Van Phu (VPI) Proposes Second 2025 Stock Dividend of 10%, Board Reshuffle

Overview

Van Phu Real Estate Development JSC (VPI), listed on HOSE, has opened written shareholder consultation on a second 2025 stock dividend of 10% and the election of an additional independent board member. The proposal, disclosed in company filings, would raise charter capital to VND 3,873 billion and follows a first 10% stock dividend completed in September. Shareholders must submit their opinions by 17:00 on 15 October 2026.

Key Facts

• Second 2025 stock dividend proposed at 10%, meaning shareholders receive one new share for every 10 held.
• Total payout value of the second tranche is approximately VND 352 billion, funded from undistributed after-tax profit.
• Combined with the first tranche of VND 320 billion, total 2025 dividend payout would reach about VND 672 billion.
• VPI reported accumulated undistributed after-tax profit of more than VND 1,546 billion as of end-2025, including VND 1,137 billion carried from 2024 and VND 409 billion from 2025.
• The issuance is scheduled for Q4 2026; new shares will be unrestricted and listed on HOSE after completion.
• Charter capital would increase to VND 3,873 billion post-issuance.
• The board seeks to remove independent member Trinh Thanh Hai, who resigned effective 9 September 2026, and elect Nguyen Van Vu (born 1966) as his replacement for the remainder of the 2025-2030 term.

What Happened

In a written shareholder solicitation, the board of Van Phu proposed distributing 2025 profits via a second stock dividend of 10%. The board said the decision prioritises cash flow for business operations while balancing the 2026 production and business plan. The payout would use VND 352 billion from undistributed after-tax profit, leaving approximately VND 862 billion after also allocating VND 12 billion to the Science and Technology Development Fund. The first 2025 stock dividend of 10% was approved at the 2026 annual general meeting and completed in September.

Separately, the board submitted a personnel matter to shareholders. Independent board member Trinh Thanh Hai tendered his resignation on 9 September 2026, and the board proposes his dismissal. To fill the vacancy, Chairman To Nhu Toan, who is also a major shareholder with 22.68% of VPI’s charter capital, nominated Nguyen Van Vu. Vu holds a degree in Finance and Accounting and has served as Deputy General Director of Dong A Auditing Company Limited since 2006. He currently owns no VPI shares.

Market Context

VPI shares closed at VND 58,800 on 2 October 2026 on HOSE. The stock has been part of a broader recovery in Vietnamese real estate equities, though the sector remains sensitive to credit policy and bond market conditions. The proposed stock dividend, while not immediately cash-accretive, signals management’s confidence in retained earnings and its intent to preserve liquidity for operations. The board reshuffle introduces an audit and accounting professional to the board, which may be viewed as a governance enhancement.

Strategic Significance

For long-term investors, the second stock dividend increases share count by 10% but does not alter the underlying value of the company; it effectively capitalises retained earnings. The key strategic angle is the company’s decision to conserve cash rather than pay a cash dividend, which suggests ongoing funding needs for real estate projects or working capital. The addition of an independent director with an auditing background could strengthen financial oversight, particularly as VPI manages a large undistributed profit balance and executes its capital plan. The move also aligns with a broader trend among Vietnamese listed developers to use stock dividends to manage liquidity while maintaining shareholder returns.

What to Watch

• Shareholder response to the written solicitation, due by 17:00 on 15 October 2026.
• Completion timeline for the Q4 2026 issuance and subsequent listing of new shares on HOSE.
• Any further board changes or governance announcements following the election of Nguyen Van Vu.
• VPI’s Q3 2026 earnings release, which may provide updated guidance on cash flow and project progress.
• Real estate sector credit policy signals from the State Bank of Vietnam, which could affect VPI’s funding costs and demand.