Independent auditors have raised major concerns about the future of Thuong Dinh Footwear JSC, one of Vietnam’s oldest shoe brands. The Hanoi-based company, founded in 1957, is struggling to survive after reporting another year of losses and mounting debt.

In its 2024 audit, Thuong Dinh reported a net loss of nearly VND13 billion (around $499,500). That’s more than double its loss from the previous year. Revenue fell slightly to VND79 billion (about $3 million), while selling and administrative costs went up.

Auditors pointed out that the company’s short-term debts are larger than its current assets by VND14.1 billion (roughly $541,700). This shows the company may not have enough money to cover its near-term expenses.

By the end of 2024, Thuong Dinh had piled up losses totaling VND67 billion (approximately $2.6 million). The company’s total assets stand at VND120 billion ($4.6 million), but nearly half of its receivables worth VND30 billion ($1.2 million) have been overdue for over three years.

Its total liabilities have reached VND94 billion ($3.6 million), mostly short-term loans. The biggest lender is Vietcombank’s Thanh Cong branch, which has loaned over VND22 billion ($845,300), backed by the company’s assets and unpaid invoices.

Thuong Dinh’s CEO, Nguyen Van Khiem, said the company is making efforts to recover unpaid amounts. One domestic distributor alone owes them VND11.3 billion (roughly $434,200).

Thuong Dinh, once a favorite local brand, is now under pressure due to lower exports, stronger local competition, and higher production costs.

Looking ahead, the company hopes to produce 900,000 pairs of shoes in 2025. It’s targeting revenue of VND100 billion ($3.8 million) and a small profit of VND100 million ($3,850). There are also plans to complete a government divestment process by the end of this year.