GTD Shareholders Approve VND 9.9T Project, Vinaconex to Acquire 24% Stake

Overview

GTD (Giay Thuong Dinh) shareholders have approved a VND 9,907 billion mixed-use project at 277 Nguyen Trai, Hanoi, and a strategic partnership with Vinaconex (VCG). Vinaconex will acquire a 24.03% stake in GTD from existing shareholders, increasing its total ownership to 48.03% including related parties. The project, on a 3.6-hectare prime land parcel, will include residential, office, commercial, and school components.

Key Facts

• Total project investment: VND 9,907 billion (approx. USD 396 million).
• Vinaconex (VCG) to acquire 2.235 million shares, representing 24.03% of GTD’s charter capital.
• Post-transaction, Vinaconex and related parties will hold 48.03% of GTD.
• Project funding: VND 1,981 billion (20%) from equity, VND 7,925 billion (80%) from loans.
• Residential/commercial component: 25-40 floors, 4-5 basements, investment VND 5,133 billion.
• Office/commercial component: similar scale, investment VND 1,400 billion.
• School component: 8-12 floors, 2-3 basements, investment VND 492 billion.
• GTD plans to issue 216.5 million new shares at VND 10,000/share via private placement, raising approximately VND 2,165 billion.

What Happened

At its annual general meeting on May 6, 2026, GTD shareholders approved the relocation of its factory at 277 Nguyen Trai, Hanoi, to Dong Van Industrial Park in Ninh Binh province by early July 2026. Following relocation, the company will develop a mixed-use complex on the 3.6-hectare site, including commercial housing, offices, services, and a multi-level school.

The project is located adjacent to the Vinhomes Galaxy (Vinhomes Cao Xa La) super project at 233-235 Nguyen Trai. GTD’s General Director Nguyen Thanh Nhon stated that the company is preparing legal procedures and aims to start investment in 2026.

Shareholders also approved a strategic partnership with Vinaconex (VCG), allowing Vinaconex to acquire 24.03% of GTD from existing shareholders without a public tender offer. An Quy Hung Holding, a related party to Vinaconex, already holds about 24% of GTD. After the transaction, Vinaconex and related parties will control 48.03% of GTD.

Market Context

GTD trades on UPCOM, while VCG is listed on HOSE. VCG closed at VND 22 on April 15, 2026, down 1.53% with volume of 11 million shares. The partnership leverages Vinaconex’s real estate development expertise and financial capacity, potentially enhancing GTD’s project execution. The prime location on Nguyen Trai Street, near major developments, adds strategic value.

Strategic Significance

The partnership with Vinaconex provides GTD with a strong developer partner for its flagship project, reducing execution risk. Vinaconex gains control of a prime Hanoi land bank at a relatively low cost (24% stake). The massive share issuance (216.5 million new shares) will significantly dilute existing shareholders but raise capital for the project. The project’s success depends on Hanoi’s real estate market conditions and the company’s ability to secure financing.

What to Watch

• Completion of the factory relocation to Ninh Binh by July 2026.
• Regulatory approvals for the project design and construction permits.
• Execution of the private placement and the stake transfer to Vinaconex.
• Updates on project financing, especially the VND 7,925 billion loan component.
• Market reception of the project given the high supply in Hanoi’s luxury segment.