Kido CEO sees breakthrough by late 2026 or early 2027

Kido Group is seeking to convert land currently used by post-equitization subsidiaries into commercial-use property, a move its management said could become a key growth driver if approved by the government.

At its annual general meeting on Thursday, food and retail conglomerate Kido Group said shareholders had shown strong interest in the company’s real estate development strategy.

Tran Le Nguyen, vice chairman and CEO, said policy conditions for the real estate segment were becoming more favorable, particularly for equitized companies such as Vocarimex and Tuong An. Authorities are considering mechanisms that would allow factory, warehouse and industrial land to be converted into commercial-use land, he said.

Kido is accelerating legal procedures for three projects in Ho Chi Minh City, including developments in District 7 and the former Binh Thanh district area, in an effort to enhance shareholder value. However, because the projects are still awaiting regulatory approvals, no contribution from property development has been included in the group’s 2026 business targets.

Nguyen also disclosed that the group continues to pursue the Lavenue Crown project at 8-12 Le Duan street in downtown Ho Chi Minh City and hopes the government will allow the project to resume.

According to Kido’s Q1/2026 consolidated financial statements, the group had invested VND1.07 trillion ($40.57 million) in the Lavenue Crown project and had set aside provisions totaling VND753.7 billion ($28.59 million). If the project is allowed to proceed, the company could reverse the provisions and book a substantial profit.

“If all projects currently under development receive state approval, Kido could achieve a breakthrough by late this year or early 2027,” Nguyen said.

Chairman Tran Kim Thanh said Kido currently operates under a dual model focused on consumer goods manufacturing and investment activities. The consumer goods business provides stable cash flow, while the investment arm has generated positive returns from stakes in Hung Vuong Plaza and Van Hanh Mall.

Under new policies related to land use, the group plans to gradually expand into additional real estate projects, Thanh said.

Kido is also expanding its business through partnerships with manufacturers to distribute products. Despite a challenging market environment, Thanh said there remains room for vertical expansion and new revenue streams through cooperation with brands and strategic partners.

Oil business restructuring

A key proposal presented at the shareholders’ meeting was a restructuring and consolidation plan for Kido’s cooking oil operations.

The group currently owns several oil-related businesses operating in parallel. Under the proposed restructuring, Tuong An would become the core entity and parent company for Kido’s oil business, directly controlling Vocarimex and indirectly controlling Kido Nha Be through Vocarimex.

Kido plans to raise Tuong An’s charter capital sharply from VND338.8 billion to VND3.19 trillion ($121 million) through a private share placement to Kido, which would contribute Vocarimex shares in exchange. Upon completion, Tuong An is expected to hold at least 93% of Vocarimex’s charter capital.

Thanh said the existence of multiple subsidiaries within the same ecosystem had made it difficult for investors to clearly identify Kido’s core business areas. Following the restructuring, investors would gain a clearer view of the roles of Tuong An, Tho Phat and each business segment, improving transparency and corporate analysis.

In the future, Tuong An or Tho Phat could also be separately listed, providing investors with additional investment options, he added.

Expanding Tho Phat and retail operations

Amid continued economic uncertainty, Kido targets net revenue of VND12 trillion ($455.9 million) in 2026, up 33.3% from the previous year, while pre-tax profit is expected to remain broadly flat at VND700 billion ($455.88 million).

In addition to maintaining its position in cooking oil and margarine products, Kido plans to increase investment in Tho Phat, its food business. Beyond steamed products such as buns and processed pork, Tho Phat will expand into baked and fried foods and beverages, including baguettes, pastries, sausages, chicken balls, fish balls, herbal drinks and nut milk.

Kido also plans to open 300 miniBAO stores and expand its distribution network by adding 5,000 traditional retail points and 2,000 modern trade and key account outlets nationwide.

The group has also stepped up investment in retail real estate after raising its stake in Hung Vuong Plaza to 75.39% in 2024 and acquiring a 40.05% stake in Bac Binh Construction Investment JSC, the operator of Van Hanh Mall, in 2025.

Ownership of Hung Vuong Plaza and Van Hanh Mall allows Kido to strengthen its retail ecosystem and add modern shopping centers to its investment portfolio. The malls serve not only as shopping destinations but also entertainment hubs, helping improve customer experience and support revenue and profit growth, the company said.