VINA-BAT JOINT VENTURE COMPANY LIMITED

VINA-BAT JOINT VENTURE COMPANY LIMITED (CÔNG TY TNHH LIÊN DOANH VINA-BAT) was established on January 2, 2014, and operates as a foreign-invested enterprise (FDI) under Business ID: 0312627283, registered with the Ho Chi Minh City Department of Planning and Investment. The company’s head office is located at Lot 45C/I, Road 7, Vinh Loc Industrial Park, Vinh Loc A Commune, Binh Chanh District, Ho Chi Minh City, with a branch office at MPlaza Saigon, 20th Floor, 39 Le Duan Street, Ben Nghe Ward, District 1, Ho Chi Minh City.

VINA-BAT is a joint venture between Vietnam National Tobacco Corporation (VINATABA) holding 51%, and British-American Tobacco Marketing (Singapore) Pte Ltd holding 49%. This partnership combines Vietnam’s established market presence with British-American Tobacco’s international brand strength and manufacturing expertise. The company’s charter capital is approximately USD 5.7 million, with full paid-up contribution, and it operates under the leadership of Mr. Huynh K. N., serving as General Director.

The company primarily manufactures and trades tobacco products and holds licenses for management consultancy, market research, and public opinion polling. With more than 11 years of operation, VINA-BAT plays a significant role in Vietnam’s regulated tobacco industry.

Financially, the company maintains a steady growth trajectory in revenue but faces margin pressure. As of December 31, 2023, it reported total assets of USD 29.76 million, up 10.03% from the previous year, and sales revenue of USD 106.22 million, growing 10.22% year-on-year. However, net profit declined by 12.73% to USD 8.15 million, and equity decreased by 9.67% to USD 13.72 million, indicating a tightening profitability trend despite higher sales volume. Working capital stood at USD 11.54 million, reflecting a healthy liquidity position but slightly reduced efficiency.

Over the last three years, VINA-BAT has demonstrated consistent revenue expansion but has experienced profitability and equity retention fluctuations. Profit growth in 2022 was robust (+33%), but 2023 saw contraction due to rising costs, higher taxes, and potentially increasing regulatory constraints on the tobacco sector.

From a business and credit perspective, VINA-BAT remains a financially stable enterprise with moderate leverage, solid liquidity, and strong backing from two major corporations. However, the company operates within a high-risk industry that is increasingly affected by government restrictions on tobacco advertising, consumption, and import duties. These structural pressures and evolving consumer behavior toward healthier alternatives may continue to limit profit expansion.

Despite these challenges, VINA-BAT JOINT VENTURE COMPANY LIMITED retains a significant market position in Vietnam’s tobacco manufacturing sector. Its operational scale, joint-venture strength, and well-capitalized balance sheet make it a low-risk entity in the short term. However, its long-term outlook will depend on regulatory adaptation and product diversification within a tightening policy environment.