ATHENA VIET NAM FOOTWEAR COMPANY LIMITED

ATHENA Vietnam Footwear: Steady Operations Amid Financial Volatility

ATHENA VIET NAM FOOTWEAR COMPANY LIMITED (CÔNG TY TNHH GIẦY ATHENA VIỆT NAM), a wholly foreign-owned enterprise located in Ninh Binh Province, represents a mid-sized manufacturer in Vietnam’s extensive footwear industry. Established in October 2014 and backed by HERO HEART INTERNATIONAL LIMITED from Hong Kong, the company has built a workforce of approximately 9,000 employees and focuses primarily on the processing of sports shoes for export.

In recent years, ATHENA Vietnam has maintained a stable presence in the industry, though its performance in 2023 presents a mixed picture. According to the latest available financial statements, sales reached USD 51.99 million, a slight decline of 1.33% year-on-year, indicating relatively flat demand or production throughput. This modest drop in revenue followed strong growth in 2021 and 2022, suggesting that the company may have reached a temporary ceiling in capacity or faced headwinds in its order pipeline.

While revenue remained relatively stable, profitability took a hit in 2023, with net profit falling by 12.8% to USD 1.68 million. This is a notable drop from the previous year’s figure of USD 1.92 million and may reflect rising input costs, price pressure from international buyers, or inefficiencies in production. The decline occurred despite continued growth in owner’s equity, which rose 16.57% to USD 11.8 million, indicating that the company is still expanding its capital base and reinvesting earnings into operations.

One of the more concerning indicators is ATHENA’s negative working capital, reported at USD -25.18 million. This suggests a liquidity challenge, where short-term liabilities exceed short-term assets. While not immediately indicative of insolvency, this situation warrants attention from investors, suppliers, and financial partners, as it may impact the firm’s ability to respond to unforeseen shocks or fluctuations in cash flow.

In terms of total assets, the company reported USD 52.53 million, down 3.11% from 2022, signaling either depreciation, inventory contraction, or divestment of fixed resources. Despite this, ATHENA has grown significantly over the long term; from 2021 to 2022, it saw double-digit asset expansion and more than sevenfold equity growth, indicating a rapid scale-up phase prior to the recent plateau.

ATHENA’s business registration extends beyond just footwear, covering a diverse range of manufacturing and property-related sectors including plastics production, paperboard packaging, and real estate trading. While this diversification could present new revenue streams, it also introduces operational complexity and regulatory risk, especially if the company expands too quickly without strengthening its core business.

Led by Mr. Chang Tsung-Yuan, a Taiwanese national also known for directing other FDI firms in Vietnam’s footwear sector, ATHENA benefits from seasoned international leadership. However, continued improvement in cost management and liquidity planning will be key to sustaining the company’s momentum and avoiding further profit erosion.

In conclusion, ATHENA VIET NAM FOOTWEAR CO., LTD reflects the dynamics of a mature export manufacturer navigating a shifting global market. Its ability to maintain sales and equity growth is commendable, but rising financial strain and thinning profit margins underscore the need for strategic adjustments. For stakeholders, ATHENA remains a credible player in Vietnam’s footwear supply chain—but one that must watch its balance sheet carefully in the years ahead.