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Tag: Vingroup

  • Vingroup Delivers $1.1B Pretax Profit Driven by Property Surge

    Vingroup Delivers $1.1B Pretax Profit Driven by Property Surge

    Vingroup reported a pretax profit of nearly VND29.94 trillion ($1.1 billion) for the third quarter, a 7.4-fold leap compared to the same period a year earlier. Surging residential handovers and land sales pushed quarterly group revenue up nearly fourfold to VND150.58 trillion.

    Property development anchored the balance sheet. Residential and commercial real estate generated nearly VND98.5 trillion during the quarter, supplying more than 65 per cent of total revenue across the conglomerate.

    Property Cash Flows Fund Long-Term Exposure

    Vietnam’s largest listed firm held nearly VND107 trillion in cash and bank deposits by the end of September. That liquidity buffer followed an aggressive financing push, with Vingroup pulling in about $2.3 billion through corporate bond sales, preferred equity placements and syndicated foreign loans during the quarter.

    The cash generation from suburban township handovers provides the capital base required to absorb losses in adjacent industrial divisions. While property continues to yield immediate cash, the group channels that surplus into heavy industrial expansion and capital-intensive transport assets.

    Shifting Weight Across EV and Infrastructure Units

    Brokerage VNDirect Securities projects that property transactions will remain Vingroup’s core earner, generating at least 50 per cent of aggregate revenue and profit across the next five years. However, management is actively balancing its revenue exposure. Long-term corporate projections target a combined 30 per cent to 40 per cent revenue share from electric vehicles, energy and utility infrastructure.

    For developers, contractors and industrial supply chains in Vietnam, the conglomerate acts as both the primary private landlord and a dominant infrastructure procurer. The concentration of execution risk remains central: large master-planned developments in Quang Ninh, Hanoi and Ho Chi Minh City require sustained retail buyer appetite even as financing costs fluctuate across Asia.

    Transit Lines and National Pipeline

    Vingroup broadened its scope beyond traditional property and manufacturing in 2025, adding power generation and civil infrastructure units to its operating mix. The business now operates across residential development, vehicle assembly under VinFast, technology services, energy supply and railway contracting.

    In municipal transport, subsidiaries controlled by the group hold engineering, procurement and construction contracts covering five separate urban railway lines in Hanoi. Those metropolitan transit lines carry an estimated aggregate construction value of about $49 billion.

    Chairman Pham Nhat Vuong, whose net worth stands at $37.7 billion according to Forbes rankings, continues to steer capital from high-density suburban township deliveries directly into the group’s manufacturing balance sheets. Market attention now turns to delivery schedules across the multi-thousand-hectare urban zones in Quang Ninh and Ho Chi Minh City scheduled through the coming operating year.

  • VinFast Cuts Net Loss to $56 Million on Factory Disposals

    VinFast Cuts Net Loss to $56 Million on Factory Disposals

    VinFast narrowed its net loss to $56 million in the second quarter of 2026 after booking a $1.18 billion gain from selling its Vietnam factories.

    Operating losses from continuing operations rose 48 per cent from the previous quarter to $1.24 billion. The carmaker delivered 70,085 electric vehicles during the three-month period, bringing first-half deliveries to 43 per cent of its full-year target of 300,000 units.

    Factory Disposals and Debt Offloading

    The accounting relief stems from a broader balance-sheet overhaul. VinFast sold its two primary assembly plants in Vietnam and transferred $7 billion in debt to entities linked to parent company Vingroup and its founder, Pham Nhat Vuong.

    Vehicles will continue rolling off those domestic lines under long-term contract manufacturing agreements matching company specifications. The restructuring shifts heavy fixed capital off the carmaker’s books while keeping production flowing without direct factory ownership.

    Chief executive Pham Nhat Quan Anh, who took over leadership last month from his father, defended the transition toward an asset-light operating model during his debut analyst call.

    “We continue to hold and operate our plants in India and Indonesia, supporting local production,” Quan Anh said.

