Vinhomes not to pay dividends to plow back money into operations

By Anh Tu   April 24, 2024 | 07:05 pm PT
Vinhomes not to pay dividends to plow back money into operations
Vinhomes CEO Nguyen Thu Hang speaks at the company's annual general meeting on April 24, 2024. Photo courtesy of Vinhomes
Vietnam’s biggest property developer Vinhomes will not pay dividends for 2022 and 2023 and has said it will use the money to fund upcoming operations.

Vinhomes is bracing for a slow recovery of the bond market and wants to be ready for the next phase of the property cycle, CEO Nguyen Thu Hang said at the company’s annual general meeting on Wednesday.

With this money it would be able to "snap up opportunities" to maintains its leading position in the market, she said.

In response to a shareholder’s question about whether Vinhomes is funding automaker VinFast, Hang denied the claim.

"We do not fund other companies in the same ecosystem, especially VinFast."

Vinhomes has only lent a small amount of VND1.2 trillion ($47.22 million) to them, and, as a listed company, has recorded all these transactions in its books, she said.

VinFast has its own channels to mobilize funding, she added.

Some new projects that the company plans to sell this year are Vinhomes Dan Phuong and Vinhomes Co Loa in Hanoi’s suburbs.

It also plans to start selling two social housing projects, one in the northern city of Hai Phong and the other in the central province of Khanh Hoa, as soon as it finishes the paperwork.

Hang said the property market would not recover as fast as expected this year, but in the long run demand for housing in Vietnam remains substantial because of the young population and rapid urbanization.

Vinhomes targets growing its revenues by 15% this year to a record VND120 trillion and profits by 4.3% to VND35 trillion, the highest since 2022.

SSI Research forecasts Vinhomes’ total development area this year to reach 22,000 hectares, the highest by any company.

go to top