Vinaconex (VCG) Targets 73% Profit Drop, 16% Dividend Amid Board Reshuffle

Overview

Vinaconex (VCG) has set its 2026 business plan, targeting a 73% year-over-year decline in net profit to VND 1,037 billion and a 22% drop in revenue to VND 15,423 billion. The company will propose a 16% dividend for 2025 and add two new board members, replacing two who were recently arrested. This guidance reflects significant operational headwinds for the construction firm.

Key Facts

• 2026 net profit target: VND 1,037 billion, down 73% from 2025’s record level.
• 2026 consolidated revenue target: VND 15,423 billion, down 22% year-over-year.
• 2025 dividend proposal: 16% total, split as 8% cash (VND 800/share) and 8% stock.
• Stock dividend issuance: approximately 51.7 million shares, raising charter capital from VND 6,465 billion to about VND 6,982 billion.
• Board changes: Two members, Nguyễn Hữu Tới and Dương Văn Mậu, are being dismissed after arrest; two new nominees, Nguyễn Hải Đăng and Lê Phùng Hòa, are proposed.
• Major shareholder Pacific Holdings, holding over 45% of VCG, nominated the new board candidates.
• Annual General Meeting scheduled for April 25, 2026, to vote on these plans.

What Happened

According to its published materials for the upcoming Annual General Meeting, Vinaconex (VCG) has outlined a sharply reduced business plan for 2026. The company targets consolidated revenue and income of VND 15,423 billion, a 22% decrease from 2025, with net profit expected to plummet 73% to VND 1,037 billion. For the parent company alone, revenue is projected at VND 10,740 billion (down 29%) and net profit at VND 1,018 billion (down 70%).

Simultaneously, Vinaconex is undergoing a board reshuffle. Two current board members, Nguyễn Hữu Tới and Dương Văn Mậu, are being dismissed after being arrested by the Ministry of Public Security’s investigative police agency for alleged serious violations in bidding regulations. Major shareholder Pacific Holdings, which holds over 45% of VCG, has nominated two replacements: Nguyễn Hải Đăng, currently Deputy General Director of Vinaconex, and Lê Phùng Hòa, Chairman of the Board at Construction Corporation 504 - Vinaconex. Neither nominee currently holds VCG shares.

Market Context

Vinaconex (VCG) trades on the HOSE exchange. The stock closed at VND 22,000 on April 15, 2026, down 1.53% with volume of nearly 11 million shares. This price action precedes the formal announcement of the steep guidance cut and board changes, which are likely to weigh on investor sentiment given the magnitude of the projected profit decline in the construction sector.

Strategic Significance

The 73% profit drop target signals a substantial contraction in Vinaconex’s core construction and infrastructure activities, potentially reflecting broader sectoral slowdowns or project delays. The board reshuffle, driven by legal issues and shareholder intervention, introduces new leadership that may steer the company through this challenging period. The maintained dividend proposal, despite lower profits, suggests a commitment to shareholder returns but relies on retained earnings, which could pressure liquidity if operational performance does not recover.

What to Watch

• Approval of the 2026 business plan and dividend at the Annual General Meeting on April 25, 2026.
• Q1 2026 earnings release to see if early-year trends align with the full-year guidance.
• Operational updates on major construction projects and new contract wins.
• Any further regulatory developments related to the arrested former board members.
• Financial performance of the parent company versus consolidated results, given the differing decline rates.