 93% of stores reopened in early October 2021. At a recent meeting with investors, PNJ's leaders said that revenue increased again in the second half of October 2021, especially reaching a historic peak during the Vietnam Women's Day promotion on October 20.
Previously, more than 80% of PNJ's stores had to close in the third quarter of 2021, resulting in a loss of nearly VND160 billion – the first quarter of loss in the past seven years.
PNJ management believes that the jewelry market will recover according to the K-shape and PNJ can gain more market share. Specifically, this business has a higher number of new customers after each disease outbreak, which is a good indicator of market share improvement. SSI Research believes that this has been reflected in the business results of the first five months of 2021 with revenue increasing by 60% over the same period in 2020. Because PNJ focuses on the mid-high-end segment and the disposable income of PNJ. Since the population is estimated to increase in the long term, the company believes there is still potential for market share expansion.
Mobile World Investment Joint Stock Company (MWG) announced that October 2021's revenue reached a record of more than VND12,000 billion, up 38% over the same period in 2020 and up 45% compared to September 2021. The main driving force for this growth comes from The Gioi Di Dong and Dien May Xanh chains after most stores were allowed to reopen from the beginning of October 2021.
The total sales of these two chains were more than VND10,000 billion in October 2021, an increase of 50% over the same period last year and an increase of 60% compared to September 2021.
A representative of MWG said that the company has actively prepared to reopen as soon as possible, simultaneously and safely. Enterprises work with suppliers early, stick to and closely in the coordination and rotation of goods to ensure the most complete stock in the context that the Vietnamese and global markets are being significantly affected in terms of supply. In addition, attractive promotions are also used to effectively exploit the demand for new shopping, replacing damaged products after three to four months.
In the field of real estate services, Century Real Estate Joint Stock Company (Cen Land) said that the real estate market seemed to improve after returning to a new normal state from October. Accordingly, Cen Land's business activities in October recorded strong growth with more than 900 transactions and VND482 billion in revenue. This result helped the company complete 100% of the revenue plan after 10 months, reaching more than VND5,000 billion.
Profit after tax also completed 89% of the plan with VND363 billion. This enterprise hopes that, with the pandemic under control, active trading activities again, and many new investment opportunities opening up, Cen Land will keep its high growth momentum in 2022. Accordingly, the company forecasts revenue in 2022 will reach VND10,000 billion.