[According to CafeF] – VVS stock debuts on the stock exchange: What makes VIMID an attractive enterprise?

VIMID’s Board of Directors stated that the company’s primary goal in listing its shares is to enhance transparency and build VIMID into a professional enterprise ready to integrate with regional and global partners.

On the morning of October 7, 2022, Vietnam Machine Investment Development Joint Stock Company (VIMID) officially listed 20.5 million shares on the UPCOM stock exchange under the stock symbol VVS. The reference price on the first trading day was VND 14,500 per share, equivalent to a market capitalization of nearly VND 300 billion.

The listing of VVS shares marked a significant milestone for the company — bringing the VIMID brand closer to the public, enhancing recognition, and ensuring greater transparency. The company aims to maintain its leading position among distributors of medium and heavy-duty trucks in Vietnam and strives toward becoming one of the Top 3 manufacturers and distributors of commercial trucks nationwide.

VIMID’s Board of Directors performed the gong ceremony to open the first trading session.

To prepare for the listing process and to strengthen its business capital, in 2021, VIMID doubled its charter capital from 100 billion VND to 205 billion VND through a rights offering to existing shareholders (10 million shares) and an ESOP issuance for employees (500,000 shares).

Currently, VIMID has a total of 105 shareholders, including 1 institutional investor and 104 individual investors, with 3 major shareholders holding a combined 64.63% of the shares. Mr. Nguyen Vu Tru, Vice Chairman of the Board of Directors and the company’s Director, is also the largest shareholder, owning 45% of the capital.

Mr. Nguyen Vu Tru, Vice Chairman of the Board of Directors and Director of Vietnam Machine Investment Development Joint Stock Company (VIMID), delivered a speech at the ceremony.

At the event, Mr. Nguyen Vu Tru shared:
“VIMID is now entering its acceleration phase. The company’s value will grow strongly once we complete the ‘100 km – 1 (3S) service station’ strategy. Listing our shares on the stock exchange reflects our greatest desire for transparency and to build VIMID into a professional enterprise ready to integrate with partners in the region and around the world.”

Ambitious Growth Target

Established in March 2010 with an initial charter capital of 1.8 billion VND, VIMID primarily operates in the import and distribution of medium and heavy-duty trucks, semi-trailers, and specialized vehicles; as well as providing warranty, maintenance, and repair services; and serving as an authorized agent for banks, insurance companies, and financial institutions.

From the very beginning, VIMID has focused on its core business of importing and distributing brand-new 100% SINOTRUK trucks. In a highly competitive market filled with products from well-known brands imported from the U.S., South Korea, Japan, and China, SINOTRUK’s truck models have maintained a strong position for many consecutive years, accounting for about 30–35% of the medium and heavy-duty truck market share. VIMID has played a pivotal role in shaping SINOTRUK’s brand presence and market share in Vietnam.

With a nationwide distribution network, VIMID has consistently led in sales of Sinotruk’s HOWO trucks since 2015. The company is now among the top enterprises in Vietnam in terms of market share for brand-new medium and heavy-duty trucks. As a result, its business performance has recorded continuous, strong growth year after year.

From just a few tens of billions of VND in its early days, VIMID’s revenue surpassed 3,200 billion VND in 2021, representing a 142% increase compared to the previous year. Net profit after tax also grew by 89%, reaching nearly 18 billion VND. Building on that strong foundation, the company set an ambitious plan for 2022 with a revenue target of 4,000 billion VND and a net profit after tax of 32 billion VND—an increase of 25% and 78% respectively year-on-year. In the first half of 2022, the company continued to record a 67% increase in revenue year-on-year, reaching 2,383 billion VND, with net profit exceeding 4.2 billion VND.

Explaining why revenue reached trillions of dong while profit remained modest and below expectations, Mr. Nguyen Vu Tru stated that the company is currently allocating resources to expand its network of branch stations. Since many of these stations have not yet reached stable operation, profitability has not met projected levels. Additionally, negative global and domestic economic factors—particularly exchange rate fluctuations and rising interest costs—have significantly increased financial expenses, thereby affecting net profit performance.

In the first six months of the year, the company focused on maintaining operational stability, expanding its 3S station network, and driving revenue and market share growth to establish a solid foundation for sustainable and long-term development. Alongside its core business, VIMID also engages in financial investments to optimize capital utilization and enhance financial efficiency in support of business operations.

In 2022, VIMID did not stop at its target of 25 branches by year-end but continued to expand further, positioning itself as one of the few transport business enterprises with extensive coverage nationwide. According to the company’s management estimates, once the “100 km – 1 (3S) service station” network and branch system are fully operational and stable, each VIMID 3S station could generate annual revenue of 200–300 billion VND and post-tax profits of 2–3 billion VND per station.

This projection is entirely well-founded, as the medium- and heavy-duty truck market is entering a period of strong growth. The government’s orientation toward accelerating public investment in the final months of the year is expected to further drive a surge in sales of Sinotruk-branded vehicles in the near future. Moreover, the long-term outlook for the medium- and heavy-duty truck industry remains positive, as the logistics sector still has significant growth potential while Vietnam continues to make substantial investments in infrastructure development.

With the internal strength it has built over the past 12 years, VIMID has set ambitious plans to further expand its distribution network and aims to become one of the top three truck business groups in Vietnam by 2025. The company also aspires to evolve into a leading industrial truck conglomerate applying artificial intelligence, robotics, and clean energy in Vietnam and across the region during the 2026–2030 period.