VINAS JOINT STOCK COMPANY

VINAS JOINT STOCK COMPANY: A Young but Rapidly Growing Steel Trading Enterprise in Hai Phong

Established in late 2020, VINAS JOINT STOCK COMPANY (CÔNG TY CỔ PHẦN VINAS) has quickly emerged as a dynamic player in Vietnam’s steel and metal trading sector. Operating from Km 92, Road No. 5 New, Nam Son Commune, An Duong District, Hai Phong City, the company has built a notable presence in the wholesale distribution of metal and construction steel products, serving industries such as shipbuilding, structural engineering, and factory construction.

VINAS is a privately held joint stock company, registered under Business ID 0202055805 and led by Chairman Hoang T. with General Director Hoang V. H. and Deputy General Director Nguyen D. T. supporting management. Despite being relatively young—just over 4 years in operation—the company has shown aggressive expansion both in scale and capital.

As of 2023, the company recorded:

• Total assets: USD 29.86 million (up 10.51% YoY)

• Sales revenue: USD 115.37 million (though down 20.91% YoY)

• Net profit: USD 1.21 million (a strong 212.21% recovery after a loss in 2022)

• Equity: USD 5.39 million, increasing 28.86% year-over-year

With 70 employees, VINAS has grown beyond its core trading business to register a wide array of commercial activities—including construction services, vehicle maintenance, software and electronics wholesale, agricultural machinery, and even food products—demonstrating its intent to diversify and scale in multiple directions.

⚠️ Risk Considerations and Recommendations:

While VINAS shows financial promise and entrepreneurial ambition, several risk factors should be carefully managed by potential partners, investors, or suppliers:

1. Revenue Volatility

The sharp 20.91% drop in sales in 2023 suggests exposure to market fluctuations—possibly due to changes in steel demand or pricing. This volatility could affect contractual obligations or cash flow consistency.

Recommendation:

• Negotiate shorter-term contracts with flexible pricing.

• Tie payment terms to real-time order fulfillment or delivery milestones.

2. Profit Instability

In 2022, the company reported a loss of over USD 1 million, followed by a strong rebound in 2023. This suggests operational or market sensitivity, particularly given the still-modest net profit margin.

Recommendation:

• Request quarterly financial statements before extending large credit lines.

• Use escrow or letter of credit mechanisms to secure transactions.

3. Limited Operational History

With only four years in operation, VINAS lacks a long-term track record in credit management and crisis response, making risk assessments harder in unstable economic periods.

Recommendation:

• Conduct enhanced due diligence and monitor for related-party transactions, especially since majority shareholders (Hoang T., Hoang V. H., and Nguyen D. T.) collectively control 100% of the company.

4. Working Capital Constraints

Although working capital stands at USD 3.1 million, the company’s scale of operations and multi-sector registration suggest potential overextension.

Recommendation:

• Maintain advance deposits for large orders.

• Avoid long payment deferrals unless backed by corporate guarantees.