POWER LOGICS VINA CO.,LTD

POWER LOGICS VINA CO., LTD (CÔNG TY TNHH POWER LOGICS VINA): A Korean-Backed Electronics Manufacturer Grapples with Shrinking Assets and Growing Losses

POWER LOGICS VINA CO., LTD (CÔNG TY TNHH POWER LOGICS VINA), based in Khai Quang Industrial Park, Vinh Phuc Province, has been operating in Vietnam since December 2, 2013. Registered under Business ID 2500509568, the company is a 100% South Korean-owned enterprise specializing in the production of electronic components for smartphones—including camera modules, IR cameras, actuators, and more. Despite maintaining relatively high revenue levels, its recent financial data reveals a concerning trajectory in profitability and capital structure.

Sales growth offers a silver lining

In 2023, the company generated USD 421.29 million in total revenue, reflecting a 4.71% year-over-year increase from 2022. This is a notable positive given the significant 31.55% decline in revenue reported the year prior. The rebound suggests some stabilization in client demand or order volumes, particularly in mobile component manufacturing, which is highly sensitive to global consumer trends and OEM cycles.

This sales growth stands out as the only clearly positive trend in an otherwise contracting financial profile. It indicates that POWER LOGICS VINA CO., LTD may still be competitively positioned in its core markets, even if profitability and asset management remain issues.

Continued erosion of profit and equity

Despite the uptick in sales, the company reported a net loss of USD 7.52 million in 2023, following a loss of USD 5.91 million in 2022. This represents a further 27.17% decline in profit and reflects a pattern of negative earnings that could soon erode long-term viability if not corrected. Over the last two years, the company has swung from a modest profit of USD 4 million in 2021 to cumulative losses approaching USD 13.5 million.

Simultaneously, owner’s equity declined by 14.56% in 2023, falling to USD 44.11 million. This marks the second consecutive year of shrinking equity and suggests a capital drain that, if sustained, may require recapitalization or restructuring.

Asset contraction and declining capital efficiency

Perhaps the most structural concern is the ongoing decrease in total assets. From USD 193.36 million in 2021, assets fell to USD 118.48 million in 2022, and further down to USD 106.14 million in 2023—a total decline of 45% over two years. This substantial shrinkage raises red flags about fixed asset disposal, inventory reduction, or halted investments, possibly in response to financial strain or changes in global production strategies.

The company’s charter capital is recorded at USD 20 million, with a paid-up capital of USD 18.27 million. With just 910 employees, POWER LOGICS VINA CO., LTD is operating at a medium industrial scale, but its asset-to-labor ratio has declined considerably, pointing to reduced capital intensity or downsizing.

Need for financial transparency and ongoing verification

Given its deteriorating profitability and capital base, stakeholders—including suppliers, customers, and lenders—should be cautious in their engagement with POWER LOGICS VINA CO., LTD. While the company’s link to South Korea’s Power Logics Co., Ltd offers some backing, local operations may not benefit from full parent company guarantees.

To evaluate the real-time financial health, creditworthiness, and operational risk of POWER LOGICS VINA CO., LTD, it is highly advisable to consult the Business Verification and Risk Management Service provided by Vanguard Business Information (VBI). VBI offers exclusive access to private, in-depth financial data on Vietnamese companies, which is particularly valuable in cases like this—where public metrics paint a mixed or declining picture.

An FDI firm under pressure

POWER LOGICS VINA CO., LTD illustrates a case where foreign ownership and technological specialization are not enough to guarantee profitability in Vietnam’s competitive electronics sector. While revenue recovery in 2023 is a bright spot, consistent losses and rapid asset decline reflect deeper challenges. Without operational reform or financial reinforcement, the company's current path poses risk not just to itself but to its partners and service providers as well.