Vietnam developer Hung Thinh Incons targets 3.5-fold revenue growth despite weak start to 2026

Ho Chi Minh City-headquartered Hung Thinh Incons has set a target to more than triple revenue in 2026 as the builder bets on public investment spending and a recovery in Vietnam’s construction market, despite continued pressure on its business performance.

According to its 2025 annual report, Hung Thinh Incons, a unit of Hung Thinh Corporation, targets revenue of over VND2.2 trillion ($83.63 million) in 2026, up 3.5 times from 2025 results. Net profit is projected at VND50 billion ($1.9 million), an increase of 177%.

The company’s management said 2026 would present both opportunities and challenges for the construction sector.

Vietnam’s ongoing push for public investment, particularly in transport infrastructure, energy and urban development projects, is expected to support medium- and long-term construction demand, the company said.

Stable foreign direct investment inflows and plans to restructure the state-owned business sector under Resolution 79 are also expected to create opportunities for large-scale projects requiring advanced construction and project management capabilities.

However, Hung Thinh Incons said the industry would continue to face pressure from higher financing costs, exchange rate volatility and fluctuating raw material prices.

With interest rates no longer as favorable as in previous years, construction firms would need to adopt stricter cash flow management, tighter cost controls and more selective project strategies, it added.

The company said prospects for the construction sector in 2026 would likely favor businesses with strong financial capacity, experience in infrastructure projects, and the ability to adapt to a higher-cost capital environment.

Chairman Nguyen Dinh Trung said the company had gone through a difficult period as Vietnam’s property and construction markets experienced sharp volatility while the firm also dealt with internal operational challenges.

According to Trung, Hung Thinh Incons had implemented major restructuring measures to maintain operations, ensure construction progress, and prepare for a more efficient operating phase.

Still, the company’s recent financial performance remains under pressure.

In 2025, Hung Thinh Incons posted revenue of VND631 billion ($23.94 million), equivalent to 55.3% of its 2024 performance and only 19.6% of the whole-2025 target.

Pre-tax profit and net profit fell sharply year-on-year to VND25 billion and VND18 billion ($682,980), respectively.

The company said the results reflected cautious market conditions, uneven project implementation progress, and broader macroeconomic pressures, although it remained profitable thanks to cost controls and operational stability.

During the year, Hung Thinh Incons focused on completing and handing over projects including Lavita Thuan An, Grand Center Quy Nhon, New Galaxy Binh Duong, MerryLand Quy Nhon, and Vung Tau Pearl.

As of the end of 2025, the company had more than 20 ongoing projects with a total backlog value of about VND25.79 trillion ($978.56 million).

The builder also participated in the development of the Lumira Ville urban area and served as the main contractor for the Khai Vy social housing project in Ho Chi Minh City.

However, Q1/2026 results showed little sign of a clear recovery. Revenue plunged to VND30.2 billion ($1.15 million) from VND230 billion a year earlier, while the company posted a gross loss of VND539 million ($20,450).

Financial income edged lower while interest expenses rose to VND54.7 billion ($2.08 million) from VND38.2 billion, continuing to weigh on profitability.

Hung Thinh Incons nevertheless reported net profit of VND2.5 billion thanks to VND3.5 billion in other income, though the figure was sharply lower than the VND27.2 billion ($94,860) recorded a year earlier and remained far below its full-year target.

Despite its sizable project backlog and expectations of benefiting from a recovery in Vietnam’s property and construction markets, Hung Thinh Incons continues to face pressure from cash flow constraints and elevated financing costs as earnings have yet to show meaningful improvement.