Tag: Vingroup

  • VinFast, South Korean firm to make batteries for EVs

    VinFast, South Korean firm to make batteries for EVs

    The joint venture will be located in the automaker’s factory in the southern port city of Hai Phong, where it will manufacture lithium-ion battery packs for VinFast’s electric scooters that are being made now, and for electric cars to be produced in the future, VinFast said in a statement.

    The factory, which will be built on a 2,000 square meter area, will employ Vietnamese workers who will be trained in technology provided by LG Chem.

    The automaker, a unit of Vietnam’s largest conglomerate Vingroup, rolled out its first made-in-Vietnam cars last month, the first steps in a $3.5 billion automaking venture.

    VinFast has recently sent its SUV and sedan to European and Asian countries for quality testing and is set to deliver preordered vehicles in the second and third quarter.

  • Vingroup buys Vietnam c-store chain Shop&Go

    Vingroup buys Vietnam c-store chain Shop&Go

    Vingroup has acquired 87 Vietnamese Shop&Go convenience stores for just US$1.

    Vingroup’s retail arm VinCommerce, which manages Vinmart supermarkets and Vinmart+ convenience stores, will upgrade infrastructure, staff and goods at the acquired stores by the end of next month.

    According to a VinCommerce statement, Shop&Go made the approach and offered to sell itself.

    “The competition is more intense than we imagined; that is why we’ve decided to leave,” a Shop&Go spokesperson said, admitting Vietnamese retail market still has potential for growth.

    “We have sold our stores to Vingroup so it can continue to develop them.”

    Opened in 2006, Shop&Go was one of the earliest convenience store chains in Vietnam.

    By 2016, it had aggregated losses of almost VND205 billion (US$8.81 million).

    VinCommerce runs 108 VinMart supermarkets and 1900 VinMart+ convenience stores.

    Last year, it acquired supermarket chain Fivimart with 23 outlets.

    In a report last year, Nielsen Vietnam observed a rise in visits by Vietnamese to convenience stores. The average shopper uses a convenience store 4.5 times per month – three times the frequency of 2010.

  • VinFast rolls out its first made-in-Vietnam car

    VinFast rolls out its first made-in-Vietnam car

    Vietnam’s first full-fledged carmaker has started trial runs in its Hai Phong factory, preparing to deliver preordered vehicles later this year. The Lux SA 2.0 SUV, which has a 228 horsepower engine and an 8-gear automatic transmission, started its first run Wednesday at VinFast’s factory in the northern port city of Hai Phong.

    Commercial versions of both the SUV and a sedan will be delivered in the second and third quarter this year to customers who have pre-ordered.

    VinFast, a unit of Vietnam’s largest private conglomerate Vingroup, claims to be the first auto manufacturer in Vietnam with a closed, synchronous and complete cycle of production.

    The first cars will be tested in several countries including Australia, Austria and South Korea to make them European standards. They will also be tested in Vietnam for endurance in various climates and conditions.

    VinFast showed off prototypes of its first two car models at the Paris Motor Show in France last October, just a year after the company’s incorporation.

    A limited edition of its Lux SA 2.0, called the Lux V8 with a 455 horsepower V8 engine, is being displayed at the Geneva Motor Show 2019 this week.

  • VinFast to test its first car for safety in Europe next month

    VinFast to test its first car for safety in Europe next month

    VinFast, Vietnam’s first indigenous car manufacturer, plans to test its first vehicle for safety parameters in Europe on March 6. According to company executives, the vehicle will be tested for international standards to ensure its highest safety. This announcement came after VinFast’s Hai Phong factory successfully manufactured the first body shell of the Lux A2.0, a sedan, Wednesday.

    Shaun William Calvert, deputy general director in charge of production, said the first body shell meets the highest quality requirements.

    VinFast, the car manufacturing unit of Vietnam’s largest private conglomerate Vingroup, showed off its first two car models, a sedan and an SUV, at the Paris Motor Show in France last October just a year after the company’s incorporation, grabbing the attention of the local and international media.

    VinFast’s first cars are expected to hit the road in August 2019.

  • First Vietnamese to enter 200 richest people in the world list

    First Vietnamese to enter 200 richest people in the world list

    Pham Nhat Vuong is the first Vietnamese to enter the list of the world’s 200 wealthiest people. He has an estimated worth of $7.5 billion. Vuong, who heads the Vingroup conglomerate, is 198th on the real time billionaires ranking updated by Forbes magazine on Saturday. His net worth has increased by $3.2 billion over last year when he topped Forbes’s list of four Vietnamese billionaires.

