Chien Thang Auto Limited Company (Vietnam)

CHIEN THANG AUTO.,LTD is known as a privately held truck assembling unit, starting its history in 2001 in Ha Noi City, Vietnam. As shared by the Chief Accountant, it is cooperating with some famous automobile manufacturers in China, particularly BAIC Group, WAW, FAW, and WEICHAI, serving domestic customers with types of trucks below 01 tons, from 03 tons to 7.7 tons.  Accordingly, over 70% of spare parts, components, and accessories are directly imported from China. The rest is purchased from domestic suppliers (mirror, lamp, tire, ...) or is processed by itself (like trunk). Its products are consumed in the country. Besides the truck sector, the firm participates in hotel service; however, the revenue from this field is insignificant.According to the male Chief Accountant, for about 04 recent months, the subject has been upgrading the emission standard to Euro 5 in accordance with the Decision of the Prime Minister for about 10 types of trucks, whose standard - Euro 4 has expired. Therefore, assembling these types of trucks has been temporarily stopped, and it has kept doing about three types of products whose Euro 4 standard is still valid. Accordingly, the production activity has decreased from 80% to 90% in comparison with the previous time, and the firm mainly sells inventories. The certificate Euro 5 is expected to be completed in the early 1st quarter of next year. Due to the negative impacts of the post-COVID economic recession, the subject's operation has been less busy since the 2nd quarter of 2023. In addition, the period changing from Euro 4 to Euro 5 also makes the assembling activity interrupted and depressed. As revealed, for the last 06 months of this year, its turnover is estimated at around VND 250 billion, decreasing by 21% over VND 315 billion in the same period last year. According to preliminary statistics, its sales for the whole year will be around VND 520 billion, a decline of 27% against last year. The profit is calculated to reduce to around VND 8 - 9 billion in the same period as well.