TRUNG NAM CONSTRUCTION INVESTMENT CORP.

Trung Nam Construction Investment Corp. (CÔNG TY CỔ PHẦN ĐẦU TƯ XÂY DỰNG TRUNG NAM) is a privately held Vietnamese joint-stock company with a strategic footprint across multiple key sectors—energy, infrastructure, construction, real estate, and electronic information technology. Founded on November 12, 2004, and headquartered at No. 7A/68 Thanh Thai Street, District 10, Ho Chi Minh City, the company has developed into a large-scale enterprise with registered offices in Hanoi and Ninh Thuan Province, enabling nationwide project deployment and administrative reach.

With over 20 years in operation, Trung Nam Group has built a reputation as an ambitious conglomerate driving Vietnam's infrastructure and renewable energy transformation. However, recent financial data reveals a company undergoing both rapid strategic investment and significant financial challenges.

Financial Performance

As of the end of 2023, Trung Nam reported total assets of USD 1.56 billion, marking a 12.7% decrease from 2022. This was paired with a sharp 38.05% drop in revenue, down to USD 183.16 million, and a dramatic net loss of USD 87.11 million, a reversal from a net profit of nearly USD 10 million the previous year. The company’s owner’s equity declined by 9%, though still remained substantial at USD 880.84 million.

The financial setback in 2023 was severe: profit fell by 977.55% year-over-year, raising questions about cost management, project execution, or investment allocation in key sectors. Notably, Trung Nam had experienced a 1487% surge in profit in 2021, suggesting that the company’s earnings are heavily influenced by cyclical project completion or one-off gains. The 2023 loss may reflect delays or write-downs in major projects, particularly in the capital-intensive energy or infrastructure sectors.

Despite the losses, working capital remained strong at USD 440.94 million, providing a liquidity cushion. With a paid-up capital of USD 860.3 million, Trung Nam remains highly capitalized, though its deteriorating profitability underscores the need for tighter financial discipline and project ROI evaluations.

Governance and Ownership

Chairman Mr. Nguyen Tam Thinh, who holds 68.13% of the company, continues to lead the strategic direction of Trung Nam alongside General Director Mr. Nguyen Tam Tien (12.4% ownership). Other shareholders include Dao Thi Minh Hue (16.51%) and a handful of minority stakeholders. This tight-knit ownership structure provides leadership continuity but also concentrates strategic risk within a small decision-making circle.

Operational Scope

Trung Nam's business registration reflects a wide array of activities including:

• Electric power generation and transmission

• Utility and road construction

• Real estate and land development

• Consulting, engineering, and transportation services

• Wholesale of construction materials and equipment

The group is particularly well known for its large-scale wind and solar energy projects, public infrastructure partnerships, and property developments. While this broad scope offers multiple revenue streams, it also increases exposure to regulatory hurdles, project delays, and capital allocation inefficiencies—risks magnified during periods of macroeconomic tightening or policy shifts.

Strategic Outlook

Trung Nam Construction Investment Corp. represents a quintessential example of Vietnam’s evolving infrastructure-led development story: fast growth, bold capital investment, and complex risk exposure. Its strategic industries align with national development priorities, offering long-term potential. However, the sharp downturn in profitability in 2023 raises concerns about financial management, debt servicing capacity, and the timing of returns from large infrastructure projects.

To maintain investor confidence and financial health, Trung Nam will likely need to:

• Rebalance project pipeline and prioritize high-yield, short-turnover initiatives.

• Improve cost control and margin monitoring,

• Strengthen reporting transparency and investor communication.

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