BILLION INDUSTRIAL (VIET NAM) CO.,LTD

BILLION INDUSTRIAL (VIET NAM) CO., LTD (CÔNG TY TNHH BILLION INDUSTRIAL VIỆT NAM): High Revenue, Heavy Losses – A Cautious Look at Vietnam’s Polyester Giant

BILLION INDUSTRIAL (VIET NAM) CO., LTD (CÔNG TY TNHH BILLION INDUSTRIAL VIỆT NAM) is a foreign-invested manufacturer specializing in plastic textile fibers and polyester PET chips, operating out of Phuoc Dong Industrial Park, Tay Ninh Province. Despite having a solid infrastructure, strong financial backing, and one of the largest industrial footprints in the region, the company’s recent financial performance raises some concerns. Officially registered on March 22, 2017, under Business ID 3901239938, the company operates as a one-member limited liability company with 100% ownership by Fujian Billion Polymerization Fiber Tech. Ind. Co., Ltd. from China.

📊 Strong Asset Growth, But Declining Equity

BILLION INDUSTRIAL (VIET NAM) CO., LTD has reported steady growth in its total assets, rising from USD 509 million in 2022 to USD 597 million in 2023 – a 17.3% year-over-year increase. While this growth is notable, the company’s owner’s equity has declined for two consecutive years, dropping by 5.77% in 2023 to USD 246.32 million. This trend suggests that the company is becoming increasingly dependent on liabilities rather than internal reinvestment, which may raise concerns for long-term financial stability.

💸 Consistent Revenue, But Deepening Losses

On the surface, the company’s top-line numbers look healthy. Total sales climbed to USD 431 million in 2023, up from USD 396 million in 2022 — an increase of 8.77%. However, beneath this revenue growth lies a more troubling trend: a significant net loss of USD 15.09 million in 2023. This comes after a USD 4.2 million loss in 2022, meaning losses have deepened by more than 256% year-over-year. This steep drop from a profit of USD 21.9 million in 2021 indicates a sharp operational or market shift that demands attention.

🏭 Operational Scale vs. Efficiency

The company employs up to 3,000 workers, operates from a large industrial facility in Tay Ninh, and maintains a presence in Ho Chi Minh City. While the scale suggests industrial strength, the decline in profit margins implies either rising production costs, weakened demand, or internal inefficiencies that are cutting into the bottom line. The negative working capital of USD -114.39 million in 2023 further indicates liquidity pressures and potential short-term financial risks.

👥 Leadership and Ownership

The management is fully led by Chinese nationals, with Mr. Sze Tin Yau as Chairman and Mr. Wu Jin Biao as General Director. The full ownership by a single parent entity from China reflects tight vertical integration, but it also implies limited local stakeholder influence, which could be a consideration for Vietnamese partners or regulators.

✅ Business Transparency and Verification

Given its size, rapid financial swings, and foreign ownership, stakeholders are advised to verify the business’s credibility, legal standing, and risk profile through Vanguard Business Information (VBI). VBI’s Business Verification and Risk Management Service offers deep insights into operational health, financial structure, and legal compliance – essential for anyone considering partnerships or procurement deals with BILLION INDUSTRIAL (VIET NAM) CO., LTD.

In summary, while BILLION INDUSTRIAL (VIET NAM) CO., LTD presents itself as a major player in Vietnam’s synthetic fiber sector, its recent financial losses and deteriorating equity position suggest a business facing significant operational or market challenges. Investors, suppliers, and regulators should approach with due diligence and ensure proper risk assessment before engagement.