    A 13 percent increase in the value of Vingroup’s shares in the first week after Vietnam’s stock market reopened following a 9-day Tet (Lunar New Year Festival) break has been a factor in boosting Vuong’s net worth and catapulting him into the top 200 list.

    Price of Vingroup’s share (VIC) stood at VND112,000 ($4.82) at the end of the trading session last Friday.

    Vingroup, one of Vietnam’s largest real estate conglomerates, has been expanding rapidly into retail, logistics, agriculture, education and healthcare sectors. Vuong was first mentioned as a billionaire on the Forbes list in 2013 with a net worth of $1.5 billion, ranking 974th richest in the world.

    Nguyen Thi Phuong Thao, the other Vietnamese billionaire and owner of budget carrier Vietjet, is 1,014th on the Forbes list of global billionaires with assets worth around $2.3 billion.

    Topping the Forbes list was Amazon founder Jeff Bezos, who became world’s first centi-billionaire with a net worth of $133 billion, up $21 billion from 2018. Bill Gates, Microsoft’s co-founder, was in second place with a net worth of $97 billion.

  • From bikes to phones, ‘Made in Vietnam’ grows with foreign help

    From bikes to phones, ‘Made in Vietnam’ grows with foreign help

    Vietnamese companies are branching out into new areas, in line with the government’s goal of establishing the country as a manufacturing powerhouse by 2020. Real estate conglomerate Vingroup has started manufacturing electric motorbikes and smartphones and is set to enter the car industry in June. VinFast, a Vingroup unit, began selling its first electric motorbike in November. Designed in the mold of Italy’s Vespa, the Klara is a stylish, well-manufactured bike that can cover up to 80 km on one charge.

    Klara, like many other domestically made products, however, remains heavily dependent on foreign parts and technologies. While the collaboration with companies such as BMW, Robert Bosch and Siemens enabled Vingroup to bring the Klara to the market in just over a year after announcing plans to expand into motor vehicles, it reflects the long path the country has to travel before becoming a full-fledged industrial power.

    A group of 20 European businesses are helping Vingroup produce the bike, and around 200 German engineers are currently working at Vingroup’s plant in the northern city of Haiphong. Klara offers a glimpse into the type of outside assistance that will go into building the country’s first national car, which the company plans to launch in June.

    Some of the company’s cars will be based on a small vehicle produced by Germany’s Opel and use chassis provided by Western makers, according to local media. An Italian design studio that has worked for Ferrari and other European marques is in charge of designing VinFast cars.

    Most of the parts have to be imported, as the country lacks a developed car manufacturing supply chain.

    Vingroup’s foray into the smartphone market is also supported heavily by foreign manufacturers.

    The conglomerate has teamed up with Spanish maker BQ to launch its Vsmart model, and its smartphone plant has started operation, also in Haiphong.

    Vingroup has enlisted the help of Qualcomm and Google for its smartphone business.

    Vietnam’s first domestically made smartphone, the Bphone, was launched in 2015 by software developer Bkav and was also largely made up of components supplied by foreign makers. Its liquid crystal display, for instance, came from Sharp and its chips from Qualcomm.

    In October, Bkav put the third-generation model of the Bphone on the market.

    Truong Hai Automobile, also known as Thaco, a contract manufacturer for Mazda Motor and Kia Motors, started selling Vietnamese-made agricultural machinery in 2018. The company, which has entered a technological tie-up with South Korea’s LS Mtron, reportedly makes equipment mostly with imported parts.

    The government is seeking to develop a cycle of domestic manufacturing, hoping that sales of locally made products will help its industries climb up the technology ladder and create employment.

    It is understood that a variety of tax and other incentives are being extended to Vingroup and other companies that are cooperating with state efforts to promote domestic production.

    Some analysts, however, have questioned the sustainability of this approach.

    “What Vietnam needs to do is to accelerate technology transfers to small and midsized companies for long-term development, instead of providing special incentives to specific large companies,” said a Hanoi-based Japanese consultant.

    In addition, the “Made-in-Vietnam” label has yet to win over consumers, according to Cao Thi Khanh Nguyet at the Asia Pacific Institute of Research, and manufacturers need a well-designed brand strategy to establish a solid presence in the market.

    Samsung Electronics, which operates two massive manufacturing plants in the country, controls 40% of its smartphone market. Many consumers also opt for Japanese, Thai and South Korean products when it comes to food and daily goods.

    Manufacturers in emerging markets often look to foreign powerhouses for support in accelerating their growth and evolution.

    Generally, industries begin the shift toward domestic production after they have acquired sufficient expertise and built up a dependable network of domestic suppliers.

