Vietnam's Largest Exhibition Center Operator Earns VND 4.6 Billion Daily from Loans

Vietnam Exhibition Fair and Exhibition Center Joint Stock Company (VEFAC), the operator of one of Southeast Asia's largest exhibition centers, reported financial income from loans and investments of VND 415 billion in the second quarter, averaging VND 4.6 billion per day. This income stems from over VND 14.391 trillion lent to partners at an annual interest rate of 12%, representing nearly half of the company's total assets as of June 30. VEFAC's net revenue in the second quarter reached VND 388 billion, a 77-fold increase year-on-year, driven by the transfer of a portion of its real estate holdings. Revenue from exhibition and fair activities contributed just over VND 40 billion, though this was still a tenfold increase compared to the same period last year. Despite lower exhibition revenue, the company's pre-tax profit rose 14.5% year-on-year to VND 504 billion, surpassing its net revenue. After-tax profit stood at VND 401 billion, up more than 15% from the previous year. VEFAC is a subsidiary of Vingroup, with the group holding over an 85% stake. The company is the developer of the Vinhomes Global Gates urban area project in Dong Anh district, Hanoi, spanning over 261 hectares with a total investment of nearly VND 34.88 trillion. However, a portion of this project was transferred in the first quarter of last year. VEFAC is also developing a complex of commercial centers, services, and mixed-use facilities at 148 Giang Vo street in Hanoi. For the first half of the year, VEFAC recorded revenues of VND 509 billion and an after-tax profit of VND 540 billion. This profit figure represents a significant decrease of over 96% compared to the VND 15 trillion reported in the same period last year. As of the end of the second quarter, VEFAC's total assets amounted to over VND 32.9 trillion, a 40% increase from the beginning of the year. The most notable improvement was in funds lent to other organizations. Advances received from buyers also surged by nearly 50 times to VND 8.327 trillion within six months. Source: VnExpress