NHAN LUAT INVESTMENT AND STEEL TRADING HOLDING CORPORATION

NHAN LUAT INVESTMENT AND STEEL TRADING HOLDING CORPORATION (CÔNG TY CỔ PHẦN ĐẦU TƯ VÀ KINH DOANH THÉP NHÂN LUẬT) is a privately held Vietnamese joint stock company operating under Business ID 0400102616, officially registered on July 24, 2006, with the Da Nang City Department of Planning and Investment. Its head office is No. 122 Nguyen Tri Phuong Street, Chinh Gian Ward, Thanh Khe District, Da Nang City, Vietnam. Over nearly two decades of operation, the company has established itself as a recognized name in the country’s steel trading and metal wholesale industry, serving construction, manufacturing, and logistics clients across central Vietnam.

Legal Status and Management

The company maintains an active legal status and operates with a charter and paid-up capital of USD 5.18 million. It is led by Mr. Phan C. L., who serves as General Director, and Ms. Ngo T. T. H., Deputy General Director. The company employs approximately 70 staff members and has built a professional network supporting trade, storage, and inland transportation across multiple provinces.

The ownership is concentrated among a small group of Vietnamese shareholders. Mr. Phan C. L. holds the majority share at 58.73 percent, followed by Mr. Le N. D. T. (16.95 percent), Mr. Ngo Q. N. (13.33 percent), and Mr. Le V. S. (5.38 percent), while the remaining 5.61 percent belongs to 27 minor shareholders. This concentrated ownership ensures consistent management direction but also increases dependency on the decisions of a few key individuals.

Business Operations

NHAN LUAT’s core activities revolve around the wholesale trading of steel, iron, and metal ores and the manufacture and distribution of construction materials. It also provides logistics services, including freight transport by road and inland waterways, warehousing, and cargo handling. The company has diversified into real estate investment, leasing, and energy generation, showing its ambition to grow beyond the steel trade.

Despite this diversification, steel remains the backbone of its revenue, positioning the company as a regional intermediary between producers and large-scale construction or industrial clients.

Financial Overview

As of December 31, 2023, the company reported total assets of USD 25.86 million, marking a 14.21 percent increase compared to the previous year. Owner’s equity rose marginally by 0.28 percent to USD 3.07 million, while sales reached USD 104.22 million, down slightly by 1.09 percent. Net profit improved sharply to USD 13,166, representing a 155.52 percent increase from the prior year’s modest result.

However, the company’s working capital remained negative at USD -2.76 million, indicating liquidity strain and possible reliance on short-term borrowing to finance operations. Despite asset growth and improved profitability, such a capital position raises credit risk concerns, especially in a highly volatile steel market where prices and payment cycles fluctuate.

Risk Assessment and Outlook

From a credit management perspective, NHAN LUAT demonstrates both resilience and risk. The company’s long operational history, large sales volume, and expanding asset base point to strong business continuity. Yet its thin profit margin and negative working capital suggest limited financial flexibility and exposure to short-term cash flow risks.

The company’s dependency on a narrow leadership circle and high concentration of ownership also increases governance risk. Furthermore, the steel trading sector’s sensitivity to global price fluctuations and construction demand cycles means the company must maintain strict cost control and financial discipline to sustain profitability.

In summary, NHAN LUAT INVESTMENT AND STEEL TRADING HOLDING CORPORATION is an established player in Vietnam’s steel and metal trading market, with growing assets and operational experience. However, it must improve liquidity, diversify financing sources, and enhance profit efficiency to strengthen its credit profile. For business partners, careful monitoring of payment behavior and short-term financial commitments is advised to ensure secure cooperation and effective minimization of financial risks in any commercial relationship.