THACO Profit Surges 81% in 2025, Bank Debt Nears VND 108 Trillion

Overview

THACO (Trường Hải Group) reported a sharp 81% increase in after-tax profit for 2025, reaching VND 5,486 billion. However, the company’s bank debt also rose 18% to nearly VND 108 trillion, highlighting elevated leverage. The article also notes high debt levels at HPG and Vingroup, and mentions THACO’s involvement in a major Hanoi infrastructure project.

Key Facts

• THACO’s after-tax profit for 2025 reached VND 5,486 billion, up 81% from 2024.
• Pre-tax profit was VND 7,021 billion, more than double the prior year.
• ROE improved from 5.42% to 7.85%; ROA rose from 1.55% to 2.43%.
• Total liabilities at end-2025 stood at VND 164,814 billion, up 18% from VND 139,754 billion at end-2024.
• Bank debt was VND 107,635 billion, up 18% YoY; bond debt increased to VND 16,703 billion from VND 13,333 billion.
• HPG had over VND 92,000 billion in total borrowings and finance leases, partly for its Dung Quất 2 steel complex.
• Vingroup’s total borrowings and finance leases at end-2025 were VND 335,419 billion.
• THACO, HPG, and Đại Quang Minh were selected as investors for the Hồng River Axis Boulevard project, with preliminary total investment of VND 736,963 billion.

What Happened

THACO released its 2025 financial results, showing a strong earnings beat with after-tax profit surging 81% to VND 5,486 billion. The company’s profitability metrics improved, with ROE and ROA rising to 7.85% and 2.43%, respectively. However, total liabilities increased 18% to VND 164,814 billion, driven largely by a similar rise in bank debt to VND 107,635 billion.

The article also highlights the debt positions of other major private conglomerates. HPG reported over VND 92,000 billion in borrowings, partly funding its Dung Quất 2 steel project. Vingroup’s total debt stood at VND 335,419 billion. Additionally, THACO, HPG, and Đại Quang Minh were selected by Hanoi to develop the Hồng River Axis Boulevard, a large infrastructure project with an estimated total investment of VND 736,963 billion, to be executed under a BT (build-transfer) contract.

Market Context

HPG closed at VND 21,800 on July 30, 2026. The steel sector has been under pressure from global demand weakness and high raw material costs. THACO is not listed, but its financial performance and debt levels are relevant for investors in HPG and Vingroup, given their joint infrastructure project. The high debt loads across these conglomerates raise concerns about financial stability and the ability to service obligations amid rising interest rates.

Strategic Significance

THACO’s profit growth reflects strong operational performance, but the simultaneous increase in debt suggests aggressive expansion. The company’s involvement in the Hồng River project, alongside HPG and Vingroup, indicates a strategic push into large-scale infrastructure, which could provide long-term revenue streams but also adds to contingent liabilities. For HPG, the debt used for Dung Quất 2 is a key factor in its earnings trajectory, as the project is expected to boost steel output. Investors should monitor the debt-to-equity ratios and cash flow generation of these firms to assess financial health.

What to Watch

• THACO’s debt repayment schedule and any new bond issuances.
• Progress of the Hồng River Axis Boulevard project and its impact on THACO’s cash flows.
• HPG’s Q2 2026 earnings report and updates on Dung Quất 2 commissioning.
• Vingroup’s debt reduction plans and asset sales.
• SBV policy on credit growth and interest rates, which could affect borrowing costs.