THE UNIVERSITY OF DANANG

VNUK INSTITUTE FOR RESEARCH AND EXECUTIVE EDUCATION

FINANCIAL MANAGEMENT MODULE

ACADEMIC YEAR 2022-2023

INDIVIDUAL ASSIGNMENT

Name Truong Thi Dai Trang

Student ID 20010044

Lecturer MSc. Ngo Nguyen Bao Tran

May 2023
 TABLE OF CONTENTS

I. Company background demonstration 3

1. Background and History 3
2. Strategic objectives and core values 3
2.1. Vision 3
2.2. Mission & Goals 3
2.3. Core Values 3
3. Forms of business organization 4
4. Agency theory 4
5. Structure of financial management function 4
6. Industry Overview 4
6.1 .Wide-trend in canned food industry 4
6.2 Internal environment 5
6.3 External environment 5
II. Company Financial Health Analysis 6
1. Income Statement 6
2. Balance Sheet 13
3. Financial Ratios 16
3.1 Liquidity ratios 16
3.2 Financial leverage (debts) ratios 18
3.3 Coverage ratios 19
3.4 Activity Ratios 20
3.5 Profitability ratio 24
3.6 Key competitor 26
4. Comments on financial health 27
5. Recommendation 27
III. References 28
IV. Appendix 29
1. Income statement 29
2. Balance sheet 30
2
I. Company background demonstration
1. Background and History
Ha Long Canfoco is a prominent Vietnamese company specializing in food
processing and canned goods. With its headquarters located in the city of Hai
Phong, the company has a rich history dating back to its establishment in 1957
as the Hạ Long Canned Fish Factory, making it one of the pioneering canned
food production units in Vietnam.

Over the span of more than 60 years, Hạ Long Canfoco has achieved
remarkable growth and development, solidifying its position as a leading
company in the food processing industry within Vietnam. Renowned for its wide
range of high-quality products, the company has successfully navigated through
the economic fluctuations of recent years, proudly emerging as one of the first
joint-stock companies to possess outstanding competitive advantages in the
market.

Throughout its journey, Hạ Long Canfoco has continuously strived to enhance

the quality and convenience of its food processing operations, enabling it to
capture the market and earn the trust of both domestic and international
consumers. Notably, the company holds the prestigious distinction of being one
of the few in Vietnam authorized to directly export processed food to the EU
market. Moreover, Hạ Long Canfoco has forged strong and enduring
partnerships with numerous counterparts in regions such as Hong Kong,
Singapore, Japan, and Western Europe. As a testament to its success, the
company has received numerous consumer awards in Vietnam and beyond for
its exceptionally popular products.

With its unwavering commitment to excellence, Hạ Long Canfoco continues to

thrive in the highly competitive food processing landscape, consistently pushing
the boundaries of innovation and meeting the diverse needs of its customers.

2. Strategic objectives and core values

2.1. Vision
“To become a leading renowned food brand in Asia”

2.2. Mission & Goals

“Halong Canfoco is dedicated to delivering the finest nutrition to contribute to the
establishment of strong and joyful households, spreading love and harmony to
every corner of homes”

3
 2.3. Core Values
The consumer is the center of all activities.
Build, promote, and protect the brand together.
Continuously improve and innovate products.
Distributors are always important partners.
Create a nurturing environment for talent development.
Contribute to the development of the community.
Always create benefits for shareholders and company members.

3. Forms of business organization

Ha Long Canfoco operates as a joint stock company, issuing shares to
shareholders who contribute capital and receive ownership. Shareholders have
limited liability, are not personally responsible for company debts beyond their
investment. The company has a board of directors managing affairs and making
strategic decisions, elected by shareholders. Ownership and management are
separate, enabling efficient decision-making and corporate governance. Being a
joint stock company allows for easy ownership transfer and the ability to raise
capital by issuing new shares. This structure provides advantages like limited
liability, separation of ownership and management, and access to capital
markets, making it suitable for larger enterprises like Ha Long Canfoco.

