6 Consecutive Years of Losses, Nearly 80 Billion in Negative Capital: 40-Year-Old Textile Company Must Temporarily Halt Production Activities

CTCP Giày da và May mặc Xuất khẩu (Legamex) has decided to temporarily halt production activities from May 2025 due to consecutive losses over the past 6 years, totaling 166 billion VND, with negative capital reaching nearly 80 billion VND. Financial and operational difficulties arose as revenues in 2023 dropped by 76% year-on-year, totaling only 31 billion VND. The company lacks resources to engage in large-scale outsourcing and mostly operates small-scale contracts with domestic partners, leading to inefficient production. Following fluctuations in shareholders and leadership, the number of workers has significantly decreased. Aging machinery without upgrades has severely impacted productivity. Legamex plans to resume production when the textile market shows signs of recovery.