PHAT TIEN TRADING AND SERVICES COMPANY LIMITED

PHAT TIEN TRADING AND SERVICES COMPANY LIMITED (PHATICO, LTD), established on January 10, 1998, is a long-standing enterprise in Vietnam’s motorcycle trading industry, primarily engaged in the sale and servicing of Honda motorcycles. The company is registered under Business ID: 0301049150 with the Ho Chi Minh City Department of Planning and Investment, and operates from its headquarters at 16 Lu Gia, Ward 15, District 11, Ho Chi Minh City. With over 800 employees and a charter capital of USD 32.86 million, Phat Tien has built one of the largest motorcycle retail networks in southern Vietnam, maintaining branches in Long An and multiple  Ho Chi Minh City districts.

Key Management and Ownership

The company is led by Chairman Ho M. T., holding a 66% ownership stake, while Ms. Nguyen T. N. D. owns 34%. The executive team includes Director Ho V. P. and Chief Accountant Huynh T. M. N. Together, they have steered Phat Tien through more than 27 years of growth, positioning it as one of Honda’s major authorized distributors and service partners in Vietnam.

Financial Highlights – Assets Rise, but Profit Declines Sharply

As of December 31, 2023, PHAT TIEN TRADING AND SERVICES COMPANY LIMITED recorded total assets of USD 76.59 million, a 10.66% increase compared to 2022. Owner’s equity also rose by 17.25%, reaching USD 29.68 million, reflecting capital expansion and asset growth. However, the most striking financial signal lies in the sharp decline in profitability.

The company’s sales revenue decreased to USD 107.38 million, down 11.42% year-on-year, following a three-year downward trend. More notably, net profit plunged to a loss of USD 3.35 million, a 488% drop compared with the previous year. This steep decline indicates rising operational costs, shrinking sales margins, and potentially slower consumer demand for motorcycles amid market saturation and tightening credit conditions.

Working Capital and Risk Indicators

The company’s working capital of USD –178,999 highlights liquidity strain, possibly due to heavy inventory investment and dealership-related payables. While total assets continue to grow, the negative cash flow and consistent profit deterioration raise concerns regarding short-term debt servicing and operational efficiency.

Credit and Business Outlook

Despite financial pressures, PHAT TIEN TRADING AND SERVICES COMPANY LIMITED remains recognized in Vietnam’s motorcycle industry, supported by its strong brand relationship with Honda and extensive retail network. However, its declining sales and profitability require closer credit monitoring and prudent working capital management. Suppliers and financial institutions should exercise caution, emphasizing payment behavior, inventory turnover, and liquidity management before extending further credit lines.

For an in-depth credit evaluation and risk assessment, Vanguard Business Information LLC (VBI) provides detailed Financial and Due Diligence Reports on PHAT TIEN TRADING AND SERVICES COMPANY LIMITED and other major enterprises in Vietnam—helping clients minimize financial risks and make confident business decisions.