Vietnam's Vinafreight expects 47% decline in 2025 profit amid shipping cost slump
Vinafreight, a leading logistics service provider in Vietnam, expects its pre-tax profit to decline by 47% from last year due to a slump in air and sea freight rates.
Vinafreight, listed on the Hanoi Stock Exchange (HNX) as VNF, targets VND54 billion ($2.11 million) in pre-tax profit for 2025 and VND1.55 trillion ($60.6 million) in revenue, down 13% year-on-year.
The company plans to distribute a cash dividend of 15% this year.
Vinafreight's chairman Nguyen Bich Luan addresses the AGM on March 28, 2025. Photo courtesy of Vietstock.
Shipping costs to the U.S. by both air and sea have dropped by approximately 40% compared to early and mid-last year, which will likely impact profits, said Vinafreight’s general director Nguyen Anh Minh at the firm’s AGM on Friday.
The company plans to join its parent company, Transimex (HoSE: TMS), in investing in logistics, supply chain, and e-commerce infrastructure systems. This strategy aims to strengthen their competitive advantage in domestic and international bidding, stated chairman Nguyen Bich Luan.
The company will focus on niche and specialized markets, such as pharma-logistics services and e-commerce, he added.
Regarding Mipec Port Corporation, in which Vinafreight holds a 21.3% stake, Le Duy Hiep, a VNF member and chairman of Mipec, stated that the company is negotiating the purchase of two cranes from China at competitive prices to replace those damaged by storm Yagi last year.
As a result of the storm, Mipec reported a loss of approximately VND100 billion ($3.9 million) in 2024. This year, the company projects revenue of VND180-200 billion ($7.04-7.8 million), but anticipates continued losses.
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