    Domestic Reliance and Asian Expansion

    Home-market buyers continue to absorb almost all output. Vietnam accounted for 89 per cent of deliveries in the second quarter, leaving overseas volumes heavily reliant on affiliate fleet deployments rather than direct consumer sales.

    Green SM, the taxi operator established by Vuong that runs exclusively on VinFast vehicles, serves as the primary distribution channel across new territories. The fleet operator expanded into Jakarta with motorbike services and launched operations in India, establishing initial vehicle volume ahead of retail dealer networks.

    Management identified Indonesia, India, and the Philippines as the core drivers for foreign market growth. Keeping physical factories in India and Indonesia allows the company to meet local manufacturing requirements while ducking heavy import duties in high-potential Asian markets.

    Pivot Away From Western Assembly

    The Asian focus follows severe friction in Western markets where direct sales and manufacturing stalled. North Carolina state authorities filed a lawsuit against the carmaker over missed construction deadlines and unmet job creation targets at its proposed US assembly site.

    Direct consumer demand in North America remains weak. Green SM recently launched taxi operations in Los Angeles to put vehicles on roads after private retail sales failed to gain traction, though the company plans to introduce its VF7 compact SUV and electric buses to US dealers later this year.

    Chief investment officer Chien Nguyen indicated that further expansion into the Americas and Europe remains under review, with details expected in the third quarter.

    Targets for the Second Half

    Meeting the annual 300,000-vehicle delivery target will require more than 170,000 handovers across the final six months of 2026. That push depends on ramping up the new VF Wild REEV, a range-extended electric pickup incorporating a backup combustion generator to alleviate range anxiety in developing markets.

    VinFast must now prove whether its asset-light manufacturing setup and captive taxi orders can generate real cash flow once the one-off financial gains from factory sales clear off the ledger.

  • Vingroup and Alstom Agree on Deal for 200 Hanoi Metro Trainsets

    Vingroup and Alstom Agree on Deal for 200 Hanoi Metro Trainsets

    Vietnam’s Vingroup and France’s Alstom announced a deal on Tuesday for 200 metro trainsets and an associated technology transfer to support Hanoi’s urban rail network. The partnership covers fully automated, driverless rolling stock for the capital city’s planned transit lines.

    Alstom will design and construct the initial batch of 83 five-car trainsets at its manufacturing plant in France. Vingroup will assemble the remaining 117 trainsets at its facilities in Vietnam. Alstom will supply engineering expertise, tooling systems, and critical components for the domestic build.

    Splitting production between France and Vietnam

    Work will shift industrial capacity to Vietnam in two phases. Alstom handles early engineering and fabrication in Europe to set technical baselines for the automated systems. Vingroup then assumes direct assembly operations to build out domestic rail manufacturing capability.

    Neither company disclosed delivery timelines or the total financial value of the contract. Alstom will stay tied to local assembly lines across the build program, providing specialized parts and technical supervision throughout.

    Industrial shift for Vietnam’s transit pipeline

    Securing domestic rolling-stock assembly alters the economics of future transit tenders. It reduces long-term dependence on fully imported fleet orders. However, Vingroup takes on the execution risk of mastering precision rail manufacturing alongside its existing industrial operations.

    Rail development is one of Vietnam’s most active transport sectors. Planners in Hanoi and Ho Chi Minh City have mapped out approximately a dozen lines between them. That pipeline creates continuous demand for standardized rolling stock and signalling hardware across both hubs.

    Scaling the capital city network

    Vietnam has accelerated procurement to relieve road congestion and support high-density commercial corridors. In the capital, Hanoi has outlined a blueprint to expand its urban rail footprint to 979 route kilometres across 18 separate lines by 2045.

    Fleet procurement will scale up as line construction advances toward those milestones. The next operational metric to watch will be the formal announcement of delivery schedules and line allocations for the first French-built trainsets.

