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Tag: Vingroup

  • Vingroup pours over $583 mln into Vinfast

    Vingroup pours over $583 mln into Vinfast

    Vingroup has invested VND13.6 trillion ($583.3 million) in its auto subsidiary VinFast in the first nine months of the year. VinFast, Vietnam’s first indigenous car manufacturer, is expected to eventually receive investments of $4.2 billion from the parent firm’s internal resources and loans.

    VinFast has already unveiled its first two cars, a sedan and an SUV, causing both excitement and skepticism among Vietnamese.

    From a standing start, it will create an annual capacity of 250,000 cars within the next five years or so, equivalent to 92 percent of all cars sold in Vietnam last year, according to data from the Vietnam Automobile Manufacturers Association.

    VinFast will also produce 250,000 electric scooters a year in an ambitious production target that is set to eventually increase to 1 million.

    In the first three quarters of this year Vingroup recorded over VND23.456 trillion ($1.01 billion) in net revenues, a nearly 7 percent rise year-on-year. Profit before tax topped VND2.6 trillion ($111.52 million), up 41 percent.

    As of September 30 it had total assets of VND268.23 trillion ($11.5 billion), an increase of nearly VND55 trillion ($2.35 billion) from the beginning of this year.

    Vingroup, Vietnam’s biggest property conglomerate, dominates the housing and property markets with Vinhomes. It has entered the healthcare market with Vinmec, runs a chain of supermarkets called Vinmart, and entertains tourists at Vinpearl resorts.

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  • Vingroup retail arm acquires Vietnamese supermarket chain

    Vingroup retail arm acquires Vietnamese supermarket chain

    VinCommerce, owner of the largest Vietnamese retail outlet chain, has bought out competitor supermarket chain Fivimart.

    The deal, whose value has not been revealed, delivers 23 Fivimart outlets to VinMart.

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

    VinCommerce CEO Thai Thi Thanh Hai said that her company’ vision is to have VinMart and VinMart+ (a chain of convenience stores) outlets not just in Vingroup’s apartment buildings and malls, but also in other neighborhoods.

    “The acquisition of Fivimart is part of how we make that vision a reality,” she added.

    The acquisition raises the number of VinMart stores to 100 and that of VinMart+ to 1,400.

    Hai said that VinCommerce plans to have 200 VinMart and 4,000 VinMart+ stores by 2020.

    Nhat Nam JSC sold a 30 percent stake of Fivimart, founded in 2007, to AEON in 2015.

    It had increased its number of outlets from 10 then to 23 now.

    The deal saw Fivimart’s revenue increase, by as much as 20 percent a year for some time.

    But the company has been reporting losses for the last three years, attributing them to high costs. Its losses amounted to VND60 billion ($2.58 million) in 2015, VND96 billion ($4.13 million) in 2016 and VND23 billion ($989,600) last year.

    At the end of last year, Fivimart reported an accumulated loss of almost VND200 billion ($8.6 million), with a debt of VND823 billion ($35.41 million), which was equal to the company’s total asset value.

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  • David Beckham introduces first made-in-Vietnam cars

    David Beckham introduces first made-in-Vietnam cars

    Former Manchester United football star David Beckham introduced the first made-in-Vietnam cars in Paris on Tuesday.

    VinFast, a unit of Vietnam’s largest conglomerate Vingroup, invited Beckham to attend the opening of its new cars at the Paris Motor Show in France.

    Beckham is also known for his collection of rare, valuable cars including an Aston Martin V8 and a Porsche 911 Cabrio.

    His fame as a car connoisseur was a major factor in VinFast choosing to invite Beckham to appear on stage with its new cars, the seven-seater SUV and the four-Sedan, a source said.

    Beckham will also share his first-hand experience driving these cars, the source added.

    VinFast plans to up its to produce 250,000 cars annually in the next five years or so, equivalent to 92 percent of all the cars sold in Vietnam last year, according to Vietnam Automobile Manufacturers’ Association (VAMA) data.VinFast is set to become Vietnam’s first full-fledged domestic car manufacturer when its first models hit the streets next August.

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  • Hanoi seeks approval for Vingroup’s $300 million IT park

    Hanoi seeks approval for Vingroup’s $300 million IT park

    Hanoi has submitted a proposal to the Ministries of Construction and Planning and Investment for building a new IT park possibly in Dong Anh District.

    It will be built by Vingroup on Vo Nguyen Giap Street on the way to Noi Bai Airport.

    It is estimated to cost US$302.54 million and likely to spread over 78.1 hectares, housing a maximum of 19,557 personnel.

    Its construction, to begin in the fourth quarter of this year, will be finished at the end of 2020, when it will open.

    Authorities hope it will interest both foreign and local IT companies thanks to its modern technical and social infrastructure, R&D facilities and other advantages.

    Vingroup also seeks to build facilities such as a data centre, IT functional zones, accommodation for specialists, commercial offices, an R&D complex, a training and consulting zone, exhibition space, parks and a recreation zone inside.

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  • Vincom Centre Landmark 81 launched

    Vincom Centre Landmark 81 launched

    Vingroup has opened its 55th shopping centre, The Vincom Center Landmark 81 mall, in Ho Chi Minh City’s Binh Thanh district.

