Two Vingroup subsidiaries to sign $180 mln contractor for commercial complex in Hanoi

Vietnam Exhibition Fair Center JSC (VEFAC), a unit of conglomerate Vingroup (HoSE: VIC), has secured board approval to sign a contractor agreement with fellow subsidiary Vincons Construction Investment and Development JSC to develop a cultural, service and commercial complex in Hanoi’s Giang Vo ward.

VEFAC (UPCoM: VEF) said its board of directors issued a resolution last Friday granting in-principle approval for the deal, which is valued at VND4.73 trillion ($180.41 million). Accordingly, Vincons will be responsible for construction as well as equipment supply and installation for the complex.

For this project, VEFAC has its land use right extended from January 30, 2018 - the expiration date under a November 2012 decision - until Hanoi authorities issue an official decision on the land-use conversion.

The company has also received approval to convert over 6.8 hectares of land for commercial and service use to facilitate the complex’s development.

The project received investment approval and was awarded to a developer in late 2024, with construction resuming in early 2025.

VEFAC was also granted approval to sign an operations management contract with Vinpearl JSC, the hospitality arm of Vingroup, for the service and commercial zone at the Vietnam Exposition Center in Hanoi’s outskirts commune of Dong Anh.

The complex spans over 900,000 square meters, with a total investment of VND7 trillion ($267.02 million). Designed with 304,000 square meters of indoor exhibition space, the center is poised to rank among the world’s top 10 largest exhibition complexes and the largest in Southeast Asia.

VEFAC, with Vingroup holding over 85% of its charter capital, reported Q2 consolidated revenue of VND4.86 trillion ($185.39 million), soaring 1,868% from a year earlier, according to its newly released financial statement.

Net profit jumped 220% year-on-year to VND349 billion ($13.31 million) in the quarter.

In H1/2025, VEFAC posted revenue of VND44.57 trillion ($1.7 billion) and net profit of VND15.25 trillion ($581.73 million), soaring 8,372% from a year earlier.

Vincons is fully controlled by Vingroup which holds 100% of its voting rights and more than 75% of its economic interest. The company currently serves as the contractor for several large-scale projects within the Vingroup ecosystem, including the Vinhomes Ha Long Xanh urban complex in the northern province of Quang Ninh; Vinhomes Co Loa, another urban complex in Hanoi; and the Tu Lien Bridge connecting downtown Hanoi with the eastern area.