CAVICO VIETNAM COMPANY LIMITED

CAVICO VIETNAM COMPANY LIMITED (Vietnamese: Công Ty TNHH Cavico Việt Nam), registered under Tax Code and Business ID: 0100983508, is a legally established, privately held one-member limited liability company. The company was incorporated on January 8, 2007, under the authority of the Hanoi People's Committee and has now been in operation for over 18 years. It is wholly owned by CAVICO Corporation Inc, a U.S.-based firm headquartered in Huntington Beach, California.

The company’s head office is located at 6th Floor, Song Da Building, Pham Hung Street, My Dinh 2 Ward, South Tu Liem District, Ha Noi City, Vietnam. Under the management of General Director Tran M. H., supported by Deputy General Director Duong D. C. and President Bui Q. H., the company oversees a workforce of 2,739 employees. CAVICO’s registered business activities include construction of electrical infrastructure up to 110kV, irrigation projects, transportation infrastructure, mining exploration, and real estate trading.

Despite its robust legal presence and large headcount, CAVICO VIETNAM COMPANY LIMITED is in a deeply distressed financial condition. As of the end of fiscal year 2024, the company reported total assets of USD 39.53 million, but its owner’s equity stood at a negative USD 10.28 million, signaling that liabilities now exceed assets by a wide margin. This negative equity status, which has persisted and worsened over the past two years, marks a significant solvency risk.

Furthermore, the company has generated no revenue in the last three years, reporting zero sales for 2022, 2023, and 2024. In parallel, annual losses have continued, with the 2024 net loss reaching USD 143,710. While this level of loss may appear moderate in isolation, the lack of revenue raises more serious concerns. The company has been operating at a loss without generating income, which raises questions about its business viability and operational continuity.

The deterioration of its balance sheet is further illustrated by the shift in owner’s equity from a positive USD 4.82 million in 2022 to negative USD 10.28 million in 2024, a collapse of nearly USD 15 million in shareholder value within just two years. This trend is compounded by an alarming working capital deficit of USD 47.12 million, meaning the company’s current liabilities vastly outweigh its short-term assets, placing it in a state of severe liquidity risk.

While the company remains legally active and maintains a wide range of registered business lines, these do not appear to translate into actual commercial performance. With zero sales reported for three consecutive years, it is unclear whether CAVICO is undertaking any construction contracts, engaging in real mining operations, or executing infrastructure projects. The combination of persistent losses, negative equity, and an absence of revenue may suggest either suspended operations or projects that are non-performing or loss-generating.

For a company of this size and industry scope to operate without sales raises red flags about either the accuracy of its financial reporting or the viability of its commercial model. Moreover, the complete dependence on a single foreign shareholder—CAVICO Corporation Inc—may pose additional challenges, especially if that parent company is unable or unwilling to inject further capital to stabilize its Vietnamese subsidiary.

From a financial risk management standpoint, CAVICO VIETNAM COMPANY LIMITED presents a high-risk profile. The company’s inability to generate income, compounded by its ongoing losses and negative net worth, raises concerns about its solvency. Furthermore, its large payroll and project-oriented business model may require ongoing financing for operations, making it vulnerable to interest rate shocks, supply chain disruptions, or policy changes in construction and mining regulations.

To mitigate these risks, CAVICO would need to pursue an aggressive financial restructuring strategy. This should include capital reinjection from its parent company or outside investors, asset liquidation to reduce liabilities, and possibly a re-evaluation of unprofitable or dormant projects. Establishing short-term liquidity through debt restructuring or vendor negotiation would also be critical to avoid default or operational paralysis.

In conclusion, while CAVICO VIETNAM COMPANY LIMITED retains an active legal status and maintains a significant workforce, its financial condition is deteriorating and presents serious risks to stakeholders. Investors, partners, and regulators should exercise caution and seek greater transparency in the company’s financial disclosures and project portfolio before engaging further. Without a turnaround plan and a clear path to revenue recovery, CAVICO risks becoming a non-operational legal shell despite its impressive registration and past footprint.