Ministry to reap massive dividend from machinery firm VEAM
The Ministry of Industry and Trade will net at least VND4,746 billion ($204 million) from 2021’s dividend payments by Vietnam Engine and Agricultural Machinery Corp. (VEAM), which holds major stakes in carmakers Honda Vietnam, Toyota Vietnam, and Ford Vietnam.
VEAM currently owns a 30%, 20% and 25% stake respectively in the three joint ventures. Representing state-owned capital in the corporation, the ministry (MoIT) holds almost 88.5% of VEAM, which makes engines, agricultural machinery, automobiles, and motorbikes.
A truck production line at a VEAM factory in Thanh Hoa province, central Vietnam. Photo courtesy of VEAM.
At its annual general meeting on June 24, VEAM presented a target in average revenue growth of 6.5% annually in the 2022-2026 period. Its 2021 interim dividend payment in cash is 40.376%, which means the minimum sum of $204 million for the ministry.
However, if the Ministry of Finance approves the state-run corporation’s plan for final dividend payments, MoIT could earn VND5,232 billion ($224.9 million).
In its business expansion plans for the next five years presented at the shareholder meeting, VEAM said it would focus on strengthening cooperation among member units while expanding its presence in the domestic market and promoting exports.
The corporation will seek qualified investors to co-operate directly or through subsidiaries to invest in production projects, agricultural machinery trading, automobiles, and supporting industries, according to its chairman Nguyen Khac Hai.
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