Garmex Saigon Joint Stock Company (GMC) last weekend sent a document to the HCMC Stock Exchange (HOSE), providing information on the production and business situation.

Accordingly, this business said that the business situation was not favorable, if kept production in factories for the sewing industry would be a lot of loss.

Garmex Saigon is known as a large -scale textile enterprise in Go Vap, Ho Chi Minh City with the number of workers around 4,000 people between 2017 to 2021.

However, the number of Garmex Saigon's personnel dropped sharply from the second half of 2021, to about 2,000 people in late 2022, before falling to only 37 people in late September 2023.

According to Garmex Saigon, this business will continue to make maximum cost savings, and have not recruited workers for the traditional industry.

In addition, Garmex Saigon will optimize existing resources, looking for partners to transfer unused assets, and diversify the industry to minimize risks.

Thus, the information of Garmex Saigon is quite clear. This business has stopped working in the core field of textile and may not return to this industry.

Garmexsaigon GMC2.gif
This industry has stopped working in the core field of textiles and may not return to this industry.

Despite many non -positive information, GMC shares increased sharply in the last 3 sessions, from VND 7,200 to VND 7,840/share.

Garmex Saigon is a famous textile enterprise in Ho Chi Minh City with many factories in some localities such as Binh Tien (Ho Chi Minh City), Tan My (Ba Ria - Vung Tau) and Garmex Quang Nam (Quang Nam) ...

In the third quarter, Garmex Saigon recorded a 99% decrease in revenue compared to the same period to a few tens of millions of dong and a loss of 11 billion dong - the 5th quarter in a row.

The reason Garmex Saigon is difficult and has to fire most workers because this business has no orders. In the first 9 months of 2023, GMC does not record revenue arising from the main partner

The textile industry is still difficult

Garmex Saigon was difficult when Gilimex fell into a tragic state after the shock from the giant Amazon. Gilimex no longer had large orders from Amazon, the consequence of Gil sued the e -commerce giant Amazon Robotics LLC.

Amazon has been a major partner of Gilimex since 2014. During the epidemic period, e -commerce exploded, this business has invested tens of millions of dollars in production facilities to build goods warehouses for Amazon, recruiting thousands of additional employees at many factories to produce terrible orders for the American giants.

In addition, to meet the needs of the Amazon giant, Gilimex rejected other big customers such as IKEA, Columbia Sportswear ...

According to information from Gilimex, during the cooperation process, Amazon violated the commitment that the two parties agreed. Specifically in April and May 2022, Amazon immediately "immediately changed and reduced the expected demand" in the remaining time of 2022 and 2023 to only a small part compared to previous forecasts, causing GIL to suffer excess production capacity and raw materials.

The story of Gilimex and Amazon is an example of too focused on a customer.

Recently, many enterprises in the textile industry are also very difficult, falling into a shortage of orders.

According to the Vietnam Textile and Garment Association (VITAS), the total export of the textile industry in 2023 is expected to decrease quite sharply compared to the previous year due to the effect of CIVI-19 epidemic still globally, the large amount of inventory due to the decline in demand.

With UKVFTA, weaving many advantages in the UK market in the near future, the UK will continue to reduce the import of garments from the EU market, instead, the UK will boost import from the EU foreign market, including Vietnam.