Vision Trading Development Company Limited (Vietnam)

The subject is a private trading company, getting involved in the supply of iron and steel, serving the fields of shipbuilding, construction, steel structure manufacturing, etc. In an interview with its female Chief Accountant, we are shared that about a third of products are directly imported from China, Russia, India, and Japan; and the two third are purchased from domestic suppliers. Most transactions are done under terms of UPAS L/C, added she. Last year, the shareholders have raised the subject's charter capital to VND 50 billion to supplement the working capital, scaling up its business activity. Accordingly, it obtained 30% growth in terms of the consumption volume over the year 2021, said the Chief Accountant. Along with the increase in the steel price (rising about 40% - 50% on average), its net revenue soared by 80.29% to nearly VND 1.4 trillion in the same period. The fluctuation of the steel price also caused significant problems, which had a downward trend in the last months of 2022 (since about October). Meanwhile, inventories had been imported at a higher price, and the selling price was lower than the importing price, making the profit negative. According to the Chief Accountant, for the first 06 months of this year, the consumption volume has been better in comparison with the same period last year at around 6,600 tons per month; however, the steel price has decreased, resulting in a slight slowdown in the turnover, which has attained VND 631 billion in the first half of this year (the number in the same period of 2022 was VND 639 billion). The company has been still lost because of high inventories, added she.