Garmex Saigon (GMC) Losses Widen as Garment Orders Remain Absent for 3 Years

Overview

Garmex Saigon (GMC), once a major player in Vietnam’s textile and garment industry, reported a net loss of over VND 19 billion in Q2 2026, with accumulated losses exceeding VND 154 billion. The company has had no garment orders since May 2023, forcing it to rely on minimal revenue from business cooperation activities. The widening losses highlight the prolonged downturn for this former industry leader.

Key Facts

• Q2 2026 net loss on standalone financial statements: over VND 19 billion, up 395% year-on-year.
• Consolidated net loss in Q2: VND 20.7 billion, up 213% year-on-year.
• Accumulated losses as of end-Q2 2026: over VND 154 billion.
• Q2 revenue: approximately VND 591.4 million, up 7% year-on-year but insufficient to cover operating costs.
• No garment orders since May 2023, marking over three years without traditional manufacturing revenue.
• One-time land rental charge of approximately VND 15 billion for the period 1996–2025 increased management costs.
• GMC is exploring new business lines and asset liquidation to generate cash flow.

What Happened

According to a company explanation filed with regulators, Garmex Saigon’s Q2 2026 revenue reached just VND 591.4 million, a 7% increase from the same period last year. However, this was far too small to offset fixed costs, resulting in a standalone net loss of over VND 19 billion and a consolidated loss of VND 20.7 billion. The company attributed the losses primarily to the continued absence of garment orders, a situation that has persisted since May 2023.

Garmex Saigon also faced higher management costs due to a supplementary land rental payment of about VND 15 billion covering the period from 1996 to 2025. The company stated it is studying investments in new industries for medium- and long-term growth, while in the short term it is focusing on cost reduction, liquidating unused assets, and urging partners to deliver fabric. It is also monitoring the completion of a housing project at Phú Mỹ to recover investment capital.

Market Context

GMC shares closed at VND 4,400 on August 12, 2026, reflecting the market’s subdued view of the company’s prospects. Listed on UPCOM (formerly HOSE), GMC has seen its stock price decline significantly from its peak as the company’s core business remains idle. While many Vietnamese textile and garment peers are recovering, GMC’s prolonged lack of orders sets it apart, underscoring the uneven nature of the sector’s rebound.

Strategic Significance

For long-term investors, GMC’s situation highlights the risks of a company heavily dependent on a single industry without a viable pivot. The prolonged absence of orders suggests structural challenges, possibly related to customer relationships, production capacity, or competitive positioning. Management’s plan to diversify into new sectors and monetize assets could provide a path forward, but execution risk is high. The company’s ability to generate cash from non-core activities, such as the Phú Mỹ housing project, will be critical to stabilizing its financial position.

What to Watch

• Progress on the Phú Mỹ housing project and any revenue recognition from product sales.
• Announcements of new business ventures or partnerships outside garment manufacturing.
• Further asset sales or lease agreements for existing facilities.
• Quarterly financial reports to see if losses narrow or widen.
• Any regulatory filings regarding the land rental dispute or other one-time charges.