4. Agency theory
As a joint stock company, Ha Long Canfoco operates under a principal-agent
relationship, with mechanisms in place to align interests between shareholders
and the board of directors/executives. The board represents shareholders,
compensation incentivizes value prioritization, and shareholders can voice
concerns. External auditing ensures transparency. Truong Sy Toan, appointed by
the board, oversees day-to-day operations and executes strategic decisions.
Additionally ,Ha Long Canfoco aims to mitigate agency problems, maximize
shareholder value, and achieve its objectives through these mechanisms.

5. Structure of financial management function

The structure of the financial management function in Ha Long Canfoco involves
various roles and responsibilities to effectively manage the company's finances.
At the top level, the CEO plays a significant role in overseeing the financial
management function and making strategic decisions related to finance.
Under the CEO's leadership, there is typically a Chief Financial Officer (CFO)
who is responsible for the overall financial management of the company. The
CFO oversees financial planning, budgeting, and reporting, and ensures
compliance with financial regulations and standards. They work closely with other
departments and executives to develop financial strategies and make informed
financial decisions.
Additional roles like financial analysts, accountants, and controllers support tasks
such as analysis, reporting, cash flow management, and financial forecasting.
4
 Together, they ensure sound financial management and informed decision-
making.

6. Industry Overview
6.1 .Wide-trend in canned food industry

In the field of canned food, there are emerging trends in providing better
solutions and meeting the demands of modern consumers. One notable trend is
the emphasis on convenience and product diversification. Halong Canfoco is
seeking to provide canned food products that are easy to use and convenient for
customers. Additionally, the company offers a wide range of options in terms of
flavors, nutritional ingredients, and product sizes to cater to diverse consumer
needs.

Furthermore, the trend towards healthy and sustainable canned food is becoming
increasingly important. Halong Canfoco focuses on using natural ingredients,
free from preservatives and GMOs, in the production of canned food. They also
explore packaging and recycling methods that are environmentally friendly to
minimize negative impacts on the planet.

Another trend is the enhancement of technology and innovation in the production

process. Halong Canfoco invests in advanced technologies to improve efficiency
and product quality. They employ advanced processing and preservation
methods to ensure freshness and preserve the nutritional value of the food
during the canning process.

Overall, the new trends in canned food solutions revolve around convenience,
diversification, healthiness, sustainability, and the application of advanced
technology.

6.2 Internal environment

5
 6.3 External environment

6
II. Company Financial Health Analysis
1. Income Statement

Based on the Income Statement of Halong Canned Food Joint Stock Corporation,
significant fluctuations have been evident in recent years. Evaluating the company's
operational efficiency and financial well-being requires careful analysis of two key
financial indicators: net revenue and gross profit. These indicators hold significant
importance in assessing the company's financial performance.

Unit: million Viet Nam Dong

In general, we can observe a significant growth in the net revenue and gross
profit of the company from 2020 to 2021, followed by a decline in 2022.

7
 In 2020, the company achieved an impressive net revenue of 734.343 trillion
VND. This figure increased to 864.077 trillion VND in 2021, indicating a growth of
approximately 18% compared to the previous year. Moreover, the gross profit for
the company in 2021 reached 184.114 trillion VND, representing a substantial
growth of around 29% compared to the previous year's figure of 142.434 trillion
VND. This growth can be attributed to the increased domestic sales revenue
driven by the COVID-19 pandemic, as there was a high demand for canned food
products while cost increases remained relatively moderate.

However, in 2022, the company experienced a decline in both net revenue,

which decreased to 806.079 trillion VND, reflecting a decline of approximately
7% compared to the previous year, and gross profit, which decreased to 149.632
trillion VND, representing a decline of around 19% compared to the previous
year. These declines can be attributed to the company's exposure to the global
economic downturn following the COVID-19 pandemic, affecting not only
Vietnam but also the overall business environment.

