VEAM aims to liquidate its inventory of vehicles

A VEAM S80 truck was displayed at the Autotech & Accessories 2023 in HCM City. — Photo of baogiaothong.vn

HÀ NỘI — In the remaining months this year, Vietnam Engine and Agricultural Machinery Corporation (VEAM) wants to sell an inventory of vehicles from the VEAM Motor, Changan and ISEKI tractor brands.

This will require a comprehensive plan as soon as possible, since the VEAM Thanh Hóa factory has unsuccessfully attempted to liquidate its vehicles via auctions four times since 2021.

On June 12, 2024, the General Director of VEAM, Phan Phạm Hà, was arrested for financial management violations. This event caused VEAM’s stock price to plummet by VNĐ1,553 billion (US$62.1 million) on the same trading day.

On June 20, 2024, VEAM’s Board of Directors appointed a new General Director, Nguyễn Hoàng Giang, who previously served as the Deputy Director of the Department of Financial Planning at the Ministry of Industry and Trade. This was part of the appointment of four new board members.

Within VEAM’s industrial production sector, a group of four subsidiaries – DISOCO, SVEAM, FUTU1, and FOMECO – are the largest revenue contributors, accounting for up to 82 per cent of VEAM’s industrial production revenue. These subsidiaries manufacture motorcycle spare parts and are earning steady profits.

A financial report from VEAM highlights a mixed performance for this State-owned enterprise. Under the report, VEAM’s industrial production value stood at VNĐ1.56 trillion ($62.7 million), a 10 per cent decrease from the previous period, while revenue decreased seven per cent to more than VNĐ2 trillion.

The corporation’s pre-tax profit is estimated to reach VNĐ5.56 trillion, which represents a 15 per cent decline compared to the same period in 2023. Despite the drop, it met 94 per cent of its annual profit target.

The financial report indicates that while VEAM experienced a decline in revenue and industrial production, the parent company’s after-tax profit has surged.

VEAM’s parent company’s after-tax profit is estimated to stand at VNĐ5.36 trillion billion, achieving 98 per cent of the annual plan. VEAM received VNĐ5.56 trillion in dividends from its three major joint ventures including Toyota, Honda and Ford.

March 31 is the end of the fiscal year in the Japanese accounting system and on this date each year, VEAM’s joint ventures summarise profits and pay annual dividends to shareholders, with VEAM representing the owner. — VNS