BINH MINH PLASTICS JOINT STOCK COMPANY: Profit-Rich but Revenue-Shrinking Market Leader in Vietnam’s Plastic Industry

BINH MINH PLASTICS JOINT STOCK COMPANY (CÔNG TY CỔ PHẦN NHỰA BÌNH MINH), also known by its stock code BMP on the HOSE exchange, stands as one of the leading and most recognizable players in Vietnam’s plastic manufacturing industry. Registered since January 2, 2004, and based at No. 240 Hau Giang Street, District 6, Ho Chi Minh City, this firm has now operated for over two decades and maintains branches in Binh Duong and Long An provinces. It currently employs more than 1,300 people and operates under foreign direct investment (FDI) ownership, with The Nawaplastic Industries Co., Ltd. of Thailand holding a 54.99% stake.

The company specializes in manufacturing and trading civil and industrial plastic products, such as pipes and fittings, primarily used in infrastructure and urban development. Over the years, BINH MINH PLASTICS JOINT STOCK COMPANY has maintained a reputation for product quality and manufacturing efficiency, contributing significantly to Vietnam’s plastic supply chain in both residential and industrial markets.

From a financial risk management perspective, one figure that immediately commands attention is the profit after tax in 2024, which stood at USD 40.7 million. Despite a revenue decline of over 10% year-on-year and a contraction in total assets, BINH MINH PLASTICS still managed to preserve exceptionally high profitability. To put this in context, the company’s net profit margin in 2024 exceeded 21%, a figure that is rare in Vietnam’s competitive manufacturing sector and indicates exceptional internal cost controls and operational efficiency.

However, that strength is counterbalanced by notable concerns. Revenue has been declining steadily for two consecutive years, from USD 238.6 million in 2022 to just USD 189.6 million in 2024—a drop of nearly 21% overall. While profits have remained robust, such a fall in top-line performance suggests possible softening demand, pricing pressures, or increasing market saturation. If this trend continues unchecked, even a highly efficient cost structure may not be able to absorb the longer-term revenue erosion.

The company’s equity position remains strong, reaching nearly USD 111 million in 2024, up slightly from the previous year. Total assets dipped by 1.67%, reflecting caution in expanding capital investments, likely due to market headwinds. Working capital, however, remained solid at around USD 86.9 million, indicating sufficient liquidity to cover operational obligations and withstand short-term financial shocks.

Leadership remains stable, with Mr. Sakchai Patiparnpreechavud serving as Chairman and Mr. Chaowalit Treejak as General Director, both bringing Thai expertise and regional management experience. This aligns with its majority shareholder, Nawaplastic of Thailand, a subsidiary of the regional conglomerate SCG, which helps provide a robust backbone of technical know-how and strategic oversight.

Overall, BINH MINH PLASTICS JOINT STOCK COMPANY remains a low-risk and cash-rich enterprise in the Vietnamese plastic industry. Its impressive profitability and liquidity offer reassurance to shareholders, suppliers, and potential partners. Yet, the multi-year decline in sales should be interpreted as a cautionary signal that the market environment may be shifting, and further strategic adjustments could be necessary to sustain long-term growth.

For stakeholders seeking deeper insight into the company’s market position, creditworthiness, and operational dependencies, VANGUARD BUSINESS INFORMATION LLC (VBI) provides advanced financial verification, litigation screening, and strategic risk evaluations tailored to companies like BINH MINH PLASTICS JOINT STOCK COMPANY.