During the three-year period from 2020 to 2022, Halong Can Food witnessed notable
fluctuations in its gross profit margin. The company saw a significant rise in the gross
profit margin to 20.89% in 2021, reflecting improved production and sales efficiency.
However, in 2022, the gross profit margin declined to 18.23%, indicating challenges in
the company's business operations. This can be attributed to the post-pandemic
economic recovery, which resulted in reduced consumer demand for stockpiling goods.
8
Regarding net profit after taxes, this figure experienced a gradual increase from
18,116,410,835 VND in 2020 to 29,418,465,276 VND in 2021, followed by a decrease
to 16,017,212,948 VND by the end of the period. Correspondingly, the net profit margin
exhibited a notable upward trend, rising from 2.45% in 2020 to 3.34% in 2021, but then
sharply declining to 1.95% in 2022. The reduction in net profit in 2022 indicates that the
company is encountering challenges in its business operations. This can be attributed to
the fact that 2022 was a year of considerable global economic turbulence. The global
economy, still recovering from the impacts of the Covid-19 pandemic, confronted
various difficulties including tight monetary policies, global inflation, energy security
risks, food shortages due to the Russia-Ukraine armed conflict, and geopolitical issues
worldwide. Despite being an economy with high openness, Vietnam is not immune to
external fluctuations and influences.

9
In terms of operating profit, the company has experienced significant increases in
profitability over the years. The operating profit for the company rose from
22,173,189,780 VND in 2020 to 37,611,918,107 VND in 2021, and gradually decreased
to 121,689,015,974 VND. Correspondingly, the operating profit margin increased from
3.00% in 2020 to 4.27% in 2021, and decreased to 2.64% in 2022, following this trend.

10
Lastly, let's examine the basic earnings per share (EPS) of Ha Long Canned Food Joint
Stock Corporation. By analyzing the EPS figures of Halong Can Food over three years,
we can observe the fluctuations in the company's earnings per share.

In 2020, an individual shareholder holding one stock could earn approximately 3.623
VND. This figure then experienced a significant increase to nearly 5.164 VND in 2021.
However, it witnessed a decline to VND 3.203 VND just one year later.

11
The cost structure provides additional detailed information regarding the company's
performance. Specifically, over the three-year period from 2020 to 2022, we can
observe certain changes in different cost components relative to net revenue. Notably,
there was a decrease in Selling Expenses/Net revenue, while General and
Administrative Expenses/Net revenue and Interest Expenses/Net revenue experienced
a slight increase.

Furthermore, focusing on the Cost of Goods Sold/Net revenue ratio, there was an
approximate 2% decrease in 2021 compared to the previous year. However, this figure
significantly rose to 81.44% in 2022. Overall, it is evident that the canned food industry
in general, including Ha Long Can Food Corporation, has been influenced by post-
COVID consumer behavior. Additionally, the company is actively improving marketing
effectiveness and managing selling expenses at a favorable level.
2. Balance Sheet

12
In terms of assets, there has been a consistent upward trend over the past three years.
In 2020, we witnessed a slight increase as total assets rose from 397,800,964,240 VND
to 454,793,059,382 VND in 2021, and further increased by 35 billion VND in the
following year. This increase in assets is highly reasonable as it aligns with the
company's period of upgrading, new investments in production, and technological
advancements.

However, during a certain period, the company experienced a general decrease in cash
and cash equivalents, with a decline from 13,573,889,382 VND in 2020 to
11,608,254,553 VND. This figure then increased to 12,151,437,243 VND compared to
the corresponding period of the previous year. Correspondingly, the short-term
receivables also saw a significant jump, from 66,931,482,356 VND in 2018 to
92,400,030,673 VND (nearly 1.4 times increase), and then decreased by 1.4 times to
66,680,531,064 VND in 2022.

13
The figure for short-term prepaid customers has also significantly decreased following
the COVID-19 pandemic. In 2021, this number dropped by nearly 500 million
Vietnamese dong compared to the same period in the previous year. The company
implemented changes in their cash collection policy, allowing their customers to have a
longer payment period. However, by 2022, this figure witnessed growth, increasing from
3,191,791,077 VND to 3,771,546,904 VND. This is an encouraging signal indicating
improved cash flow for the company and increased trust from customers towards the
business.

14
In terms of liabilities, the long-term debt of the company is the only item to consider. The
company's long-term debt has significantly decreased, reaching approximately
6,039,823,076 VND and further decreasing to 4,906,485,056 VND in 2021. It has a
slight upward trend, amounting to 4,972,316,036 VND in 2022.

