ANN/VIET NAM NEWS – Less than positive business results in the nine months of 2023 have caused many businesses to lower the year’s target, with some expecting losses.
The general picture of business results showed that the headwind of global economic recession has significantly affected the Vietnamese business environment.
Most pillar industries, such as bank, real estate, construction materials, fertilisers and exports, continue to struggle and even face negative business performances, leading some to promptly adjust the yearly business plans.
In particular, the seafood exporter Sao Ta Food JSC has decided to lower its 2023 business targets after announcing its third quarter financial statements.
The company adjusted its total revenue target to VND4.87 trillion (USD200 million), down 25 per cent from the previous forecast, while profit after tax decreased by 25 per cent to VND300 billion.
Sao Ta did not detail the reason and said that the adjustment will be presented in its latest General Meeting of Shareholders report.
Similarly, Vietnam National Textile & Garment Group (Vinatex) plans to lower its 2023 revenue target from VND17.5 trillion to VND16.5 trillion, a decrease of six per cent.
Its profit before tax target was adjusted down to VND370 billion from VND610 billion, equivalent to a fall of 39 per cent. The change in financial results of the textile producer reflects a less bright picture in 2023.
After nine months, Vinatex posted a net revenue of nearly VND12.2 trillion and profit after tax of over VND197.8 billion, a decrease of 14.08 per cent and 81.6 per cent year-on-year, respectively. Net profit reached about VNĐ37 billion, down 94 per cent.
With the new plan submitted to shareholders, Vinatex achieved 70 per cent of the revenue target and 78 per cent of the year’s profit plan.
In the steel industry, after recording consecutive losses, Vietnam Steel Corporation (VNSteel) also asked shareholders to adjust the production and business plan for 2023, reducing its profit before tax expectation to VND1 billion from VND52 billion. Meanwhile, others remained unchanged.
