Dawon Vina to expand losing business
Dawon Vina to expand losing business
The Bac Giang Industrial Zones Management Board is considering whether Korean Dawon Vina’s increasing capital to its existing factory makes its loss increased as much as its added capital when the company made a loss of $1.68 million in 2015, higher than its originally registered $1 million investment amount.
In late April, Korean Dawon Vina Co., Ltd. proposed the management board to license the additional sum of $6.6 million to its existing $1 million investment capital, however, the management board refused due to the company’s continuous losses, as well as the proposed additional capital’s unclear purposes.
According to the management board, Dawon Vina has yet to prove its hale finances and submit its 2014 financial report. Furthermore, in its application for a new investment certificate, the company failed to outline the purposes and specific plans for its operations once approved.
In 2015, a fire broke out at the company, destroying its paint warehouse, furniture, machinery, and electronic component products. It was considered the major reason for the company’s losses, leading to a narrowing down of its operations in 2015.
The added capital is considered to be used for the recovery and expansion of the company’s operation.
Starting operation in February 2011, Dawon Vina is a wholly Korean-owned company. It specialises in manufacturing electronic components.
