Vietnam Engine and Agricultural Machinery Corporation (VEAM, code: VEA) is currently the largest automotive company in Vietnam. Interestingly, its main business of manufacturing and selling commercial vehicles is rather understated, and VEAM’s value primarily lies in its investments in well-known automotive brands.
VEAM currently holds 30% of Honda Vietnam, 20% of Toyota Vietnam, and 25% of Ford Vietnam. The company profits from these investments through shared profits and annual commodity dividends.
In the first half of 2025 alone, VEAM’s net revenue exceeded VND 2,087 billion, while its net income reached VND 3,410 billion. This is largely due to profits from joint ventures, contributing nearly VND 3,069 billion.
Additionally, according to the parent company’s financial statements, VEAM received nearly VND 5,932 billion in dividends from Honda Vietnam in the first six months.
In previous years, VEAM also collected thousands of billions of dong in dividends from its joint ventures, mainly from Honda Vietnam. From 2018 to the present, VEAM has received over VND 38,300 billion in dividends from Honda.
As VEAM’s operations are closely linked to these automotive brands, its performance is significantly influenced by the motorcycle and automobile markets, despite not being directly involved in their trading.
In Directive 20 on urgent tasks to prevent and resolve environmental pollution, the Prime Minister instructed the Hanoi People’s Committee to implement solutions and measures for organizations and individuals to transition to using vehicles, with a roadmap to completely eliminate fossil fuel-powered motorcycles and scooters within Ring Road 1 by July 1, 2026.
The Prime Minister also set a roadmap to eliminate fossil fuel-powered motorcycles and scooters and restrict the use of private cars within Ring Road 1 and Ring Road 2 from January 1, 2028, and to continue implementing this within Ring Road 3 from 2030 onwards.
Honda Vietnam’s financial report for the fiscal year 2025 (ending March 31, 2025) states that going forward, Honda will modularize vehicle models specifically designed for electric vehicles and start production at a dedicated high-efficiency electric vehicle factory in India in 2028. The company aims to offer electric motorcycles at more affordable prices to a wider range of customers. Honda targets to achieve the number one market share position in the electric motorcycle market.
In the long term, Honda aims for a 50% global market share and a return on sales (ROS) of over 15% by 2030, including both internal combustion engine (ICE) and electric motorcycle lines.
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As of the first half of 2025, VEAM’s revenue stood at an impressive 2.087 trillion, with a net profit of 3.410 trillion VND. The stellar performance is largely attributed to the significant contribution from its joint venture and associate companies, amounting to nearly 3.069 trillion VND.
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The Adani Group has strong ties to the automotive industry, particularly in the realm of electric vehicles (EVs) and clean transportation solutions.
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