  • Vanguard to Invest $2.5 Billion in Vietnam Equities After FTSE Upgrade

    Vanguard to Invest $2.5 Billion in Vietnam Equities After FTSE Upgrade

    Vanguard will invest US$2.5 billion in Vietnamese equities over the next 12 months. The allocation follows the country’s promotion to emerging market status under FTSE Russell standards.

    Capital will flow across 27 constituent stocks added to the index series. That total exceeds domestic brokerage forecasts, which pegged inflows between US$1 billion and US$2 billion.

    FTSE Russell enacted the reclassification on Sept. 21. The change opens the Southeast Asian market to passive institutional portfolios tracking global equity benchmarks. Vanguard funds tracking the FTSE Global Equity Index Series will execute initial net purchases of roughly US$240.5 million across the newly eligible tickers, according to data from domestic brokerage SSI Research.

    Allocation across large-cap and mid-cap constituents

    Twenty-seven designated Vietnamese companies sit across three capitalization tiers. State-run lender Vietcombank, property and industrial conglomerate Vingroup, and residential developer Vinhomes anchor the large-cap basket.

    Lenders BIDV and VPBank join industrial producer Hoa Phat Group in the mid-cap bracket. Another 21 companies fill the small-cap segment. These spread exposure across industrial, consumer, and financial counters listed on the Ho Chi Minh Stock Exchange.

    Duncan Burns, head of investments and global equity for Asia-Pacific at Vanguard, confirmed the deployment schedule at an industry briefing. “Many investors may have never visited Vietnam, but through us, they can participate in the sustainable growth of this market,” Burns said.

    Capital reallocation across Southeast Asian bourses

    Foreign institutional liquidity will now enter an exchange historically dominated by retail accounts. Passive exchange-traded funds rebalance automatically. They force systematic capital allocation regardless of short-term macroeconomic swings or retail sentiment.

    Consumer-facing conglomerates and retail property developers gain direct balance sheet stability from these institutional holdings. Companies with available foreign ownership room can issue primary equity more cleanly when international indexers hold baseline blocks. That lowers the cost of capital for retail expansion and logistics buildouts.

    Market liquidity and foreign ownership limits pose clear risks. Several commercial banks and retail enterprises in Ho Chi Minh City trade at or near statutory foreign ownership caps. Secondary buying pressure can create pricing premiums or redirect funds toward names with larger available float.

    Regulatory steps preceding the index upgrade

    Technical reforms targeting settlement friction and foreign broker access enabled the upgrade. Vietnam’s State Securities Commission removed mandatory pre-funding rules for foreign institutional investors earlier this year. That reform cleared the main operational hurdle delaying inclusion since 2018.

    Vietnamese finance minister Ngo Van Tuan said regulators will introduce new trading products and enforce tighter disclosure rules across listed entities to align domestic clearing mechanisms with global standards.

    Attention now turns to the quarterly FTSE rebalancing review in December. That review will decide whether more consumer and industrial listings qualify for the index.

  • VinFast Affiliate GSM Launches First Overseas Motorbike Service in Jakarta

    VinFast Affiliate GSM Launches First Overseas Motorbike Service in Jakarta

    Vietnam’s electric taxi operator Green and Smart Mobility (GSM) launched VinFast electric motorbike taxis in Jakarta in September 2026. The rollout is its first two-wheeler passenger service outside Vietnam.

    This expansion deepens the Vingroup affiliate’s presence in Southeast Asia’s largest economy, potentially creating another sales channel for the loss-making EV producer. GSM previously launched electric car services in the Indonesian capital.

    Fleet deployment across Jakarta

    Operating locally as PT XANHSM Green and Smart Mobility Indonesia, the company integrated two-wheeler bookings into its consumer app alongside its Green Car and Green Premium tiers. Local operating centres recruit drivers directly, using VinFast electric scooters built for commercial urban transit.

    Jakarta is the first overseas market for GSM’s two-wheeler taxi model. In Vietnam, the company already runs extensive fleets of electric cars and scooters across major cities, including Ho Chi Minh City and Hanoi.

