Big brands see drop in revenue in more competitive market
VietNamNet Bridge - Amid an average 14.4 percent growth rate of listed companies, many enterprises have reported unsatisfactory business results, including strong brands with a long business history.


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Vinasun, considered the godfather of the southern taxi market, saw a decline in  profit after the appearance of Uber and Grab. 

In the first six months of the year, Vinasun’s revenue fell by 16 percent compared with the same period last year, while the pre-tax profit decreased by 32 percent. The profits mostly came from the sale of old cars.

Caosumina (CSM), considered Number 1 in the tyre industry, has also shown signs of a slowdown. A representative of Casumina last April expressed concern about the fall from Number 1 position, saying that the profits might decrease because of competition from foreign products, especially from Thailand and China.

In the first half of the year, though CSM had 13.6 percent growth in revenue compared with the same period last year, the company had difficulties amid input price fluctuations. The radial tyre factory has run at a low capacity, increasing production costs. CSM’s reported post-tax profit was VND47 billion only, much lower than the VND124 billion of the first half of 2016.

Amid an average 14.4 percent growth rate of listed companies, many enterprises have reported unsatisfactory business results, including strong brands with a long business history.
Dien Quang, one of the two leading manufacturers of lighting equipment and electric appliances, has also reported a drop in both revenue and profit: while the revenue decreased by 6.8 percent, the post-tax profit dropped sharply by 53 percent.

Dien Quang has had difficulties in both export and domestic markets. LED lights, one of the major products, has had to compete with Chinese imports. Though it had to spend more on sales activities, the results remain unsatisfactory.

Lix the detergent brand has reported a 18.5 percent profit drop, though revenue rose by 8 percent. The gross margin decrease was blamed on competition from Unilever and P&G.

Habeco, in the southern beer market, still gained a 4.6 percent growth rate thanks to  higher demand. However, Habeco had to spend VND233 billion, or double the same period last year, to speed up growth.

Binh Minh Plastics, the leading plastic pipe manufacturer, reported a sharp decrease of 34 percent in post-tax profit, though revenue increased by 8.6 percent. The higher input material price has caused the cost price to increase by 17 percent. It has two big rivals – Tan A and Hoa Sen.
vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news, Binh Minh Plastics, Vinasun, MOIT
 
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