THUAN LOI RUBBER COMPANY LIMITED

THUAN LOI RUBBER COMPANY LIMITED (CÔNG TY TNHH CAO SU THUẬN LỢI): A Troubled Veteran in Vietnam’s Rubber Sector

THUAN LOI RUBBER COMPANY LIMITED, legally registered under the name CÔNG TY TNHH CAO SU THUẬN LỢI, is a limited liability company headquartered at Road DT.741, Thuan Hoa Hamlet, Thuan Loi Commune, Dong Phu District, Binh Phuoc Province, Vietnam. The company was officially incorporated on July 1, 2004, and operates under Tax Identification Number (TIN) 3800239811, issued by the Binh Phuoc Department of Planning and Investment. The firm remains privately held with over 21 years in operation and a registered charter capital of USD 7.8 million. It operates multiple locations, including representative offices in Ho Chi Minh City and Binh Phuoc Province.

At the company's helm is Mr. Vo Q. T., who serves as Chairman and controls 51% of the company’s shares. Ms. Truong T. D., the General Director, holds the remaining 49%. Both are Vietnamese nationals, and their concentrated ownership underscores the company’s closely held structure, which may present advantages in agility and risks regarding transparency and governance. The company employs approximately 400 workers, a mid-sized workforce primarily engaged in the processing and trading natural rubber products, which remain the core of its business.

However, despite its longstanding presence and broad business registrations spanning synthetic rubber manufacturing and electric power generation to freight transport and real estate consultancy, the company’s recent financials reveal deep-rooted concerns. In the fiscal year ending December 2023, THUAN LOI RUBBER reported total sales of only USD 112 million, a sharp 18.86% drop from the prior year. Its net profit showed a dramatic reversal, plummeting to a staggering loss of USD 1.55 million. This is especially troubling compared to the minor profits reported in 2021 and 2022. The company’s equity also dropped by more than 21%, landing at just over USD 5.26 million, while working capital turned negative, recording a deficit of nearly USD 2.91 million. These indicators point to increasing pressure on liquidity and declining shareholder value.

What is particularly alarming is the collapse in profitability, which recorded a year-over-year fall of over 4,600%. This figure alone suggests either severe operational inefficiencies or unmanageable external shocks. Although total assets remained relatively stable at around USD 44.9 million by year-end 2023, the overall trend in key financial indicators—including declining equity, shrinking revenue, and mounting losses—signals a company in financial distress.

While THUAN LOI RUBBER COMPANY LIMITED maintains its legal status as an active business entity and continues to operate in Vietnam’s rubber heartland of Binh Phuoc, stakeholders should take these red flags seriously. Prospective business partners, suppliers, and investors are advised to proceed cautiously and request updated financial documentation and risk assessments. Given the declining trendlines, further due diligence is critical. A comprehensive report is available from Vanguard Business Information LLC for those seeking an in-depth analysis of the company’s legal, financial, and operational standing, including potential litigation or regulatory risks.