VHC TRADING COMPANY LIMITED: A Struggling Electronics Retailer with Strong Presence and Declining Profit Margins

VHC TRADING COMPANY LIMITED (CÔNG TY TNHH THƯƠNG MẠI VHC) is a private limited liability company operating in the Vietnamese consumer electronics and retail industry. Established on December 5, 2011, and registered under business ID and tax code 0105690657, the company is headquartered at No. 399 Pham Van Dong Street, Xuan Dinh Ward, North Tu Liem District, Hanoi. With over a decade in business and a widespread retail footprint, VHC TRADING COMPANY LIMITED has positioned itself as a notable name in the distribution of electronics and household appliances under the “HC” retail brand.

Legal Status and Ownership

VHC TRADING COMPANY LIMITED is privately held and registered with the Hanoi Department of Planning and Investment. It reported a charter capital of USD 13.15 million, with paid-up capital reaching USD 13.35 million by the end of 2023. The ownership is concentrated in the hands of Chairman cum General Director Mr. NGUYEN HOANG HAI (80%) and Vice General Director Ms. DOAN THI THU NGA (20%), indicating a tightly controlled business structure with centralized decision-making.

Leadership and Organizational Scale

The company is headed by Mr. NGUYEN HOANG HAI, who also acts as its legal representative, alongside Ms. DOAN THI THU NGA. Together, they oversee a large workforce of 1,000 employees and manage multiple branch locations across Northern Vietnam, including Thanh Hoa, Thai Binh, and Hai Duong. The company’s wide retail network underlines its significant operational reach in the electronics retail market.

Business Activities

VHC TRADING COMPANY LIMITED specializes in the retail of electronics, refrigeration products, household appliances, mobile phones, laptops, and office equipment. Its core focus lies in the direct sale of consumer technology through its chain of specialized stores. However, the company’s registered business activities are remarkably diverse—ranging from food processing and restaurant services to advertising, technical testing, and real estate-related services.

This diversification may represent an attempt to buffer core retail operations amid market volatility, though it also reflects a potentially unfocused strategic direction.

Financial Performance

Despite its broad presence and steady ownership structure, the financial trajectory of VHC TRADING COMPANY LIMITED in recent years presents concerns. Sales in 2023 dropped significantly to USD 215.34 million from USD 304.85 million in 2022—a steep decline of 29.36%. Assets also fell by 18.27% to USD 58.83 million, continuing a downward trend from 2021’s high of over USD 213 million.

Most alarmingly, net profit plummeted from USD 218,052 in 2022 to just USD 946 in 2023—a 99.57% drop. While equity remained stable at USD 18.06 million and working capital stood at a moderate USD 8.1 million, the significant decline in profitability suggests operational inefficiencies or a decline in market competitiveness.

Strategic Assessment

VHC TRADING COMPANY LIMITED finds itself at a critical juncture. The company’s brand and geographic presence remain valuable, but its financial underperformance—especially the sharp fall in profit—signals urgent needs for restructuring or reinvention. Whether through optimizing its supply chain, narrowing its focus to core products, or redefining its customer experience, corrective measures are necessary to restore profitability.

Before entering into any business relationship, clients and suppliers are encouraged to assess the company’s creditworthiness and financial stability. VANGUARD BUSINESS INFORMATION LLC (VBI) offers business verification, financial risk analysis, and litigation screening services on VHC TRADING COMPANY LIMITED, helping stakeholders make informed decisions grounded in transparency.