Within the coming time, the revenue of Vietnamese medical glove companies has elevated gallop to a number of hundred billion after a few years of “foam” earnings.
The Covid-19 epidemic is changing into an increasing number of difficult, particularly with the looks of many variants with a better threat of harm and unfold, which is changing into a worldwide concern about an outbreak. New translation!. The pessimism quickly mirrored on the worldwide inventory and commodity buying and selling markets, peaking from the session on July 19, 2021.
Significantly in Vietnam, from the top of April 2021, Ho Chi Minh Metropolis specifically and the entire nation usually are nonetheless in a persistent battle with a extra critical fourth wave of outbreaks.
The developments of the epidemic are creating an excellent warmth about private protecting tools (PPE) merchandise globally. Through which, regardless of early preparations to approve M&A plans and develop cross-border cooperation to extend manufacturing capability, medical glove companies proceed to face a rise in market demand.
As one of many main garment processing nations, Vietnam is changing into a vacation spot for the manufacturing race within the discipline of medical gloves. For instance, from 2020, Malaysia’s largest glove producer – Prime Glove – plans to open its first manufacturing facility in Vietnam. Through which, Prime Glove is anticipated to speculate 24.5 million USD, the manufacturing facility in Vietnam will begin producing PVC gloves from mid-2020, with an output of about Four billion items/yr.
Lately, IFC – a member of the World Financial institution – additionally introduced that it’s going to help PPE producers in growing nations, together with Vietnam. In line with IFC estimates, in Vietnam, PPE manufacturing capability has elevated sharply with output growing 6 occasions in 2020 and rising as one of many new PPE suppliers for the worldwide market. This sturdy improve in provide initially stemmed from garment corporations shifting manufacturing to deal with the medical emergency in addition to to attenuate losses attributable to canceled garment orders.
IFC believes that the worldwide demand for PPE merchandise has elevated 3-Four occasions within the interval of 2019 – 2020 and is anticipated to proceed to extend from 6 – 9% per yr at the least till 2025. Not solely overseas enterprises, PPE can also be opening up extraordinarily giant and distinctive alternatives for home manufacturing enterprises.
A statistic from 2020, supply: VRG.
For instance, VRG Khai Hoan JSC (belonging to Vietnam Rubber Business Group) – the biggest medical glove producer in Vietnam with the model identify Vglove – presently has closed orders in 2021 and closes all manufacturing till 2022. Many of the items are primarily exported to america. , Europe, Japan and the remaining serve the home market.
Sharing with the press, CEO Duong Duy Phu stated that earlier than the Covid-19 epidemic, the manufacturing facility operated at about 70-80% of capability (80% of export merchandise, 20% bought domestically). In 2020, earlier than the sudden demand of the market, the manufacturing facility will function at 100% capability with an output of two.5 billion items/yr. Even the corporate typically needed to refuse orders.
At the moment, 30% of Vglove merchandise serve the home market, together with many preferential orders for hospitals; The remaining 70% is principally exported to markets such because the US, Europe, Japan, China, New Zealand…
The danger from the epidemic has introduced VRG Khai Hoan greater than 500 billion in revenue in 2020, the very best ever, the CEO excitedly shared.
In line with this place, medical gloves will proceed to be excessive within the subsequent 5 years, though the worth might not be as sizzling as up to now. Subsequently, to satisfy the brand new wants of the market, VRG Khai Hoan has cooperated with a associate to extend the manufacturing facility capability to five billion items/yr (double present) and is anticipated to return into operation from October. 2021.
The statistics of VRG Khai Hoan’s efficiency index additionally present that the income in 2020 elevated greater than 2 occasions, from 884 billion to 1,800 billion dong. Even, internet revenue reached 440 billion dong, whereas in earlier years, it earned only one billion dong/yr.
One other unit, Viet Glove Joint Inventory Firm (VietGlove) additionally doubled its income in 2020, from 807 billion (in 2019) to 1,533 billion. Deducting bills, revenue after tax jumped to VND 361 billion, 32 occasions larger than final yr’s revenue.
It’s recognized that VietGlove was in-built 2013 on an space of greater than Three hectares, situated in Bau Bang Industrial Park, Binh Duong province. Complete funding capital is greater than 40 million USD, with practically 600 staff.
At the moment, the Firm operates a complete of 10 computerized manufacturing traces, with a complete manufacturing capability of practically 200 million gloves/month, equal to 2.Four billion items per yr. Particularly, not solely serving the home market, VietGlove merchandise have additionally reached fastidious clients such because the US, Japan, and Western Europe.
Basically, it may be stated that regardless of inflicting a heavy affect on life, well being and particularly the worldwide economic system, the epidemic additionally opens up alternatives for a lot of associated merchandise. Within the coming time, VRG Khai Hoan and VietGlove not solely recorded giant earnings from 2020, enterprise efficiency additionally improved considerably, from a single-digit profitability elevated to tens of % of whole income. (gross revenue margin from 5% (in 2019) to greater than 32% (in 2020)).
