Industrial heavyweight Gelex seeks foreign partners for subsidiaries

Gelex Group JSC (HoSE: GEX), a leading industrial corporation in Vietnam, is seeking foreign partners for its subsidiaries to promote sustainable growth and expand globally.

Speaking at GEX’s 2025 AGM on Thursday, CEO Nguyen Van Tuan stated that the company has no plans to divest from its electric wire and cable subsidiary, Cadivi. Instead, it is seeking strategic foreign partners to help Cadivi expand internationally.

Cadivi is currently a leader in Vietnam’s electric wire and cable market.

In addition to Cadivi, GEX is looking for overseas partners for other subsidiaries. Tuan emphasized that the company prefers partners with strong capabilities, management experience, patents, and established market presence abroad.

The executive clarified that GEX has no intention of launching an initial public offering (IPO) for Cadivi or other subsidiaries. At present, Gelex Electric (HoSE: GEE) is the only GEX subsidiary listed on the market.

During the meeting, Tuan received approval to step down from the Gelex board of directors. Explaining his decision, he noted that he wishes to focus on his current role as CEO and aims to attract new, highly qualified board members.

Regarding business goals, GEX aims to achieve a record consolidated revenue of VND37.6 trillion ($1.47 billion) in 2025, up 11.5% year-on-year. However, the company projects a pre-tax profit of VND3.04 trillion ($118.9 million), down 15% due to the absence of profit from divestments of renewable energy projects totalling nearly VND1 trillion.

In terms of development strategy, Gelex will continue to focus on stable growth in its production of electric equipment and construction materials. The company plans to boost exports, research high-tech and environmentally friendly products, and selectively invest in promising renewable energy projects.

In the clean water sector, Gelex aims to complete phase two of the Song Da clean water plant on schedule and explore investment opportunities in water supply projects for local communities and industrial parks.

In the face of the strong foreign investment inflow in Vietnam, Gelex will further develop land funds in many localities. It plans to put a real estate complex project in Hanoi into operation soon.

In the first quarter of 2025, Gelex earned VND7.77 trillion ($304.13 million) in revenue and VND600 billion ($23.46 million) in pre-tax profit, up 16% and 58% year-on-year, respectively, said its chairman Nguyen Trong Hien.