    Some analysts say that Vietnam’s push to establish full-fledged domestic production by 2020 is too ambitious. But the blueprint has been in place for years.

    The 2020 target was first proposed at the ruling Communist Party’s National Congress in 1996. Two decades later, in 2016, the party reiterated its pledge to make the country a modern industrialized nation, despite widespread expectations that the plan would be abandoned.

    Vingroup chose Sept. 2, 2017 to announce its entry into automotives. It was no coincidence, falling on National Day, when the Vietnamese commemorate Ho Chi Minh’s 1945 declaration of independence.

  • Vingroup reports $25 mln revenue from vehicle, smartphone sales

    Vingroup reports $25 mln revenue from vehicle, smartphone sales

    Vietnam’s largest listed private company Vingroup has reported revenues of VND600 billion ($25.77 million) from car, electric motorbike and phone sales last year. VinFast, a Vingroup subsidiary, became the country’s first indigenous car manufacturer last October and showed off its first two car models at the Paris Motor Show in France. It has begun to accept bookings and deposits for the cars, and will start selling them next August.

    Last November it launched its first two electric scooters, but has not disclosed sales figures.

    VinSmart, the Vingroup unit that produces smart electronic devices, launched four new phones in December in a market of 95 million people currently dominated by Samsung and Apple.

    Its factory in the northern city of Hai Phong is capable of making five million phones a year in the first phase.

    The company also hopes to expand to markets outside Vietnam, and will make smart TVs and other smart products soon.

    Vingroup is a conglomerate with the country’s largest real estate operations and interests in retail, healthcare and resorts.

    The conglomerate reported profit before tax of over VND13.8 trillion ($592.6 million) last year, up 52 percent from 2017, on net revenues of VND122.57 trillion ($5.24 billion).

  • VinFast announces seven new car models

    VinFast announces seven new car models

    VinFast, Vietnam’s first fully-fledged car manufacturer, plans to launch seven new ‘premium’ models. Following the first line of Lux (short for Luxury) automobiles aimed at the high-end segment, VinFast, a unit of Vietnam’s largest private conglomerate, Vingroup, has announced it will launch a Pre (short for Premium) car line with the aim of tapping a larger customer base.

    The company has opened a polling page for customers to vote on the seven most popular models out of a potential 35.

    The seven Pre models will include a hatchback and a CUV (crossover SUV) for the A and B segments; one Sedan and CUV for the C segment; and 1 Sedan, 1 SUV and 1 family car for the D segment.

    VinFast will continue to work closely with the famous Italian studios, Ital Design, Torino Design, and Pininfarina on designing the new models.

    VinFast showed off its first two car models, a sedan and an SUV, at the Paris Motor Show in France last October just a year after its incorporation, grabbing the attention of the local and international media.

    VinFast’s first production models built under its own badge hit the streets in August 2019.

    According to the Vietnam Automobile Manufacturers’ Association, total car sales in the country topped 288,000 units in 2018, up 5.9 percent from around 272,000 units in 2017.

  • Vietnam’s top five brands increase value by $2.3 billion

    Vietnam’s top five brands increase value by $2.3 billion

    Vietnam’s five most valuable brands were worth a combined $8.1 billion in 2018, up $2.3 billion or 39 percent against 2017, Brand Finance estimated. The most valuable brand was military-owned mobile network Viettel at $2.8 billion last year, up 9 percent from $2.57 billion 2017, said the UK brand valuation company. The 47th most valuable telecom brand in the world has operations in Laos, Cambodia, Haiti, Mozambique and Peru.

    In second place was Vinamilk, the country’s largest dairy company by far, which was worth $1.9 billion, up 39 percent. State-owned Vietnam Posts and Telecommunications Group (VNPT) was in third place after increasing its brand value by 84 percent to $1.34 billion.

    In fourth and fifth places were Vinhomes, the real estate subsidiary of Vietnam’s largest private conglomerate Vingroup, and Sabeco, Vietnam’s biggest brewer, at $1.18 billion and $950 million respectively.

    Samir Dixit, CEO, Asia-Pacific of Brand Finance, said: “Branding is the most critical asset of every business. It is difficult to predict the performance and behavior of customers, but the only thing that remains a constant is the brand.”

    Brand Finance’s valuation criteria uses several metrics. The value accorded to each brand is a summary of its financial strength. Each brand also gets a brand rating, which indicates its strength, risk and future potential relative to its competitors.

