Dong Phong Motor Company Limited (Vietnam)

The subject has experienced for over 20 years in manufacturing, assembling and trading kinds of trucks since 2001. About 80% of input is directly imported from China and sometimes from the USA. The rest is purchased from domestic suppliers as a revelation from a male staff in the sales department. Its products are distributed to agents all over Vietnam.Because of the COVID pandemic outbreak, we are shared that operation of the subject has been seriously depressed. In the 2020 - 2021 period, annual revenue plunged around 60% over the year 2019, and it recorded heavy losses as well. The gross profit even became negative last year because of a soar of input costs. In an interview with the subject's sales staff, we are known that the main cause was impact from the COVID pandemic. As a result, its labor force has been clearly cut down, which is about 60 people currently (the number was 180 in May 2019). The situation seems still difficult now, and a shortage of operating capital has forced it to narrow scale, he added. From the beginning of this year up to now, it attained just VND 400 billion of turnover, and it is expected to continue suffering a high loss in this accounting period.Generally, the subject's owner's equity has been in a deficit at the end of last year due to a huge number of cumulative losses. It is advised that the credit transaction with it should be strictly monitored.