AsemconnectVietnam - Vietnam Steel Corporation - JSC (TVN - UPCoM) has finalized a plan to divest its entire stake in the VTM joint venture. This transaction is expected to generate a significant financial profit of over VND1,000 billion in the second quarter of 2026.

Specifically, on June 24th, the TVN Board of Directors issued Resolution No. 72/NQ-VNS, approving the principle and plan to transfer its entire stake in Vietnam-China Mineral and Metallurgical Company Limited (VTM).
VTM is an affiliated company in which TVN holds 46.85% of the charter capital. According to the latest resolution, the transfer price for the entire block of shares is VND1,048.68 billion.
The most noteworthy aspect of this transaction lies in its accounting treatment. According to previous financial reports, due to VTM's prolonged operating losses, TVN's investment in this company has been fully provisioned, bringing its book value to 0 VND. Therefore, upon completion of the transfer transaction, the entire amount of nearly VND1.049 billion will be directly accounted for by TVN as financial income. This means that TVN may record a sudden profit of over VND1,000 billion in its Q2/2026 financial report.
At the 2026 Annual General Meeting of Shareholders, TVN approved a consolidated core pre-tax profit plan of VND725 billion. Thus, if this core business target is combined with the sudden profit from the divestment transaction at VTM, the total minimum pre-tax profit that TVN will achieve will surpass the record level of VND1,052 billion achieved in 2021.
In addition, the Corporation also plans to distribute cash dividends at a rate of 3%. With a charter capital of VND6,780 billion, TVN will have to spend approximately VND203.4 billion to pay dividends to investors in this round. The remaining profit after allocating funds will be retained to supplement capital for long-term development strategies.
However, TVN needs to be aware of two long-standing risks. A prime example is the Thach Khe Iron Mine project (Ha Tinh province), which has been temporarily suspended since 2009 due to technical and environmental issues, and is still awaiting a decision from the Government on whether to continue or stop.
Furthermore, a structural risk is the delay in the final settlement of the equitization process. Although TVN has been operating as a joint-stock company since October 1, 2011, the final settlement documents have not yet been approved by state agencies due to obstacles related to land valuation.
N.Nga
Source: VITIC/Bao Tai chinh – Dau tu