Real Estate

“Van Phu Reports 6-Month Profit Growth of 56% in First Half of 2025”

"The positive macroeconomic climate has had a significant impact on the real estate market's recovery, and this is reflected in the impressive financial performance of Van Phu - Invest Real Estate JSC (HOSE: VPI). The company has announced a remarkable 56% year-over-year increase in its after-tax profit for the first half of 2025, amounting to VND 148.8 billion."

Administrator

6 August, 2025

Services

Business recovery

After a challenging period between 2021 and 2024, the Vietnamese real estate market received positive signals right from the start of 2025. One clear indicator is the maintenance of low-interest rates, while credit growth showed signs of improvement, especially in home loans and production-business loans.

In addition, the government’s issuance of Decree 151 and Dispatch 78 directly addressed legal bottlenecks for real estate projects, promoting project implementation progress and re-establishing market supply and demand.

The merger of provinces and cities also contributed to the formation of new industrial and tourism centers with synergistic effects, positively impacting the real estate market, along with the country’s two economic hubs: Hanoi and Ho Chi Minh City. For example, Bac Ninh – a high-tech industrial and technological center, Hai Phong – a commercial, logistics, and industrial hub, and Dong Nai – an industrial, logistics, and high-tech agricultural center.

With leverage from inter-regional infrastructure connections, synchronized planning policies, and a stable macro-economy, the real estate market has gradually moved out of the defensive phase towards a more sustainable recovery cycle.

In line with the overall market recovery, Van Phu Real Estate Development Joint Stock Company concluded the first half of 2025 with a revenue of VND 428.9 billion, a 46% increase, and a profit after tax of VND 148.8 billion, a 56% rise compared to the same period last year, achieving 42.5% of the annual profit target approved by shareholders at the annual general meeting.

In the first six months, the company’s revenue mainly came from the The Terra – Bac Giang project, generating VND 285 billion, and the accommodation service segment, with an estimated value of VND 90 billion. This continues to be an important supplementary source, contributing to stable cash flow and sustaining regular operations.

Preparing for the future

Apart from the positive business recovery, a notable aspect of Van Phu’s financial report is its total assets of VND 13,138.2 billion as of June 30, 2025, a 17.95% increase compared to the beginning of the year. This growth is attributed to increases in inventory and long-term work-in-progress, with respective rises of 50.2% and 38.93%, focused on the Vlasta – Thuy Nguyen (Hai Phong) and TT30-40 (Hanoi) projects.

For these two projects, the company has completed the legal procedures for sales opening. Strategically located in the centers of Hanoi and Hai Phong, these projects have attracted significant customer interest. Just one month after 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 business and the real estate market in the coming period. The company expects these two projects to generate approximately VND 2,000 billion in revenue in 2025, ensuring cash flow for the company’s production and business activities this year.

The company’s representative stated that the increasing inventory trend aligns with their strategy to focus on land funds, thereby ensuring sufficient land for development in the next three years, as input land prices continue to rise. Consequently, the land funds added by the company recently are undergoing legal completion processes and are located in prime locations in new provinces and cities such as Hanoi and Ho Chi Minh City.

“These are ‘cushion’ projects, ensuring sustainable revenue growth for the company in 2026 and the following years,” the Van Phu representative said.

In the second quarter of 2025, the company actively developed the NEW MARINA RESIDENCES project, located near Huynh Tan Phat Street, Phu Thuan Ward, Ho Chi Minh City, after completing the M&A procedures in the first quarter of 2025.

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

The project has a total investment of approximately VND 1,218 billion, covers an area of over 9,000 m2, and comprises two 35-story towers with 602 residential apartments and 136 commercial service apartments. The project is expected to be launched in the first quarter of 2026 and will serve approximately 2,500 residents upon completion.

With its prime location in the center of Ho Chi Minh City and being one of the few projects able to offer products in the city in 2026, this development will attract significant interest from both end-users and investors.

Another piece of good news for the company recently is the BT road project from Pham Van Dong Street to Go Dua Intersection – National Highway 1 (Ho Chi Minh City), invested in by Van Phu – Bac Ai One Member Limited Company (a member of Van Phu) which has been officially restarted according to Resolution No. 212/NQ-CP dated July 21, 2025, after years of waiting.

Accordingly, the government allows the Ho Chi Minh City People’s Committee to pay the investor with land funds, prioritizing areas with favorable locations in the center or with high economic potential. Land valuation, land use fee calculation, and fulfillment of financial obligations will be carried out following current legal regulations, with the inspection and audit of the State Audit Office to ensure transparency and fairness.

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

Kim Ngan