Vietnam Engine and Agricultural Machinery Corporation (VEAM), 88% owned by the Ministry of Industry and Trade, has seen significant returns on its investments in major automotive joint ventures. Through its subsidiary, Song Cong Diesel, VEAM holds 30% of Honda Vietnam, 20% of Toyota Vietnam, and 25% of Ford Vietnam. In the first half of the year, these holdings generated 6,111 billion VND in dividends and shared profits.

VEAM's second-quarter financial report reveals that 5,931 billion VND came from Honda Vietnam and over 179 billion VND from Ford Vietnam. The company also continued to see profits exceed revenue in the last quarter.

The company reported 1,043 billion VND in revenue, nearly the same as in the second quarter of 2024. After deducting the cost of goods sold, VEAM's gross profit was 136 billion VND, a decrease of 19.5%. Profit/loss from associated companies and joint ventures reached nearly 2,000 billion VND, resulting in a pre-tax profit of 2,183 billion VND, a 16.5% increase.

VEAM attributed this quarter's profit growth to the 21% year-over-year increase in profit/loss from associated companies and joint ventures.

Beyond its automotive investments, VEAM also manufactures agricultural machinery like tractors and rice mills, trucks, and vehicle parts. Sales of goods and finished products account for approximately 95% of the company's 2,091 billion VND revenue in the first six months of the year, an 8.4% increase compared to the same period last year. After deducting expenses, VEAM's pre-tax profit reached 3,507 billion VND, a year-over-year increase of more than 4%. This represents approximately 54% of the company's annual plan.

As of 30/6, VEAM’s total assets reached 30,757 billion VND, a 3,200 billion VND increase since the beginning of the year. The company has only 135 billion VND in financial debt, while its equity reached 29,562 billion VND.

Trong Hieu