PHU HUNG LONG MANUFACTURING - TRADING -SERVICE COMPANY LIMITED

PHU HUNG LONG MANUFACTURING – TRADING – SERVICE COMPANY LIMITED (PHU HUNG LONG)is a one-member limited liability company, established on February 1, 2018, and registered with the Ho Chi Minh City Department of Planning and Investment under Business ID: 0314874062. The company’s headquarters are located at Lot 31, Area C, Road D2, An Ha Industrial Park, Pham Van Hai Commune, Binh Chanh District, Ho Chi Minh City, Vietnam. With a charter capital of USD 6.16 million and a workforce of about 100 employees, the company operates as a privately held entity under the ownership and management of Ms. Nguyen T. H. Y.

Leadership and Business Activities

Led by Director and Owner Ms. Nguyen T. H. Y., PHU HUNG LONG COMPANY specializes in the manufacturing of stainless steel pipes and other fabricated metal products. Its registered business activities extend to machinery trading, construction materials wholesale, road freight transport, site preparation, and property trading. This diverse scope supports its position as a flexible industrial supplier, catering to Vietnam’s growing construction and infrastructure sectors.

Financial Performance – Explosive Growth, Mounting Losses

The company’s financial trajectory between 2021 and 2023 reveals both rapid expansion and heightened financial risk. The most striking feature is the extraordinary growth in assets and sales, accompanied by significant losses:

• Total assets surged from USD 9.26 million in 2022 to USD 45.32 million in 2023, a 389% increase, reflecting aggressive investment and business expansion.

• Sales revenue jumped 235.7% to reach USD 107.36 million, indicating strong operational growth and market penetration.

• However, profitability turned sharply negative: the company reported a net loss of USD 1.76 million, representing a 6,000% decline compared to 2022.

• Owner’s equity increased modestly by 21.8% to USD 2.21 million, but this remains small relative to its asset base, signaling high leverage and potential debt exposure.

• Working capital fell to USD –3.75 million, reflecting liquidity strain amid rapid expansion.

Credit and Risk Outlook

From a credit management standpoint, PHU HUNG LONG COMPANY presents a classic case of high-growth yet high-risk financial behavior. While its asset and sales growth are impressive, the combination of large-scale investment, negative working capital, and rising losses raises red flags regarding cash flow sustainability and debt servicing capacity. The company’s financial risk profile suggests dependence on external financing or supplier credit to sustain operations.

Strategic Assessment

Despite its losses, PHU HUNG LONG MANUFACTURING – TRADING – SERVICE COMPANY LIMITEDdemonstrates strong market potential in the metal fabrication and steel piping industry, with a growing client base and expanding production capacity. If it can strengthen liquidity, improve cost efficiency, and stabilize cash flow, it could transition from a fast-expanding enterprise to a sustainable industrial player.

For investors and business partners seeking detailed financial and credit evaluations, Vanguard Business Information LLC (VBI) provides comprehensive Financial Reports, Due Diligence Analyses, and Risk Assessments on PHU HUNG LONG COMPANY and other manufacturing enterprises in Vietnam—helping clients minimize business risks and make informed credit decisions.