    Captive demand for VinFast

    Commercial volume from the expansion flows directly to VinFast. The Vietnamese automaker remains loss-making as it scales production. Internal fleet sales through GSM absorb factory output and build brand visibility in new export territories.

    Deploying fleets creates instant street-level exposure in congested Southeast Asian capitals. For vehicle manufacturers entering price-sensitive markets without established dealer networks, a proprietary ride-hailing platform serves as both a test fleet and a live showroom.

    Competition in Indonesian ride-hailing

    Entering Jakarta puts GSM into direct competition with dominant incumbents Grab and GoTo’s Gojek. Both operate massive two-wheeler networks across Indonesia. Established players rely primarily on gig drivers who own their vehicles. GSM instead operates a dedicated fleet structure, controlling vehicle standardisation and battery charging infrastructure.

    High capital costs for vehicle procurement, fleet maintenance and charging support present clear financial risks in a market with strictly regulated motorcycle fares and severe price competition. GSM bets that lower operating and maintenance costs per kilometre will offset the capital outlay of deploying new electric two-wheelers.

    Regional footprint and next steps

    Parent conglomerate Vingroup is pushing to build an international footprint for its transport ecosystem. GSM has expanded rapidly across Southeast Asia and Central Asia, entering Laos and Kazakhstan with fleet operations running exclusively on VinFast hardware.

    Regulatory approvals for broader route operations and expanded driver recruitment across greater Jakarta will determine how quickly GSM scales beyond initial central deployment zones.

  • Vietnam Weighs First Sovereign Dollar Bond Sale Since 2014

    Vietnam Weighs First Sovereign Dollar Bond Sale Since 2014

    Vietnam’s finance ministry is in talks with international investment banks to issue its first sovereign dollar bond in over a decade. Proposals on the table include a 10-year note raising between $500 million and $1 billion, carrying an estimated coupon of around 7 per cent.

    Hanoi plans to channel the proceeds into ports, transport corridors and industrial infrastructure to support an official target of at least 10 per cent annual economic expansion through 2030. Officials are weighing borrowing costs against elevated global yields before making a formal commitment.

    Bank Proposals and Pricing Pressures

    One foreign lender pitched a $1 billion 10-year dollar bond during discussions in Hanoi. Another bank recommended a flexible issue size starting at $500 million at roughly a 7 per cent coupon, reflecting current international borrowing benchmarks.

    Domestic debt issuance has reached over $9 billion so far this year. While the total volume matches last year’s pace, the average local 10-year yield climbed to 4.2 per cent from 3.1 per cent, raising the price tag of funding public works purely through local auctions.

    Corporate Borrowing Clears the Path

    State planners have eased limits on external commercial debt while government ministries negotiate terms. The State Bank of Vietnam lifted the annual ceiling for private-sector offshore borrowing to $6.1 billion this year, up from $5.5 billion in 2025, and officials are already reviewing requests to push that threshold higher.

    Commercial borrowers have moved fast to secure offshore liquidity. VPBank closed a $1.44 billion syndicated foreign loan facility in June, while conglomerate Vingroup listed a $350 million five-year bond on the Vienna Stock Exchange in April at a 5.75 per cent coupon. Vingroup has also filed to sell 455 billion won, or about $338 million, in three-year notes yielding 8 per cent to institutional investors in South Korea.

    For supply chain operators and consumer goods distributors across the country, a sovereign benchmark establishes a clear pricing floor for long-term project debt. Without sovereign paper in circulation, corporate issuers face wider risk premiums when raising hard currency for distribution hubs, cold storage networks, and factory expansions.

    Relieving Domestic Lending Strains

    Local commercial banks have carried the load of infrastructure and industrial loans for years. Credit expansion in Vietnam has outstripped domestic deposit growth continuously since 2021, creating balance-sheet friction that constrains private business lending.

