Vietnam Market Position
We are seeing Vietnam market current issues across businesses broadly include:
Liquidity crunch following the bond crisis, which triggered government measures in bond issuance control. Refinancing of bonds since then has been becoming difficult.
Certain market dynamics added difficulty to local liquidity crisis with economic crises in developed countries resulting in sharp drops of manufacturing orders for export processors in Vietnam in 2023.
Low domestic demand post-pandemic and economics difficulties in recent years further impacted businesses.
Facing such above challenges corporate might experience stress and distress positions with symptoms such as:
Liquidity crisis
Liquidity or cash flow shortfall, covenant non-compliance, inability to raise capital or new debts, failing to repay debts as scheduled, working capital limits (Stressed / Limited time available)
Profitability crisis
Declining earning trends, loss making, (Progressing towards stressed)
Growth crisis
Disruption and decline in business and company value decreasing (example, EBITDA dropping) (First signs of stress visible)
Recommended actions
1
Diagnose financial and liquidity position including understanding immediate cash commitment, short-term cash needs and future funding gap; business moving ahead; and debt-capital structure to determine quantum of capital infusion needed besides additional debt that may be required.
2
Finalise restructuring plan with Financing Options after diagnostics / business review
3
Assist in procuring financing through best-fit financing structure (debt, quasi-debt, equity, equity linked etc.) tied to restructuring plan (Prioritize short-term liquidity through ST financing solutions first).
4
Implement restructuring and turnaround the business
How we can help
Proactively responding to these challenges is key. From cash flow forecasting to broadening refinancing options, a restructuring mindset can help your business identify vulnerabilities and plan for the challenges ahead.
- Rapid Diagnostics to determine days of cash cover and quantum of funding needed
- Financing Options finalisation with Restructuring Plan
- Restructuring plan implementation
Rapid Diagnostics to determine days of cash cover and quantum of funding needed
- Independent business review and Short-term cash flows forecast control
- Assess debt-equity structure, debt capability and funding gap analysis
- Restructuring options analysis and develop restructuring plan
Get in touch
Johnathan Ooi Siew Loke
Partner, Deals and Consulting Services Leader, PwC Vietnam
Tel: +84 28 3823 0796
Mohammad Mudasser
Director, Deals - Transformation, PwC Vietnam
Tel: +84 28 3823 0796, Ext. 3322
Senior Manager, Financial Restructuring Services, PwC Vietnam
Tel: +84 28 3823 0796