15
In terms of Equity, the year 2020 witnessed a significant growth in Ha Long Canfoco's
Equity, approximately 14% (around 17,844 billion VND), reaching 147,787,045,119
VND in 2021. However, in 2022, there was a slight decrease with the figure standing at
approximately 147,704,258,067 VND. This indicates that the business's production and
operations over the past three years have been effective, resulting in profits for the
company.
3. Financial Ratios
3.1 Liquidity ratios
Current Assets
Current Ratio=
Current Liabilities

Current Assets−Inventories
Acid Test Ratio=
Current Liabilities

An enterprise's liquidity ratio depicts its financial position clearly. The financial condition
of a business is considered favorable when it has a high liquidity ratio, whereas it is
viewed negatively if the liquidity ratio is low. Therefore, when evaluating the overall
financial health of an enterprise, the significance of the liquidity ratio cannot be
overlooked. As follows is an analysis of Ha Long Canned Food Joint Stock
Corporation's liquidity ratios:

Liquidity ratios 2022 2021 2020

Current Ratio 1.28 1.29 1.27

Acid Test Ratio 0.26 0.38 0.33

- Current Ratio
It means:
● 2022: HA LONG CANFOCO has a current assets receivables-to-current liabilities
ratio of 1.28 VND
● 2021: HA LONG CANFOCO has a current assets receivables-to-current liabilities
ratio of 1.29VND
● 2020: HA LONG CANFOCO has a current assets receivables-to-current liabilities
ratio of 1.27 VND

- Acid Test Ratio

It means:
● 2022: HA LONG CANFOCO has a cash and cash receivables-to-current liabilities
ratio of 0.26 VND
● 2021: HA LONG CANFOCO has a cash and cash receivables-to-current liabilities
ratio of 0.38 VND
16
● 2020: HA LONG CANFOCO has a cash and cash receivables-to-current liabilities
ratio of 0.33 VND

Regarding liquidity ratios, both the current ratio and acid test ratio have not shown
significant deviations compared to previous years. However, the company's short-term
debt has been increasing over the years, reaching 262 billion VND, 302 billion VND,
and 337 billion VND from 2020 to 2022. The company's overall payment capacity is
currently at a safe level, as this ratio is also relatively close to the industry average of
1.59. Additionally, all the quick liquidity ratios of the company are less than 1, indicating
that the ability to pay short-term obligations is not guaranteed.

The main reason for this situation is the impact of the COVID-19 pandemic, which has
significantly reduced the usage of processed products. Furthermore, it is observed that
the company's immediate payment capacity ratio is very low and has been decreasing
over the past three years. Although the company's immediate payment capacity is low,
it can be partly attributed to the characteristics of the processing industry, where
inventory is essential to ensure an adequate supply of food during unexpected
fluctuations.

17
3.2 Financial leverage (debts) ratios
Total debt
Debt−¿−Equity Ratio=
Owner ' s s equity

Total debt
Debt−¿−Total Assets Ratio=
Total assets

Long−term debt
Long−term−debt−¿−Total=
Total capitalization

Financial leverage ratio is the ratio between the total amount of debt and the total equity
of a business. It helps assess the extent to which a business utilizes borrowed capital
and its ability to fulfill its debt obligations. A higher financial leverage ratio may indicate
that a business is heavily reliant on debt and carries a higher level of financial risk, while
a lower ratio may suggest greater financial stability. As follows is an analysis of Ha Long
Canned Food Joint Stock Corporation's Financial leverage (debts) ratios:

Financial
Leverage ratios 2022 2021 2020
Debt-to-Equity
Ratio 2.32 2.08 2.06
Debt-to-Total
Assets Ratio 0.70 0.68 0.67
Long-term-debt-to-
Total
Capitalization Ratio 0.38 0.44 0.51

- Debt-to-Equity Ratio
It means:
● 2022: For every 1 VND provided by shareholders, creditors were contributing
2.32 VND in financing.
● 2021: For every 1 VND provided by shareholders, creditors were contributing
2.08 VND in financing.
● 2020: For every 1 VND provided by shareholders, creditors were contributing
2.06 VND in financing.