    Vietnam last accessed the offshore sovereign bond market in 2014, when it sold a $1 billion 10-year note with a 4.8 per cent coupon. The country has kept public debt low, at approximately 37 per cent of gross domestic product, but bilateral development loans from Germany and Japan signed earlier this year confirmed a shift toward tapping external balance sheets.

    The next signal will come from the finance ministry’s formal syndicate mandate, which will determine whether Hanoi proceeds with the $1 billion issuance before global debt markets close out the fiscal year.

  • Vingroup Deputy Chair Pham Thu Huong Enters Global Top 1,000 Wealthiest at $4.5B

    Vingroup Deputy Chair Pham Thu Huong Enters Global Top 1,000 Wealthiest at $4.5B

    Vingroup deputy chairwoman Pham Thu Huong entered the world’s 1,000 wealthiest people on Friday as her net worth climbed to US$4.5 billion. Shares in the Vietnamese conglomerate reached a record VND256,000 (US$9.82), adding nearly US$200 million to her personal fortune in a single trading day.

    The 57-year-old executive ranked 963rd on the Forbes real-time billionaire index after gaining 4.67 per cent in valuation during the session. She has climbed 443 positions since February, when she first joined the global ranking in 1,406th place. Huong now ranks as the second-richest woman in Southeast Asia, trailing only Indonesian data center operator DCI Indonesia co-founder Marina Budiman, who controls an estimated US$6 billion fortune.

    Record Conglomerate Rally

    Vingroup shares have advanced 51 per cent since the start of the year, expanding wealth across the group’s founding family. Pham Nhat Vuong, Huong’s husband and the chairman of Vingroup, expanded his net worth by 36 per cent over the same period to US$39.3 billion.

    Vuong reached 54th place on the global wealth table on Friday. His personal fortune increased by US$1.6 billion in 24 hours, making him one of the five biggest single-day wealth gainers worldwide.

    Southeast Asian Wealth Shifts

    Regional market trends tracked across Southeast Asia show Vietnam’s large diversified groups capturing substantial equity gains this year, outpacing broader regional indices. Other Vietnamese business figures on the global list include Vietjet Air chairwoman Nguyen Thi Phuong Thao, who ranked 1,099th with US$3.9 billion, alongside Vingroup leader Pham Thuy Hang.

    Trading desks in Hanoi will monitor whether Vingroup can defend its record share price above VND256,000 as third-quarter earnings disclosures approach.

  • Vinpearl CEO Dang Thanh Thuy Steps Down: A Turn of Tide in Vietnam’s Hospitality Giant

    Vinpearl CEO Dang Thanh Thuy Steps Down: A Turn of Tide in Vietnam’s Hospitality Giant

    Dang Thanh Thuy has stepped down from her position as chief executive officer of Vinpearl, Vingroup’s resort division. Despite her resignation, Thuy continues to hold a seat on the organization’s board. Vinpearl has not yet announced a successor or the reasons behind Thuy’s departure.

    Background of Dang Thanh Thuy

    Thuy, 56, holds a Bachelor’s degree in literature. She joined the ranks of Vinpearl in 2004 and has held significant positions in the company over the years. She served as the chairman of Vinpearl from January 2023 to March 2024, and from 2012 to 2016, she was the deputy CEO of Vingroup.

    Vinpearl’s Status in the Hospitality Industry

    Vinpearl stands as one of the foremost hospitality brands in Vietnam, boasting an impressive portfolio of 48 hotels, resorts, theme parks, and golf courses spread across 18 provinces and cities.

    Financial Performance

    In the third quarter of 2025, Vinpearl reported revenues of VND3.09 trillion (US$117.5 million), marking a 40.7% decrease year-on-year. The company’s post-tax profits stood at VND169 billion, falling 66.6%. Furthermore, its profits for the first nine months of the year saw a drastic decline, plummeting by 86%.

    Vinpearl is primarily owned by Vingroup, with an ownership stake of 85%. The conglomerate’s chairman is renowned billionaire, Pham Nhat Vuong.

