VPG Reports 597B VND Loss in 2025, Stock Placed Under Warning After Chairman's Prosecution

Overview

Viet Phat Import-Export Investment Trading JSC (VPG) reported a net loss of 597 billion VND for fiscal year 2025, a sharp reversal from a 109 billion VND profit in 2024, as revenue declined 30% to 12,478 billion VND. The Ho Chi Minh City Stock Exchange (HOSE) placed VPG shares under warning status effective April 14, 2026. The company also announced management changes following the prosecution of its former chairman in June 2025.

Key Facts

• VPG reported a net loss of 597 billion VND in 2025, compared to a net profit of 109 billion VND in 2024.
• Revenue fell 30% year-on-year to 12,478 billion VND.
• Retained earnings turned negative at over 194 billion VND.
• HOSE placed VPG shares under warning status from April 14, 2026.
• Former Chairman Nguyen Van Binh was prosecuted on June 2, 2025, for alleged violations related to state asset management and bribery.
• VPG targets 2026 revenue of 500 billion VND (down 96% from 2025) and net profit of 5 billion VND.
• The stock closed at 3,700 VND per share on April 10, 2026, down 3.05%.

What Happened

Viet Phat Import-Export Investment Trading JSC (VPG) announced its 2025 financial results, revealing a net loss of 597 billion VND, a dramatic swing from a 109 billion VND profit in the prior year. Revenue dropped 30% to 12,478 billion VND. The company attributed the poor performance to challenging market conditions and the impact of legal issues surrounding its former chairman.

On June 2, 2025, former Chairman Nguyen Van Binh was prosecuted in connection with a criminal case involving violations of state asset management, bribery, and related offenses at VTM and other entities. The company also underwent board changes, with Nguyen Khoi resigning as board member and Vu Thi Phuong appointed as chief accountant. Two new board members were elected at the annual general meeting on April 22, 2026.

Market Context

VPG shares closed at 3,700 VND on April 10, 2026, down 3.05% on volume of 560,500 shares. The stock has been under pressure since the former chairman’s prosecution and the subsequent earnings collapse. HOSE’s warning status restricts trading and may deter institutional investors. The company’s market capitalization has fallen sharply, reflecting investor concerns about governance and financial viability.

Strategic Significance

VPG’s massive loss and warning status highlight severe operational and governance challenges. The company’s diversification into mining and real estate has not insulated it from legal and financial turmoil. The 2026 target of only 5 billion VND profit suggests management expects a prolonged recovery. The prosecution of the former chairman raises questions about internal controls and potential further liabilities. For investors, the stock remains highly speculative with significant downside risk until legal and financial clarity emerges.

What to Watch

• Q1 2026 earnings report to assess whether the company is on track to meet its 5 billion VND profit target.
• Updates on the legal proceedings involving former Chairman Nguyen Van Binh and any potential impact on the company.
• Any further management changes or restructuring plans announced by the new board.
• Trading volume and price action around the warning status removal criteria.
• Disclosure of any related-party transactions or asset impairments that could affect retained earnings.