VEFAC Q2/2026 Net Profit Hits 401B VND, Up 15% YoY on Lending and Investment

Overview

VEFAC (VEFAC), a subsidiary of Vingroup and owner of Southeast Asia’s largest exhibition center, reported Q2/2026 net profit of 401 billion VND, up 15% YoY. The profit was driven by lending and investment income of 415 billion VND, equivalent to 4.6 billion VND per day. Revenue surged 77x to 388 billion VND due to a partial property transfer. The company achieved 85% of its full-year net profit target in the first half of 2026.

Key Facts

• Q2/2026 net profit after tax: 401 billion VND, up 15% YoY.
• Q2/2026 net revenue: 388 billion VND, up 7,600% YoY (77x).
• Lending and investment income in Q2/2026: 415 billion VND, or about 4.6 billion VND per day.
• H1/2026 net profit after tax: 540 billion VND, achieving 85% of the full-year target of 600 billion VND.
• As of June 30, 2026, VEFAC had 14,391 billion VND in loans to partners, more than triple the amount at the start of the year, with an interest rate of 12% per annum.
• Total assets reached 32,900 billion VND as of end-Q2/2026, up 40% from the start of the year.
• VEFAC is a subsidiary of Vingroup with over 80% ownership.

What Happened

VEFAC, the company behind the National Exhibition Center (VEC) in Dong Anh, Hanoi, released its Q2/2026 financial statements showing a sharp increase in revenue and profit. Revenue surged to 388 billion VND from just 5 billion VND in the same period last year, primarily due to a partial transfer of real estate holdings. The exhibition and fair segment contributed over 40 billion VND, up 10x YoY.

Profit before tax reached 504 billion VND, up 14.5% YoY, while net profit after tax was 401 billion VND, up 15%. The company’s lending and investment activities generated 415 billion VND in income, accounting for the bulk of profit. As of June 30, VEFAC had extended 14,391 billion VND in loans to partners, representing nearly half of its total assets. The loans carry an interest rate of 12% per annum.

Market Context

VEFAC is listed on the HOSE and is a subsidiary of Vingroup, one of Vietnam’s largest conglomerates. The company is also the developer of the Vinhomes Global Gates urban area in Dong Anh, Hanoi, with a scale of over 261 hectares and total investment of nearly 34,880 billion VND. However, VEFAC transferred part of that project in Q1/2025. The strong profit growth in Q2/2026 reflects the company’s shift toward financial activities, particularly lending, which has become a major profit driver.

Strategic Significance

VEFAC’s reliance on lending and investment income, rather than its core exhibition business, highlights a strategic pivot toward financial intermediation. The company’s large loan book, with an average yield of 12%, provides a stable income stream. However, the concentration of loans to partners and the rapid growth in receivables warrant monitoring for credit risk. The partial property transfer also suggests a strategy of monetizing real estate assets to fund lending activities. For long-term investors, the key question is whether this business model is sustainable and whether the exhibition center operations can regain momentum.

What to Watch

• Q3/2026 financial results to see if lending income continues to grow.
• Updates on the progress of the Vinhomes Global Gates project and any further property transfers.
• Changes in the loan portfolio, including any signs of non-performing loans.
• Vingroup’s strategic direction for VEFAC, particularly whether it will remain a lending vehicle or refocus on exhibitions.
• The impact of interest rate movements on VEFAC’s lending margins.