Enterprise

Deputy CEO of Trungnam Group: Outstanding Financial Issues to Be Resolved by First Half of 2026

On January 6, 2026, Trungnam Group (Trung Nam Corporation) hosted a meeting to share insights into their business operations and unveil their strategic plans for the year. During the event, Mr. Lê Như Phước An, Standing Deputy General Director of Trungnam Group, highlighted the company's promising financial indicators and provided updates on the ongoing tidal prevention project in Ho Chi Minh City.

Administrator

9 January, 2026

Lingering financial issues resolved in the first half of 2026

Trungnam Group’s leadership announced that the corporation’s revenue as of December 2025 reached VND 13,686 billion. Total revenue from power plants increased by over 10% compared to the previous year, hitting VND 6,000 billion in 2025.

Mr. Le Nhu Phuoc An, Deputy General Director of Trungnam Group

For 2026, Trungnam Group aims to maintain a growth rate of around 10%. This growth is driven by three key factors: favorable weather conditions; increased government demand for green energy, significantly improving output reduction; and a stable operational system after the initial ramp-up phase, minimizing technical incidents and optimizing useful power generation time thanks to an increasingly experienced operational team.

Bond debt was one of the most discussed issues during the event. The company reported significant liquidity improvement in the past year, with principal and interest payments on power plant bonds made on time. Notably, the company revealed progress in bond usage negotiations.

Specifically, for the Thuan Nam Power Plant bond, the main bondholder, MBB (holding 82% of the value), agreed to and completed restructuring in June 2025. The payment schedule for bond tranches was adjusted to align with the project’s actual cash flow, easing financial pressure in the early operational years and matching EVN’s payment timeline.

For the Dak Lak Power Plant bond, the main bondholder, VCB (holding 75% of the value), approved the restructuring plan in December 2025. Periodic payment obligations were flexibly adjusted to suit the project’s cyclical and seasonal revenue nature.

Additionally, Mr. Phuoc An shared that Trungnam Group is restructuring three areas: organizational structure, assets, and finance. The workforce was reduced by up to 40% but is now being rehired to meet new demands. For asset restructuring, the company plans to liquidate low-efficiency or non-performing assets to cut costs, aiming to sell about 40% of wind power equipment inventory (initially valued at VND 3,000 billion).

Notably, financial restructuring is progressing smoothly. According to Mr. Phuoc An, Trungnam Group has negotiated with banks and bondholders to extend or defer debt, aligning with cash flow trends. To date, the corporation has resolved over 80% of bad debt and paid approximately 40% of individual bond principal.

Trungnam has received offers from major banks like VCB, CTG, Agribank, MBB, VPB, TPB, and STB, totaling over VND 10 trillion in restructuring value. The most notable offer comes from VPB, exceeding VND 5 trillion. Lingering financial issues are expected to be resolved by the first half of 2026.

Total investment of $8 billion for 2026-2030

According to Mr. Phuoc An, successful restructuring (completed at many power plants) has emboldened Trungnam Group to pursue more ambitious goals.

From 2026 to 2030, the company plans to invest heavily in renewable energy under Power Development Plan 8 (PDP8) and the Ca Na LNG power plant project. The renewable energy segment is expected to require $6 billion, with an additional $2 billion for the Ca Na project.

The company is also researching and piloting green hydrogen production and energy storage systems, seen as essential for grid stability. The corporation hopes the government will allow further investment in transmission infrastructure to share the burden with EVN.

Regarding capital mobilization, the equity-to-debt ratio is expected to be 40/60 or 50/50, safer than the previous 20/80 or 30/70. Equity will come from retained earnings and potential sales to foreign strategic partners.

Trungnam Group is working with domestic and international credit institutions for funding and has partnered with global leaders like UL, Tractebel, DNV, PowerChina, China Energy, Enercon, Siemens Gamesa, Mingyang, Sungrow, and Envision. However, Mr. Phuoc An noted that the company will not heavily rely on domestic bank credit due to limited renewable energy funding. Instead, it will focus on international green credit from institutions like HSBC and Standard Chartered, which offer cheaper, sustainable project-friendly financing.

Payments with EVN have improved, and government-led efforts to resolve CCA mechanism issues are expected to conclude in 2025.

$1 billion flood control project may complete in 2026

The VND 10,000 billion flood control project in Ho Chi Minh City, initiated nearly 10 years ago under a BT (Build-Transfer) contract, includes seven land plots as compensation.

Mr. Phuoc An explained that land valuation and transfer procedures have been delayed due to legal changes and cautious authorities. These plots await official city approval for valuation-based offset payments.

However, Resolution 12 has resolved the project’s main legal and payment mechanism issues. Trungnam Group has signed a contract addendum with HCMC authorities to extend the project’s validity period.

Funding-wise, with nearly VND 1.9 trillion remaining, the project faced delays as BIDV halted disbursement due to expired recapitalization limits. However, HCMC has contingency plans to meet government commitments, and Trungnam Group has alternative financing options.

“The project is 90% complete, with only on-site work remaining. With funding, Trungnam Group commits to finishing in 6-9 months, aiming for 2026 operation.”

Regarding land compensation, under the 2016-2020 BT contract, HCMC planned to compensate with seven plots. Some plots face legal issues or planning mismatches, requiring adjustments or swaps.

Mr. Phuoc An stated that in early 2026, HCMC will transfer 3-4 legally cleared plots. Trungnam Group is working with authorities to propose additional land for full contract value settlement.

Chau An

– 10:23 07/01/2026