KHANH SUNG COMPANY LIMITED (CÔNG TY TNHH KHÁNH SỦNG): Big Numbers, Thin Margins, and an Uncomfortable Truth

In the heart of the Mekong Delta, nestled in Soc Trang Province, KHANH SUNG COMPANY LIMITED (CÔNG TY TNHH KHÁNH SỦNG) has spent the past 18 years building one of Vietnam’s largest frozen shrimp processing operations. Located at 67 National Highway 1A, Tam Phuoc Hamlet, Dai Tam Commune, My Xuyen District, Soc Trang, and operating under tax code 2200271829, the company employs 1,200 workers and claims nearly USD 149 million in annual revenue. But behind those impressive sales figures lies a more fragile reality—one that raises red flags for any stakeholder focused on credit risk, business verification, or private financial data in Vietnam’s seafood industry.

On the surface, 2023 was a banner year. Sales rose by 8.39% to USD 149.03 million, and assets grew 15.85% to over USD 103.67 million, continuing a multi-year upward trend. Owner’s equity expanded even more sharply—by 30.51%, reaching USD 39.52 million. Yet despite this financial bulk, the company’s net profit was a mere USD 68,194—a meager return of just 0.05% on revenue. Even worse, that figure marks a 44.15% drop from the previous year’s already modest profit.

How does a company move nearly $150 million in product and generate less than the salary of a mid-level manager? That’s the uncomfortable truth behind KHANH SUNG. Either operational costs are out of control, or margins in the frozen shrimp sector have collapsed—or both. The company’s positive working capital of USD 9.18 million shows it isn’t immediately insolvent, but the profitability erosion is alarming.

The firm remains fully Vietnamese-owned, led by Mr. Tran V. T., who owns 99% of the company and supported by Chief Accountant Mr. Ly T. D.. Its registered activities span from shrimp processing and aquaculture to agricultural wholesale and freight transport, reflecting a diversified model. But even a broad business base hasn’t prevented shrinking earnings.

Credit analysts should approach This type of financial profile with caution. While the capital structure is solid and the business has scale, the declining profit trend and ultra-low margins suggest vulnerability to external shocks—such as input price spikes, export disruptions, or currency fluctuations. Even the 2022 profit was only USD 122,098, down from USD 134,111 in 2021, continuing a three-year profitability decline.

The company’s website, https://khanhsung.vn, presents a professional image, and the scale of employment is impressive. But size does not always equal strength. For importers, lenders, or investors reviewing this profile through a risk management lens, the red flags are clear: strong sales growth is consumed by internal inefficiencies or market compression, leaving little cushion for trouble.

In conclusion, KHANH SUNG COMPANY LIMITED is a high-revenue, low-margin operator that showcases both the potential and the peril of Vietnam’s seafood export sector. If profitability continues to decline, the company's creditworthiness may come into question, no matter how impressive its asset base looks on paper. It’s a business worth watching—closely.