- Debt-to-Total Assets Ratio

It means:
● 2022: Debt accounted for 70% of the firm's assets, while shareholders' equity
comprised the remaining 30% of the financing.
● 2021: Debt accounted for 68% of the firm's assets, while shareholders' equity
comprised the remaining 32% of the financing.
18
 ● 2020: Debt accounted for 67% of the firm's assets, while shareholders' equity
comprised the remaining 33% of the financing.

- Long-term-debt-to-Total Capitalization Ratio

It means:
● 2022: Long-term debt constituted 38% of the total capitalization.
● 2021: Long-term debt constituted 44% of the total capitalization.
● 2020: Long-term debt constituted 51% of the total capitalization.

In general, the company's debt indicators from 2020 to 2022 did not show significant
changes. This may indicate stability in the company's debt management.

3.3 Coverage ratios

EBIT
Interest Coverage Ratio=
Interest Expense

Coverage ratios are a set of financial ratios used to evaluate a business's capacity to
meet its debt obligations and other expenses. These metrics indicate a business's ability
to safeguard its profits, cash flow, and fulfill its debt obligations. As follows is an analysis
of Ha Long Canned Food Joint Stock Corporation's Coverage ratios :

19
Coverage ratios 2022 2021 2020
Interest Coverage Ratio 2.12 6.11 4.45

- Interest Coverage Ratio

It means:
● 2022: HA LONG CANFOCO generated operating income (EBIT) that is 2.12
times higher than its interest payments.
● 2021: HA LONG CANFOCO generated operating income (EBIT) that is 6.11
times higher than its interest payments.
● 2020: HA LONG CANFOCO generated operating income (EBIT) that is 4.45
times higher than its interest payments.

There is a noticeable fluctuation in the Interest Coverage Rate. 2021 saw a strong
increase in Interest Coverage Ratio, from 4.45 times to 6.11 times. After one year, the
Interest Coverage Ratio, has decreased approximately 3 times by 2022. This is a
worrying forecast for the company's ability to meet interest obligations

3.4 Activity Ratios

Net Sales
The Receivable Turnover Ratio( RT )=
Receivables

365
Receivable Turnover∈days (RTD)=
RT

Annual net credit sales

The Payable Turnover Ratio(PT )=
Payables

20
 365
Payable Turnover∈days ( PTD)=
PT

COGS
Inventory Turnover Ratio(¿)=
Inventory

365
Inventory Turnover ∈days(ITD)=
¿

Net Sales
Total Asset Ratio (ROA )=
Total Assets

Activity ratios present a comprehensive view of an enterprise's business performance.

These metrics help assess a business's ability to utilize its assets and resources
effectively in generating revenue and profit. As follows is an analysis of Ha Long
Canned Food Joint Stock Corporation's activity Ratios :

Activity ratios Unit 2022 2021 2020

The Receivable Turnover Ratio (RT) Times 11.98 9.26 10.87
Receivable Turnover in days (RTD) Days 30.46 39.43 33.59

The Payable Turnover Ratio (PT) Times 5.15 3.94 3.14

Payable Turnover in days (PTD) Days 70.89 92.53 116.15
Inventory Turnover Ratio (IT) Times 1.89 2.48 2.42
Inventory Turnover in days (ITD) Days 192.64 147.16 150.68
Total Asset Ratio (ROA) - 1.64 1.90 1.85

- The Receivable Turnover Ratio (RT)

It means:
● 2022: HA LONG CANFOCO converted receivables into cash 11.98 times
within a year.
● 2021: HA LONG CANFOCO converted receivables into cash 9.26 times within
a year.
● 2020: HA LONG CANFOCO converted receivables into cash 10.87 times
within a year.

- Receivable Turnover in days (RTD)

It means:
● 2022: For HA LONG CANFOCO, the average collection period for receivables
from customers was 31 days.
21
 ● 2021: For HA LONG CANFOCO, the average collection period for receivables
from customers was 40 days.
● 2020: For HA LONG CANFOCO, the average collection period for receivables
from customers was 34 days.

