Tax reform for home businesses: Electronic invoicing to replace poll tax
Following the Decree No. 70/2025, the Government decided to remove tax levied as a fixed sum on home businesses having annual revenue of over VND1 billion, forcing them to use electronic invoicing systems linked to the Taxation Department, effective from 1st June 2025. By the end of 2024, there were approximately 3.6 million home businesses registered but nearly 2 million of them chose ‘poll tax’ method, which typically undermines the real taxable income. If successful, this action could lead to higher domestic tax revenue for the Government in the future, sparing more rooms for expansionary fiscal policy.
THACO (privately held): Recent stock transaction implied capitalization of USD4.1 billion
A domestic securities company sold 5 million THACO’s shares at price of VND35,000 per share in Q1 2025, implying THACO’s capitalization stands at approximately VND107 trillion (about USD4.1 billion). Meanwhile, Mr. Tran Ba Duong, Founder and Chairman of the Board publicly disclosed that his conglomerate has been working with Jardine Cycle & Carriage (JC&C) and both parties agreed with fair valuation of 20x P/E for THACO’s shares, using full-year 2027 EPS. It suggest a potential capitalization of VND300 trillion (about USD11.5 billion) by 2027.
Currently, THACO directly is holding 27.6% ownership of HAGL Agrico (HNG VN) and has 3 out of 5 seats on the Board, including both Chairman and CEO positions. Performance wise, HAGL Agrico has experienced net loss in 4 consecutive years and is showing no signal of profitability at the moment. HNG VN was last traded at VND6,400 per share on 4th June 2025, suggesting 4.5x P/B while P/E is negative.
Asia Ingredient Group (AIG VN): Bonus issue and ESOP were approved
The shareholders of AIG voted for bonus issue of 20% (meaning shareholders will receive 20 shares for every 100 shares held) and an ESOP of 5%. The company will allocate options to buy over 35.8 million additional shares at VND10,000 per share (par value) to eligible employees.
The ESOP could be implemented in Q2 2025 and the ESOP shares will be locked up for 2 years after being distributed. In 2025, the company expects sales of VND14.8 trillion (about USD568.4 million, up +19%, YoY) and net income of VND799 billion (about USD30.7 million, up +13% YoY). AIG VN was last traded at VND46,000 per share on 4th June 2025, leading to 11.1x P/E and 1.5x P/B.
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