Vietnamese partner to major car manufacturers targets modest growth in 2017

January 27, 2017 | 17:56

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Vietnam Engine and Agricultural Machinery Corporation (VEAM) aims for a revenue of VND11.812 trillion ($523.51 million) in 2017.

The number, released recently at VEAM’s first shareholders’ meeting since the company’s IPO in August last year, is only a bit higher than 2016’s figure.

In 2016, VEAM’s revenue was VND11.315 trillion ($501.5 million), up 13 per cent on-year.

In 2017, the company plans to invest in a few projects to manufacture agricultural vehicles and parts. It is also going to move some of its factories from Hanoi to Tien Son Industrial Park in Bac Ninh province.

In its IPO in August last year, VEAM auctioned 167 million shares, or a 13 per cent stake. It sold 89 per cent of the offered volume and earned VND2.142 trillion ($95 million).

Established in 1990, VEAM specialises in manufacturing agricultural machinery, components, and assembling automobiles and motorbikes. The government currently holds 51 per cent of VEAM. The company plans to list its stocks on the UPCom platform by the end of this month.

The company has 20 subsidiaries nationwide, including Song Cong Diesel Limited Company, Southern Vietnam Engine and Agricultural Machinery Company Ltd., and An Giang Mechanical JSC, among others.

In addition, the company currently holds a 30 per cent stake in Honda Vietnam and a 20 per cent stake in Toyota Vietnam. Its subsidiary Song Cong Diesel holds 25 per cent of Ford Vietnam.