State-controlled Hai Phong Port eyes record profit as major port expansion restores market leadership

State-controlled Port of Hai Phong JSC (UPCoM: PHP) is targeting record earnings in 2026 after new deep-water terminals at Lach Huyen helped the company regain its leading position in the northern city of Hai Phong.

The port operator aims to post revenue of VND3.5 trillion ($132.76 million) this year, up 28% from 2025, while pre-tax profit is planned to record VND1.52 trillion ($57.74 million), according to shareholder meeting documents.

A major growth driver is expected to come from infrastructure and equipment leasing activities tied to berths 3 and 4 at Lach Huyen deep-water port.

Revenue from the segment is forecast to surge 228% this year to VND676 billion ($25.68 million), potentially one of PHP’s largest profit contributors.

The earnings momentum follows the launch of the new terminals in May 2025 through TIL Hai Phong International Port Co., a joint venture in which PHP owns 51%, while Global Terminal Limited S.à r.l holds the remaining stake.

The first phase of the project required investment of around VND4.2 trillion ($159.54 million) and lifted PHP’s total handling capacity to roughly 3.2 million TEUs, according to brokerage ACB Securities (ACBS).

The expansion helped the company reclaim the top position in Hai Phong’s port market after years of losing ground as cargo flows shifted toward downstream deep-water ports and the operator was forced to relocate Hoang Dieu port.

Founded in 1874, Hai Phong Port was historically the dominant seaport operator in northern Vietnam through its upstream Cam River port cluster, including Hoang Dieu, Chua Ve and Tan Vu ports.

ACBS said the Lach Huyen project became profitable in its first year of operation and has already made a meaningful contribution to PHP’s financial performance.

In 2025, PHP recorded around VND202 billion ($7.67 million) in revenue from infrastructure and equipment leasing, of which approximately VND179 billion ($6.8 million) came from the TIL joint venture.

The contribution accelerated in the first quarter of 2026, when PHP posted revenue of VND745 billion ($28.3 million), up 29% year-on-year, while net profit jumped 114% to VND311 billion ($11.8 million) as costs remained largely flat.

ACBS estimated TIL contributed roughly VND14 billion ($531,790) in profit to PHP in 2025 and about VND43 billion ($1.63 million) in Q1.

Investors are also watching the possibility of a state divestment that could improve the company’s liquidity and market appeal.

State-owned Vietnam Maritime Corporation (UPCoM: MVN) currently owns 92.56% of PHP, leaving the company below the free-float threshold required to qualify as a public company under Vietnamese regulations.

However, MVN has for years planned to reduce its ownership to around 65%. ACBS said accelerated divestment could help PHP regain public-company status, improve trading liquidity and attract more institutional investors.

The brokerage noted that state divestment stories in Vietnam often support stock valuations due to expectations of higher free-float and improved governance standards.