Vietnam Machinery for Agriculture and Rural Development Corporation (VEAM, UPCoM: VEA) has recently released additional documents for its 2025 Annual General Meeting of Shareholders, including a proposal to expand its business operations.
Specifically, VEAM intends to add business lines coded 3020, 3315, 2790, and 2732.
Sector 3020 involves the manufacturing of electric, diesel, and steam locomotive engines, as well as other railway engines; production of railway passenger cars, automatic electric cars, freight cars, and flatcars; maintenance and servicing; manufacturing of electric or railway cars in general, including non-automatic passenger cars, freight cars, boxcars, and freight trucks; production of special locomotive and railway car parts; and more.
Sector 3315 focuses on the repair and maintenance of transportation equipment, including ships, aircraft, aircraft engines, locomotive engines and railcars, etc.
Sector 2790 involves the manufacturing of electrical equipment, with products such as alarm horns; signaling devices like traffic lights and pedestrian signals; electrical devices and components for internal combustion engines; uninterruptible power supplies (UPS); batteries, and more.
Sector 2733 includes activities such as the production of wire conductors, busbar systems, connecting and conducting equipment, and electrical circuit breakers.
Deputy Minister Truong Thanh Hoai directs at the meeting. Source: VEAM.
Since March 2025, during a working session between the Ministry of Industry and Trade and VEAM, the Industry Department agreed and requested VEAM to conduct a thorough analysis to determine its specific participation in the railway industry supply chain.
Mr. Pham Anh Tuan, Vice Chairman of VEAM, shared that VEAM has proactively collaborated with several universities and railway industry entities to develop plans for engaging in the railway industry.
Tran Quan Anh, Head of Economics and Planning at VEAM, stated that VEAM is researching mechanical products for the railway industry, such as power supply systems with a third rail or overhead power supply systems using direct current for urban railways; studying alternating current power supply systems for national railways and high-speed railways; rail accessories; and component clusters.
Additionally, VEAM has proposed to the Ministry of Industry and Trade to participate in the production of railway products, including various bolts and rail clamps; electric motors, gearboxes, and brake systems; details in passenger cars; generators for infrastructure construction and passenger cars; steel structures for railway infrastructure; and dynamic power supply systems, maintenance equipment, locomotive maintenance stations, and more.
In its consolidated financial statements for Q1 2025, VEAM reported a 157.8 billion VND (approximately 11%) decrease in post-tax profits, amounting to 1,278 billion VND. Meanwhile, the net profit of 1,260 billion VND is the lowest quarterly figure since Q3 2021. VEAM attributed this decline primarily to an 11% decrease in profits from associated companies, equivalent to 136.9 billion VND.
High-Speed Rail Development: Prospects for Vietnamese Enterprises
“The development of a modern high-speed rail network requires a dual focus on infrastructure investment and the growth of the domestic rail industry. As PGS.TS Nguyen Chi Sang asserts, it is imperative that these two aspects go hand in hand to create a truly advanced system.”
Breaking: Another Industry Giant Proposes High-Speed Rail for North-South Corridor, Promising Completion in Just 7 Years
“With a strong commitment to national economic growth, this enterprise prioritizes collaboration and partnership with domestic businesses and corporations. By harnessing the capabilities of local enterprises, this organization ensures that projects and tasks are executed with a deep understanding of the domestic market, fostering a robust and resilient economy.”
The Ultimate Guide to the $8.2 Billion Railway Project: Unveiling the Secrets Behind the Massive China-Connected Venture
The proposed railway project, linking Lao Cai – Hanoi – Haiphong, boasts an impressive scope. With an initial investment of nearly 195 trillion VND (over 8 billion USD), this ambitious undertaking will traverse nine northern provinces, commencing at the new Lao Cai station, crossing the border at Ha Khau North in China, and concluding at the Lach Huyen port in Haiphong.
“GELEX: A Trusted Company with an A-Rating from VIS Rating”
On October 25, Vietnam Investment and Rating JSC (VIS Rating) assigned GELEX a long-term issuer credit rating of ‘A’ with a stable outlook.
High-Speed North-South Rail Project: A Boon for Vietnamese Businesses
The Ministry of Transport is working diligently to finalize the draft report on the pre-feasibility study for the high-speed railway project on the North-South axis. This report is set to be presented to the National Assembly in the upcoming session.