- The Payable Turnover Ratio (PT)

It means:
● 2022: HA LONG CANFOCO made payments for its trade payables that were
5.15 times the amount owed in a year.
● 2021: HA LONG CANFOCO made payments for its trade payables that were
3.94 times the amount owed in a year.
● 2020: HA LONG CANFOCO made payments for its trade payables that were
3.14 times the amount owed in a year.

- Payable Turnover in days (PTD)

It means:
● 2022: On average, payable payments are made within 70.89 days.
● 2021: On average, payable payments are made within 92.53 days.
● 2020: On average, payable payments are made within 116.15 days.

- Inventory Turnover Ratio (IT)

It means:
● 2022: Inventory of HA LONG CANFOCO is transformed into receivables
through sales, with a conversion rate of 1.89 times per year.
● 2021: Inventory of HA LONG CANFOCO is transformed into receivables
through sales, with a conversion rate of 2.48 times per year.
● 2020: Inventory of HA LONG CANFOCO is transformed into receivables
through sales, with a conversion rate of 2.42 times per year.

- Inventory Turnover in days (ITD)

It means:
● 2022: On average, HA LONG CANFOCO took 71 days to settle their payables.
● 2021: On average, HA LONG CANFOCO took 93 days to settle their payables.
● 2020: On average, HA LONG CANFOCO took 117 days to settle their
payables.

- Total Asset Ratio (ROA)

It means:
● 2022: HA LONG CANFOCO generated 1.64 VND of profit for each dollar
invested in its total assets.
● 2021: HA LONG CANFOCO generated 1.90 VND of profit for each dollar
invested in its total assets.
● 2020: HA LONG CANFOCO generated 1.85 VND of profit for each dollar
invested in its total assets.

22
 The Receivable Turnover Ratio (RT) shows an increase from 2020 to 2021, but a
decrease in 2022. This suggests an initial improvement in receivables collection,
followed by difficulties in maintaining the collection rate in 2022.

The Payable Turnover Ratio (PT) has increased from 2020 to 2022, indicating an
improvement in the company's ability to pay its trade payables within the given
period.

The Inventory Turnover Ratio (IT) has declined from 2020 to 2022. This indicates
challenges in converting inventory into cash and raises concerns about the
potential for long-term inventory holding.

The Return on Assets (ROA) has decreased from 2020 to 2022. This suggests a
decline in the company's ability to generate profit per dollar invested in total
assets.
Overall, based on the Activity Ratios, the company has shown initial
improvements in receivables and payables management, but faces challenges in
inventory turnover and maintaining profitability on assets.

23
HA LONG CANFOCO has shown improvements in its activity ratios, including inventory
turnover, payable turnover, and receivable turnover. The company has been able to
convert inventory into sales more efficiently, make timely payments to suppliers, and
collect payments from customers in a shorter period. This indicates effective working
capital management and improved cash flow. Overall, HA LONG CANFOCO's
performance in managing working capital has been positive and contributes to its
financial stability and operational success.

3.5 Profitability ratio

Gross Profit
The Gross Profit Margin Ratio=
Net Sales

Net Profit
Return on Equity ( ROE)=
Owner ' s s equity

Net Profit
Net Profit Margin Ratio=
Net Sales

Profitability ratios are used to assess the ability of a business to generate profits from its
business activities. They allow us to determine how efficiently the business is
generating profits and utilizing resources to achieve financial goals. As follows is an
analysis of Ha Long Canned Food Joint Stock Corporation's Profitability ratio:

Profitability ratios 2022 2021 2020

The Gross Profit
Margin Ratio 18.56% 21.31% 19.40%
24
Return on Equity
(ROE) 10.84% 19.91% 13.94%
Net Profit Margin
Ratio 1.99% 3.40% 2.47%

- Gross Profit Margin

It means:
● 2022: For every 100 VND earned from sales, HA LONG CANFOCO could earn 18.56
VND gross profit
● 2021: For every 100 VND earned from sales, HA LONG CANFOCO could earn 21.31
VND gross profit
● 2020: For every 100 VND earned from sales, HA LONG CANFOCO could earn 19.40
VND gross profit

