Rang Dong Holding (RDP), once considered the leading brand of the plastic industry in Vietnam, now finds itself on the brink of collapse, temporarily halting operations and facing the prospect of bankruptcy. Following financial difficulties compounded by mismanagement and external legal challenges, the company has officially ceased all operations, as indicated in recent disclosures to the Ho Chi Minh City Stock Exchange (HOSE).
Since the latter half of 2024, RDP has suffered severe financial troubles, causing its credit rating to plummet. The national credit system has classified its debts as non-performing, which has severely impacted the company's operations as well as those of its subsidiaries. RDP has disclosed to HOSE the ramifications of these financial hardships, affirming, "Most personnel have resigned, and we are unable to provide the data necessary for compiling financial reports and management updates on time." This shortfall has resulted from the company's operational standstill.
The gravity of the situation was underscored on February 24, 2025, when all five members of the company's Board of Directors submitted their resignation letters, citing personal reasons for their departure. This includes Chairman Ho Duc Lam and key board members like Ho Duc Dung and Nguyen Tran Vinh. The recently appointed chief accountant, who took over roles from December 2024, is also struggling to manage financial records amid the turmoil.
Rang Dong Holding's woes began to intensify significantly after its legal battle with Sojitz Planet Corporation, part of the Sojitz Group from Japan. The dispute, which arose from Sojitz's purchase of five million shares worth over 174 billion VND, resulted in RDP incurring liabilities of approximately 178 billion VND following its courtroom defeat. This judgment marked the start of RDP's downward spiral.
On the stock market, RDP's shares have been suspended from trading since November 28, 2024, after previous restrictions due to tardiness in disclosing required financial information. The price of RDP shares plummeted to only 1,310 VND, with the company's market capitalization roughly 64 billion VND. Due to continued violations of disclosure obligations, RDP faces potential delisting from the exchange.
The challenges facing RDP are symptomatic of systemic issues affecting many companies across Vietnam. An alarming trend was noted during the early months of 2025, as Ho Chi Minh City reported increasing numbers of businesses exiting the market, raising concerns about the investment environment. Nguyen Van Duc, the newly appointed Chairman of the Ho Chi Minh City People's Committee, expressed apprehension over the rising withdrawal of businesses, stating, "We need to examine the investment climate closely and address both external economic pressures and internal bureaucratic hurdles hindering project implementation.”
From January 1 to February 20, 2025, Ho Chi Minh City registered 3,921 new companies with capital amounting to 29.596 trillion VND, reflecting significant drops—37.6% and 47.9% respectively—compared to the same period last year. Meanwhile, the number of businesses temporarily suspended surged by 12.3%, highlighting broader challenges within the local economic framework.
The business community also faces operational hurdles due to unsold inventories, unpaid debts, and increasing layoffs. A recent survey indicated 75% of companies still contend with excessive inventory, and 67% report delayed payments from clients. The urgency of addressing these issues is palpable, with many firms seeking easier access to financial support.
Looking forward, Ho Chi Minh City aims for economic growth exceeding 10% this year, yet this target is ambitious considering the existence of serious barriers within the economic structure and company community. With Rang Dong Holding's situation serving as both cautionary tale and wake-up call, the need for effective policy intervention from authorities has never been more pressing. The local administration is tasked with not only fostering business resilience but ensuring necessary market facilitations for enduring economic vitality.
Moving forward, the fate of Rang Dong Holding brings light to the precarious state of many Vietnamese businesses, where operational difficulties and market challenges could pose existential threats without timely and cohesive state support. Once hailed as pioneers of Vietnam's plastic manufacturing sector, the decline of RDP highlights the importance of strategic oversight, sound financial practices, and adaptive management to withstand market fluctuations moving forward.