    Questions & Answers

    Who was the previous CEO of Vinpearl?
    Dang Thanh Thuy was the former CEO of Vinpearl.

    What significant positions did Dang Thanh Thuy hold in Vinpearl and Vingroup?
    Dang Thanh Thuy served as the chairman of Vinpearl from January 2023 to March 2024 and was the deputy CEO of Vingroup from 2012 to 2016.

    What was the financial performance of Vinpearl in the third quarter of 2025?
    In the third quarter of 2025, Vinpearl reported revenues of VND3.09 trillion (US$117.5 million), a 40.7% decrease year-on-year. The company’s post-tax profits stood at VND169 billion, a decrease of 66.6%.

  • Vingroup Unveils Ambitious $14B Port and Logistics Complex Project in Hai Phong

    Vingroup Unveils Ambitious $14B Port and Logistics Complex Project in Hai Phong

    In a significant development plan for Hai Phong, a sprawling 4,400-hectare complex in the southern part of the city will unfold over three phases, as announced by the board of directors. The initial phase is set to kick off next year, aiming for completion by 2030, while the following phases are slated for 2031 to 2035 and 2036 to 2040.

    Vingroup intends to finance 15% of the project from its own resources, with plans to secure the remaining funds through external partnerships. In recent years, the Vietnamese conglomerate has made substantial investments in Hai Phong, including the notable $1.5 billion VinFast automobile factory located in the industrial zone on Cat Hai Island.

    The real estate arm, Vinhomes, is simultaneously broadening its footprint in Hai Phong, currently developing its fourth project across 240 hectares. This expansion complements its successful completion of three key residential projects: Royal Island, covering 870 hectares; Imperia, at 78 hectares; and Mariana, encompassing 50 hectares.

    New Industrial Parks on the Horizon

    In addition to its residential developments, Vingroup has ambitious plans in the industrial sector, as it prepares to break ground on two new industrial parks in Hai Phong next year. There’s also an upcoming liquefied natural gas-to-power project, further underscoring Vingroup’s commitment to enhancing the region’s infrastructure.

    Positioned as a burgeoning industrial hub, Hai Phong has firmly established itself as a leader in northern Vietnam’s production landscape. Following its recent merger with Hai Duong Province in July, the city now boasts 15 large industrial parks and one of the country’s most extensive deep-water port networks. This strategic geographical advantage is paying off, with cargo throughput at Hai Phong’s ports consistently rising by 12-15% annually.

    In 2024, the port facilities managed an impressive 190 million tons of cargo, and expectations are set even higher for this year, with projections reaching 212 million tons. Meanwhile, the city’s plans for a southern coastal economic zone, announced last year, indicate a need for 20,000 hectares and an investment ranging between VND 400-600 trillion (approximately $15-23 billion).

    Local leaders acknowledge that foreign industrial investment has been a pivotal factor in driving economic growth over the past decade. However, challenges remain, particularly with the Dinh Vu-Cat Hai economic zone, which, established in 2008, is nearing full capacity and struggling to accommodate new projects.

    Questions & Answers

    What are the key phases of Vingroup’s development project in Hai Phong?
    The development will unfold in three phases: the first starting next year and set for completion by 2030, with subsequent phases planned from 2031-2035 and 2036-2040.

    How much is Vingroup planning to invest in the project?
    Vingroup is set to invest 15% from its own resources while seeking additional funding through other sources.

    What challenges does Hai Phong face with its industrial zones?
    The Dinh Vu-Cat Hai economic zone, established in 2008, is almost fully developed and lacks available land for new projects, which poses challenges for future growth.

  • Vingroup Plans $4B HCMC Metro Line to Boost Retail and Consumer Demand

    Vingroup Plans $4B HCMC Metro Line to Boost Retail and Consumer Demand

    Vingroup, Vietnam’s largest private enterprise, has unveiled plans for an ambitious high-speed metro line that will connect downtown Ho Chi Minh City (HCMC) to the coastal district of Can Gio. This transformative project is set to cost $4 billion and promises to significantly boost local transportation and economic activity.

