CJ FOODS VIETNAM COMPANY LIMITED Faces Challenges Amid Expansion Efforts

CJ FOODS VIETNAM COMPANY LIMITED (CÔNG TY TNHH CJ FOODS VIỆT NAM) is a wholly foreign-owned subsidiary under CJ FOODS ASIA HOLDINGS LIMITED (Hong Kong), and has been operating actively in Vietnam since its establishment on September 20, 2013. With headquarters based in My Xuan B1 - Tien Hung Industrial Park, Ba Ria - Vung Tau Province, and branch offices across Ho Chi Minh City, the company plays a strategic role in Vietnam’s processed food and flour manufacturing industry.

As of 2023, CJ FOODS VIETNAM COMPANY LIMITED employed 1,074 workers and operated with a charter capital of over USD 54 million. Despite its expansive production footprint—which includes flour, frozen meat, seafood, and a wide array of processed food items—the company has encountered notable financial strain in recent years.

Financial Turbulence Despite Sales Growth

In the fiscal year ending December 31, 2023, CJ FOODS VIETNAM COMPANY LIMITED reported total sales of USD 178.81 million, reflecting a solid 12.43% year-over-year growth. However, this increase in revenue was overshadowed by a deepening net loss of USD 11.05 million, compared to a USD 8.19 million loss in 2022. The company’s owner’s equity plummeted by 83.24%, shrinking to just USD 2.22 million, indicating potential capitalization risks and long-term solvency issues.

More concerning is the negative working capital of USD -62.61 million, which signals a liquidity crunch and suggests that the company may face ongoing difficulties in meeting short-term obligations unless external funding is secured.

Management and Ownership

Mr. Kim Sewon, a South Korean national, serves as the General Director of the company, supported by Deputy General Director Ms. Nguyen Thi Thao Vien, a Vietnamese executive. The company is wholly owned by CJ FOODS ASIA HOLDINGS LIMITED, a Hong Kong-based entity that is part of the larger South Korean CJ Group—an influential player in Asia’s food and bio sectors.

Business Scope and Industrial Reach

The core operations of CJ FOODS VIETNAM COMPANY LIMITED span a broad range of food-related activities, including:

• Milling and production of wheat flour

• Frozen seafood and meat processing

• Vegetable and ready-to-eat food production

• Manufacture of bakery goods, starch products, and animal feeds

It also engages in non-specialized wholesale trade, real estate trading, and scientific and technical activities. This wide business registration gives the firm operational flexibility, although its primary strength lies in manufacturing and distribution of processed foods.