Phú Thịnh-Nhà Bè Garment Joint Stock Company, a Vietnam-based apparel manufacturer has decided to halt its apparel manufacturing business from early next year. The decision has been taken to overhaul its operations which have been declining since 2012 due to unstable material sources, rising costs and a shortage of labour which has resulted in ineffective operations.
It may be noted that company’s net profits dropped to over VNĐ 2 billion in 2016 from VNĐ 7.5 billion in 2012. Moreover, its sales decreased 21.5 per cent year-on-year to VNĐ 33 billion in current fiscal.
The garment company will also seek investors to offload its entire holding of 19 per cent of capital, equivalent to VNĐ 5.7 billion, in Nhà Bè Real Estate Development JSC, as well as sell stakes worth a combined VNĐ 2 billion in Việt Thắng Garment JSC and NBC Communications and Tourism JSC.