Rang Dong: 65-year symbol of plastic industry in decline, bankruptcy proceedings opened

(Dan Tri) - Rang Dong Holding seems to be having difficulties since switching to real estate and especially after being sued by a Japanese partner in 2023.

Rang Dong Holding Joint Stock Company (stock code: RDP) has just announced that it has received a decision to open bankruptcy proceedings on June 25, 2025 from the People's Court of Ho Chi Minh City.

Specifically, the court received a petition to open bankruptcy proceedings by Rang Dong Films Company - a subsidiary in which Rang Dong Holding holds 97.75% of the capital. Upon review, the court found that the petition had sufficient grounds to prove that Rang Dong Holding was insolvent according to Clause 1, Article 4 of the 2014 Bankruptcy Law.

The Court requires that within 30 days from the last date of publication of the above decision, the creditors of Rang Dong Holding must send a debt collection notice with related documents and evidence to the administrator or the asset management and liquidation enterprise designated by the Court. The debt collection notice must clearly state the total amount of due and unpaid debts, secured and unsecured debts, interest, compensation if any, and must be signed by the creditor or legal representative.

From the symbol of the plastics industry with 65 years of experience

Rang Dong Holding, originally named Rang Dong Plastic (Rang Dong), was once a symbol of the plastics industry, established in early 1960.

The company's predecessor was the Union of Far East Rubber Enterprises, which was equitized in 2005 under the name Rang Dong Plastic Joint Stock Company and listed its shares on the Ho Chi Minh City Stock Exchange (HoSE) in 2009.

Rang Dong Company (Photo: RDP).

After equitization, the company expanded a series of factories in Ho Chi Minh City, Khanh Hoa, Hanoi, Nghe An, Long An , specializing in manufacturing plastic products such as plastic panels, soft packaging, medical plastic, plastic films...

At that time, Rang Dong was the leading brand in the plastic manufacturing industry, especially PVC and roofing sheets in Vietnam. For many years, this company accounted for about 65% of the market share for PVC roofing sheets, 55% of the market share for PVC thin film products, and 35% of the PE market share.

Another notable point is that one of the executives who made Rang Dong famous is Chairman Ho Duc Lam - the younger brother of former Deputy Minister of Industry and Trade Ho Thi Kim Thoa.

Mr. Lam is known to have worked at Rang Dong Plastic since the early 2000s, before the company was equitized. He owned nearly 65% of the company's shares after the State Capital Investment Corporation (SCIC) divested all 43.36% of its capital at the end of August 2015, earning nearly VND100 billion.

Mr. Ho Duc Lam (Photo: Rang Dong Plastic).

Recently, Mr. Lam and all members of the Board of Directors resigned together.

Before resigning, according to the company's management report for the first 6 months of 2024, Mr. Lam was the largest shareholder of Rang Dong with a 15.87% ownership ratio. Other members of the Board of Directors only held very small shares or no shares at all.

The "misstep" after being sued by Japanese partner

In terms of business, before 2023, the company's business results were always good, with profits from the plastics industry alone reaching tens of billions of VND each year. Since moving into the real estate sector and especially losing the lawsuit against Sojitz Group (Japan) in 2023, business activities have begun to decline.

Details of the deal with foreign partners, in 2016, Rang Dong signed a comprehensive commercial cooperation agreement with Sojitz. The Japanese group committed to providing raw materials, transferring technology, management systems and developing new products according to Japanese standards.

A year later, the two sides continued to sign a strategic shareholder agreement, allowing Sojitz to buy 5 million RDP shares for more than VND174 billion.

However, Sojitz later claimed that Rang Dong had violated a number of obligations related to the conditions after the transfer of shares. Sojitz exercised the right to terminate the contract and requested a refund of 90% of the transaction value, equivalent to nearly 157 billion VND.

At the end of 2023, Rang Dong was declared to have lost the lawsuit and was forced to repay Sojitz nearly 157 billion VND, along with an interest rate of 10%/year and related legal fees.

This ruling has negatively impacted the Company's financial situation. In 2023, Rang Dong lost 146 billion VND.

Accumulated loss of 266 billion VND, shares delisted

In the first half of 2024, Rang Dong Holding continued to lose nearly 65 billion VND after tax, bringing the total accumulated loss up to the end of June 2024 to 266 billion VND. The company is still drowning in debt. At the end of the second quarter of 2024, the company's payable debt was more than 1,700 billion VND, 6 times higher than the 279 billion VND of equity. Of which, short-term loans accounted for more than 1,000 billion VND.

On the stock market, on April 24, 2025, RDP shares were delisted from HoSE for serious violations of information disclosure obligations. More than 49 million shares were transferred to UPCoM from May 9 but were suspended from trading on the first session. Currently, RDP shares are only priced at VND1,300/share.

Previously, on April 22, the 2025 annual general meeting of shareholders of Rang Dong was unsuccessful because the attendance rate of shareholders was only 14.98%, not meeting the conditions for opening. The entire Board of Directors, Executive Board and Supervisory Board were absent, causing many shareholders to be upset, believing that the management did not respect shareholders.

At the second convening, the shareholders' meeting still could not be held because the attendance rate continued to be low. The company's board of directors continued to be absent.

Source: https://dantri.com.vn/kinh-doanh/rang-dong-bieu-tuong-nganh-nhua-65-nam-sa-co-bi-mo-thu-tuc-pha-san-20250817214952791.htm