- Return on Equity (ROE)

It means:
● 2022: If shareholders invested 100 VND at book value, they could earn 10.84 VND
● 2021: If shareholders invested 100 VND at book value, they could earn 19.91 VND
● 2020: If shareholders invested 100 VND at book value, they could earn 13.94 VND

- Net Profit Margin Ratio

It means:
● 2022: For every 100 VND earned from sales, HA LONG CANFOCO could earn 1.99
VND net profit
● 2021: For every 100 VND earned from sales, HA LONG CANFOCO could earn 3.40
VND net profit
● 2020: For every 100 VND earned from sales, HA LONG CANFOCO could earn 2.47
VND net profit

25
In general, the Profitability ratios indicate a decline in the company's profitability and
efficiency in generating profits from its operations. This is clearly demonstrated through
the above indicators. Gross Profit Margin ratios of the company experienced a decline
in the Gross Profit Margin from 2020 to 2022, indicating a reduction in the ability to
generate profit from sales revenue, possibly due to increased production costs or higher
material prices.Besides, the ROE ratio also decreased during the mentioned period,
suggesting that the company was unable to effectively utilize shareholder's equity to
generate profits. In addition, there was a decrease in the Net Profit Margin ratio over the
corresponding period, indicating a reduced ability to generate profit after deducting
operating expenses.

3.6 Key competitor

26
In terms of ROE, HA LONG CANFOCO had a higher ROE compared to SEASPIMEX in
2020 and 2021. However, in 2022, HA LONG CANFOCO experienced a decrease in
ROE compared to the previous year, while SEASPIMEX maintained a relatively lower
ROE. This suggests that HA LONG CANFOCO had a better ability to generate profits
on shareholder's equity initially but witnessed a significant decrease in 2022. On the
other hand, SEASPIMEX showed a more stable ROE throughout the mentioned period,
although at a lower level.

In terms of ROA, HA LONG CANFOCO had higher values compared to SEASPIMEX in

all three years. HA LONG CANFOCO's ROA increased from 2020 to 2021 but
decreased in 2022. On the other hand, SEASPIMEX had a fluctuating ROA with a
significant increase in 2021 and a slight decrease in 2022. These figures indicate that
HA LONG CANFOCO was able to generate higher profits relative to its total assets
compared to SEASPIMEX, especially in 2021. However, it's worth noting that HA LONG
CANFOCO experienced a decline in ROA in 2022.

4. Comments on financial health

Overall, HA LONG CANFOCO demonstrates stable and reliable financial health

throughout its business operations. The company exhibits the ability to meet short-term
debt obligations, efficiently utilize assets, and maintain control over debt and equity in its
financial structure. Additionally, effective collection of receivables from customers,
timely payment to suppliers, and efficient inventory management are evident.

HA LONG CANFOCO has also achieved favorable profitability in relation to its total
assets and equity. The net profit margin ratio remains stable, indicating consistent
profitability relative to revenue.

5. Recommendation

As we approach the year 2023, amidst the significant development in the canned food
processing industry in Vietnam, I would like to propose some recommendations for
Halong Canfoco to capitalize on opportunities and enhance its competitiveness. Firstly,
the company should focus on strengthening its ability to meet short-term debt
obligations. I have observed that the company's short-term debt payment ratio is not
optimal, which may impact its future operational capabilities. I suggest that Halong
Canfoco explore ways to improve the collection of accounts receivable from customers,
negotiate payment terms with suppliers, and implement effective inventory management
policies. These measures will help the company improve its cash flow and enhance its
capacity to meet short-term debt obligations.

Secondly, the company needs to prioritize efficient utilization of assets. The return on
total assets and equity for Halong Canfoco has not reached its optimal level. It is
27
advisable for the company to study and implement measures to enhance asset
efficiency, including optimizing production processes, leveraging technological
advancements, and strengthening asset management practices. These actions will
enable the company to increase profitability and maximize the value of its assets.

