Vinhomes (VHM) Announces Record Cash Dividend of VND 25,000 Billion for 2025

Overview

Vinhomes (VHM), Vietnam’s largest real estate developer by market capitalization, has announced a record cash dividend of nearly VND 25,000 billion for fiscal year 2025, equivalent to VND 6,000 per share. The company will also issue bonus shares at a 100% ratio, effectively doubling the outstanding share count. Concurrently, Vinhomes stated it will cease land bank expansion to focus on developing its existing project pipeline.

Key Facts

• Cash dividend of VND 6,000 per share, totaling nearly VND 25,000 billion (approx. USD 1.07 billion).
• Bonus share issuance at a 100% ratio (1 existing share receives 1 new share).
• Charter capital expected to rise from over VND 41,000 billion to over VND 82,000 billion post-issuance.
• Vingroup, holding ~73% of VHM, is set to receive over VND 18,000 billion in dividends.
• Last cash dividend was in FY2021 at VND 2,000 per share; no cash dividends in FY2022-2024.
• Vinhomes reported retained earnings of over VND 202,000 billion at end-2025, funding the dividend.
• Land bank stands at ~29,500 hectares, with nearly 20 projects in process covering over 20,000 hectares.

What Happened

Vinhomes announced the record dividend and bonus share plan following shareholder approval, as reported by Tuoi Tre Online. The company will pay a cash dividend of VND 6,000 per share for 2025, the largest cash dividend in its history and one of the biggest on the Vietnamese stock market. Additionally, shareholders will receive bonus shares at a 100% ratio, doubling their holdings.

Chairman Pham Thieu Hoa confirmed that Vinhomes will stop expanding its land bank in Vietnam to focus on completing existing projects. He emphasized that this does not signal a market exit but rather a strategic choice to “know when enough is enough” and to increase value per square meter. The decision aligns with guidance from Vingroup Chairman Pham Nhat Vuong.

Market Context

VHM closed at VND 135,000 on June 17, 2026, down 1.10% with volume of 7.3 million shares. The stock trades on HOSE. The dividend announcement comes amid a strategic pivot: Vinhomes is shifting from aggressive land acquisition to maximizing returns on its massive existing land bank, which is the largest in Vietnam at 29,500 hectares. The company’s Q1 2026 inventory stood at nearly VND 139,000 billion, up 6% from 2025. The dividend yield based on the current price is approximately 4.4% (cash portion only), but the bonus share issuance will dilute future earnings per share.

Strategic Significance

Vinhomes’ decision to halt land bank expansion marks a significant strategic shift for Vietnam’s largest developer. By focusing on existing projects, the company aims to improve capital efficiency and generate higher value from its current portfolio. The record dividend signals strong cash generation and confidence in future cash flows, while the bonus share issuance rewards existing shareholders. However, the move also suggests that Vinhomes sees limited near-term opportunities for accretive land acquisitions, possibly due to elevated land prices or regulatory hurdles. The dividend payout, funded by retained earnings, reduces the company’s equity base but may also signal a more shareholder-friendly approach.

What to Watch

• Execution of the bonus share issuance timeline and any impact on share price.
• Progress on key mega-projects in Ha Noi, Hai Phong, Long An, Hung Yen, Quang Ninh, and other provinces.
• Q2 2026 earnings report to assess whether the dividend payout affects project funding.
• Any further strategic updates from Vingroup regarding its stake or capital allocation.
• Market reaction to the cessation of land bank expansion, particularly from foreign investors.