HUNG HAI CONSTRUCTION COMPANY LIMITED (Vietnamese: Công Ty TNHH Xây Dựng Hưng Hải), established on April 25, 2003, is a privately held limited liability company registered under Tax Code and Business ID: 5600147356. With over 22 years of operational history, the company is legally active and recognized by the Lai Chau Province Department of Planning and Investment. Its headquarters is located at Group 10, Đoàn Kết Ward, Lai Châu City, Lai Châu Province, with an additional transaction office in Hanoi at Hung Hai Building, Trần Thái Tông Street, Cầu Giấy District.

Led by Mr. Trần Đình Hải as Chairman and primary shareholder with 99.42% ownership, the company maintains a modest staff of 50 employees. Mr. Trần Hữu Chính serves as Director. Despite its extensive business registration—which includes specialized construction, infrastructure development, hydropower investment, and rare earth mining—recent financial data shows a company under significant operational and financial stress.

As of the end of 2023, HUNG HAI CONSTRUCTION COMPANY LIMITED reported total assets of USD 21.92 million, a steep 46.71% drop from the previous year. This decline in asset value suggests asset sales, impairments, or reduced project execution activity. Even more concerning is that the company posted zero sales in 2023, a complete decline from its already modest revenues of USD 444,762 in 2021 and USD 332,772 in 2022. This total revenue collapse raises fundamental concerns about the continuity of operations or active project pipelines.

While the company remains solvent on paper, with owner’s equity at USD 16.7 million, it is important to note that this figure dropped by more than 32% in 2023 alone. The sharp contraction in equity reflects persistent losses and a shrinking capital base. Profit margins have also deteriorated significantly, with net profit falling from USD 159,683 in 2021 to a mere USD 2,083 in 2023, a 93.66% decline.

Interestingly, the company’s working capital stands at USD 10.91 million, which technically indicates an ability to cover short-term obligations. However, this positive figure must be interpreted with caution. Given the complete halt in revenue, it is unclear whether this capital is actively circulating or simply represents dormant financial resources or advances from related parties.

Despite its scale and visibility—especially in the rare earth and hydropower sectors—HUNG HAI CONSTRUCTION COMPANY LIMITED appears to be in a state of operational stagnation. The company's ambitious registration portfolio includes civil construction, utility infrastructure, electricity generation and distribution, and mining-related construction. Yet, the complete absence of income suggests either paused operations, project cancellations, or strategic repositioning. With only 50 employees, it is likely the firm has scaled back drastically from its past capacity.

From a financial risk management perspective, several red flags emerge. First, the absence of revenue for a full fiscal year is a critical warning for creditors and partners. Second, the erosion of equity and steady reduction in profits indicate that retained earnings have been depleted. Third, while working capital appears positive, the lack of sales activity raises questions about its liquidity and usability. Additionally, the concentration of ownership in one individual, Mr. Trần Đình Hải, means that the company’s governance is highly centralized, which can increase risk exposure if internal controls and oversight are weak.

To address these issues, the company must urgently focus on rebuilding revenue streams. This could involve reactivating idle projects, accelerating approvals for rare earth or hydropower ventures, or restructuring its portfolio to focus on high-margin, executable contracts. Cost control alone will not be sufficient; HUNG HAI needs to restore its commercial activity to regain financial sustainability. For risk mitigation, the company should also consider diversifying management responsibilities, strengthening financial disclosures, and seeking external audit validation to regain trust among partners and financial institutions.

In conclusion, HUNG HAI CONSTRUCTION COMPANY LIMITED remains an active legal entity with a long history and a diverse business license portfolio. However, its current financial position reveals sharp deterioration in operational performance and profitability. Without strategic recovery and more transparent financial governance, the company risks losing its relevance in both the construction and rare earth sectors, despite its potential. Stakeholders and investors should conduct thorough due diligence before entering into long-term commitments with the firm.