“Van Phu Reports 56% Profit Growth in First Half of 2025”

4 August, 2025

**Real Estate Market Recovery and Growth in Vietnam: A Comprehensive Overview**

Business Recovery

After a challenging period between 2021 and 2024, Vietnam’s real estate market is witnessing positive signs of recovery as early as 2025. One notable indicator is the sustained low-interest-rate environment, coupled with improving credit growth, especially in home purchase and production-business loans.

Additionally, the government’s issuance of Decree 151 and Dispatch 78 directly addressed legal bottlenecks for real estate projects, boosting project implementation and rebalancing supply and demand in the market.

The merger of provinces and cities has also played a role in forming new industrial and tourism hubs, positively impacting the real estate market, alongside the country’s economic powerhouses, Hanoi and Ho Chi Minh City. Examples include Bac Ninh, a center for high-tech industries; Hai Phong, a hub for commerce, logistics, and industry; and Dong Nai, a center for industry, logistics, and high-tech agriculture.

With leverage from inter-regional infrastructure, synchronized planning policies, and a stable macro-economy, the real estate market is transitioning from a defensive phase to a more sustainable recovery cycle.

Market Recovery and Company Performance

Amid the market’s overall recovery trend, Van Phu JSC, a prominent real estate development company, reported impressive financial results for the first half of 2025. The company achieved VND 428.9 billion in revenue, a 46% increase, and VND 148.8 billion in after-tax profit, a 56% surge compared to the same period last year. These figures represent a 42.5% achievement of the annual profit target set by shareholders during the annual general meeting.

The company’s revenue during this period was primarily driven by its The Terra – Bac Giang project, contributing VND 285 billion. Additionally, their accommodation services segment continued to be a significant revenue stream, generating approximately VND 90 billion, ensuring stable cash flow and sustaining regular operations.

Preparing for the Future

Beyond the positive business recovery, a notable aspect of Van Phu’s financial report is their total assets, which stood at VND 13,138.2 billion as of June 30, 2025, reflecting a 17.95% increase from the beginning of the year. This growth is attributed to increases in inventory and long-term work-in-progress assets, with respective surges of 50.2% and 38.93%. These increases are concentrated in the Vlasta – Thuy Nguyen (Hai Phong) and TT30-40 (Hanoi) projects.

For these two projects, the company has completed the legal procedures for sales openings. Strategically located in the heart of Hanoi and Hai Phong, these projects have garnered significant interest from customers. Within just one month of the sales launch, 50% of the 2025 sales target was achieved for each project: 500 units in Hai Phong and 32 units in Hanoi. This positive response bodes well for the company’s future business performance and the overall real estate market. The company anticipates that these projects will generate approximately VND 2,000 billion in revenue in 2025, ensuring a healthy cash flow for their operations.

According to the company’s representatives, the trend of increasing inventory aligns with their strategy to focus on land acquisition, thereby securing sufficient land reserves for the next three years, amidst rising land input costs. The land reserves acquired during this period are located in prime positions in emerging provinces and cities, such as Hanoi and Ho Chi Minh City, and are currently undergoing legal processes.

“These projects serve as a ‘cushion’ to guarantee sustainable revenue growth for the company in 2026 and the following years,” the Van Phu representative asserted.

In the second quarter of 2025, the company actively pursued the NEW MARINA RESIDENCES project, located near Huynh Tan Phat Street in Phu Thuan Ward, Ho Chi Minh City, following the completion of the M&A process in the first quarter. With a total investment of approximately VND 1,218 billion and covering an area of over 9,000 square meters, the project comprises two 35-story towers, offering 602 residential units and 136 commercial service apartments. The project is slated for launch in the first quarter of 2026 and is expected to accommodate around 2,500 residents upon completion.

NEW MARINA RESIDENCES in Phu Nhuan Ward, Ho Chi Minh City

Located in the heart of Ho Chi Minh City, and being one of the few projects able to offer products in the city in 2026, NEW MARINA RESIDENCES is poised to attract significant interest from both end-users and investors.

Another positive development for the company is the resolution of legal obstacles for the BT road project from Pham Van Dong Street to Go Dua Intersection – National Highway 1 in Ho Chi Minh City. This project, undertaken by Van Phu – Bac Ai JSC, a subsidiary of Van Phu, has been stagnant for years. However, the Government’s Resolution No. 212/NQ-CP dated July 21, 2025, has provided a breakthrough. The resolution allows the Ho Chi Minh City People’s Committee to compensate the investor with land funds, prioritizing areas with favorable locations or high economic potential. Land valuation, calculation of land use fees, and fulfillment of financial obligations will be conducted in accordance with prevailing legal regulations, ensuring transparency and fairness under the scrutiny of the State Audit Office.

The project’s reactivation not only resolves long-standing legal issues but also opens up new development opportunities for the company.

Kim Ngan

– 09:20 30/07/2025