The Vietnam National Textile and Garment Group (Vinatex), stock code VGT, predicts its consolidated profit before tax this year to fall by half to VND382 billion year on year due to the negative impacts of the COVID-19 pandemic.

This is the lowest consolidated profit before tax over the past four years, according to Vinatex.

Its business reports for its annual general meeting of shareholders this year have also revealed that its consolidated revenue is estimated at VND14.64 trillion, down 27% compared to last year.

Vinatex said the reductions were due to the impact of the COVID-19 pandemic on its member companies' production and business.

In the report, Vinatex has targeted this year’s revenue of the parent company at about VND1.33 trillion, down by 5% because of difficulties in production and business during and after the pandemic.

Tran Quang Nghi, chairman of the Vinatex board of directors, said in the 2020-25 period, the group must adjust its development strategy because it faced competition in technology but not in price 10 years ago.

In its development plan for this period, Vinatex would promote mergers and acquisitions, and restructure its businesses because the group's current business and production model will become inefficient.

Accordingly, the group would renew management and business models, as well as technology and products. Besides continuing divestment, it would also buy shares of other companies as well as invest in newly-established enterprises necessary for the development strategy.

Vinatex's consolidated revenue in 2019 reached VND20.14 trillion, similar to 2018, fulfilling 91% of the 2019 plan. Its profit before tax was VND765.5 billion, or 91.2% of the yearly plan and up 0.5% over the same period last year.

With these business results, the Board of Directors has submitted to shareholders the cash dividend payment plan at a rate of 5% with a total payment of VND250 billion.