The recent financial report from Garmex Sai Gon Joint Stock Company (GMC) revealed a net loss of nearly 20,7 billion VND. This loss is three times higher than in Quarter II/2025 and marks the largest deficit recorded over the past 14 quarters.

The management stated that the company continues to face a lack of garment manufacturing orders. Its revenue primarily stems from business cooperation, specifically the rental of pickleball courts. In Quarter II, GMC's consolidated revenue reached over 591 million VND, an increase of about 7%.

During this period, financial revenue nearly doubled to over 1 billion VND, primarily due to interest from deposits. The company also continued to offer its unused assets for sale, but with negligible success.

Despite this challenging environment, the company still maintains some warehouse and indirect personnel for management, incurring salary expenses and fixed costs such as depreciation, land lease, environmental fees, and security services. Administrative expenses increased by 2,5 times to over 22,5 billion VND. This figure includes salaries and an additional land lease arrears payment of over 15 billion VND for the 1996-2025 period. Consequently, revenue was insufficient to cover expenses, leading to ongoing losses for the company.

For this year, GMC projected a revenue of over 2 billion VND, half of which has been achieved in the first six months. The company anticipated a full-year loss of 26,3 billion VND, however, the loss incurred in the first half of the year has already exceeded this projection by approximately 0,3%.

Workers at Garmex Tan My factory (Ba Ria - Vung Tau). Photo: GMC

Established in 1976, Garmex Sai Gon was once a renowned garment enterprise, achieving trillion VND revenues between 2012 and 2021. At its peak, the company operated five factories in TP HCM and Quang Nam, boasting over 70 production lines. However, by late 2022, its business operations sharply declined after a major partner, Binh Thanh Production Trading Export Joint Stock Company (Gilimex), experienced sudden production cuts from Amazon, despite significant investments in facilities and inventory. Currently, finished goods inventory is recorded at nearly 109 billion VND, with a depreciation provision of nearly 15 billion VND.

Garmex Sai Gon was forced to suspend production in May/2023 and lay off thousands of employees due to a lack of orders. During its prime, the company employed approximately 4,000 staff members, but by the end of March, this number had dwindled to only 27.

Management stated plans to continue cost reduction, liquidate unused assets, and monitor and encourage delivery partners. The company will also accelerate the Phu My housing project to sell products and recover investment capital. Furthermore, GMC intends to explore other existing premises and research investments in new, trending industries to foster company development.

Tat Dat