SAIGON INDUSTRY CORPORATION

To: Board of Directors
From: Risk Management Department
Subject: Performance Risk Assessment – SAIGON INDUSTRY CORPORATION
Date: June 17, 2025

Executive Summary:

SAIGON INDUSTRY CORPORATION (Tổng Công Ty Công Nghiệp Sài Gòn – TNHH MTV, short name: CNS), is a state-owned enterprise operating under a one-member limited liability company model, with 100% ownership held by the People’s Committee of Ho Chi Minh City. It is legally registered under Business ID 0300713668, with its head office located at 58-60 Nguyen Tat Thanh Street, District 4, Ho Chi Minh City. The company has been active for over 14 years and operates in multiple sectors, including mechanical engineering, electronics, IT, food, tobacco, and chemicals.

Financial Performance Overview:

The company has demonstrated stable, consistent growth across all key financial indicators over the last three years. Notably, profit grew at an average annual rate of over 30% across 2021–2023, although the growth rate tapered off in 2023 to a modest but still respectable 7.89%.

Equity and assets have also shown steady and sustainable expansion, reflecting prudent reinvestment and retained earnings. The working capital position of USD 86.57 million in 2023 indicates strong liquidity and operational flexibility.

Operational Scope and Diversification:

CNS operates a wide and diversified business portfolio including:

• Manufacturing of tobacco and food products

• Engineering, electronics, and automation

• Chemicals, rubber, and plastic

• Real estate, warehousing, logistics

• Short-term accommodation, restaurants, and tourism

• Consulting and architectural services

This diversified scope limits dependency risk on a single market segment. However, such spread may also dilute strategic focus unless effectively governed.

Ownership and Governance:

The sole shareholder is the People’s Committee of Ho Chi Minh City (100%), which implies direct oversight by municipal authorities. This ownership structure is favorable for administrative stability and project support within public or PPP sectors but may involve bureaucratic inertia or political influences in commercial negotiations.

The current Chairman is Mr. Nguyen Hoang Anh, who oversees a team of 929 employees. Governance appears stable with no abrupt leadership transitions reported.

Risk Assessment:

Strengths:

• Strong financial growth and liquidity.

• Public ownership ensures political backing and potential access to major urban development projects.

• Diversified operations mitigate single-industry dependency.

• Clean legal status, clear registration, and transparent data.

Concerns:

• Slower growth in 2023 could indicate market saturation or rising input costs.

• State-owned enterprises in Vietnam can face constraints in agility and decision-making.

• Lack of detailed segment-wise revenue breakdown limits precise risk targeting.

Recommendation:

Cooperation with SAIGON INDUSTRY CORPORATION is advisable, particularly for partnerships related to infrastructure, manufacturing, or technology transfer in Ho Chi Minh City. However, it is recommended that:

• We obtain a project-specific financial model before commitment.

• A due diligence review be conducted on its subsidiaries and profit centers.

• Engagements be structured with clear commercial guarantees, especially in joint ventures.