State-controlled machinery firm VEAM beats 2025 profit goal by 15%

State-controlled Vietnam Engine and Agricultural Machinery Corporation (VEAM) reported VND7.83 trillion ($297.85 million) in pre-tax profit in 2025, beating the full-year target by 15%, driven largely by strong earnings at the parent company.

Revenue reached VND4.8 trillion ($182.32 million), up 6% from 2024 and exceeding the full-year target. Industrial output value in 2025 is estimated at VND3.6 trillion ($137.01 million), 1% above plan.

Exports reached $41.3 million, surpassing the full-year target by 2%, with growth led by its supporting segment

The manufacturer, 88.5% held by the Ministry of Industry and Trade, said the parent company generated revenue of VND504.2 billion ($19.17 million) and pre-tax profit of VND7.33 trillion ($278.8 million), accounting for the vast majority of the group’s earnings.

The company said it had met or exceeded most key performance indicators in 2025, marking the first time in many years that all subsidiaries reported profits. Supporting industries and component manufacturing continued to serve as core growth drivers.

VEAM also reported an improved product mix, with the automotive segment recording strong gains after a significant reduction in long-standing inventory.

During the year, the group’s automobile plant successfully auctioned 1,634 vehicles out of 2,071 units held in long-term stock. Engine products, power machinery components, and selected export items maintained stable output and expanded market reach.

Looking ahead, VEAM aims to capture 45-50% of Vietnam’s agricultural machinery market and produce 7,000-10,000 trucks annually by 2030, with more than half powered by green energy.

The group also targets supporting-industry output of VND4 trillion ($152.09 million) and export value of $80 million.

VEAM plans to largely complete its financial restructuring by the end of the decade, while upgrading equipment and technology and sharpening its focus on core manufacturing, green energy, environmental industries, and railway-related production.

Despite the strong results, the company acknowledged ongoing challenges, including slow consumption of certain traditional products, low efficiency at some affiliates, delays in investment projects, and limited progress in research and development.

Speaking at the 2025 business review early this week, Nguyen Chi Sang, chairman of the Vietnam Association of Mechanical Industries, said VEAM faces increasing pressure as Vietnam’s policy direction increasingly positions the private sector as a key engine of economic growth, requiring the group to adapt its strategy.

Bui Huy Son, director general of the Ministry of Industry and Trade’s planning and finance department, urged VEAM to align its development plans more closely with government priorities, strengthen corporate governance, and leverage innovation and technology as key growth drivers.

He also called on the group to better exploit opportunities from new-generation free trade agreements and address long-standing structural bottlenecks to support its next phase of development.