Positive business results

On July 23, in Hanoi, a working delegation from the Ministry of Industry and Trade (MoIT), led by Deputy Minister Phan Thi Thang, held a working session with the Vietnam Engine and Agricultural Machinery Corporation - Joint Stock Company (VEAM) to review its performance in the first half of the year and set out tasks for the remaining months of 2026.

Attending the working session on the MoIT side were representatives from the Department of Industry, the Trade Remedies Authority of Vietnam, the Import-Export Department, and the Vietnam Trade Promotion Agency (Vietrade), together with the Department of Planning and Finance, the Department of Organization and Personnel, the Department of Legal Affairs, and the Department of Foreign Market Development.

On the VEAM side were Ngo Khai Hoan, Chairman of the Board of Directors, Nguyen Hoang Giang, General Director, and representatives of member units.

According to VEAM's report, business and production targets remained stable in the first half of 2026 despite the impact of international market fluctuations. Overall, most production and business targets reached about 50% of the annual plan, laying a favorable foundation for achieving the 2026 targets.

Specifically, industrial production value is estimated at VND 2,024.7 billion, up 16% year-on-year and completing 50% of the annual plan. Total revenue is estimated at VND 2,736.3 billion, up 22% year-on-year and reaching 50% of the annual plan, of which revenue from industrial activities reached VND 2,509.2 billion, up 24% year-on-year.

Notably, VEAM's parent company continued its growth momentum. Revenue from sales and services is estimated at VND 419.2 billion, up 122% year-on-year and reaching 46% of the annual plan, driven mainly by the sale of 1,316 VEAM automobiles, up 316% year-on-year.

In addition, financial revenue is estimated at VND6,684.7 billion, completing 99% of the annual plan. Notably, pre-tax profit is estimated at VND 6,635.1 billion, equal to 103% of the annual plan, while after-tax profit reached VND6,545.3 billion, equivalent to 104% of the annual plan, despite the year having only just reached its midpoint.

In terms of investment, disbursement is estimated at VND 56.9 billion, reaching 21% of the annual plan, mainly for projects carried over from 2025.

In the second half of the year, VEAM will focus on reviewing and settling outstanding issues related to the finalization of its equitization accounts, developing a restructuring scheme for the 2026-2030 period with a vision to 2045, and implementing the "VEAM Action Program" under Resolution No. 57-NQ/TW dated December 22, 2024, of the Politburo.

Completing restructuring, preparing long-term growth drivers

At the working session, Nguyen Hoang Giang, General Director of VEAM, noted the results of the first half of 2026 showed that most key targets had been met, laying an important foundation for achieving the full-year goals.

Alongside its production and business activities, the corporation is developing four key sets of regulations, including regulations on wages, regulations on personnel, and regulations for implementing Resolution No. 57 of the Politburo on science, technology, innovation, and digital transformation.

To realize Resolution No. 57, VEAM has also hired a consulting unit to develop specialized schemes, aiming to complete them in the third quarter of 2026. At the same time, it is finalizing its five-year development plan for the 2026 - 2030 period to report to the Ministry of Industry and Trade.

In addition, the corporation is developing a number of development schemes, including expanding import - export markets, developing services, and developing mechanical engineering and supporting industry products. It is also building three growth scenarios - base, cautious, and high - and has chosen the cautious scenario as its guiding direction.

Regarding future development orientations, Ngo Khai Hoan, Chairman of the Board of Directors of VEAM, said the corporation proposed that the MoIT continue to help remove difficulties related to capital management, land, and investment mechanisms, support mechanical engineering enterprises in taking part in trade promotion and trade remedy programs, expand markets, issue policies to promote green transition, develop new products and components, and create conditions for enterprises to take part in key national projects.

VEAM needs to create new growth drivers

Concluding the working session, Deputy Minister of Industry and Trade Phan Thi Thang acknowledged and highly valued VEAM's business performance in the first half of 2026, particularly its success in clearing a backlog of unsold vehicles that had built up over many years.

According to the Deputy Minister, this is not only a business achievement but also reflects the solidarity, determination, and unity of the corporation's leadership and employees in overcoming difficulties, creating room for the corporation to focus its resources on the next stage of development.

The Deputy Minister said that once new regulations on decentralizing capital management are issued, enterprises will have greater autonomy in investment decisions and project implementation. VEAM therefore needs to proactively prepare complete data, documentation, and investment plans so that it can act immediately once the new mechanism takes effect, making the most of the opportunities offered by the policy.

On support for enterprises, the Deputy Minister asked VEAM to proactively propose specific areas in which it needs the Ministry's support, such as products requiring assistance, markets to be expanded, trade promotion programs to join, and needs for connecting with domestic and FDI enterprises in the supporting industry sector.

Highly valuing VEAM's orientation toward investment in research and development, the Deputy Minister expressed support for the corporation's focus on resources for science, technology, and new materials. She also asked the corporation to proactively make use of resources from the Ministry of Science and Technology's programs as well as industrial materials development programs to research and master new technologies and products.

In addition, the corporation needs to research and develop products serving the Ministry of National Defense, the Ministry of Public Security, and dual-use fields, thereby gradually enhancing its competitiveness and deepening its participation in the supply chain.

VEAM aims to step up restructuring, expand export markets, invest in science, technology, and new products, and deepen its participation in global supply chains, with a view to achieving double-digit growth and enhancing its competitiveness.