  • Vietnam tops Southeast Asia in IPOs

    Vietnam tops Southeast Asia in IPOs

    Vietnam surpassed Singapore and Thailand to top Southeast Asia in initial public offerings (IPOs) last year, raising $2.6 billion. This figure was 3.7 times that of 2017, according to consultancy Ernst & Young. Two of three largest IPOs in Southeast Asia last year were launched by Vietnamese companies: $1.34 billion from Vinhomes, a real estate developer of Vietnam’s biggest private firm Vingroup; $923 million from Techcombank, the country’s largest private sector lender.

    However, an opposite trend was seen in Southeast Asia as a whole, with the money raised from IPOs dropping 34 percent over 2017 to $7.1 billion.

    The number of IPO deals in the region also decreased by 7 percent to 115, with 56 of them raising less than $10 million.

    Ernst & Young economist Max Loh said that the reason for this drop was U.S-China trade tensions, which affected the capital market in the region, as Southeast Asian countries have close trade relationships with China.

    Experts feel Vietnam has the potential to attract more foreign investments in the future. A report by law firm Baker McKenzie and consultancy Oxford Economics said that Vietnam will top the region in the amount of money raised via IPOs by 2021.

    The rise of Vietnam and other developing countries in Southeast Asia could intensify competition for new listings among the region’s exchanges, said Tham Tuck Seng, PwC Singapore’s capital markets leader.

    This will increase the pressure on Singapore to differentiate itself even more in order to stand out, CNBC quoted Tham as saying.

  • Vietnam’s Vsmart global market

    Vietnam’s Vsmart global market

    Vietnam’s largest private firm Vingroup launched four new phone models Friday, saying it aims to sell them internationally. The four new Vsmart phones, manufactured at the group’s VinSmart factory in Vietnam’s northern city of Hai Phong, are priced from 2.49 million ($107.18) to 6.29 million ($270.76) in the introductory phase. The prices will later increase to VND2.59-6.59 million ($111.49-283.67).

    Tran Minh Trung, CEO of VinSmart, said at the launching event that his company wants to branch out to markets outside of Vietnam.

    “We will not stop at the Vietnam market. We will bring out products to the world with five business departments in five continents. A sixth department will be in charge of e-commerce. We are capable of competing and we want to be accepted in both local and international markets,” he said.

    VinSmart is set to be a new competitor in the Vietnam market of 95 million people, currently dominated by Samsung and Apple phones.VinSmart acquired the intellectual property rights for the four phones from Spanish technology firm BQ, in which VinSmart owns a 51 percent stake.

    Vietnam is the largest smartphone production base for Samsung, while key Apple supplier Foxconn is also considering setting up a factory in the country.

    The launching of the phones has happened at rapid speed, just six months after Vingroup established the VinSmart company in June to produce smartphones and other smart electronic devices with a registered capital of VND3 trillion ($131.54 million).

    Vingroup, once a real estate and retail focused conglomerate, also became the country’s first full-fledged domestic car maker in October, introducing three new car models.

    VinSmart factory is capable of making five million phones a year in its first phase of operations, the company has said.

    It has also said that the factory will produce smart TVs and other smart products in the future. VinSmart also signed a multimode global patent license deal on Friday with chip producer Qualcomm.

  • Vingroup’s smartphone launched soon

    Vingroup’s smartphone launched soon

    Vietnam’s largest private conglomerate, Vingroup, will introduce its first smartphones on December 14 as part of its tech expansion. The company will launch four new models under the brand name “Vsmart,” at the Landmark 81 skyscraper in Ho Chi Minh City.

    The phones are produced at Vingroup’s factory in the northern city of Hai Phong, which is capable of making five million phones a year in its first phase of operations, a Vingroup statement said.

    The company will utilize Spanish experts for product development as it owns 51 percent of Spanish technology firm BQ.

    “We hope that Vsmart phones, alongside VinFast cars, will contribute to the development of Vietnam industry and bring Vietnamese brands to the world,” said Nguyen Viet Quang, vice chairman and chief executive officer of Vingroup.

    Vingroup became the country’s first full-fledged domestic car maker two months ago, introducing three new car models. In June, it established the VinSmart Co. to produce smartphones and other smart electronic devices with a registered capital of VND3 trillion ($131.54 million).

    VinSmart is also working with Qualcomm and Google’s Alphabet Inc to “update to the most advanced technology in the smartphone sector,” the statement said.

    The company will be the newest phone maker seeking success in Vietnam, a country of 95 million people. The market is currently dominated by Samsung and Apple phones. Vietnam is the largest smartphone production base for Samsung Electronics.

    Vingroup said its VinSmart factory will also produce smart TVs and other smart products in the future.

