Vinaconex CEO Reveals Strategy Behind Major Investment in Giay Thuong Dinh

At the recent annual general meeting, Vinaconex leadership provided crucial insights into the company's strategic direction and financial performance. CEO Nguyen Xuan Dong directly addressed shareholder inquiries regarding the stock's volatility, emphasizing that price movements are dictated by market forces rather than internal manipulation. He highlighted the significant impact of foreign investors' net selling activities, a trend affecting the broader market, not just Vinaconex (VCG).

Vinaconex's strategic focus remains on prudent management and avoiding excessive promotional activities. A key investment highlight is the planned increase in ownership of Giay Thuong Dinh, aiming for a 24% stake. This move is driven by the acquisition of a prime real estate location near the Thanh Xuan station of the Cat Linh - Ha Dong metro line. The project, approved for construction up to 40 stories, is anticipated to yield substantial returns and is slated for groundbreaking by the end of 2026.

Furthermore, Vinaconex is capitalizing on the significant growth potential within Vietnam's water supply and wastewater treatment sectors. The company's investment in Vietnam Water and Environment Investment Corporation (Viwaseen - VIW) is strategically aligned with the vast development gap in wastewater treatment capacity compared to water supply. With current national water supply capacity at approximately 14 million m³/day and wastewater treatment at only 2 million m³/day, the opportunities for expansion are immense. Vinaconex already operates six water supply plants and possesses valuable land assets for future exploitation.

Financially, Vinaconex presented a conservative outlook for 2026. The parent company reported Q1 revenue of VND 2,187 billion and net profit of VND 139 billion. On a consolidated basis, revenue reached VND 3,700 billion with a net profit of VND 381 billion. Full-year consolidated targets are set at VND 15,423 billion in revenue and VND 1,037 billion in net profit, with the parent company aiming for VND 10,740 billion in revenue and VND 1,018 billion in net profit, alongside a projected 16% dividend payout. The company reaffirms its commitment to its three core pillars: construction, real estate investment, and financial investment, while selectively expanding into infrastructure, social welfare, and sustainable development areas like environment, water, healthcare, and education.