VLA Exits Training Business After 19% Revenue Drop, Pivots to Real Estate

Overview

Van Lang Technology Investment and Development JSC (VLA) reported a 19% year-on-year decline in 2025 revenue to nearly VND 12 billion, while net profit increased 69% to VND 874.5 million. The company announced it will exit its training business entirely in 2026 to focus on real estate, finance, and software development, citing a difficult market environment.

Key Facts

• 2025 revenue: VND 12 billion, down 19% year-on-year.
• 2025 net profit: VND 874.5 million, up 69% year-on-year.
• 2026 revenue target: VND 5 billion, a 67% decrease from 2025 actuals.
• 2026 net profit target: VND 500 million, down nearly 43% from 2025.
• The company invested VND 18 billion in a Quảng Ninh hotel purchase, now being liquidated due to ownership transfer issues.
• Average employee monthly income in 2025: VND 12.7 million.
• Chairman Nguyễn Thành Tiến’s total 2025 income: approximately VND 382 million.

What Happened

According to its 2026 Annual General Meeting of Shareholders resolution, VLA’s 2025 revenue fell to nearly VND 12 billion, a 19% decline from the previous year. Net profit, however, rose 69% to VND 874.5 million. Management attributed the revenue drop to economic difficulties since 2022, a shrinking training market, and a significant decrease in student enrollment, alongside intense competition in the sector. Consequently, the company decided to cease all training operations in 2026.

The profit increase was driven by one-off financial income from recovering capital related to the troubled hotel investment. VLA invested VND 18 billion to purchase a hotel in Quảng Ninh province, but the deal encountered legal obstacles in transferring asset ownership. The company has passed a resolution to liquidate the purchase contract and recover capital. A separate 16-hectare project in Tân Lạc district, Hòa Bình province, also faces legal procedural hurdles and low market demand, remaining undeveloped in 2025.

Market Context

VLA trades on the UPCOM exchange. The announcement of a strategic pivot away from its core training business, coupled with a significant revenue decline and lowered 2026 targets, highlights fundamental challenges in its historical operations. The shift towards real estate and software development represents a major corporate transformation, but is accompanied by disclosed legal complications in existing real estate ventures.

Strategic Significance

The decision to exit training reflects a recognition that the business model is no longer viable in the current competitive and economic climate. The pivot to real estate investment, finance, and software development is a high-stakes strategic redirection. However, the immediate disclosure of legal issues in two real estate projects (the Quảng Ninh hotel and Hòa Bình land project) introduces execution risk and suggests the new focus areas may not provide a smooth or immediate path to growth.

What to Watch

• Execution of the training business wind-down throughout 2026.
• Resolution of legal issues surrounding the VND 18 billion Quảng Ninh hotel investment and the Hòa Bình land project.
• Financial performance in H1 2026 to gauge early traction in real estate, finance, and software segments.
• Any new capital allocation or partnership announcements to fund the strategic shift.