State-controlled Vietnam Engine and Agricultural Machinery Corporation (VEAM) reported strong financial results for 2025, with pre-tax profit reaching VND7.83 trillion ($297.85 million), exceeding its full-year target by 15%, driven mainly by robust earnings at the parent company.
Revenue for the year rose 6% from 2024 to VND4.8 trillion ($182.32 million), also surpassing the company’s annual plan. Industrial output value was estimated at VND3.6 trillion ($137.01 million), around 1% above target, while exports totaled $41.3 million, beating the full-year goal by 2%, led by growth in supporting industries and components manufacturing.
VEAM, which is 88.5% owned by Vietnam’s Ministry of Industry and Trade, said the parent company accounted for the vast majority of group earnings. The parent generated revenue of VND504.2 billion ($19.17 million) and pre-tax profit of VND7.33 trillion ($278.8 million), underscoring its central role in overall performance.
The group said it met or exceeded most key performance indicators in 2025, marking the first time in many years that all subsidiaries reported profits. Supporting industries continued to serve as a core growth engine, while an improved product mix helped lift results, particularly in the automotive segment. The company noted that automotive performance strengthened after a significant reduction in long-standing inventory.
During the year, VEAM’s automobile plant successfully auctioned 1,634 vehicles out of 2,071 units held in long-term stock. Production of engine products, power machinery components, and selected export items remained stable, while market reach expanded modestly.
Looking ahead, VEAM has set ambitious medium- and long-term targets. By 2030, the group aims to capture 45–50% of Vietnam’s agricultural machinery market and produce between 7,000 and 10,000 trucks annually, with more than half powered by green energy. It also targets supporting-industry output of VND4 trillion ($152.09 million) and export value of $80 million.
The company 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 areas, including green energy, environmental industries, and railway-related production.
Despite the strong results, VEAM 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 company’s 2025 business review earlier this week, Nguyen Chi Sang, chairman of the Vietnam Association of Mechanical Industries, said VEAM is facing growing pressure as Vietnam’s policy direction increasingly positions the private sector as a key driver of economic growth, requiring state-linked groups to adapt their strategies.
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 capitalize on opportunities from new-generation free trade agreements and address long-standing structural bottlenecks to support its next phase of growth.