    A Vision for Urban Development

    The proposal, revealed through discussions with city authorities, highlights Vingroup’s intention to undertake the full financial responsibility for the project. Headed by Pham Nhat Vuong, Vietnam’s wealthiest individual, the company aims to finance the construction through a public-private partnership model. In return, Vingroup seeks operational permits for the metro line.

    “Vingroup has a solid history of executing large-scale infrastructure projects,” a company representative stated. This latest initiative aims to provide a seamless transit experience for HCMC residents, significantly enhancing urban mobility.

    Metro Line Details and Projections

    The proposed metro line will span 48.5 kilometers, stretching from Nguyen Van Linh Avenue in District 7 to Can Gio. This coastal district is not only noted for its stunning mangrove forests but also presents substantial tourism potential. Vingroup envisions the metro trains achieving speeds of up to 250 kilometers per hour, thereby elevating business connectivity and commuter convenience across the region.

    Currently, Can Gio is an area of significant development for Vingroup, which is working on an extensive urban project covering nearly 2,900 hectares. This development is expected to accommodate around 230,000 residents with an investment of $9 billion.

    City Approval and Future Plans

    For the metro line proposal to move forward, it requires approval from HCMC authorities. Prime Minister Pham Minh Chinh has previously endorsed Vingroup’s initiative, urging the city to collaborate with private sector firms on major projects to stimulate economic growth.

    In addition, HCMC has set forth an ambitious plan to expand its metro network. By 2035, six new routes are slated for development, alongside three additional lines by 2045, with an overall investment reaching an estimated $67 billion.

    Impact on the Retail Sector

    As Vingroup spearheads this groundbreaking infrastructure project, the potential implications for the retail sector in HCMC are substantial. Enhanced transportation options are likely to increase foot traffic in commercial districts, benefiting local businesses and attracting new investments. This aligns with emerging consumer trends that favor accessible and efficient urban mobility solutions, setting the stage for a vibrant economic landscape in Vietnam’s largest city.

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  • Vingroup revenues down 5%

    Vingroup revenues down 5%

    Vingroup, Vietnam’s biggest private conglomerate, made total consolidated net revenues of VND88.191 trillion ($3.56 billion) in the first nine months, posting a year-on-year decline of nearly 5%.

    Vingroup gained after-tax profits of VND1.571 trillion, according to its latest consolidated financial statements.

    By the end of September, the firm’s total assets stood at VND555.571 trillion, up 30% against late last year, mainly due to successful transactions among new real estate projects.

    Vingroup said its property segment will continue to grow in the last quarter and next year, and its vehicle sales will rise in the last quarter. Its other segments, including trade center business, tourism, recreation, healthcare and education are also expected to recover.

    Since the beginning of this year, Vingroup has mobilized $760 million from the international capital market, including $625 million worth of international bonds and $135 million from an anti-climate change financial package from the Asian Development Bank.

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  • Vingroup reports first-ever loss

    Vingroup reports first-ever loss

    Vingroup made after-tax losses of over VND7.5 trillion ($326 million) in 2021, its first-ever loss, citing funding for the pandemic fight and heavier investments in electric car development.

    Vietnam’s biggest private conglomerate’s net revenues stood at VND125.306 trillion last year, up 13 percent over 2020.

    Vingroup said some of its businesses, including real estate for rent, resort, and entertainment, were greatly affected by the prolonged social distancing campaigns in many localities. Vincom Retail, the retail real estate arm of conglomerate Vingroup, spent up to VND2.115 trillion assisting tenants, which also affected total revenues.

    Last year, the group sponsored Covid-19 prevention and other activities to the tune of VND6.099 trillion. It also decided to stop producing gasoline-powered cars from the end of 2022 to focus resources on electric vehicles.

    By the end of 2021, the group’s total assets were valued at VND427.3 trillion ($18.87 billion), up 1 percent from the beginning of the year.

