Gemadept wants to reduce its ownership ratio at Gemalink deep-water port.
Following the favorable steps in the first months of the year, Gemadept Joint Stock Company recorded bright business results in the second quarter of 2025, with revenue of nearly 1,500 billion VND, up 26.7%, profit after tax reaching more than 581 billion VND, up more than 39% over the same period in 2024.
According to Gemadept's explanation, the company's large profit in the second quarter of 2025 continued to come from the "golden goose" which is the deep-water port Gemalink, the unit that contributed mainly to the profit increase of 32% to more than VND 241 billion from joint ventures and associates, in addition to revenue from core business activities increasing by 27%, equivalent to VND 315 billion.
In addition, Gemadept's financial revenue also more than doubled to VND62 billion in the quarter, contributing positively to the company's revenue and profit, while expenses did not increase significantly.
In the first half of the year, Gemadept recorded revenue of VND2,774 billion, up 29%, and profit after tax of VND1,109 billion, up 1% over the same period. Thereby, the company completed 57% of the revenue plan and 70% of the profit plan for 2025.
In particular, the 1% profit increase seems modest but is a very positive result, when in the first half of last year Gemadept recorded extraordinary profits thanks to divesting from Nam Hai port.
Excluding this deal, Gemadept's after-tax profit increased 44.8% year-on-year.
Besides the positive increase in revenue and profit, Gemadept also recorded a good financial picture with operating cash flow of more than VND 1,040 billion, nearly double the same period.
Gemadept's positive business results occurred in the context of the seaport and shipping industry benefiting greatly from the trend of increasing stockpiling of goods ahead of the US's reciprocal tariffs.
Owning 75% of Gemalink shares - the largest deep-water port in Cai Mep - Thi Vai port cluster, capable of receiving large ships and long voyages, helps Gemadept take advantage of this trend.
Bright outlook for the second half of the year
At an investor meeting last week, Gemadept CEO Nguyen Thanh Binh expressed optimism about the 20% reciprocal tax rate, equivalent to the ASEAN region, lower than China and India.
Mr. Binh predicts that business results will continue to be good in the third quarter and may have a stronger breakthrough in the fourth quarter of 2025.
In addition to the positive reciprocal tax rate, Gemadept's growth potential is also reinforced by the accelerated construction progress of Nam Dinh Vu port phase 3 to be put into operation from October 2025.
Nam Dinh Vu Port Phase 3 has an expansion scale of 25 hectares, with an investment capital of about 2,800 billion VND. When fully operational, Phase 3 will increase Nam Dinh Vu Port's receiving capacity to 650,000 TEU of container cargo and 40,000 tons of bulk cargo.
Gemadept expects that Nam Dinh Vu phase 3 will reach 40% efficiency, equivalent to 300,000 TEU of cargo by 2026, thanks to its favorable location and infrastructure equivalent to a deep-water port.
In addition, the dredging of the Ha Nam canal to a depth of 8.5m gives Nam Dinh Vu port a draft 1.5m deeper than the average depth of other ports of 7m. Thereby, the port can receive ships with a capacity of up to 50,000DWT, helping ships increase their transport capacity by 30%, without having to wait for the tide as before.
Phase 3 of Nam Dinh Vu also includes an area for receiving oversized and overweight cargo. On the other hand, the port is located in the free trade zone planning of Hai Phong, opening up great growth opportunities in the future.
In the southern region, Gemadept continues to accelerate the implementation of the Gemalink port project phase 2A, expected to be put into operation from 2027. The project has a capital scale of about 200 million USD, expected to add 900,000 TEU of capacity to Gemalink port.
Restructuring portfolio
In the long-term plan, Gemadept's board of directors said the company is actively seeking investment opportunities in key national projects such as the Nam Do Son port project, with an investment capital of 5 billion USD, and the Cai Mep Ha logistics center, with an investment capital of 1.2 billion USD.
The 5-year plan for 2026 - 2030 is being drafted by Gemadept to be presented to shareholders at the 2026 annual general meeting of shareholders. Mr. Binh revealed that the company is determined to maintain its leading position in the port and logistics industry, striving for a compound growth rate equivalent to or higher than the 2021 - 2025 period.
With that goal, the company focuses on developing and enriching the port and logistics ecosystem to improve capacity and efficiency of exploitation and operation.
Focusing on investment capital in core business areas, Gemadept is currently looking for investors to divest from non-core projects. In particular, the company prioritizes divestment from the rubber plantation project in Cambodia.
Gemadept's Q2/2025 financial report recorded construction costs in progress of more than VND1,320 billion at rubber projects. SSI Securities predicts that the divestment of the rubber segment will be completed soon and could add an extraordinary profit of VND200 billion to Gemadept in 2026.
In addition, Gemadept also plans to divest from real estate projects such as Saigon Gem and Vientiane Hotel (Laos).
In another development, Gemadept plans to reduce its ownership ratio in Gemalink from 75% to 51% and is actively looking for a strategic investor who can commit to output for Gemalink's phase 2, as well as bring long-term value to Gemadept's port and logistics ecosystem.
However, SSI Securities assessed that this deal will not happen soon because the Gemalink port project phase 2A will not be completed as planned until 2027.