Lastly, I recommend that Halong Canfoco enhance its management and control of debt
and equity in its financial structure. This involves considering the level of borrowing,
seeking appropriate sources of funding, and ensuring the company's ability to meet
interest and debt repayment obligations. Strengthening financial risk management will
help the company maintain stable and reliable financial health throughout its operations.

III. References

VietstockFinance. (n.d.). CAN: CTCP Đồ hộp Hạ Long - HALONG CANFOCO - Ban

lãnh đạo | VietstockFinance. VietstockFinance. https://finance.vietstock.vn/can/ban-
lanh-dao.htm
https://data.masvn.com/en/Com_Document_Detail/1/2/CAN/
VietstockFinance. (n.d.-b). CAN: CTCP Đồ hộp Hạ Long - HALONG CANFOCO - Tải tài
liệu | VietstockFinance. VietstockFinance. https://finance.vietstock.vn/can/tai-tai-lieu.htm
Halong Canned Food Joint Stock Corporation. (n.d.). Halong Canned Food Joint Stock
Corporation. https://canfoco.com.vn/
Linh P. (2021, October 25). Đồ hộp Hạ Long (CAN) hưởng lợi giữa đại dịch, lợi nhuận
quý 3 ghi nhận mức cao kỷ lục 10 năm. Copyright (C) by Công Ty Cổ Phần Vccorp.
https://cafef.vn/do-hop-ha-long-can-huong-loi-giua-dai-dich-loi-nhuan-quy-3-ghi-nhan-
muc-cao-ky-luc-10-nam-20211025142609167.chn
VTC News. (2015, December 29). Xúc xích Halong Canfoco: Nguyên liệu nhập ngoại &
Công nghệ đóng gói quy chuẩn Châu Âu. Báo Điện Tử VTC News. https://vtc.vn/xuc-
xich-halong-canfoco-nguyen-lieu-nhap-ngoai--cong-nghe-dong-goi-quy-chuan-chau-au-
ar237559.html
Mahalik, N. P., & Nambiar, A. N. (2010). Trends in food packaging and manufacturing
systems and technology. Trends in Food Science and Technology, 21(3), 117–128.
https://doi.org/10.1016/j.tifs.2009.12.006
NQ CỦA HĐQT VỀ VIỆC TÁI BỔ NHIỆM VỊ TRÍ TỔNG GIÁM ĐỐC ĐỐI VỚI ÔNG
TRƯƠNG SỸ TOÀN TỪ NGÀY 10/06/2022 / BOM’S RESOLUTION TO REAPPOINT
MR. TRUONG SY TOAN AS THE CHIEF EXECUTIVE OFFICER FROM 10/06/2022.
(n.d.). Halong Canned Food Joint Stock Corporation.
https://canfoco.com.vn/blogs/corporate-announcements/nq-cua-hdqt-ve-viec-tai-bo-
nhiem-vi-tri-tong-giam-doc-doi-voi-ong-truo
CAN : Công ty Cổ phần Đồ hộp Hạ Long | Ban lãnh đạo | CafeF.vn. (n.d.). CafeF.vn.
http://s.cafef.vn/hastc/CAN/ban-lanh-dao.chn
Canned Food Market Size & Share Analysis - Industry Research Report - Growth
Trends. (n.d.). https://www.mordorintelligence.com/industry-reports/canned-food-market

28
Canned food sees strong growth in Vietnam market. (n.d.). CÔNG TY TNHH THỰC
PHẨM THÔNG TẤN. http://thongtan.com/tin/canned-food-sees-strong-growth-in-
vietnam-market
Ltd, R. a. M. (n.d.). Vietnam Canned Fo od Market - Forecasts from 2022 to 2027.
Research and Markets Ltd 2023.
https://www.researchandmarkets.com/reports/5743360/vietnam-canned-food-market-
forecasts
Vietwatercc. (2022, September 27). VIETNAM’S PROCESSED FOOD INDUSTRY – AN
IN-DEPTH OVERVIEW - ProPak Vietnam. ProPak Vietnam.
https://propakvietnam.com/en/industry-news/vietnams-processed-food-industry-an-in-
depth-overview/

IV. Appendix

1. Income statement

29
 2. Balance sheet

30
31