DUONG HIEU TRADING AND MINING JOINT STOCK COMPANY

At first glance, DUONG HIEU TRADING AND MINING JOINT STOCK COMPANY appears to be a booming enterprise. With reported revenue more than doubling within a year to over USD 112 million, the company may attract attention from investors, suppliers, or partners looking for growth stories in Vietnam’s industrial landscape. However, as a marketing team member at VANGUARD BUSINESS INFORMATION LLC (VNBIS), we believe it’s essential to look beneath the surface and give our clients a realistic, risk-aware picture — not just flashy top-line numbers.

Despite the rapid revenue growth, profitability remains alarmingly weak. Net profit for the year hovered around USD 245,000, less than 0.25% of revenue — a skinny margin by any standard. To put it in perspective, a company earning over one hundred million dollars in revenue but retaining less than half a million in profit should prompt immediate concern about cost structures, operational inefficiencies, or potential mismanagement.

This isn’t a one-off issue. While the profit did rise sharply compared to the previous year, it’s still far below historical levels. In 2021, the company posted more than ten times higher profits. That steep decline suggests a structural problem or increasing pressure from competition, costs, or non-core business distractions.

DHM’s activities span an extensive range from machinery, wholesale and mining,  forestry, real estate, and even fertilizer manufacturing. This level of diversification might suggest flexibility, but it often signals a lack of strategic focus, which can dilute resources and management attention. In volatile industries like mining and machinery, such fragmentation could increase risk instead of mitigating it.

Even with significant asset growth and active status on the stock exchange, net worth has grown only modestly. Meanwhile, working capital remains limited, and employee headcount is relatively small for such high reported revenue, raising further questions about where and how value is truly being created.

At VNBIS, we specialize in uncovering these inconsistencies and helping clients differentiate hype from reality. Our independent reports are crafted to minimize your financial risk — not by selling feel-good stories, but by delivering the honest, critical insights you need. If you're considering any engagement with this company or others like it, we encourage you to obtain a full VNBIS report to see what the numbers tell you before it’s too late.