Page 501 - Ebook HTKH 2024

rooftop solar power system and a BioMass system, with an estimated investment capital
of about VND 800 billion.

The funding for the above project will come from green credit sources with low
interest rates. The Company is working with a number of commercial banks in Vietnam
to implement the loan as soon as possible. In general, the loan to implement the project
will not have a negative impact on business results in 2024 and 2025. The investment
capital of VND 800 billion accounts for a fairly large proportion of TNG's operating
scale. This textile and garment enterprise has total assets of about VND 5,250 billion,
most of which are in current assets, accounting for over 50%, and less than 50% are
fixed assets of nearly VND 2,200 billion. Thus, the above ESG project has an investment

capital equivalent to more than 1/3 of the enterprise's current fixed assets. This is a fairly
large investment, showing TNG's determination to implement the ESG strategy to take
advantage of business opportunities in the context of implementing FTAs on garment
exports.
Analysis of the data on the company's annual financial reports shows that the
current investment capital of VND 800 billion of the ESG project is higher than the total

profit of the years 2021-2023. Specifically, compared to the business results, this
investment capital is higher than the total profit of the last 3 years (2021-2023). At the
end of last year, TNG had a total financial debt of more than VND 2,640 billion,
accounting for more than 50% of the total capital.
In recent years, the above-mentioned textile company has invested in many high-
tech systems to save energy, using LED lighting systems, Sunoptics Skylight natural
light, solar panels;…. In addition, the company has also deployed many other advanced

environmental protection technologies that have been transferred in the treatment of
industrial wastewater and waste in the textile sector. Therefore, these two stages are
considered to minimize wastewater and waste that pollute the environment, such as
advanced industrial wastewater treatment systems, systems to recycle part of the
garment industry waste (mainly scraps). Although investing in these systems increases
production costs, in return, it creates international prestige and creates a sustainable

export market to the EU and the United States. The company's ability to meet ESG
factors has helped increase the number of orders from both old and new customers in
garment exports to major markets.
TNG Company also discloses ESG information according to GRI standards
through its annual sustainability report. TNG Company is the only enterprise that fully
discloses information according to this set of standards and is the unit that has met the
United Nations' 17 criteria on ESG.
Currently, TNG Company has a number of signed orders to ensure full capacity

mobilization of garment factories until the end of 2024 and early 2025. In particular, the
company's export orders have recovered compared to the same period in the US market
and the number of orders has increased from Decathlon to serve the 2024 Summer
Olympics in Paris.

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