VIET NHAT ADVANCED STEEL JOINT STOCK COMPANY

VIET NHAT ADVANCED STEEL: One of Vietnam’s Largest Private Steel Casters Facing Financial Headwinds

VIET NHAT ADVANCED STEEL JOINT STOCK COMPANY (Vietnamese: CÔNG TY CỔ PHẦN LUYỆN THÉP CAO CẤP VIỆT NHẬT) is a leading Vietnamese steel producer located in Nam Cau Kien Industrial Park, Hai Phong. With over a decade of operations since its registration in September 2014, the company specializes in the casting of iron and steel, producing critical materials such as steel billets and deformed bars for construction and infrastructure.

A Steel Manufacturer with National Reach

The company’s headquarters is based in Thuy Nguyen City, Hai Phong, and it operates additional offices in Hanoi, Ho Chi Minh City, and a major warehouse in Binh Duong, facilitating nationwide distribution. Backed by a workforce of approximately 700 employees, VIET NHAT ADVANCED STEEL is strategically positioned near Vietnam’s ports and manufacturing corridors, enhancing its logistics and raw material access.

Financial Overview: Strong Revenues, Continued Losses

As of the end of 2024, the company reported total assets of USD 227.32 million, an 8.87% increase from 2023. Revenue also rose slightly by 4.82% to reach USD 200.66 million, signaling a modest recovery in sales volume after a sharp decline in 2023. However, the company continued to report net losses, with a 2024 deficit of USD 15.46 million, though that represented a 28.24% improvement from the previous year.

The company’s owner’s equity remains extremely low, reaching just USD 195,511—even after a 375.3% increase year-over-year—reflecting a history of accumulated losses and a thin capital cushion. More critically, working capital stood at negative USD 89.17 million, raising concerns about liquidity, supplier financing, and short-term solvency. Despite these challenges, the company’s charter capital remains strong at over USD 82 million, indicating deep investor backing and potential for restructuring or recapitalization.

Executive Leadership

The company is chaired by Mr. DANG VIET BACH, with Mr. TA MINH THAI DUONG serving as General Director. Together with Director Mr. DANG HOANG TUNG, the leadership team manages the company’s strategy, production, and recovery efforts in a highly competitive and capital-intensive market.

Business Scope and Capabilities

VIET NHAT ADVANCED STEEL operates across a wide range of industrial activities, including:

• Casting and manufacturing of ferrous and non-ferrous metals.

• Structural metal fabrication, forging, stamping, and metal treatment.

• Mining of iron and non-ferrous metal ores.

• Transportation, cargo handling, and warehousing for steel logistics.

• Shipbuilding and metal repair services.

This integrated model enables the company to manage both upstream resource access and downstream distribution, contributing to its competitiveness in Vietnam’s steel value chain.

Strategic Outlook and VBI Recommendation

VIET NHAT ADVANCED STEEL’s production scale, nationwide presence, and charter capital place it among Vietnam’s largest privately-held steel casters. However, its ongoing financial losses and highly negative working capital present significant risk management concerns for potential partners and investors.

At VANGUARD BUSINESS INFORMATION LLC (VBI), we recommend close due diligence for any engagement with this company, particularly in reviewing financial arrangements, vendor terms, and liquidity status. VBI’s company reports, credit checks, and business risk analysis are available to help businesses assess this steel manufacturer’s potential and challenges.