PETROLIMEX KIENGIANG COMPANY LIMITED

PETROLIMEX KIENGIANG COMPANY LIMITED, Business ID 1701567208, is an active petroleum distributor headquartered at No. 30 Pham Hong Thai Street, Vinh Thanh Van Ward, Rach Gia City, Kien Giang Province. With a business history spanning more than 14 years, the company operates within Vietnam’s strategically important fuel retail and wholesale sector.

As part of its shareholder structure, the company is predominantly controlled by Area 2 Petroleum Company – One Member LLC (51%), with Kien Giang Trading Joint Stock Company (49%) as the other shareholder. This partnership situates PETROLIMEX KIENGIANG within a broader ecosystem of state-linked and provincial commercial enterprises.

Operational Focus and Market Position

PETROLIMEX KIENGIANG’s primary business is the wholesale and retail of solid, liquid, and gaseous fuels, including petrol and oil products. The company also engages in a comprehensive set of registered activities—ranging from warehousing, freight transport, and retail of automotive fuel to forestry, construction-related wholesale, and insurance agency activities.

While the petroleum trade remains the core revenue engine, this diversified licensing framework suggests the company maintains operational flexibility, particularly useful for regional distribution networks across Kien Giang and the Mekong Delta.

The company employs approximately 50 staff members and supports fuel distribution to local businesses, retail stations, and industrial customers.

Financial Performance: Signs of Contraction and Liquidity Pressure

According to the financial statements in the report, PETROLIMEX KIENGIANG experienced a notable downturn in 2023:

Key 2023 Indicators

• Total Assets: USD 11.13 million (▼ 15.71%)

• Sales: USD 92.24 million (▼ 39.74%)

• Profit: USD 295,108 (▼ 39.14%)

• Equity: USD 5.15 million (▼ 2.6%)

• Working Capital: – USD 3.23 million (▲ 5.15%)

The most critical metric is negative working capital, which signals short-term liquidity pressure. This is common in fuel distribution companies that rely heavily on short-term financing and rapid inventory turnover, but a figure of –3.23 million USD should prompt heightened attention from partners.

The steep 39.74% drop in sales is the strongest red flag, indicating weakened market demand, supply-chain adjustments, lower fuel prices, or reduced contract volumes. Profit declined in parallel, emphasizing margin compression in an already low-margin sector.

Total assets have contracted consistently across three years (2021–2023), suggesting divestment, reduced inventory, or tighter credit conditions.

Governance and Ownership Considerations

The company is governed by Le V. S., who serves as the General Director and is the key executive responsible for operations and compliance.

Ownership dynamics—51% held by Area 2 Petroleum Company, headquartered in Ho Chi Minh City—reinforce the company’s link to a broader petroleum network, potentially offering operational support but also creating decision-making dependencies at the parent company level.

Risk Assessment Perspective

From a risk-management viewpoint, several areas warrant further investigation before entering procurement, distribution agreements, or credit arrangements:

• Negative working capital, indicating short-term liquidity tension

• Sharp decline in revenue, unusual for an essential commodity distributor unless structural changes occurred

• Asset contraction over multiple years, which may reflect reduced operational scale

• Profit volatility, with a decline of nearly 40% in 2023

• Diversified but loosely related business lines, which can dilute managerial focus

Companies operating in petroleum distribution are often sensitive to regulatory pricing, tax compliance, environmental risk, and credit exposure—making independent verification essential.

Importance of Independent Verification

For lenders, strategic partners, and procurement teams evaluating PETROLIMEX KIENGIANG COMPANY LIMITED, an updated due diligence report from VNBIS (Vanguard Business Information LLC) provides critical insights into:

• financial reliability,

• litigation and compliance status,

• credit risk indicators,

• operational stability,

• and ownership relationships.

VNBIS specializes in delivering accurate and comprehensive intelligence on Vietnamese enterprises, helping clients minimize risk and make informed decisions.