Vinaconex (VCG) Names New CEO as 2026 Profit Target Drops 73%

Overview

Vinaconex (VCG) has undergone a leadership transition, with the board accepting the resignation of CEO Nguyen Xuan Dong and appointing Pham Thai Duong as the new CEO effective April 28. The company also unveiled a cautious 2026 business plan, targeting a 73% drop in net profit from 2025’s record level, alongside a proposed 16% dividend for 2025. The changes come after the appointment of a new chairman in February.

Key Facts

• Vinaconex (VCG) accepted the resignation of CEO Nguyen Xuan Dong effective April 28.
• Pham Thai Duong, previously Deputy CEO, was appointed as CEO and legal representative for a 5-year term starting April 28.
• On February 13, the board appointed Tran Dinh Tuan as Chairman of the Board.
• For 2026, Vinaconex targets total revenue of VND 15,423 billion (-22% vs 2025) and net profit of VND 1,037 billion (-73% vs 2025).
• Parent company targets 2026 revenue of VND 10,740 billion (-29%) and net profit of VND 1,018 billion (-70%).
• The company proposed a 2025 dividend of 16% total: 8% cash (VND 800/share) and 8% stock, implying issuance of about 51.7 million shares.
• The only major shareholder is CTCP Đầu tư Pacific Holdings, holding 45.14% of VCG.

What Happened

On April 28, the Board of Directors of Vinaconex (VCG) approved the resignation of Nguyen Xuan Dong from the position of General Director (CEO), effective the same day. Simultaneously, the board appointed Pham Thai Duong, a civil engineer with an MBA who had been serving as Deputy General Director, as the new CEO and legal representative for a five-year term. This follows the earlier appointment of Tran Dinh Tuan as Chairman of the Board on February 13.

Nguyen Xuan Dong is a prominent businessman and owner of An Quy Hung Company, which in 2018 purchased a controlling stake in Vinaconex from SCIC for VND 7,367 billion. In 2021, An Quy Hung transferred its entire 62.9% stake to Pacific Holdings, a company it controlled. At the 2026 Annual General Meeting on February 25, Dong addressed shareholder concerns about VCG’s stock price decline despite winning major infrastructure contracts such as Long Thanh Airport and North-South Expressway projects, attributing the pressure to net selling by foreign funds due to exchange rate impacts.

Market Context

VCG shares closed at VND 22,000 on April 15, down 1.53% with volume of 11 million shares, reflecting ongoing selling pressure. The stock has been under pressure amid foreign net outflows and a cautious outlook for the construction sector. The company’s 2026 guidance implies a sharp profit decline from 2025’s record, which may weigh further on sentiment. VCG is listed on HOSE.

Strategic Significance

The leadership change marks a new phase for Vinaconex, which has been a key player in Vietnam’s infrastructure boom, winning contracts for major national projects. The appointment of an internal candidate as CEO suggests continuity in strategy, but the cautious 2026 plan indicates management expects a normalization after a peak year. The high dividend payout (16%) for 2025 may be aimed at supporting shareholder returns amid the stock’s decline. The concentration of ownership in Pacific Holdings remains a key governance factor.

What to Watch

• Q1 2026 earnings release to gauge whether the profit decline is already materializing.
• Progress on major projects (Long Thanh Airport, North-South Expressway) and any new contract wins.
• Changes in foreign ownership levels and any stabilization in net foreign flows.
• Any further board or management changes following the new appointments.
• Updates on the dividend payment timeline and stock issuance details.