HCMC – Rang Dong Holding has announced that both its parent company and subsidiaries have halted operations, with most employees quitting their jobs amid severe financial difficulties.
Rang Dong Holding Plastic JSC (HOSE: RDP) recently explained its delay in publishing its Q4 2024 financial report and 2024 corporate governance report, citing the company’s ongoing crisis.
Since the second half of 2024, the company has faced escalating financial troubles, resulting in its classification as bad debt within the national credit system. This designation has severely impacted the operations of its subsidiaries and affiliated companies, forcing them to suspend activities.
With the majority of employees leaving, the company has been unable to collect the necessary financial data to prepare its reports on time. Adding to its challenges, the auditing firm contracted for the 2024 financial statements has officially terminated its agreement and will not proceed with the audit.
On February 24, all five members of the Board of Directors submitted resignation letters. The company’s newly appointed chief accountant, who took office in December 2024, is also struggling to track and compile financial data due to the lack of operational records.
Founded after 1961, Rang Dong Holding was once one of Vietnam’s largest plastics companies. However, its financial troubles worsened after losing a lawsuit against Sojitz Group (Japan), which resulted in a VND157 billion compensation order. Since then, the company’s business operations have steadily declined.
