Petrovietnam to Divest 9.8% Stake in Phuoc An Port (PAP) on UPCOM

Overview

Petrovietnam has announced it will divest its 9.8% stake in Phuoc An Port Investment & Exploitation Petroleum JSC (PAP), the operator of Phuoc An Port in Ba Ria-Vung Tau. The state energy group, a founding shareholder since 2008, said the port project has reached operational independence and that the divestment follows government direction to focus on core businesses. The move puts roughly 35 million PAP shares, worth about VND 1,050B at the current price, on the market.

Key Facts

• Petrovietnam will sell its 9.8% stake in PAP, equivalent to 35 million shares, as stated at the company’s extraordinary general meeting (EGM) in 2026.
• Petrovietnam originally invested VND 350B in 2008 for a 79.54% stake in PAP’s initial charter capital of VND 440B.
• PAP’s charter capital has since risen to VND 3,570B through multiple share issuances, diluting Petrovietnam to 9.8% without any share sales.
• At the current price of VND 30,000 per share, Petrovietnam’s stake is worth approximately VND 1,050B, about 3x the original investment.
• PAP reported a record loss of nearly VND 505B in 2025, its fifth consecutive year of losses; H1 2026 revenue improved to VND 248B.
• The EGM approved all eight resolutions with 90.2% support, but 35 million shares (9.8%) voted against every item.
• The new 2026-2031 board has five members, none nominated by Petrovietnam; Nguyen Thanh Dat remains Chairman.

What Happened

At PAP’s 2026 extraordinary general meeting, Petrovietnam’s representative Dao Minh Tung said the Phuoc An Port project is now capable of operating independently. “To focus resources on core business areas, after completing its mission at the project, and under government direction, the group will divest from PAP,” Tung said, according to the meeting minutes. Petrovietnam also requested that PAP carefully assess investment efficiency, market demand, costs and project progress before the divestment. It asked for legal documents related to the 220.4-hectare port logistics zone and the 3.2 sub-phase.

The EGM passed all eight resolutions with 90.2% approval, but the 35 million shares held by Petrovietnam voted against every item. Petrovietnam specifically opposed a proposal to reduce the board from seven to five members. It also proposed that shareholders or groups holding at least 5% of common shares should have the right to nominate candidates to the board and supervisory board, and that Petrovietnam should have representation on both. That proposal was still approved. The new board for 2026-2031 comprises Nguyen Thanh Dat, Truong Hoang Hai, Nguyen Thai Phuc, Tran Nhan Tam and Nguyen Huu Thang. Dat continues as Chairman. Hai was nominated by Hoanh Son One Member LLC; none of the four others were nominated by Petrovietnam.

Market Context

PAP trades on the UPCOM exchange at VND 30,000 per share as of September 29, 2026, giving a market capitalization of about VND 10,700B (roughly USD 428M). Liquidity is extremely thin, with many sessions recording no trades at all. The stock has been a marginal presence on Vietnam’s unlisted public company market, where small-cap port and logistics names often trade by appointment. The broader logistics and energy infrastructure sector has drawn interest from foreign and domestic investors, but PAP’s persistent losses have kept it off most institutional screens.

Strategic Significance

For long-term investors, the divestment is a test of whether PAP can stand alone after 18 years of state backing. Petrovietnam’s exit removes a potential governance anchor but also clears the way for a more commercially driven board. The port’s strategic location in Ba Ria-Vung Tau, near the Cai Mep-Thi Vai deep-water port cluster, gives it long-term value if management can convert revenue growth into profit. The key question is whether the new board can reverse the loss trend without Petrovietnam’s balance sheet and project pipeline. The 5% nomination threshold proposal, if implemented, could also open the register to activist or strategic investors.

What to Watch

• The timing and method of Petrovietnam’s stake sale, including whether it is placed via auction or block trade on UPCOM.
• PAP’s full-year 2026 earnings, particularly whether H1 revenue growth of VND 248B translates into a narrower loss.
• Any regulatory filings on the 220.4-hectare logistics zone and the 3.2 sub-phase land-use approvals.
• Whether new shareholders above the 5% threshold emerge and nominate board representatives.
• Liquidity on UPCOM, as a large stake sale could pressure the thinly traded share price.