    Recently the group adjusted its orientation, redefining three focus groups of activities, namely technology and industry, trade and service, and social charity.

  • Vietnam car maker VinFast to build US battery factory as it goes all-electric

    Vietnam car maker VinFast to build US battery factory as it goes all-electric

    Vietnam’s VinFast plans to build electric vehicle battery cells and packs in a new U.S. manufacturing complex, its global chief executive told Reuters, as the company pledged to transform itself into an all-electric automaker by the end of this year.

    VinFast, part of Vingroup JSC, the largest conglomerate in the country, became the country’s first full-fledged domestic car maker when gasoline-powered models built under its own badge hit the streets in 2019.

    The company, which began selling electric vehicles (EVs) in Vietnam at the end of 2021, said in a statement on Thursday it planned to become what it said would be the first car company to cease making gasoline-powered cars and transition to all-electric vehicle production from late 2022.

    VinFast is betting big on the U.S. market, where it hopes its electric SUVs and a battery leasing model will be enough to tempt consumers away from the likes of Tesla and General Motors.

    “We will build our gigafactory in the U.S. as well,” Le Thi Thu Thuy, Vingroup vice chair and VinFast Global CEO said, referring to the new battery facility in an interview during her U.S. visit to attend the Consumer Electronics Show in Las Vegas.

    The company will continue to source batteries from its suppliers, she added. Thuy said VinFast will initially assemble battery packs with cells sourced from its supplier at its U.S. complex before starting its own production there.

    “We have narrowed down from I think, over 50 sites to about three sites,” she said.

    She will visit some sites during her trip before making a decision this year, adding that the “mega site” would also include an electric bus factory.

    In December, Vingroup said it had started building a battery cell plant in Vietnam. The company is looking to initially produce 100,000 battery packs per year, with $174 million in investment, and then upgrade capacity to one million.

    VinFast previously said it had plans to start producing electric cars in the U.S. in the late 2024. The company said that on Thursday it was seeking to establish an EV plant in Germany.

    “The era of shipping cars around the world is over, especially since Covid-19. You must have the factory close to the market in order to win over your customers,” VinFast said in a statement.

    VinFast said prices for its VF8 sport utility vehicle (SUV) started from $41,000 in the United States, and that it would apply blockchain technology to record orders and confirm ownership. By comparison, a Tesla SUV sells for around $50,000. Vingroup said it was targeting global electric vehicle sales of 42,000 in 2022. Shares of Vingroup rose as much as 5.8 percent on Thursday after it revealed VinFast’s EVs line-up and the plans to go all-el

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  • Vingroup launches Big Data research company

    Vingroup launches Big Data research company

    The Vingroup Corporation (VIC), Vietnam’s largest private conglomerate, has set up a new firm – VinBigData Jsc – with a chartered capital of VND470.8 billion ($20.29 million).

    The group will hold a 99 percent stake in the new company. The formation of VinBigData is based on the separation of a part of science and technology functions (scientific and technological services) of the Big Data Research Institute – under the Vintech Technology Jsc.

    This new company has registered to function in 25 fields, focusing mainly on scientific research and technological development.

    Vingroup had established last month an artificial intelligence research and application company, VinAI.

  • Vingroup sets up drug company

    Vingroup sets up drug company

    Vietnam’s largest private company, Vingroup, has established pharmaceutical company Vinbiocare with a charter capital of VND200 billion ($8.6 million).

    Its focus will be on medicine, vaccines.

    Vingroup owns 69 percent of Vinbiocare Biotechnology JSC, its formal name, which is headquartered in Hanoi, while Phan Quoc Viet, CEO of tech firm Viet A Technology Corporation, owns 30 percent. The remaining 1 percent is held by an individual investor, Phan Thu Huong.

    Mai Phuong Noi, deputy CEO of Vingroup, is its chairwoman.

    Vingroup entered the pharmaceutical industry in 2018 by establishing Vinfa JSC and setting up a plant in Gia Binh District in the northern Bac Ninh Province.

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