In general meetings of shareholders, many Vietnam textile enterprises announced high dividend rates of 20-25 percent.
While many shareholders of construction materials enterprises are disappointed in reduced business results, shareholders of textile enterprises cannot conceal their happiness when receiving a dividend rate much higher than bank interest rates.
The year 2012 ended with revenues of VND3,852 billion, up 15 percent over 2011, before tax profits of VND170 billion, up 13 percent over 2011, Viet Tien Garment Joint Stock Corporation deserved its position as a large and strong enterprise of textile industry when it decided to pay a dividend rate of 25 percent.
Another enterprise that pays high dividend rate of 18 percent is Garment 10 Joint Stock Corporation (GARCO 10). In 2012, GARCO 10’s total revenues reached VND1,503.66 billion, up 24 percent over 2011, profits were VND37.12 billion, average employee salary was nearly VND5 million.
With revenues of nearly VND2,000 billion, up 19 percent over 2011, up 4 percent compared to one targeted in the general meeting of shareholders in 2012, profits reached VND55.4 billion, up 5 percent, Hoa Tho Garment Joint Stock Corporation (Da Nang) paid a dividend rate of 20 percent in cash for shareholders.
According to a representative of Textile Financial Company (TFC), the year 2012 was a volatile one for many credit institutions, and TFC faced many difficulties in business activities. Although total revenues reached VND164,50 billion, profits of VND74.5 billion, accounting for only 86.7 percent of planned one, TFC still paid dividend rate of 9 percent.
Despite challenges in 2013 like shrinking exports to large markets in the United States and Japan, shareholders of textile enterprises still have hope, because most of enterprises have elaborated active business plans and their dividend rates are forecast to account for 15-20 percent of charted capital.
Particularly, Viet Tien has planned a pretty high dividend rate of minimum 20 percent. General Director Bui Van Tien said that with large production capacity, 22 subsidiaries and associated companies with stable markets and customers, the target is practical.
“We will apply synchronously economic and appropriate production methods through lean manufacturing, promote productivity, improve the environment”, Mr Tien said.
This year, Viet Tien will remove production from cities to regions with favourable conditions for garment production, focusing on the industrial cluster project of Tan Thanh Tien in Ben Tre province with 20,000 employees, ready to receive investment of potential customers from the Free Trade Agreement (FTA) with the EU, and the Trans-Pacific Partnership (TPP).
Referring to Ms Nguyen Thi Thanh Huyen, General Director of GARCO 10, in 2013, input expenditures for electricity, gas and oil, energy, transportation, minimum salary will keep increasing, therefore GARCO 10 forecasts that its input expenditures will be added about VND56.5 billion. However, GARCO 10 still targets a revenue of VND1,688 billion, up 12.26 percent over the previous year; profit of VND39 billion, dividend rate of 17 percent.
As for Hoa Tho, it plans revenues for 2013 to be VND2,300 billion, with depreciation of VND80 billion, profit of VND55 billion, and planned dividend rate of 20 percent in cash and stock. General meeting of shareholders of TFC in 2013 also agreed with targeted revenues of VN 190 billion, before tax profit of VND90 billion, ROE of 18 percent and bad loan of under 2 percent, dividend rate of 11.5 – 12 percent.
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