HANESBRANDS VIET NAM HUE COMPANY LIMITED: Margin Compression Signals Risk in Global Apparel Chain

HANESBRANDS VIET NAM HUE COMPANY LIMITED (CÔNG TY TNHH HANESBRANDS VIỆT NAM HUẾ), a wholly foreign-owned enterprise under Hanesbrands Holdings (Mauritius) Ltd., operates one of the largest garment production hubs in Central Vietnam. Registered under business ID 3301559929 and headquartered in Phu Bai Industrial Park, Hue, the company manages an impressive workforce of 6,000 employees focused on manufacturing men’s underwear and T-shirts for global export.

In 2023, HANESBRANDS VIET NAM HUE COMPANY LIMITED posted USD 204.75 million in revenue—down 16.2% from the previous year. Profit also dropped significantly, down 27.33% to USD 11.74 million. This erosion in profit outpaced the revenue decline, highlighting increased input costs, margin compression, or declining pricing power in the highly competitive apparel manufacturing sector.

Assets showed a slight recovery of 11.72% to USD 68.13 million after a sharp drop in 2022, but equity fell for the third consecutive year to USD 19.01 million—a cumulative 34.3% decline since 2021. Working capital stood at just USD 6.31 million, which may limit operational flexibility in the event of delayed receivables or unexpected demand spikes.

From a risk management lens, VANGUARD BUSINESS INFORMATION LLC advises stakeholders to examine the company’s latest Private Financial Data, especially surrounding cash flow statements and payment cycles. A Litigation Search is also recommended to rule out the possibility of pending legal or labor-related disputes, particularly given the high employee count and exposure to international compliance expectations.

While the company benefits from its affiliation with a globally recognized parent brand and still delivers solid export volumes, the declining profitability and equity raise caution. Stakeholders should closely monitor future quarters for any signs of turnaround or further deterioration.

For those seeking an accurate and timely review of financial health, governance integrity, and business risks associated with HANESBRANDS VIET NAM HUE COMPANY LIMITED, VANGUARD BUSINESS INFORMATION LLCprovides independent insights and actionable verification services.