Vinaconex (VCG) Sells Only 3.6% of Registered VIW Shares, Plans Further Divestment

Overview

Vinaconex (VCG), a major Vietnamese construction and export-import conglomerate, sold only 3.6% of its registered shares in subsidiary Viwaseen (VIW) during a March-April 2026 window, citing unfavorable market conditions. Despite the slow start, VCG has registered to sell a further 42 million VIW shares to reduce its stake from 97.5% to 25%, a move that could generate over VND 1.26 trillion. The partial sale highlights liquidity challenges in the current market environment.

Key Facts

• VCG sold only 380,800 VIW shares out of 10.5 million registered, representing 3.6% of the intended sale.
• The sale period ran from March 20 to April 17, 2026.
• VCG’s stake in VIW decreased from 98.16% to 97.5% after the transaction.
• VCG has registered to sell an additional 42.06 million VIW shares from April 23 to May 22, 2026.
• If successful, VCG’s ownership in VIW would drop to 25% (approximately 14.5 million shares).
• At a reference price of VND 30,000 per VIW share, the planned sale could raise about VND 1,261.9 billion.
• VIW’s 2026 targets: consolidated revenue of VND 846.2 billion (-13.8% YoY) and pre-tax profit of VND 52.4 billion (+37.5% YoY).

What Happened

Vinaconex (VCG) reported to the market that it completed only a fraction of its planned divestment in Viwaseen (VIW) during the March-April trading window. The company had registered to sell over 10.5 million VIW shares but managed to sell just 380,800 shares, or 3.6% of the target. VCG attributed the shortfall to unfavorable market conditions.

Following the partial sale, VCG’s ownership in VIW fell from 98.16% to 97.5%. Undeterred, VCG has registered another sale of 42.06 million VIW shares, scheduled for April 23 to May 22, 2026. If completed, VCG’s stake would drop to 25%. At the current market price of VND 30,000 per share, the transaction would be worth approximately VND 1.26 trillion. The divestment is part of VCG’s strategy to restructure its investment portfolio.

Market Context

VCG shares closed at VND 22 on April 15, 2026, down 1.53% with high volume of nearly 11 million shares. The stock trades on HOSE. The partial sale of VIW shares reflects broader market caution, as liquidity constraints have hindered large block trades. VCG’s plan to offload a significant stake in VIW comes amid a challenging environment for the construction and utilities sectors, with VIW itself forecasting a 13.8% revenue decline in 2026.

Strategic Significance

VCG’s gradual divestment from VIW signals a strategic shift to reduce its exposure to the water and environmental sector, potentially freeing up capital for core construction activities or new investments. The move to cut ownership from near-total control to 25% suggests VCG is seeking to monetize its stake while retaining a minority interest. The success of the upcoming sale will depend on market appetite for VIW shares, which may be influenced by VIW’s mixed financial outlook—higher profit but lower revenue.

What to Watch

• Completion of the second sale tranche (April 23 to May 22, 2026) and the actual volume sold.
• VIW’s annual general meeting on April 23, 2026, for shareholder approval of 2026 business plans.
• VCG’s Q1 2026 earnings report for commentary on divestment strategy and capital allocation.
• Market liquidity conditions for VIW shares on HOSE, which may affect the sale price.
• Any regulatory changes affecting foreign ownership or sector-specific policies for water utilities.