Though it is not too famous, the Vietnam Engine and Agricultural Machinery Corporation (VEAM) is among the State-owned enterprises with the biggest profits, sometimes far beyond giants like Vietnam Petroleum Import-Export Corporation (Petrolimex), Electricityof Vietnam Group (EVN), Airport Corporation of Vietnam (ACV) and Vietnam Coal and Mineral Corporation (Vinacomin).
Established in 1990, VEAM is a state-owned corporation operating in the fields of manufacturing engines and agricultural machines serving agricultural production and aquaculture.The corporation has 20 subsidiaries, associated companies, employing 7,000 workers. It also owns an auto plant with design capacity of 33,000 trucks a year in Thanh Hoa province. VEAM also supplies parts and components for Honda, Piaggio, Yamaha …Investing in various fields, VEAM’s profit mainly comes from its capital contribution to associated companies such as Honda, Toyota, Ford Vietnam.As the world’s auto giants pouring capital into Vietnam in recent years, VEAM quickly contributed capital and became shareholders of these joint ventures.
VEAM currently holds a 30% stake of Honda Vietnam, 20% of Toyota Vietnam, and 25% of Ford Vietnam (transfer from its affiliate Song Cong Diesel). Total investment in these firms was VND558 billion initially, but so far it has soared to VND8,381 billion.With each Honda, Ford, Toyota car sold on the market, VEAM earns profit, which was VND3,500 billion in 2014 and VND2,554 billion in 2013.
In 2015, Toyota’s vehicle sales reached a record (nearly 51,250 vehicles, up 24.4%). Similarly, the sales of Ford and Honda respectively increased 48% and 28%, to 20,740 and more than 8,300 units. This result also promises large profits for VEAM in the next fiscal year.
Without the huge profit from these auto firms, VEAM would have incurred losses.