NS BLUESCOPE VIETNAM LIMITED

From a credit risk management perspective, NS BLUESCOPE VIETNAM LIMITED presents a profile of both strength and recent financial volatility, warranting a cautiously optimistic approach when considering credit exposure.

Legally structured as a one-member limited liability company, NS Bluescope Vietnam has been operational for over 22 years since its establishment on August 14, 2003. It is a fully foreign-owned entity, with 100% of its shares held by NS BLUESCOPE PTE. LTD, headquartered in Singapore. The company is well-established in Vietnam’s heavy manufacturing and steel processing sector, specializing in value-added flat steel products such as hot-rolled and cold-rolled coils, metallic coated and painted steel. Headquartered in Phu My I Industrial Park, Ba Ria - Vung Tau, with representative offices across Ho Chi Minh City, Hanoi, and Can Tho, its nationwide footprint supports strong logistical capabilities.

The company is operated by Mr. Vo Minh Nhut, the General Director, and employs a sizable workforce of approximately 350 people. The paid-up charter capital stands at USD 21.03 million, with a reported Vietnamese equivalent of VND 512 billion, reflecting a substantial investment base and long-term commitment to the Vietnamese market.

Financially, however, the company has faced significant headwinds in the most recent reporting year ending June 30, 2023. Total revenue declined sharply by 31.31%, falling from USD 178.1 million in 2022 to USD 122.3 million in 2023. Net profit also dropped steeply from USD 4.5 million to USD 2.2 million, a 51.39% contraction, while assets decreased by 23.05%, reflecting either asset disposal, impairment, or reduced investment. Owner’s equity also saw a modest drop of 5.01%, suggesting some erosion of retained earnings, albeit still maintaining a healthy base of USD 43.9 million.

From a creditworthiness standpoint, the company’s equity strength and long operational history are mitigating factors, especially given its strong backing by a reputable foreign parent. However, the recent downward trends in revenue, profit, and asset levels raise flags about its short- to medium-term profitability and liquidity. That said, the company maintains a substantial working capital buffer of USD 19.06 million, indicating short-term solvency is intact and capable of covering immediate liabilities.

In conclusion, while NS BLUESCOPE VIETNAM LIMITED remains a credible and professionally managed enterprise with sound capital structure and international backing, the significant drop in financial performance during 2023 should not be overlooked. Credit decisions should be made with consideration to sectoral challenges, global steel market dynamics, and a review of updated financials in the upcoming cycle. A moderate credit limit, backed by ongoing monitoring, is advisable.