Industry Report

08042021_Textile Industry Outlook 2021_BSC Sector Research

Date

13/04/2021
Language

Tiếng Việt
Number of Downloads

2736

Detailed report

I. OUTLOOK OF TEXTILE INDUSTRY 2021 - OUTPERFORM

1.1 Year 2020 - A year of difficulties and challenges

In 2020, the Vietnam Textile industry faces many difficulties: (i) A failure in the material supply chain (ii) Orders fell sharply when the social distancing and consumption habits changed.

1.2 2021 - Recovery from the bottom

1.2.1 Production chain recovered with traditional orders rising again

- According to the Vietnam Textile and Apparel Association, the Vietnam Textile Industry is expected to return to export the pre-covid level of 2019.

- As of March 2021, some textile enterprises took orders until August 2021.

- BSC believed that textile businesses do not the problem of disrupted raw material supply chain.

1.2.2 Some events expected to promote the shift orders to Vietnam Textile.

- Increased political uncertainty in Myanmar will prompt retailers to hesitate to place orders in Myanmar and find an alternative country.

- Events related to Xinjiang Cotton are expected to continue to accelerate the shift of orders from China to countries with lower labor costs (including Vietnam).

1.2.3 Some textile companies deploy Real Estate based on the advantages of existing land bank: TNG, TCM, GIL

- TNG_Development of Son Cam industrial park and real estate, apartments, offices.

- TCM__ Real estate apartments and commercial services TC1, TC2, TC3

- GIL_Redirects to Real Estate Industrial Park.

II. TEXTILE COMPANIES SHORT UPDATE

BSC recommends POSITIVE for Textile industry in 2021, recommending BUY for STK, MSH; recommending NEUTRAL for TNG.

Regarding short-term investment view, please refer to Appendix <page 10> in this report.