In the current context, recent developments at GELEX highlight a notable case of how Vietnamese enterprises are adapting to the increasingly stringent demands of the capital market.
Unrestricted International Capital and the “Benchmark” of Reputation
In early 2025, GELEX announced the completion of a $79 million unsecured loan guarantee transaction, backed by Italy’s National Export Credit Insurance Agency (SACE).
What stands out about this capital raise is not just its scale, but its “unsecured” structure—a financing model typically reserved for companies with robust financial foundations, transparent governance, and high credit ratings from international financial institutions.
From a market perspective, this is seen as a “benchmark” of reputation and operational capability. In reality, international financial institutions are increasingly cautious, especially with companies from emerging markets. GELEX’s successful access to this capital demonstrates its ability to meet stringent criteria for creditworthiness, risk management, and sustainable growth.
GELEX Infrastructure auctions 100 million shares on December 31, 2025.
Beyond international capital, the domestic market also marked a significant milestone with GELEX Infrastructure successfully auctioning 100 million shares on HoSE, raising an estimated VND 2,882 billion. The auction attracted 172 investors, with foreign investors purchasing 16.4 million shares at an average winning price of VND 28,820 per share.
With this result, GELEX Infrastructure is valued by the market at approximately VND 25,640 billion (nearly $1 billion). In a context where many capital raises face challenges due to investor caution, the auction’s success underscores the appeal of a company with tangible assets, long-term cash flow, and a clear growth narrative.
Continued Improvement in Operating Cash Flow
In a recent report, VIS Rating maintained GELEX’s long-term issuer credit rating at A and upgraded its outlook from “Stable” to “Positive.” Notably, GELEX is the first company to receive an outlook upgrade in 2025 and one of the few to achieve this within less than a year—a rarity given the increasingly stringent credit evaluation standards.
According to VIS Rating, the outlook upgrade reflects expectations that GELEX’s revenue and operating cash flow will continue to improve over the next 12–18 months. The primary drivers are the stable foundations of its core business segments, particularly electrical equipment and construction materials—sectors closely tied to infrastructure investment, industrialization, and urbanization.
The electrical equipment segment is a key driver of GELEX’s revenue and profit growth.
From 2024 to the first nine months of 2025, GELEX recorded nearly 15% revenue growth, significantly outpacing the 2021–2023 average. Notably, the group’s EBITDA margin improved to around 23%, reflecting enhanced operational efficiency and cost management at the consolidated level.
Maintaining an A rating with a positive outlook underscores confidence in GELEX’s ability to generate high-quality cash flow—a critical factor as capital becomes increasingly risk-sensitive.
Financial Discipline as a Competitive Advantage
A key factor in GELEX’s sustained creditworthiness is its consistent financial discipline. VIS Rating notes GELEX’s strong profitability and operating cash flow (CFO), which underpin stable financial safety metrics. The EBIT/Interest Coverage ratio stands at 4.5–5.0 times, while the CFO/Debt ratio remains at 15–20%.
In a market sensitive to liquidity risk, these metrics are crucial. VIS Rating suggests that GELEX’s medium-term potential for a rating upgrade depends on maintaining an EBITDA margin above 20%, further improving the CFO/Debt ratio, and pursuing a cautious investment strategy. Conversely, overly rapid expansion or project delays could strain cash flow—a concern in today’s market.
Alongside financial discipline, GELEX is advancing standardized governance in line with international practices. In 2025, the group issued its 2024 Consolidated Financial Statements under IFRS, audited by Deloitte Vietnam with an unqualified opinion. Compared to VAS-based reports, the IFRS statements show improved profitability, stronger equity, and reduced financial leverage—factors enhancing transparency and international capital access.
At the governance level, GELEX has developed an Enterprise Risk Management Framework aligned with ISO 31000:2018 and COSO ERM 2017, with EY’s guidance. This risk-based, transparent approach, balancing financial performance with social and environmental impact, is becoming integral to the company’s long-term strategy.
In a capital market prioritizing high-quality cash flow and financial discipline, GELEX’s story offers a clear direction: growth rooted not just in scale or speed, but in a strong financial foundation, standardized governance, and sustainable value creation over the long term.
