LOTTE CHEMICAL VIETNAM COMPANY LIMITED

LOTTE CHEMICAL VIETNAM COMPANY LIMITED (CÔNG TY TNHH LOTTE CHEMICAL VIỆT NAM) is a wholly foreign-owned enterprise that plays a pivotal role in Vietnam’s industrial materials sector. Established on March 29, 2017, under Business ID 3603453728, the company’s head office is located in Nhon Trach 6A Industrial Subdivision, Nhon Trach District, Dong Nai Province, with a branch in Yen Phong Industrial Park, Bac Ninh Province. Operating under LOTTE CHEMICAL CORPORATION (South Korea), the company represents one of the primary chemical manufacturing arms of the global Lotte Group.

Strategic Position in the Plastic and Polymer Industry

LOTTE CHEMICAL Vietnam specializes in the manufacture of plastics and synthetic rubber in primary forms, with its main product being plastic beads used in a wide range of industrial and consumer applications. As part of the Lotte Group’s integrated operations in Vietnam, which span over 20 subsidiaries across real estate, retail, energy, and manufacturing, this company supports the group’s chemical and materials segment. In April 2020, Lotte Chemical Vietnam acquired Vina Polytech Company Limited, inheriting its factory and production equipment, which have been operational since 2016. This move expanded its technological capacity and strengthened its foothold in the local market.

Leadership and Corporate Structure

The company is led by Mr. Yang J. Y., Chairman cum General Director, supported by Ms. Trinh T. H. as Chief Accountant and Mr. Choi J. G. as Chief Financial Officer. This management team reflects the strong Korean-Vietnamese collaboration model that has become typical among multinational manufacturers in Vietnam. LOTTE CHEMICAL CORPORATION owns 100 percent of the charter capital, amounting to USD 5.63 million, while the total registered investment capital stands at USD 24.03 million, with an investment duration of 38 years.

Financial Overview: Growth with Resilience

As of fiscal year 2023, the company’s total assets reached USD 61.59 million, marking a 21.97 percent increase from the previous year. Owner’s equity also rose by 30.63 percent to USD 38.17 million, showing consistent capital accumulation and reinvestment of profits. Despite a 16 percent drop in sales to USD 105.14 million, net profit surged 44 percent to USD 8.95 million, driven by cost efficiency and higher margins in specialty product lines.

The company maintained strong liquidity with working capital of USD 22.54 million and interest-bearing debt of USD 4.96 million, a conservative leverage level relative to total equity. EBITDA reached USD 12.52 million, reflecting an impressive 11.9 percent EBITDA margin, outperforming industry averages.

Operational Stability and Market Presence

LOTTE CHEMICAL Vietnam’s operations are supported by stable relationships with major global clients such as Panasonic, Pegatron, Sojitz Thailand, and LOTTE CHEMICAL California Inc., alongside key  South Korea and China suppliers. Its Dong Nai and Bac Ninh manufacturing facilities allow it to serve domestic and export markets efficiently. The company’s credit rating is classified as Grade C (Average Risk) under the VNBIS credit model. This indicates that transactions can be conducted under periodic monitoring, with no record of overdue tax or legal disputes.

Outlook and Future Direction

While the company's sales declined temporarily in 2023 due to a slowdown in global demand for plastic materials, its profit growth, high liquidity, and strengthened equity base demonstrate financial health and operational prudence. Its continued investment in technology and the parent group’s strategic presence in Vietnam’s industrial landscape position LOTTE CHEMICAL Vietnam for long-term sustainability.

The company will likely focus on developing eco-friendly materials, improving production automation, and expanding into advanced polymers, aligning with Lotte Group’s global green transformation agenda. With steady performance and disciplined risk management, LOTTE CHEMICAL Vietnam remains a cornerstone of Vietnam’s chemical manufacturing sector and a reliable partner for both domestic and international business clients