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Vinhomes Proposes Substantial Dividends Amidst Ambitious Project Plans
๐Ÿ‡ป๐Ÿ‡ณ Vietnam /Economy & Trade

Vinhomes Proposes Substantial Dividends Amidst Ambitious Project Plans

From Tuแป•i Trแบป · (2d ago) Vietnamese

Translated from Vietnamese, summarized and contextualized by DistantNews.

TLDR

  • Vinhomes plans to pay a 60% cash dividend and a 100% stock dividend to shareholders at its 2026 annual general meeting.
  • The dividend payout, totaling over 24.6 trillion VND in cash, is funded by accumulated after-tax profits and is considered a small portion of the company's undistributed profits.
  • The company aims to balance dividend payments with reinvestment in new projects, citing strong cash flow from signed sales contracts and the strategic benefits of a stock dividend for capital restructuring and liquidity.

At the 2026 annual general meeting, Vinhomes, a leading real estate developer in Vietnam, presented a robust dividend payout plan to its shareholders. The company proposed a 60% cash dividend and a 100% stock dividend, demonstrating its financial strength and commitment to rewarding investors.

The dividend payment was considered on the basis of harmony and divided into two parts.

โ€” Phแบกm Anh KhรดiVinhomes' Director of Investment explaining the rationale behind the dividend payout.

The decision to distribute a substantial dividend, particularly in cash, has sparked discussion among shareholders, given the company's ambitious plans for new projects requiring significant capital. However, Vinhomes' management, through its Director of Investment, Mr. Pham Anh Khoi, clarified that the cash dividend is funded from accumulated profits and represents only a fraction of the total undistributed profits, ensuring sufficient capital for ongoing and future investments.

The stock dividend, as explained, serves a strategic purpose beyond cash distribution. It aims to restructure equity capital, enhance the liquidity of Vinhomes shares, and broaden investor access. This move underscores Vinhomes' forward-thinking approach to capital management and market positioning.

This is a form of equity capital restructuring, which does not generate cash outflow.

โ€” Phแบกm Anh KhรดiVinhomes' Director of Investment explaining the stock dividend.

Furthermore, Vinhomes' Chairman, Mr. Pham Thieu Hoa, outlined the company's plans to launch key projects in Da Nang, Quang Ninh, and Ho Chi Minh City in 2026. The company also expressed flexibility in adjusting its sales plans based on market dynamics, ready to introduce new projects if demand surges. This proactive strategy signals Vinhomes' confidence in the market and its ability to adapt to evolving conditions.

The pressure of interest rates is only temporary.

โ€” Nguyแป…n Thu HแบฑngVinhomes' CEO addressing concerns about rising interest rates.

Addressing concerns about rising interest rates, CEO Nguyen Thu Hang assured shareholders that the current pressure is temporary. She noted a recent decrease in deposit rates following regulatory guidance and commercial bank actions. While acknowledging the impact on the real estate market, particularly for speculative buyers, she emphasized that the underlying demand remains strong, with buyers becoming more cautious rather than ceasing their purchasing decisions. Vinhomes' proactive financial support policies further mitigate potential risks, positioning the company for continued growth.

The current interest rate, although higher than in 2025, has not reached a level that 'freezes' the market; instead, it makes buyers more cautious and extends the decision-making time, while actual demand still exists.

โ€” Nguyแป…n Thu HแบฑngVinhomes' CEO assessing the impact of interest rates on the real estate market.
DistantNews Editorial

Originally published by Tuแป•i Trแบป in Vietnamese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.