AsemconnectVietnam - At the end of 2025, Digiworld unexpectedly invested VND772 billion in listed securities and set aside a provision of VND90 billion. Large Investment in TCB and HPG Shares

According to the Q4/2025 financial report, Digiworld Joint Stock Company (DGW) spent over VND772 billion to invest in listed securities. The investment portfolio mainly focused on Techcombank's TCB shares with a value of VND286 billion, temporarily incurring a loss of over VND52 billion; Hoa Phat Group's HPG shares with an original cost of VND227 billion, temporarily incurring a loss of VND12 billion; and VPBank's VPB shares with a value of nearly VND78 billion, temporarily incurring a loss of approximately VND7 billion. At the end of the year, the company had to set aside a provision for impairment of over VND90 billion for this portfolio.
In terms of scale, this securities investment is equivalent to nearly half of Digiworld's cash and cash equivalents at the end of Q4/2025, and is also a significant amount compared to its short-term debt and lease financing of VND2,900 billion. While the investment value relative to capital and total assets has not yet reached the threshold requiring approval from the General Shareholders' Meeting, the VND90 billion provision is equivalent to approximately one-sixth of the company's after-tax profit of VND547 billion in 2025.
Despite having to make provisions, the company still exceeded its profit target for the year. However, this provision reflects the high level of risk associated with securities investment activities. To date, following significant market fluctuations, Digiworld is likely unable to reverse this provision.
Unquantifiable Factors
For shareholders, the company's unexpected investment in listed securities is an unquantifiable factor in the valuation of DGW shares, making the market price more volatile in an unpredictable market. Notably, prior to this investment, there was no resolution from the Board of Directors regarding investment limits; at the 2025 annual general meeting, the management also did not mention this policy.
Furthermore, when a shareholder questioned the debt-to-equity ratio of 1.5 times and expressed concerns about interest rate risk, Chairman of the Board of Directors Doan Hong Viet stated that, including the VND1,500 billion in cash, the debt-to-equity ratio is only equivalent to 50% of equity – a level considered safe.
In its Q2 and Q3 2025 investor newsletters, Digiworld did not mention any plans to invest in listed securities, and the Board of Directors has not issued a resolution regarding the budget for this activity. Meanwhile, another listed company, Nha Tu Liem, before launching its securities investment, clearly announced its policy, issued a resolution on the budget, and recently further adjusted its budget upwards as the share prices in its portfolio fell sharply.
Given the rising trend of deposit interest rates and tightened credit towards the end of 2025, the decision to allocate capital to securities shows that Digiworld's leadership accepts a higher level of risk. Some other companies, aiming to optimize capital flow, choose less risky channels such as lending, investment trusts with guaranteed interest rates, or bond investments. When information about the company's investment in securities and its provision for a temporary loss of VND90 billion was released, DGW's share price was negatively impacted, causing concern among many investors.
During a meeting with investors in early February 2026, Mr. Nguyen Van Thuan, Head of Finance at Digiworld, stated that the management assessed the investment portfolio as having a high level of safety and liquidity; the current loss is only temporary and is expected to improve in the future.
Concerns Needing Clarification
It is noteworthy that the recently published 2026 General Shareholders' Meeting documents of Digiworld lack updated information on the investment objectives for listed securities, the decision-making process, or the risk control measures related to this investment. In the Board of Directors' assessment report, two independent members, Mr. Tran Bao Minh and Mr. Nguyen Duy Tung, both stated that the Company has complied with the principles of Circular 116/2020/TT-BTC and continues to improve the quality of governance according to the Corporate Governance Principles applicable to listed companies in Vietnam and the ASEAN Corporate Governance Assessment Criteria.
According to Circular 116/2020/TT-BTC on corporate governance applicable to public companies, businesses must ensure transparency in the decision-making process and clearly define authority, while also implementing risk management for all investment activities. Securities investment is a higher-risk area than core business operations; therefore, internal regulations need to specify technical procedures and risk control, including: the Board of Directors issuing limits, determining authority, criteria for portfolio selection, assigning responsibilities for decision-making and transaction execution, as well as mechanisms for periodic reporting… This information needs to be fully disclosed so that shareholders have a basis for assessing the risks to the company and its shares.
According to the ASEAN Corporate Governance Assessment Criteria, key information affecting investor decisions must be disclosed promptly and fully. Shifting a portion of capital from core business operations to securities investment is a significant change in strategy and risk structure. In an unfavorable scenario, the company may have to increase provisions, thereby negatively impacting business results and share prices.
Such an unexpected investment decision, if shareholders are not fully informed and independent board members do not make corresponding recommendations, will lead to the company being judged negatively on its transparency level according to domestic and ASEAN regional governance standards.
N.Nga
Source: VITIC/Tinnhanhchungkhoan