Gia Dinh Textile Company had its customs procedures suspended due to a tax debt of nearly 100 billion VND that was 90 days overdue.
The Investment Customs Branch (HCMC Customs Department) issued a decision in early March to enforce the suspension of customs procedures for import and export goods of Gia Dinh Textile and Garment Joint Stock Company. The decision was issued at the request of the HCMC Tax Department.
The enforcement decision is effective for one year from March 6 and will end when the enterprise has paid enough to the state budget.
Gia Dinh Textile and Garment has been operating since 2010 and was once one of the few leading enterprises in the textile and garment industry in Ho Chi Minh City. However, due to the impact of the Covid-19 epidemic, the enterprise's export production has been severely affected.
This is also a common situation for many businesses in the industry. On the same day, the Customs Sub-Department of Investment Management also decided to forcibly stop customs procedures with DAH Sheng Garment Export Company Limited. This company owes overdue taxes of more than 2 billion VND for 90 days.
Recently, Garmex Saigon, a garment company also in Ho Chi Minh City, consulted shareholders on the transfer of two plots of land and attached assets after cutting nearly 2,000 workers due to lack of orders. Before deciding to consult shareholders on the sale of these two plots of land, Garmex Saigon also liquidated many other assets such as cars, trucks, machinery, and production equipment.
In 2023, the textile and garment industry will face challenges from many factors such as inflation in key export markets such as the US and Europe, leading to a sharp decline in orders.
According to SSI Research, the recovery prospects of this industry in 2024 are still unclear. Specifically, global economic growth is not expected to improve much in 2024, leading to consumers reducing non-essential spending, including on apparel.
In 2023, the textile and garment industry's export turnover reached 40.3 billion USD, 10% lower than the previous year and far from the initial target of 47-48 billion USD. This year, the industry set an export turnover target of 44 billion USD, an increase of more than 9% compared to last year.
Phuong Dung
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