VIETNAM SOUTHERN FOOD CORPORATION - JOINT STOCK COMPANY

VIETNAM SOUTHERN FOOD CORPORATION - JOINT STOCK COMPANY (TỔNG CÔNG TY LƯƠNG THỰC MIỀN NAM - CÔNG TY CỔ PHẦN): A GENERAL ANALYSIS BY VANGUARD BUSINESS INFORMATION (VBI)

VIETNAM SOUTHERN FOOD CORPORATION - JOINT STOCK COMPANY (VINAFOOD II) is a major state-owned enterprise in Vietnam’s agricultural and food trading sector, specializing in the processing and wholesale distribution of rice, cereals, and agricultural products. Established on February 8, 2007, the company is headquartered at No. 333, Tran Hung Dao Street, Cau Kho Ward, District 1, Ho Chi Minh City, Vietnam. It operates under the Business ID (TIN) 0300613198 and is listed on the UPCOM stock exchange under the ticker symbol VSF.

Financial Performance and Market Position

As of 2024, VINAFOOD II reported total assets of USD 259.88 million, reflecting a 1.49% increase from the previous year. Total sales stood at USD 881.64 million, experiencing a 6.82% decline, which could indicate market fluctuations or adjustments in trading volumes. Net profit dropped significantly by 52.32% to USD 1.22 million, suggesting rising operational costs or reduced profit margins. Meanwhile, equity slightly declined by 1.41% to USD 99.81 million, which may indicate capital reinvestments or shareholder adjustments.

The company employs 2,727 workers, making it one of Vietnam’s largest employers in the rice and agricultural export sector. It operates multiple branches across key agricultural regions, including Bac Lieu, Tien Giang, and Can Tho, ensuring nationwide supply chain efficiency.

Key Strengths of the Company

• Dominant Player in Vietnam’s Rice Trade – As one of the largest food corporations in Vietnam, VINAFOOD II has a strong presence in domestic and export markets.
• Government-Backed Stability – The company is 51.43% owned by the Commission for the Management of State Capital at Enterprises, ensuring policy support and market influence.
• Extensive Distribution Network – With multiple branches in Vietnam’s key rice-producing regions, VINAFOOD II maintains efficient sourcing and distribution.
• Diversified Business Activities – Apart from rice trading, the company engages in agricultural machinery sales, food processing, and commodity trading, reducing reliance on a single revenue stream.

Challenges and Market Risks

• Declining Profitability – A 52.32% drop in net profit suggests higher operating costs, export challenges, or lower margins on rice sales.
• Fluctuating Sales – The 6.82% revenue decline indicates market volatility or shifts in global rice demand.
• Competition from Private Sector – Increasing competition from private rice exporters may impact market share and pricing power.
• Climate and Regulatory Risks – Agricultural businesses are highly sensitive to climate changes and government policies, which can affect production and export activities.

The Role of General Company Reports in Business Assessment

For investors, suppliers, and trade partners, understanding a company’s financial structure, profitability trends, and market risks is essential. A general company report provides valuable insights into investment potential, operational challenges, and financial sustainability, ensuring informed decision-making in business transactions.

VBI’s Contribution to Market Transparency

VANGUARD BUSINESS INFORMATION (VBI) provides comprehensive financial and industry reports, supporting businesses and investors in evaluating growth opportunities, risk exposure, and market dynamics. For companies like VINAFOOD II, these reports help assess industry trends, investment risks, and long-term business strategies to support decision-making and economic planning.