A leading enterprise, once a symbol of the Vietnamese plastics industry, is now in a state of temporary suspension of operations and is at risk of bankruptcy. The difficulties of this enterprise are also a “lesson” for many manufacturing enterprises today.
Rang Dong Plastic stops operating
Rang Dong Holding Joint Stock Company (HOSE: RDP) has just sent a document to the Ho Chi Minh City Stock Exchange (HOSE) explaining the delay in submitting the 2024 corporate governance report and the fourth quarter financial report of 2024.
According to RDP, from the second half of 2024 until now, Rang Dong Holding's financial situation has encountered many difficulties, leading to its being moved to the bad debt group in the national credit system. This has led to difficulties in the operations of its subsidiaries/member companies.
Currently, the subsidiaries/member companies and the Parent Company (RDP) are all temporarily suspended, most of the staff have quit their jobs, resulting in the inability to provide data to synthesize and prepare financial reports and corporate governance reports on time as prescribed by law.
In addition, the auditing company that signed the contract to audit the 2024 financial statements (Nhan Tam Viet Auditing Company Limited) has officially announced the termination of the auditing service contract and will not continue to audit the 2024 financial statements for RDP.
On February 24, 2025, RDP received the resignation of all 5 members of the Board of Directors. The new Chief Accountant, who took over in December 2024, is also facing many difficulties in monitoring and synthesizing the company's financial data.
From the above reasons, RDP said that it is impossible to overcome the delay in publishing reports according to regulations.
Rang Dong Holding, headquartered in District 11, Ho Chi Minh City, is one of the first and leading plastic enterprises in the Vietnamese plastic manufacturing industry, with the product "Rang Dong Thermos" once famous throughout the country.
This company was established in the 1960s and was equitized in 2005. On September 22, 2009, Rang Dong Holding officially listed RDP shares on the HOSE.
Rang Dong's "long slide" originated from the lawsuit against Sojitz Planet Corporation (under Sojitz Group - Japan) - a strategic shareholder of RDP since 2017. Sojitz signed a contract to buy 5 million common shares at Rang Dong Long An Plastic Company from RDP with a purchase price of more than 174 billion VND.
However, the two sides later had a dispute. By 2023, RDP lost the lawsuit and had to pay this partner about 178 billion VND, excluding interest. The company's operations then faced many difficulties.
On the stock exchange, RDP shares were suspended from trading from November 28, 2024, after being restricted from trading from October 24, 2024, due to violating information disclosure obligations. If the violation continues, RDP may be delisted. In the most recent trading session (November 28, 2024), RDP's market price was only VND 1,310/share, with a capitalization of VND 64 billion.
At the end of January 2025, RDP received a notice from the Ho Chi Minh City People's Court regarding the acceptance of the petition to open bankruptcy proceedings from its subsidiary Rang Dong Films (RDP owns 97.7%). The reason was that RDP was insolvent. The court requested the company to explain the reasons, declare assets, list of creditors and debtors.
Improve business investment environment
The difficulties of Rang Dong Holding, once a leading enterprise in the industry, stem from many different causes, possibly due to ineffective strategy and management; dispersion in production investment activities; large debts; market difficulties... However, this is also a "warning" for current enterprises in the context of many market difficulties and challenges.
From the perspective of state management, the fact that many enterprises have temporarily suspended operations or dissolved is also a "concern" of the leaders of Ho Chi Minh City. Right at the first session of the socio-economic conference after taking office, Mr. Nguyen Van Duoc, the new Chairman of the Ho Chi Minh City People's Committee, also raised a number of challenges of the city's economy related to the current business and investment environment, especially the situation of many enterprises leaving the market.
According to Mr. Nguyen Van Duoc, Ho Chi Minh City has developed comprehensively and is the growth pole of the whole country. However, there are still some difficulties related to the investment environment that need to be focused on in the coming time so that the city can achieve high growth.
“The rate of businesses withdrawing from the market has shown signs of increasing in the first two months of the year, which is a very worrying sign. We need to think about the investment environment. Apart from objective factors such as difficulties in the world and domestic economy, what are the subjective causes? What is the administrative system like, how difficult is the investment environment that makes investors stop projects and withdraw,” the new Chairman of the Ho Chi Minh City People's Committee raised the issue.
According to the report of the Ho Chi Minh City People's Committee, the business environment in the area has not had positive changes as the number of enterprises participating in the market has decreased and the number of enterprises withdrawing from the market has increased significantly compared to the same period.
Specifically, from January 1, 2025 to February 20, 2025, the number of newly established enterprises in the area was 3,921, with newly registered capital of VND 29,596 billion, down 37.6% in quantity, down nearly 47.9% in registered capital compared to the same period.
Notably, 596 enterprises completed dissolution procedures, up 4.2% over the same period; at the same time, 15,870 enterprises temporarily suspended operations, up 12.3% over the same period; 5,446 enterprises resumed operations, up 25.3% over the same period.
Citing a recent survey by HUBA with businesses in the area, Mr. Nguyen Phuoc Hung, Vice President of the Ho Chi Minh City Business Association (HUBA), also said that up to 75% of businesses have not been able to completely clear their inventories; 67% of businesses have outstanding debts that are difficult to collect; 21% of businesses are forced to plan to reduce their workforce and up to 50% of businesses have requested credit support and interest rate reduction.
This shows that Ho Chi Minh City’s businesses still face many difficulties and challenges. This year, Ho Chi Minh City aims for a growth rate of 10% or more. This is considered a huge challenge in the context of many difficulties in the economy and the business community. Therefore, in addition to the “growth” of the business community itself, businesses also need more support from management agencies in opening up markets, capital flows, and creating a more favorable investment and business environment, thereby supporting sustainable economic growth in the coming time.
According to VNA
Source: https://doanhnghiepvn.vn/doanh-nhan/bai-hoc-tu-su-sup-do-cua-mot-doanh-nghiep-bieu-tuong-nganh-nhua/20250303100256398
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