13 MECHANIC AND CHEMICALS ONE MEMBER LIMITED LIABILITY COMPANY

13 MECHANIC AND CHEMICALS ONE MEMBER LIMITED LIABILITY COMPANY (CÔNG TY TNHH MTV CƠ KHÍ HÓA CHẤT 13) is a state-owned enterprise under the Ministry of National Defense, operating in Tuyên Quang Province with more than 1,900 employees. The company specializes in manufacturing bullets, industrial explosives, artillery-shell repair, and precision metal machining, making it one of the key industrial units in Vietnam’s defense production chain.

The company has been expanding aggressively. In 2024, total assets surged to USD 288.68 million (▲34%), while sales jumped to USD 155.49 million (▲66%). Profit also grew impressively to USD 7.43 million, reflecting stronger demand and higher output. The upward trends shown across all financial charts on page 1 confirm a stable growth cycle backed by state investment and strategic market positioning.

However, a few critical points stand out. First, although the company’s profitability is rising, its profit margin remains modest, especially given its huge asset base. This suggests heavy capital intensity and potentially low-margin contracts, which are standard in state-managed defense manufacturing. Second, the company’s paid-up capital increased sharply to USD 53.53 million, well above the charter capital, indicating ongoing state injections but also raising questions about long-term self-sufficiency.

Another concern is the extensive range of registered business activities (page 2), spanning everything from metal forging and chemicals to cement manufacturing, wooden containers, weapons production, and even quarrying. While such diversification is typical for defense-industry complexes, it also complicates cost management and may reduce operational focus.

Ownership is fully concentrated in the Ministry of National Defense (100%), providing the company with strong backing but leaving no room for independent governance or market-driven strategic adjustments.

Overall, 13 Mechanic and Chemicals Company is a growing defense manufacturer with strong state support and expanding production. Yet its low profitability relative to asset size, broad operational scope, and dependence on government capital injections suggest that efficiency improvements and strategic focus will be crucial for its next stage of development.