In many sectors, businesses acknowledged that simply breaking even was an accomplishment this year. A prominent example is Nam Sông Hậu Trading Investment Petroleum JSC, once a leading fuel distributor in the Mekong Delta.
Despite an ambitious target of nearly VNĐ14.6 trillion (US$573.1 million) in revenue and VNĐ327 billion in net profit for 2024, the company fell short, reporting the third quarter (Q3) revenue of just VNĐ93.7 billion, a sharp 89.7 per cent drop year-over-year.
This resulted in a net loss of VNĐ182.5 billion, compared to a VNĐ11.2 billion profit in the same period last year.
Cumulative losses for the first nine months reached VNĐ556.3 billion, a clear contrast to VNĐ277.5 billion in profit during the same period in 2023.
The financial strain was exacerbated by mounting financial costs, which surged 20 per cent year-over-year to VNĐ348.2 billion, and a total debt burden exceeding VNĐ6.9 trillion, accounting for 71 per cent of liabilities.
Similar woes plagued Miền Đông JSC, which reported a 71.5 per cent revenue decline in the first nine months to VNĐ159.3 billion, alongside a VNĐ10.2 billion net loss.
Prolonged project handovers in construction and stone exploitation added to the financial strain, while a lingering bad debt of VNĐ36.3 billion, linked to LDG Investment JSC, remained unresolved.
Meanwhile, Seed Mộc Châu Dairy Cattle Corporation saw its earnings erode due to heightened competition in the dairy industry and declining financial income.
Q3 revenue fell 9.4 per cent year-over-year to VNĐ739.6 billion, with net profit dropping 55 per cent to VNĐ42.6 billion, the lowest in two years.
The company’s nine-month performance revealed a 48.5 per cent plunge in net profit, achieving only 44.8 per cent of its yearly profit target.
These challenges led to significant management changes, with the company dismissing its deputy CEO in charge of sales and marketing.
Finding new markets and strategies
Despite the challenges, a few enterprises demonstrated resilience by exploring new markets and strategies.
Selex Motors, a Vietnamese electric motorcycle start-up, expanded its footprint by exporting its Selex Camel e-motorcycles and associated battery-swapping systems to the Philippines.
Similarly, Trường Thành Furniture Corporation secured investment certification for its subsidiary, Casadora Furniture Corporation, to enter the Dubai market, a strategic pivot to mitigate losses and tap into the Middle East’s growing demand for high-quality furniture.
Trường Thành incurred a cumulative loss of nearly VNĐ27 billion in the first nine months, with total losses now nearing VNĐ3.3 trillion.
The company cited disruptions in global logistics and shifting customer demand due to geopolitical conflicts as key hurdles. Nonetheless, its focus on market diversification in Europe, the US and Asia, alongside operational restructuring, offers a pathway toward recovery.
The broader economic landscape posed substantial challenges for businesses. More than 163,800 companies withdrew from the market in the first nine months, up 21.5 per cent over last year.
According to Nguyễn Quốc Việt, deputy director of the Institute for Economic and Policy Research, subdued domestic consumption and sluggish public investment disbursement further constrained growth.
To revive momentum, experts emphasised the need to balance export-driven growth with domestic market revitalisation. Supporting innovative sectors and ensuring macroeconomic stability will be crucial as businesses navigate these turbulent times.
