Vietnam's shipping major Vinaship to pay first cash dividends after 14 years

By Tuong Nhu, Minh Hue
Mon, July 7, 2025 | 4:36 pm GMT+7

Vinaship, a major shipping firm in Vietnam, plans to pay cash dividends for the first time in the past 14 years, at a total of approximately VND20.4 billion ($779,670).

 A vessel of Vinaship. Photo courtesy of the company.

A vessel of Vinaship. Photo courtesy of the company.

The company, registered on the Unlisted Public Companies Market (UPCoM) as VNA, announced that July 15 is set to be the final registration date for compiling a list of shareholders eligible for a 6% cash dividend.

Shareholders holding one share will receive VND600 (over $0.02). The payment date is set for October 20. Currently, the firm has nearly 34 million floating shares.

In its history of trading on the stock exchange, Vinaship paid a 20% cash dividend in 2008 and 2010. However, from 2011 to 2023, the company suspended dividend payouts due to financial constraints. In 2024, it planned to issue a 70% share dividend, but is now able to pay cash dividends.

Seeking shareholder approval to sell another vessel

In the 2021-2022 period, amid soaring freight rates due to supply chain disruptions caused by the Covid-19 pandemic, similar to many other transport companies, Vinaship benefitted significantly, recording surging revenue and profit, which greatly improved its financial situation.

Specifically, its revenue during this period reached between VND853 billion and VND1.05 trillion ($40.12 million), while after-tax profit ranged from VND178 billion to VND252 billion ($9.63 million), far exceeding the previous years' few dozen billion VND (VND10 billion = $382,241). However, in 2023-2024, its revenue declined to around VND600 billion, and profit dropped to between VND36-66 billion.

In Q1/2025, the company reported a 5% decrease in revenue, down to VND127.4 billion ($4.87 million), with after-tax profit of only VND83 million ($3,172).

Vinaship explained that its dry cargo fleet primarily operates on Southeast Asian and Northeast Asian routes, using a combination of chartered trips and fixed-rate contracts, with main goods being cement, clinker, coal, rice, and fertilizers.

The fleet's operations and business results in Q1 were affected by the prolonged Lunar New Year holiday, which limited commercial activities, reduced transport demand, and caused a sharp drop in freight rates.

Additionally, the operational time of the Vinaship Unity vessel was affected because it underwent scheduled repairs from late 2024 until January 15, 2025. Moreover, there were no significant profits or other income during this period.

This year, Vinaship aims to earn VND745 billion ($28.7 million) in revenue and VND117.5 billion ($4.49 million) in pre-tax profit. The company also plans to sell the Vinaship Pearl vessel, IMO number 9114488, a dry cargo ship with a capacity of 24,241 DWT, built in 1996.

Recently, it announced an intention to seek shareholder approval to sell one more ship in 2025. This vessel is Vinaship Sea, with a capacity of 27,841 DWT, built in 1998 in Japan.

In 2024, the company sold two vessels, Vinaship Star and Vinaship Diamond, for VND129 billion or $4.93 million (excluding VAT). In contrast, it purchased the Vinaship Unity for VND293.2 billion, with delivery scheduled for December 2, 2024.

Vinaship's leadership has planned to invest in two dry cargo vessels this year, with an estimated total cost of approximately $13 million per ship. The plan is expected to be implemented from Q1/2025 until the 2026 AGM.

Risk of being removed from public company status

At this year's AGM, Vinaship shareholders approved an important motion to move its stock listing from the UPCoM to the Ho Chi Minh Stock Exchange (HoSE).

However, according to a report from the board of directors on May 14, the shareholder structure of Vinaship is quite concentrated. Vietnam Maritime Corporation holds 51% of the shares, while Vietnam Container Shipping Joint Stock Company (Viconship) 40.01%. Other shareholders own only 8.99%.

With this shareholder structure, the company does not meet the requirement of having at least 10% of shares with voting rights held by non-major shareholders, as stipulated for public companies.

The board has stated that it will report this situation to the two major shareholders to find appropriate solutions, ensuring compliance with legal regulations.

In the stock market, VNA closed Monday at VND19,200 ($0.73) per share.

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