Kintetsu World Express (Viet Nam) , Inc. (Vietnam)

The subject focuses on supplying logistic services such as forwarding (airfreight forwarding and ocean freight forwarding), warehouse, and customs declaration. Apart from the subject, KWE - KINTETSU WORLD EXPRESS (S) PTE, LTD. and KINTETSU WORLD EXPRESS INC. founded another business in Vietnam, KINTETSU LOGISTICS (VIETNAM)INC. In addition to the main office in Ho Chi Minh City, the subject has 1 branch office in Hanoi, two representative offices in Hai Phong and Da Nang, satellite offices in Dong Nai, Binh Duong, Ben Tre, and northern areas, etc. Especially, this company and KINTETSU LOGISTICS (VIETNAM)INC. set up 5 warehouses in Dong Nai, Hanoi, Bac Ninh and Hai Duong provinces.According to the subject's chief accountant, since mid-2022 until now, the subject's business situation has been heavily affected by the economic recession and the Russia-Ukraine war. Business result dropped sharply in the fiscal year 2022 (ended on 31 Mar 2023) and the company suffered heavy losses due to the burden of operating costs and price competition. She shared that the price of selling services to large customers that bring in most of the company's revenue like Samsung, etc. decided with the parent company in Japan. Currently, the group's policy is to retain major customers, so it offers them a very preferential price, forcing the subject to operate below cost. Furthermore, the number of employees of this company has increased dramatically from more than 150 people in 2021 to more than 350 people in 2022 due to increased customer demand after the outbreak of the Covid-19 pandemic. To date, although the number of orders has decreased sharply; however, the group's policy is not to lay off employees. Therefore, the workforce is still maintained at over 350 people at the current point, which causes a cost burden.She added that revenue from 01 Apr 2023 to 30 Sep 2023 was USD 41 million. Revenue until October 2023 has not been statistics but is estimated at about USD 49 million. Turnover forecast for FYE 31 Mar 2024 will continue to decline and the subject will continue to fell in to the loss situation but not as heavily as FYE 31 Mar 2023. This loss situation will likely continue until FYE 31 Mar 2025 if the world economic situation has no change for the better.