VIET NAM PRECISION INDUSTRIAL NO.1 CO., LTD: Resilient Profitability Amid Revenue Decline

VIET NAM PRECISION INDUSTRIAL NO.1 CO., LTD (Vietnamese: CÔNG TY TNHH CÔNG NGHIỆP CHÍNH XÁC VIỆT NAM 1), also known as VPIC1, is a foreign-invested manufacturer operating in Vietnam’s auto and motorbike parts sector. Officially registered on December 25, 2007, under Business ID and Tax Code 2500213190, the company is based at Khai Quang Industrial Park, Khai Quang Ward, Vinh Yen City, Vinh Phuc Province, with a secondary factory located in Ba Thien II Industrial Park. The company is legally owned 100% by Eurocharm Innovation Co., Ltd, incorporated in the British Virgin Islands.

Now in its 17th year, VPIC1 specializes in producing mechanical parts and components for motor vehicles, medical devices, and sports equipment. It also engages in leasing industrial facilities. Under the leadership of Mr. Wu Tsong-Wuu, a Chinese national serving as General Director, the firm employs approximately 4,700 workers.

Financial performance in 2023 presents a mixed picture. Total revenue declined by 12.53% to USD 230.39 million, following a sharp 31.68% jump in 2022. This retreat suggests cyclical instability or contracting orders. Meanwhile, profit rose by 8.72% to USD 36.91 million, a modest increase compared to previous years but still demonstrating cost control and margin preservation. Equity growth was stronger, increasing 17.9% year-on-year, raising total equity to USD 175.4 million.

Despite stable profits, VPIC1's total assets dropped 11.53% in 2023 to USD 199.88 million, a concerning signal possibly linked to asset liquidation, reduced capital expenditure, or impaired receivables. The company's working capital stands at USD 90.7 million, offering a reasonable liquidity buffer, but long-term sustainability hinges on reversing the decline in revenue.

VANGUARD BUSINESS INFORMATION LLC (VBI) urges caution in evaluating firms like VPIC1, which demonstrate strong equity but declining sales. A drop in top-line performance—especially in a capital-intensive manufacturing industry—may signal competitive pressures, reduced export demand, or inefficiencies in production cycles. With tools for financial risk assessment, supplier verification, and performance monitoring, VBI supports stakeholders in making informed decisions, especially when dealing with foreign-invested companies whose internal restructuring may not always be transparent.

Ultimately, VIET NAM PRECISION INDUSTRIAL NO.1 CO., LTD remains a substantial entity within Vietnam’s industrial landscape. However, the shrinking revenue base and reduced assets, despite consistent profitability, warrant close scrutiny. Stakeholders, partners, and financiers should rely on detailed financial analysis and regular risk reviews from VBI to gauge future stability and operational resilience.