LAM DONG LOTTERY ONE MEMBER COMPANY LIMITED

LAM DONG LOTTERY ONE MEMBER COMPANY LIMITED (Vietnamese name: CÔNG TY TNHH MỘT THÀNH VIÊN XỔ SỐ KIẾN THIẾT LÂM ĐỒNG) is a long-standing state-run enterprise based in Da Lat City, Lam Dong Province, operating under Tax Code (TIN): 5800000230. Established on August 16, 2005, the company is wholly owned by the Office of the Delegation of the National Assembly Deputies, People’s Council, and People’s Committee of Lam Dong Province, making it a fully state-controlled, legal gambling entity.

The company is chaired by Mr. Nguyen Duc Viet, with Mr. Vu Dinh Tuan serving as Director. With only 103 employees, it manages lottery operations across southern Vietnam, including representative offices in Ho Chi Minh Cityand Can Tho.

Financial Highlights: Outstanding Profit Growth, But Frozen Equity

In 2023, LAM DONG LOTTERY reached a peak in financial performance:

• Revenue climbed to USD 209.48 million, up 17.87% year-over-year.

• Net profit surged to USD 26.31 million, marking a 28.47% increase.

• Total assets reached USD 62.94 million, a 32.72% growth from 2022.

• Working capital amounted to USD 11.25 million, ensuring short-term solvency.

Despite these impressive figures, a major limitation persists: owner’s equity has remained unchanged at USD 11.5 million for three consecutive years. This strongly suggests that all profits are being transferred to the state budget, leaving no retained earnings for reinvestment, innovation, or modernization.

Operational Risks and Strategic Constraints

LAM DONG LOTTERY, like most state-owned lottery companies in Vietnam, operates in a tightly regulated monopoly environment. While this grants it protection, it also introduces several risks:

• Equity stagnation prevents long-term investment in digital platforms, potentially making the company obsolete if Vietnam opens the market to modern online or app-based lotteries.

• The firm’s sole reliance on lottery services—without diversification or meaningful innovation—makes it vulnerable to policy shifts or public sentiment against gambling.

• The government ownership structure, while providing stability, also limits operational flexibility and slows decision-making. Profits are directed toward public finance, not corporate growth.

Furthermore, the company's paid-up capital exactly equals its charter capital, with no signs of capital increase despite massive profit surges—again reflecting state budget-first priorities rather than long-term commercial strategy.

Final Assessment

LAM DONG LOTTERY ONE MEMBER COMPANY LIMITED is a textbook case of a profitable but constrained state-owned enterprise. While its strong earnings performance benefits provincial coffers, the lack of reinvestment and innovation places it at risk in the medium to long term—particularly as global trends shift toward digital lottery experiences.

For a detailed comparison across Vietnam's lottery operators or to assess fiscal contributions vs. business sustainability, consult VANGUARD BUSINESS INFORMATION LLC (VBI)—Vietnam’s most trusted business risk intelligence provider.