HONG NGUYEN AGRICULTURAL COMPANY LIMITED

HONG NGUYEN AGRICULTURAL COMPANY LIMITED (Công ty TNHH Nông Sản Hồng Nguyên) is a young, privately held agricultural trading company based in Thu Duc City, Ho Chi Minh City. Established in 2021, the company specializes in wholesale trading of agricultural raw materials, including rice, cereals, livestock feed ingredients, and various other agricultural commodities. 

Company Profile Report-HONG NGU…

Explosive Growth from a Very Small Base

Financial data shows extremely rapid year-on-year growth in assets, sales, and equity, but it is important to note that this growth started from a minimal foundation:

• Total assets increased from only USD 262,182 in 2021 to USD 8.8 million in 2023.

• Sales rose sharply to USD 94.2 million in 2023, up from just USD 2.6 million in 2021.

• Profit, although still modest, grew from USD 14,069 in 2021 to USD 46,116 in 2023.

This demonstrates aggressive expansion, but profit margins remain low, suggesting tight pricing, thin margins, and high operating costs typical of agricultural trading businesses.

A Very Lean Organizational Structure

Despite reporting nearly USD 100 million in annual sales, the company has a surprisingly small workforce:

• 20 employees (based on registration data),

• Possibly “fewer than 100 employees” (based on media information).

This indicates the company is likely operating as a pure trading business, relying heavily on suppliers, intermediaries, and logistics providers rather than in-house production or large-scale infrastructure.

Capitalization and Liquidity

The company has a charter capital of USD 3.28 million, but only USD 1.23 million in paid-up capital as of December 2023. Equity increased significantly but remained modest at USD 1.31 million, meaning:

• The business is operating with high turnover but low retained capital.

• Profitability is still limited compared to its sales scale.

• Working capital stands at USD 1.31 million, which is positive but relatively small for a company handling large-volume agricultural trades.

This suggests that while the company is growing fast, its financial cushion remains thin.

Leadership and Ownership

The company is led by Huynh A. N. as General Director, with Tran H. V. serving as Deputy General Director. Ownership is divided between:

• Huynh A. N. – 75%

• Tran H. V. – 25%

This reflects a fully Vietnamese-owned private business.

Extensive Business Registration Scope

Hong Nguyen Agricultural is registered for an extensive range of business lines—far beyond its core agricultural trading activities. These include:

• Wholesale of a wide range of goods (food, beverages, machinery, fuels, construction materials)

• Aquaculture and forestry-related activities

• Packaging services

• Motorcycle repair and parts sales

• Commission agents and brokerage services

Such a broad range of products may offer flexibility, but in practice, the company focuses mainly on rice trading and agricultural raw materials for animal feed.

Conclusion: A Young Company Growing Fast but Still Minimally Capitalized

Hong Nguyen Agricultural shows exceptional growth in asset size and revenue, but the company remains:

• Small in manpower,

• modest in equity, and

• Low in profitability relative to sales volume.

This is typical for trading companies that rely on quick turnover and narrow margins. While the company’s financial trajectory looks positive, it is still in an early development phase, and its long-term stability will depend on improving capital strength, profit margins, and operational capacity.