In the context of the global economy being affected by supply chain disruptions, geopolitical tensions, etc., Vietnam is becoming a bright spot on the map of attracting FDI. Investors from Asia, Europe, the United States and ASEAN continue to promote investment in Vietnam, especially in industrial zones. Data from the Foreign Investment Department (Ministry of Planning and Investment) shows that, as of July 20, 2022, the processing and manufacturing industry welcomed 3.98 billion USD of FDI, accounting for 69.5% total newly registered capital from the beginning of the year. Notably, realized FDI in the first 7 months of the year reached 11.57 billion USD, the highest in 5 years.
The presence of foreign investors in Vietnam is considered a “life changing” opportunity for many domestic enterprises. Once they have proven their capacity, they can participate in the supply chain of products and services for foreign investors, and/or provide services such as medical services, packaging supply, logistics, etc.
The most typical name to mention is Thuan Thanh Environment Joint Stock Company (Thuan Thanh EJS) with waste treatment activities.
Thuan Thanh EJS
Thuan Thanh EJS was established on April 29, 2009, headquartered in Ngoc Kham village, Gia Dong commune, Thuan Thanh district, Bac Ninh province.
The birth and formation of Thuan Thanh EJS associated with businessman Vu Van Dac (SN 1966). This is reflected in the percentage of controlling shares he owns in the business. Specifically, up to now, the charter capital of Thuan Thanh EJS has reached VND 200 billion, the shareholder structure includes: Mr. Vu Van Dac (55%), Ms. Nguyen Thi Thoa (5%) and Mr. Nguyen Trong Khanh (40%) ) – businessman who was mentioned by Nhadautu.vn in the article: From Toyota engineer to mysterious figure at Thuan Thanh EJS.
The name Thuan Thanh of the business also has many meanings. It should be known that Thuan Thanh EJS (since 2019) is the unit responsible for treating 100% of domestic solid waste in Thuan Thanh district (Bac Ninh province).
On the other hand, data from the Department of Natural Resources and Environment of Bac Ninh province shows that, on average, the province generates about 900 tons of domestic waste every day. In which, the domestic waste treatment plant of Thuan Thanh EJS treats 100 – 105 tons of waste.
However, as is known, Thuan Thanh EJS has affirmed its name in the field of waste treatment for FDI enterprises. In particular, Thuan Thanh EJS has helped big partner Samsung Vietnam solve the problem of waste treatment in 2 factories in Bac Ninh and Thai Nguyen. Receiving the trust of the No. 1 FDI giant in Vietnam partly shows the capacity of Thuan Thanh EJS, as well as the owners of this company.
Not only Samsung, Thuan Thanh EJS also cooperates with many other FDI enterprises in the field of waste treatment.
Accordingly, Thuan Thanh EJS and JFE Engineering Corporation (Japan) in December 2020 established T&J Green Energy JSC (T&J) with a capital ratio of 60:40. It is known that T&J is the investor of a high-tech domestic solid waste treatment plant (Bac Ninh), with a scale of 4.8 hectares, total investment capital of 1,348 billion VND, maximum solid waste treatment capacity of 500 tons. /day and night, generating capacity from 11-13 MW, expected to be put into operation from the fourth quarter of 2023.
Also related to this project, International Finance Corporation (IFC), a member of the World Bank, in October 2021 announced a financial investment of 30 million USD in T&J.
Not stopping there, the consortium of Thuan Thanh EJS and JFE Engineering Japan in December 2021 also continued to propose to the People’s Committee of Vinh Phuc province to explore opportunities for cooperation in developing industrial waste treatment projects, hazardous and domestic waste in this locality.
Previously, in March 2020, this consortium also sent an official letter to work with the Chairman of the People’s Committee of Bac Giang province to report on the research and proposal of a waste treatment plant project here.
In addition, Hoya Glass Disk Vietnam II Co., Ltd (a subsidiary of Hoya Corporation – Japan) used to hire Thuan Thanh EJS to collect, transport and treat the waste salt mixture; or Thuan Thanh EJS used to have a number of purchase/sale contracts with Piaggio Vietnam Co., Ltd (Italy), Honda Trading Vietnam Co., Ltd.….
Not only Thuan Thanh EJS, businessman Vu Van Dac also owns Green Star Environment Co., Ltd – the owner of the investment project to build a complex of industrial waste treatment, domestic solid waste for power generation (only for real life). currently treating domestic solid waste within the scope of waste collection in Bac Ninh city and Que Vo district). It is known that Green Star was born in 2017, a combination of Thuan Thanh (87.5%) and Bac Ninh Urban Construction and Environment JSC.
Not stopping there, the trio of individuals Vu Van Dac, Nguyen Thi Thoa and Nguyen Trong Khanh continued to work together at Tan Yen Industrial Investment and Trading Service Joint Stock Company – another enterprise operating in the field of processing garbage. Accordingly, as of May 2014, Mr. Vu Van Dac holds 52% of the company’s capital; Mr. Nguyen Trong Khanh and Ms. Nguyen Thi Thoa own 38% and 10% respectively.
Tan Yen’s predecessor is Clean Environment Technology Development and Investment Joint Stock Company – the investor of the domestic and industrial waste treatment plant project, located in Lang Cao village, Cao Xa commune, Tan Yen district. approved for investment on November 5, 2013, the land used area is 311,674.3 m2. Regarding the project, on August 29, 2014, Chairman of the People’s Committee of Bac Giang province had the conclusion: “… suspend the implementation of construction items of the Project…” for inspection. the investor’s organization and implementation. As of November 2019, this project is still in the category of “no land, slow to put land into use, project must be extended”.
Not only limited to Bac Ninh, businessman Vu Van Dac also wants to participate in the waste treatment field in the Capital, when through Green Star Environment owns 26.45% of shares in Gia Lam Urban Environment JSC. or 14% shares of Soc Son Urban Environment JSC. In his hometown, Thuan Thanh EJS directly in 2016 became a strategic investor of Bac Ninh Environment and Urban Construction Joint Stock Company, and currently holds a 24.57% stake here.
Notably, Thuan Thanh EJS also has the ambition to implement an industrial park project. Accordingly, Tan Yen company is also known as the investor of Lang Cao industrial cluster (Cao Xa commune, Ngoc Ly commune, Tan Yen district, Bac Giang). In terms of scale, the project has an area of 48ha, total investment is 347.65 billion, expected to be completed in 2022.
Earning 4.2 billion VND per day
The data shows that the net revenue of Thuan Thanh EJS (parent company) in 2020 reached VND 1,566 billion, a slight increase of 1.4% over the same period last year, equivalent to VND 4.2 billion per day; while net profit decreased 13% to 146 billion dong.
Considering the whole period of 2016 – 2020, revenue and net profit of Thuan Thanh EJS tend to be inversely related to each other. Accordingly, while the average growth of revenue was 10.9%/year, net profit decreased by 17.3%.
However, compared to some companies on the stock exchange such as Sonadezi Environment JSC (UPCOM: SZE), Vung Tau Urban Construction and Environmental Services JSC (UPCOM: MTV) and Ha Dong Urban Environment JSC (UPCOM: SZE). UPCOM: MTH), the financial indicators of Thuan Thanh EJS in 2020 are superior.
On the balance sheet, the total assets of Thuan Thanh EJS as of December 31, 2020 reached VND 2,174 billion, equity of VND 1,450 billion. Note that the owner’s contributed capital by the end of 2019 is only VND 200 billion. This means that Thuan Thanh EJS is accumulating a profit of about VND 1,250 billion. This is also the total net profit of this business in the period 2016-2020.
Source: CafeF
Source: Vietnam Insider