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Chairman Le Hai Lieu: Duc Thanh Wood Remains Unfazed Amid Trade Wars, Pursuing Major Factory Project in Binh Duong

22 April, 2025

With a solid financial standing, this 34-year-old furniture company prides itself on its independence from any single client or market, according to its female chairman. However, she acknowledges the complexities of the current trading environment.

“While our first-quarter performance showed growth, driven by past orders, we are cautious about the upcoming quarters. We are unsure of Trump’s policies and their potential impact,” said Ms. Lieu.

Recently, the company has received requests from US clients to prioritize production to meet the 90-day deadline for tariff negotiations. Despite the challenges, they remain committed to their goals.

For 2025, Gỗ Đức Thành aims for a revenue of 362 billion VND and a net profit of 65 billion VND, reflecting an 8% and 18% increase, respectively, from the previous year. Even with the new US tariff policies, the leadership team decided to maintain these targets, refusing to attribute any potential setbacks to external circumstances.

Annual General Meeting of Gỗ Đức Thành Joint Stock Company on the morning of 04/19/2025 – Photo: TV

One of the key strategies to achieve their growth plans is their investment in and rental of factory space.

“Currently, our core business is constrained by the challenging market and prolonged economic difficulties, both domestically and globally,” said Ms. Lieu. As a result, the company decided to invest in factory space to generate additional revenue and prepare the necessary infrastructure for potential future market improvements.

Ms. Lieu revealed that their rental income significantly contributed to the company’s profit growth in 2024. Gỗ Đức Thành has consolidated its factories, moving equipment and personnel to the premises of Factory 2 to save costs during this difficult period and generate rental income from the vacant factory space.

Last year, the company invested nearly 160 billion VND in Factory 6 and signed a rental contract with a furniture company. According to Ms. Lieu, these factory projects were carefully selected by the Gỗ Đức Thành team when bank interest rates were low, and the purchase prices were favorable. Today, the market prices of these projects have increased significantly compared to their original purchase prices.

Chairman Lieu affirmed that this strategy safeguards shareholders’ money by investing in land with fully built factories and legal compliance, generating consistent rental income.

A valuable investment opportunity worth up to 400 billion VND

Notably, at the April 19 meeting, Chairman Lê Hải Liễu shared an exciting investment opportunity worth up to 400 billion VND, even higher than Gỗ Đức Thành’s charter capital. The management is considering this prospect and, if pursued, plans to distribute stock dividends to retain investment capital. The company intends to finance 50-60% of the project through bank loans.

Regarding this potential investment, the General Meeting approved the proposal to sell a portion of the company’s assets to reinvest. If the deal does not materialize, the funds will be used to repay long-term debts.

Ms. Lieu explained that the bold investment decision was based on the project’s attractiveness, featuring a 12-hectare area with a prime location on Binh Duong Avenue. The rental income from the factory space can cover both the interest and principal payments on the bank loan. This land already has a tenant with a 10-year contract, offering a remarkable rental income rate of 10%. In the long run, the chairman believes this property could even be transformed into a commercial center.

“Many are attracted to it, but not everyone can afford it or has the credibility to acquire it,” said Ms. Lieu, emphasizing the need to seize the opportunity quickly before others do.

The leader of Gỗ Đức Thành recognizes the favorable timing with the influx of foreign companies, particularly Chinese businesses, into Vietnam. However, a shareholder cautioned about the potential sudden shifts in the macro environment due to Trump’s policies and the risks associated with China’s tariff evasion in the manufacturing and factory sector.

At this General Meeting, the shareholders of Gỗ Đức Thành also elected the Board of Directors and the Supervisory Board for the 2025-2029 term. All nominated members, as listed in the General Meeting documents, were elected for the new term.

The General Meeting concluded with the approval of all proposals.

Thừa Vân

– 21:59 04/19/2025