DONG VIET NON-FERROUS METAL AND PLASTIC JOINT STOCK COMPANY

From a credit risk management perspective, DONG VIET NON-FERROUS METAL AND PLASTIC JOINT STOCK COMPANY (commonly referred to as DOVINA JSC) represents a high-risk commercial profile, despite its manufacturing scale and long-standing presence in Vietnam’s industrial sector. Established on July 8, 2009, the company is registered as a joint stock company with substantial foreign direct investment (FDI). It focuses primarily on the production of non-ferrous metals and plastics used in copper and aluminum wiring, resins, and components for the electrical manufacturing industry.

The company operates from its headquarters in Thu Duc City, Ho Chi Minh City, and maintains a major production plant in Long An Province. With approximately 1,000 employees, it maintains a large operational footprint. DOVINA JSC is led by Mr. Pugasab K., a Thai national, who holds the position of General Director, while Mr. Hon Q. T., a Vietnamese national, serves as Chief Accountant. Shareholding is dominated by PD Cable (SG) Pte. Ltd. of Singapore, which holds a 99.99% stake, with two Thai-based entities—Stark Corporation Public Company Limited and Phelps Dodge International (Thailand) Limited—holding nominal shares.

However, the company’s financial position has deteriorated significantly. As of the end of 2024, DOVINA reported total assets of USD 171.07 million, but its owner’s equity has plunged into negative territory at USD -21.72 million. The company has recorded net losses for three consecutive years, with a loss of USD -11.86 million in 2024, following USD -11.02 million in 2023, and USD -19.38 million in 2022. Revenues have collapsed from USD 450.2 million in 2022 to just USD 50.4 million in 2024, representing a near 90% drop in top-line performance over two years. This downward trajectory has led to a severe erosion in net worth, which now stands at USD -24.77 million, and a negative working capital of USD -29.08 million, indicating serious short-term liquidity issues.

Given the combination of sustained losses, deteriorating equity, declining sales, and negative working capital, DOVINA JSC poses a significant credit risk. Despite being backed by a large Singaporean shareholder, the current financial structure leaves little assurance for unsecured credit transactions. Any extension of credit to this company should be highly restricted, ideally requiring full prepayment, collateralization, or third-party guarantees. From a risk management standpoint, the situation demands continuous financial monitoring, with a strong preference for risk mitigation mechanisms in any future commercial engagements.