Garmex Saigon, which was once a leading garment and textile manufacturing operation in Vietnam, is making less than VND 2 million, about US$80 a day, Cafe F is reporting. The company, which once had 3,700 workers on its payroll, had just 35 staff at the end of 2023, and in February had started selling assets to cover losses. To date it still appears to have very few orders with most of its revenue drawn from the sale of assets.
This is in spite of a turnaround in the garment and textile sector in recent months with exports rising by 17.62 percent in July over June.
Of note, it is not unusual for Vietnamese firms to hold out for as long as possible, grasping at straws to stay afloat under the belief that the ship will right itself if they can hold out just a little longer. Furthermore, it is not unusual for them to be allowed to do so, with a firm not considered insolvent until its debts are over 90 days past due, but even then they can often continue to trade for quite a while longer.
See also: Insolvency in Vietnam 2024: Unpacked