Dong Nai Food Industrial Corporation (Vietnam)

The subject - Dofico is holding company established by People's Committee of Dong Nai Province. Its core activity is contributing capital and managing businesses in multiple industries (such as cigarette production and trading, husbandry, tourism, trade, import-export, rubber latex exploitation...).In 2021, the Covid-19 epidemic was complicated, so Dofico's tobacco consumption situation faced many difficulties. In rubber segment, the subject suffered from labor shortages and adverse weather conditions. The trade and service segment were also hit hard when transportation was interrupted, tourist areas were closed for a long time and wedding restaurants were limited in number of guests, etc. Therefore, its business result continued to show a decline.Turn in 2022, the macro-economic situation was not optimistic because the geopolitical tensions between Ukraine, Russia and NATO countries broke out. This led to an increase in input material prices and transportation costs…, affecting production costs in tobacco segment. Regarding rubber segment, the shortage of labors along with unfavorable weather conditions continued to happen. For pig farming, the disease situation reiterated and the price of selling price dropped, causing difficulties to the company. Besides, the trade and service segment were not actually recovered.