Key facts
- Vingroup's first-half net profit rose sharply due to robust property sales.
- The conglomerate is expanding into urban railways and renewable energy.
- Vingroup's subsidiary VinSpeed is developing the Ha Noi–Quang Ninh and Ben Thanh–Can Tho rail lines with Siemens.
- Vingroup withdrew from the bidding for the larger North-South High-Speed Railway project.
- The company is also pursuing international development projects in at least 15 countries.
- These expansions aim to fund Vingroup's loss-making electric vehicle unit, VinFast, and other technology ventures.
Vietnamese conglomerate Vingroup has reported a significant increase in its first-half net profit, largely attributed to strong performance in its property sales. This financial boost provides the company with increased capacity to invest in capital-intensive sectors such as urban railways and renewable energy, alongside its ongoing funding of the loss-making electric vehicle unit, VinFast.
In a notable development, Vingroup's subsidiary, VinSpeed, officially withdrew from the bidding process for Vietnam's ambitious North-South High-Speed Railway project on December 25, 2025. This project, spanning 1,541 kilometers with an estimated budget of $67 billion, is the largest infrastructure undertaking in the nation's history. The withdrawal led to a significant drop in Vingroup's stock value, impacting the net worth of its owner, Pham Nhat Vuong.
However, just eight days prior to its withdrawal from the larger project, VinSpeed had announced a partnership with Germany's Siemens. This collaboration focuses on developing the 121-kilometer Ha Noi–Quang Ninh high-speed rail line, with plans to implement Siemens' 350 km/h train technology. Siemens' involvement in this project is seen as a strategic move to gain a foothold in Southeast Asian markets.
Concerns were raised by Vietnamese authorities regarding Vingroup's initial proposal for the North-South High-Speed Railway, which included a request for a 35-year, zero-interest government loan for 80% of the project's cost. The central bank and Ministry of Finance expressed worries about Vingroup's existing leverage and lack of railway experience, suggesting the loan terms could destabilize the banking system and negatively impact the country's sovereign credit rating.
Beyond domestic infrastructure, Vingroup is also expanding its reach into international markets, with plans for nearly two dozen projects in at least 15 countries. These global ventures include developments like a "Vietnam Town" in Tashkent, Uzbekistan, and smart city projects in India and Africa. This international diversification strategy is partly driven by a cooling property market in Vietnam and the financial strain from VinFast, as the country seeks to build globally competitive companies amid global economic shifts.