PRIME TRADING, IMPORT AND EXPORT ONE MEMBER LIMITED LIABILITY COMPANY: A Stable Construction Materials Trader Facing Market Pressure

PRIME TRADING, IMPORT AND EXPORT ONE MEMBER LIMITED LIABILITY COMPANY (Vietnamese: CÔNG TY TNHH MỘT THÀNH VIÊN THƯƠNG MẠI VÀ XUẤT NHẬP KHẨU PRIME), also known as PRIME TRADE INC, is a foreign-invested enterprise engaged in the trading of ceramic tiles, construction materials, and manufacturing equipment. Established on December 18, 2013, and headquartered in Binh Xuyen Industrial Park, Vinh Phuc Province, the company has over a decade of operational experience and is registered under Business ID 2500260507.

Ownership and Legal Status

The company operates as a one-member limited liability company with 100% ownership by PRIME GROUP JOINT STOCK COMPANY, a Vietnamese parent company. This setup enables PRIME TRADE INC to function with the efficiency of a privately controlled entity while benefiting from institutional capital backing. The company maintains representative offices in Ho Chi Minh City and Da Nang, broadening its logistical and customer service reach across Vietnam.

Executive Management

PRIME TRADE INC is managed by Mr. PRASIT SETHAWORAPHAN, a Thai national, who serves as the Director. Financial oversight is handled by Ms. LE THU THUY, the company’s Chief Accountant. With a workforce of 135 employees, the company remains moderately staffed for its scale, aligning with industry standards in the construction materials and wholesale sector.

Business Activities

The core business revolves around trading ceramic tiles and importing equipment for ceramic tile production. The company is also engaged in entrusted export services and has a broad license portfolio that covers:

• Wholesale and retail of construction materials, electronics, and machinery

• Retail of lighting equipment, hardware, floor coverings, household appliances, and furniture

• Specialized and non-specialized wholesale and online sales channels

This broad business scope allows the company to serve multiple verticals within the construction supply chain and consumer markets, though it also introduces complexity in supply and cost management.

Financial Overview

In the fiscal year ending December 31, 2023, PRIME TRADE INC reported the following key figures:

• Total Assets: USD 73.67 million (↓ 15.8%)

• Total Sales: USD 207.65 million (↓ 30.23%)

• Profit: USD 741,758 (↓ 72.38%)

• Owner’s Equity: USD 13.79 million (↓ 12.27%)

• Working Capital: USD 13.5 million

Despite the drop in sales and profits, the company remains profitable and solvent, with positive equity and working capital. These indicators suggest that PRIME TRADE INC is still financially viable, though it is experiencing substantial margin compression, likely due to input cost volatility, weakened demand, or pricing competition in the construction and real estate sectors.

Risk Management Outlook

Strengths:

• Over a decade of operational history with a strong foothold in Vietnam’s industrial zones.

• A diversified portfolio of construction-related products and a wide distribution network.

• Solid capital base and clear corporate ownership structure.

• Positive equity and working capital, indicating financial stability.

Risks:

• Sharp decline in sales and profit margins in 2023, which may signal sectoral downturns or internal inefficiencies.

• Erosion of equity and asset value over three consecutive years, pointing to possible capital underutilization.

• Over-reliance on construction and real estate cycles, which have been slowing in Vietnam and globally.

For potential business partners, clients, or financial institutions, PRIME TRADING, IMPORT AND EXPORT ONE MEMBER LIMITED LIABILITY COMPANY remains a viable company but warrants closer monitoring of its earnings quality and liquidity.

As always, VANGUARD BUSINESS INFORMATION LLC (VBI) can assist with thorough due diligence, business verification, litigation background checks, and financial risk assessments to help clients engage confidently with PRIME TRADE INC or similar companies operating under uncertain macroeconomic conditions.