YKK VIETNAM CO., LTD

YKK VIETNAM CO., LTD: Declining Profit Despite Strong Capital Base and International Backing

YKK VIETNAM CO., LTD (Vietnamese: CÔNG TY TRÁCH NHIỆM HỮU HẠN YKK VIỆT NAM) is a fully foreign-owned enterprise operating under Business ID and Tax Code 3600255100. Registered on May 8, 1998, the company has over 27 years of operational experience in Vietnam, primarily engaged in the manufacture and trade of zippers and fasteners. Its parent company, YKK HOLDING ASIA PTE., LTD, is based in Singapore and holds 100% ownership.

The head office is located at Lot 10, Road N2, Nhon Trach III Industrial Park – Phase 2, Long Tho Commune, Nhon Trach District, Dong Nai Province, with additional facilities and branches in Ho Chi Minh City and Ha Nam Province. The company currently employs approximately 4,400 people, operating under the leadership of General Director Mr. Yuji Furukawa and Chief Accountant Mr. Nguyen Tien Dung.

As of March 31, 2024, YKK VIETNAM CO., LTD reported total assets of USD 384 million, down 4.55% year-over-year, signaling a contraction after two consecutive years of growth. The firm maintains a robust capital structure with owner’s equity of USD 344.48 million, but this also declined by 4.83% over the same period. While the company remains well-capitalized, the downward trend in asset and equity figures raises concerns about the pace of reinvestment or asset utilization efficiency.

Sales performance has also weakened. Revenue dropped to USD 201.08 million, a significant 12.3% decrease from 2023, reversing the modest growth achieved in previous years. More notably, net profit fell sharply by 33.93%, from USD 46.3 million in 2023 to just USD 30.59 million in 2024. This steep drop in earnings could be attributed to declining global demand, pricing pressure in the apparel supply chain, or rising input costs—each of which has implications for the company’s medium-term resilience.

Despite these declines, working capital remains strong at USD 206.67 million, providing a substantial liquidity buffer to meet short-term obligations. However, the company's paid-up capital of USD 10.53 million is significantly lower than its charter capital of USD 14.5 million—and even further below the reported equivalent of USD 16.8 million. This gap suggests under-capitalization relative to stated charter thresholds, which could raise concerns for creditors or business partners assessing capital adequacy.

YKK VIETNAM’s operations are diversified through its engagement in manufacturing machinery, wholesale trade (including metals, textiles, fuels, and household goods), market research, and repair services. Still, its core focus remains the production of fastening solutions, a segment sensitive to fluctuations in global textile and garment production cycles.

For potential suppliers, contractors, or financial counterparties, the company’s long-standing presence and high working capital offer a degree of security. However, the recent downward trend in both revenue and profitability—coupled with modest erosion of asset value—calls for careful monitoring. Payment performance, contractual volume, and customer concentration should be evaluated thoroughly in any commercial engagement.

If your organization is considering transactions with YKK VIETNAM CO., LTD, it is highly advisable to initiate a full risk review. For deeper insights—including business verification, litigation search, credit risk rating, and executive background checks—clients are encouraged to partner with VANGUARD BUSINESS INFORMATION LLC (VBI). VBI’s tailored risk management services provide the data-driven confidence necessary to engage securely and strategically with companies in Vietnam and across Asia.