BAOSTEEL CAN MAKING (VIETNAM) CO., LTD

From a credit risk management standpoint, BAOSTEEL CAN MAKING (VIETNAM) CO., LTD demonstrates the profile of a large-scale, well-capitalized manufacturing enterprise with solid foreign backing—but also exhibits financial fluctuations that merit attention in any lending or credit decision.

Established on August 18, 2011, and registered in Binh Duong Province, the company operates as a limited liability enterprise with full foreign direct investment (FDI). It is 70% owned by Shanghai Baosteel Packaging Company Ltd. (China) and 30% by Baosteel Singapore Pte Ltd.. This structure gives the company robust international financial support, advanced technology access, and operational alignment with the globally recognized Baosteel Group.

The company is headquartered in the Vietnam–Singapore Industrial Park II-A (VSIP II-A), Binh Duong Province, a prime location for export-oriented manufacturing. It specializes in the production of high-quality aluminum beverage cans and can lids and employs around 400 people. The legal and operational leadership is spearheaded by Chairman Mr. Zhu W. L. and General Director Mr. Liu G, both Chinese nationals, supported by Mr. Le H. P as Chief Accountant.

Financially, BAOSTEEL CAN MAKING has experienced impressive asset and revenue expansion over the past three years, although 2024 brought signs of volatility. Total assets increased from USD 95.03 million in 2022 to USD 115.55 million in 2024, while revenue recovered to USD 138 million after a dip in 2023. However, net profit declined sharply by 30.05% in 2024, dropping to USD 9.02 million, after peaking at USD 12.89 million in 2023. Similarly, equity fell by 15.21%, reversing a strong upward trend from the previous year. The company's working capital also dropped significantly—by 35.27% year-on-year—indicating pressure on short-term liquidity despite a large capital base.

This deterioration in profitability and equity signals a potential margin squeeze, possibly due to rising production costs, price fluctuations in aluminum, or weakening global demand. While the business remains solid in scale and market position, the downward trends in profit and working capital raise flags from a credit control perspective.

Nevertheless, the company retains a strong capital foundation, with owner’s equity of over USD 66.5 million and charter capital of USD 35.6 million, fully paid up. These factors provide a cushion against short-term volatility. Its connection to Baosteel’s global network enhances operational credibility and suggests continued long-term investment.

In summary, BAOSTEEL CAN MAKING (VIETNAM) CO., LTD should be viewed as a capable and financially solid borrower, albeit currently experiencing moderate cash flow and earnings stress. Credit terms should be extended prudently, emphasizing monitoring receivables, reviewing 2025 financial updates, and considering potential parent company support if liquidity pressures persist.