CHINFON CEMENT CORPORATION

CHINFON CEMENT CORPORATION (Vietnamese name: CÔNG TY XI MĂNG CHINFON, abbreviated as CFC) is a foreign-invested limited liability company with over 16 years of operation in Vietnam. Established on July 23, 2008, and headquartered at No. 288, Bach Dang Street, Minh Duc Ward, Thuy Nguyen City, Hai Phong City, Vietnam, the company is registered under tax code 0200110200 and currently operates multiple branches in Hanoi, Ho Chi Minh City, and Da Nang.

CFC is a leading manufacturer of cement and clinker products in Vietnam, supported by a diverse ownership structure. The majority stakeholder is CHINFON VIETNAM HOLDING COMPANY LIMITED (70%) based in the British Virgin Islands, followed by the People’s Committee of Hai Phong City (15.56%) and Vietnam National Cement Corporation (14.44%). With this structure, CFC benefits from both international investment expertise and local government support, positioning it as a strategic industrial asset in the country’s northern economic zone.

The company is managed by Mr. Lo L. T., a Taiwanese national who serves as General Director. Mr. Nguyen T. A. and Mr. Vu H. K., both Vietnamese Deputy General Directors support him. CFC employs over 1,050 workers and operates a production line that serves both domestic and international markets.

In terms of financial performance, CFC reported total assets of USD 177.4 million at the end of 2023, representing a slight 0.3% year-over-year decrease. Total revenue increased modestly to USD 161.3 million (up 2.23%), but net profit fell significantly to USD 1.41 million—a sharp decline of 38.34% from the previous year. This marks a continuation of a downward trend in profitability since 2021, suggesting rising cost pressures or weakening market margins in the cement sector.

A notable area of concern is the company’s negative working capital of USD -25.65 million. This figure suggests short-term liabilities exceed current assets, raising questions about CFC’s liquidity and its ability to meet immediate obligations without relying on external financing. While the company retains a substantial equity base of USD 68.18 million and a net worth of USD 55.93 million, the short-term liquidity gap highlights credit risks that cannot be overlooked.

From a credit risk management perspective, VANGUARD BUSINESS INFORMATION LLC (VBI) recommends a cautious but not prohibitive risk rating. While CHINFON CEMENT CORPORATION holds a strong asset base and operates within a critical infrastructure sector, the deteriorating profitability and tight liquidity metrics pose potential stress for suppliers, lenders, and service providers. Partners are encouraged to utilize VBI’s services, such as debt monitoring, payment history tracking, and financial benchmarking , to gain a clearer view of the company’s cash flow trends and risk signals.

In conclusion, CHINFON CEMENT CORPORATION remains a major industrial player with credible ownership and market presence, but its current financial profile reveals increasing pressure on profitability and liquidity. Risk mitigation through tighter credit terms and enhanced due diligence—backed by tools from VBI—is advised for all prospective and current business partners.