  • Vingroup to open casino in Pho Quoc Island

    Vingroup to open casino in Pho Quoc Island

    A Vingroup-invested firm has been allowed to include a casino in a hotel-amusement complex on Vietnam’s largest island Phu Quoc. The People’s Committee of Kien Giang Province announced that the Prime Minister has approved in principle the casino’s inclusion in a hotel-amusement being built on the southern province’s island. With the casino business, total investment in the complex will increase to VND50 trillion ($2.14 billion).

    The complex, which is under construction, is scheduled to start operating in 2021. Its main investor is the Phu Quoc Tourism Investment and Development Jsc, a company in which Vingroup, Vietnam’s largest private conglomerate, holds a 50 percent stake.

    The casino project is part of a pilot program that would allow Vietnamese citizens to gamble in casinos in the country for the first time.

    For decades, Vietnam has banned gambling as a social evil. Vietnamese were also prohibited from gambling in the few casinos that have been built in the country.

    Shifting its stance, the government has allowed citizens over 21 years old with a monthly income of at least VND10 million ($445) to gamble in local casinos from last March under a three-year pilot program. However, the casinos have to obtain approval from the government on a case-by-case basis to allow Vietnamese citizens to use their services.

    Vietnam’s average annual income was around $2,200 last year.

    There are fewer than 10 casinos in Vietnam, mostly smaller ones outside major cities. Their services are reserved exclusively for foreign passport holders.

  • Vingroup to invest in Hanoi smart electronics plant

    Vingroup to invest in Hanoi smart electronics plant

    Vingroup is expected to invest VND1.2 trillion ($51.38 million) in a “Smart Electronics Factory” that will produce smartphones as its first products next year. The project, expected to be operational by the second quarter of 2019, is the first one to be implemented under a cooperation agreement between the Hoa Lac Hi-Tech Park (Hoa Lac HTP) Management Board and Vietnam’s biggest private conglomerate Vingroup.

    According to the agreement, in the period 2018-2020 looking towards 2025, Vingroup will focus its investments on hi-tech manufacturing in the Hoa Lac HTP.

    The corporation will invest in research and development, advanced technology, software, hi-tech industrial manufacturing, housing development, commerce and services in Hoa Lac.

    The first project to be implemented under the agreement will be a “Smart Electronics Factory” in Hoa Lac. Construction will begin as soon as the group’s investment plan is approved by competent authorities.

    The factory will be built on an area of five hectares. Once operational, it is expected to produce 3- 4 million smart electronics products a year, supplying both domestic and international markets.

    Nguyen Viet Quang, vice president and CEO of Vingroup, said that smartphones will be the factory’s first product to debut in the market.

    Minister of Science and Technology Chu Ngoc Anh said the Hoa Lac Hi-Tech Management Board is improving the HTP’s infrastructure, providing the best conditions for investment, and creating a legal corridor to facilitate businesses.

    These efforts are aimed at developing the Hoa Lac Hi-Tech Park into a smart-technology city, he said.

    There are 87 investment licensed projects in Hoa Lac at present with total capital amounting to approximately VND78 trillion ($3.34 billion).

    In 2018 alone, Hoa Lac has welcomed 10 licensed projects with a total registered capital of VND15.86 trillion ($678.74 million).

  • Vingroup acquires mobile phone retailer Vien Thong A

    Vingroup acquires mobile phone retailer Vien Thong A

    Vietnam’s biggest private conglomerate Vingroup has officially confirmed its acquisition of major tech products retailer Vien Thong A.

    In its financial statement for the third quarter of 2018, Vingroup lists Vien Thong A Import Export Trading Production Corporation as a fully-owned subsidiary.

    On September 14, Mai Thu Thuy, board member of the Vincom Retail Joint Stock Company and Chairwoman of the Vincom Mega Mall Royal City, was appointed legal representative of the acquired company.

    Established in November 1997 in Ho Chi Minh City, Vien Thong A is the oldest retail technology chain in Vietnam. It has nearly 200 stores, including independent shops and a “shop-in-shop” model in BigC supermarket, CoopMart, and 100 service centers.

    In early 2017, Vien Thong A CEO Hoang Ngoc Vy revealed plans to restructure the company and seek investors to expand its business.

    Last month, VinCommerce, a member of Vingroup, bought Fivimart from domestic company Nhat Nam JSC and Japanese retailer AEON, which held 70 percent and 30 percent stakes, respectively.

    In the first nine months of this year, retail sales of Vingroup reached VND12.89 trillion (nearly $555 million), a 41 percent year-on-year surge.

    Vingroup, Vietnam’s biggest property conglomerate, dominates the housing and property markets with Vinhomes.

    It has also entered the healthcare market with Vinmec, runs a chain of supermarkets called Vinmart, and entertains tourists at Vinpearl resorts.