Binh Duong 'big man' Protrade forced to pay $5.9 mln in taxes

Binh Duong Production-Import & Export Corporation (Protrade) in the southern province of Binh Duong has been ordered to pay more than VND144 billion ($5.9 million) in tax debt, fines and late payment fees.

The money will be deducted from the company's account at BIDV’s Binh Duong branch (BIDV Binh Duong).

The Tax Department of Binh Duong province has instructed Protrade to follow the decision. If Protrade is unable to pay the full sum, BIDV Binh Duong will continue to monitor the account and deduct any funds accordingly, while notifying the tax administration agency.

Protrade, formerly a rubber goods manufacturing enterprise, was established in 1982. It was equitized in 2015 and registered its shares on the Unlisted Public Companies Market (UPCoM) as PRT.

Currently, the corporation has a charter capital of VND3 trillion ($122.9 million), with Binh Duong Project Investment and Management Company Limited its major shareholder, owning 61%. Other large shareholders include SAM Holdings (8%), U&I Investment Corporation (6%), and Development Company Limited (15%).

Protrade specializes in financial investments in subsidiaries and affiliated companies in the fields of agriculture, industry and services. In the agricultural segment, the corporation grows and processes rubber latex in Laos through the Vietnam Rubber JSC’s Dau Tieng branch.

Regarding industry, it holds stakes in garment, wood, packaging and dairy businesses. In the service segment, Protrade has three golf courses with a total area of 414 hectares in Binh Duong, and a 500-hectare international tech park with an occupancy rate of 87%. In addition, it owns a 24% stake at Hanh Phuc International Hospital and 30% at YCH Protrade, a provider of logistics services.

In the 2019-2022 period, the corporation reported a steady annual profit of over VND200 billion ($8.2 million). In the general difficult economic context, Protrade's business results have gone down from the third quarter of 2022, with a loss of nearly VND51 billion ($2.09 million) in the first half of this year compared to a profit of VND223 billion ($9.14 million) in the same period last year.

At the 2023 annual general meeting of shareholders held at the end of June, the corporation approved net revenue and after-tax profit targets of VND1.39 trillion ($56.95 million) and VND309 billion ($12.66 million), down 14% and 3% year-on-year respectively.

As of the end of the second quarter 2023, Protrade had total assets of VND5.55 trillion ($227.4 million), down nearly VND200 billion ($8.2 million) from the beginning of the year. Of which, fixed assets were VND1.61 trillion ($65.97 million), receivables VND1.46 trillion ($59.82 million), cash and deposits more than VND620 billion ($25.4 million), and liabilities VND1.55 trillion ($63.5 million).

On the UpCOM, PRT closed the Tuesday session at VND13,000 ($0.53) per share.