NHA BE GARMENT CORPORATION - JOINT STOCK COMPANY (TỔNG CÔNG TY MAY NHÀ BÈ - CÔNG TY CỔ PHẦN), tax code 0300398889, is one of Vietnam’s long-established players in the apparel manufacturing sector, with over 20 years of operation and a labor force exceeding 13,000 employees. It is headquartered at No. 4, Ben Nghe Street, Tan Thuan Dong Ward, District 7, Ho Chi Minh City, and is listed on the UPCOM stock exchange under the symbol MNB.

From a credit risk perspective, while the company's revenue growth and resurgence in profitability during 2024 appear promising on the surface, deeper financial indicators reveal a more nuanced and somewhat concerning picture.

📉 Working Capital Deficit Despite Revenue Growth

In 2024, total revenue surged by 23.71% year-over-year to reach USD 190.3 million, rebounding from a notable decline in 2023. Net profit also saw an eye-catching 300.78% increase, jumping from just USD 1.37 million to USD 5.51 million. However, despite these headline figures, working capital remains in the negative at –USD 3.04 million. This suggests that the company’s current liabilities outstrip its current assets, raising short-term liquidity concerns.

A working capital deficit of this size in a company with over USD 127 million in total assets is a red flag for credit managers. It may indicate over-reliance on short-term borrowing, delayed receivables, or inventory accumulation—each a potential stressor for suppliers or lenders considering exposure.

🔎 Irregular Profitability Patterns

NHA BE GARMENT CORPORATION’s profit trajectory is also abnormally volatile. In 2022, profit was a healthy USD 5.94 million, only to plunge 76.87% in 2023 to USD 1.37 million, before bouncing back in 2024. Such inconsistency in earnings—particularly in a labor-intensive and operationally stable sector like garment manufacturing—signals internal inefficiencies, cost control issues, or market volatility that could re-emerge.

🧾 Equity Growth, But Under Pressure

Equity rose to USD 21.33 million in 2024, a 15.95% increase, reflecting retained earnings from profit recovery. However, equity is still relatively modest given the company’s scale and asset base. With total assets at USD 127.2 million, the equity ratio is approximately 16.8%, implying relatively high leverage—raising caution for long-term debt holders and those evaluating the firm’s solvency under economic stress.

📦 Business Diversification: Strength or Distraction?

Another risk point is the company’s broad range of registered business activities, which span from textile and garment manufacturing to restaurants, courier services, real estate, plastics production, and even construction. While diversification can enhance revenue streams, such a wide scope in a manufacturing-focused firm raises concerns about strategic focus, governance, and possible cash drain from non-core ventures—relevant factors for business verificationand operational due diligence.

🏭 Scale vs. Profit Efficiency

With 13,168 employees, NHA BE is a significant employer in Vietnam’s textile industry. Yet, with a net profit of USD 5.51 million, this translates to a profit per employee of only around USD 418/year—well below international benchmarks. For a company of this scale, such low profit efficiency indicates high labor and operational costs, warranting a closer examination of productivity metrics and cost structure.

🧷 Key Shareholders and Control

The shareholder structure is fragmented, with state-linked Vietnam National Textile and Garment Group (Vinatex)holding 25.2%, 4M JSC owning 24.39%, and other shareholders including individual insiders. This fragmentation can sometimes hinder agile decision-making or lead to governance friction, especially when navigating financial restructuring or cost optimization programs.

Conclusion: A Company with Legacy Strengths but Credit Fragility

NHA BE GARMENT CORPORATION - JOINT STOCK COMPANY remains a heavyweight in Vietnam’s apparel industry, with wide production capacity, public listing credibility, and robust branding. However, as a credit risk manager, one must not overlook its persistent working capital shortfall, erratic profitability, and broad business diversification—factors that collectively call for a cautious approach when extending credit, entering into long-term partnerships, or underwriting guarantees.

For risk-averse stakeholders relying on Vietnam private financial data or credit scoring, this company should be assigned a moderate to high caution level, with ongoing monitoring recommended to track liquidity, cost management reforms, and operational focus in the coming fiscal periods.