    The 50,000sqm shopping centre occupies six of the skyscraper’s 81 storeys, housing 100 domestic and international brands in cosmetics, fashion, F&B, and entertainment.

    Fashion brands include Versace Jeans, Calvin Klein, Adidas, Tommy Hilfiger, Lacoste, French Connection, Kimmay, Superdry, H:Connect; Cole Haan, Ecco, Dune London, Parfois, Aldo, Pandora, Longines, OWL and Nike.

    The 7000sqm food and beverage area features 30 restaurants, including China’s Peach Garden, Japan’s Dozo Sushi, Vietnamese restaurants Delights, Di Mai, and coffee shops including Starbucks’ largest Vietnam outlet and Highlands Coffee.

    In the entertainment area, there is a 2000sqm Vincom Ice Rink, Vietnam’s largest, and a CGV cinema complex including an Imax screen, as well as a tiNiWorld entertainment complex and an indoor games centre.

    Vingroup’s food arm VinMart operates a supermarket there.

    Go to gallery below to view the launching event :
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  • Vingroup to take over Vien Thong A

    Vingroup to take over Vien Thong A

    Vietnamese conglomerate Vingroup’s electronics retailing arm VinPro is set to acquire mobile retail chain Vien Thong A next month.

    A source said that staff have been informed about the deal, and a merger process has commenced.

    However, Vien Thong A’s vice GM Huynh Viet Anh responded to a question about the report’s accuracy: “That can not be disclosed now.”

    Vien Thong A is one of the largest mobile device retailers in Vietnam. Founded in 1997, tit has 200 stores across the country.

    The deal is said to have been on and off since early this year, before being deferred to the second quarter. According to the report, VinPro, which has 35 outlets nationwide, would buy 71 per cent of Vien Thong A, and rebrand its stores to VinPro+.

    VinGroup, meanwhile, recently unveiled its first smartphone, branded the Vsmart.

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  • Real estate giant shakes up market with yet another business

    Real estate giant shakes up market with yet another business

    Vingroup has invested VND2.4 trillion ($103.2 million) for an 80 percent stake in payment intermediary services firm VINID Joint Stock Company, according to a statement on the National Business Registration Portal.

    VINID, incorporated this week, has a charter capital of VND3 trillion ($129 million) and its other two founding shareholders are Hanoi-based VICARE Corporation (19 percent) and a person named Nguyen Minh Hong (1 percent).

    VINID sought to operate in 12 different areas of business, and received a registration certificate from the Hanoi Department of Planning and Investment.

    The payment services business must wait for State Bank of Vietnam permission, but the company has indicated it intends to begin as soon as it gets the green light.

    VINID is running Vingroup’s customer loyalty program, issuing VinID cards to customers of all of Vingroup’s subsidiaries.

    The firm takes care of four million card holders, Pham Nhat Vuong, chairman of Vingroup, told the 2018 annual general meeting held in May.

    The entry into the payments industry is meant to take advantage of Vingroup’s huge range of products, the company stated.

    The entry into payments comes on the heels of a slew of announcements the company has made about new business plans this year.

    In June Vingroup had said it would make electronic goods with the Vsmart brand of smartphones getting priority.

    It has set up VinSmart company with a charter capital of VND3 trillion ($129 million) to produce smart electronic products including phones and carry out R&D into artificial intelligence, automation, and next-generation materials.

    It will build a plant at the Dinh Vu – Cat Hai Economic Zone in the northern port city of Hai Phong.

    In April Vingroup revealed plans to enter the pharmaceutical industry and set up a medical research and production facility in the northern province of Bac Ninh.

    It would invest VND2.2 trillion ($94.6 million) in the first phase of the project, the company said.

    Vingroup is the largest listed company in the Vietnamese stock market with its market capitalization reaching $13.62 billion, the group stated on its website in April.

    Last year it raked in net revenues of VND89.350 trillion ($3.84 billion), a 55.1 percent increase year-on-year.

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  • Vincom Retail to expand business this year, masively

    Vincom Retail to expand business this year, masively

    Vincom Retail plans to open 30 more shopping centres in Vietnam this year, increasing its mall network to 200 by 2021.

    To fund the plan, the retail subsidiary of Vingroup will raise US$500 million.

    The first of the new malls to open will be Vincom Center Landmark 81 and Vincom Center Lieu Giai in Hanoi.

    Other malls will be launched around Vietnam under Vincom Plaza and Vincom + formats.

    Vincom Retail launched an IPO last October. Its total revenue last year was VND4455 billion (US$195 billion), up 17 per cent year-on-year.

    It currently operates 51 shopping malls across Vietnam.

  • Vietnam cars geared for East European roads

    Vietnam cars geared for East European roads

    VinFast, the auto making subsidiary of real estate conglomerate Vingroup, will make cars suited to the domestic market first and target East Europe next.

    Built in automated facility that deploys more than a thousand robots, the cars will be of top quality, priced competitively and backed with attractive offers and good after sales service, group chairman Pham Nhat Vuong said at a recent shareholders meeting.

    Therefore, despite the presence of a number of big players in the domestic market, there was a good chance for cars produced by VinFast to succeed, he said.

    He noted that Hyundai, the South Korean carmaker, was able to gain 10 percent of the US market share in a very short period, and VinFast was well placed to emulate such a feat.

    Vuong stressed that the VinFast production line has a high degree of automation.

    “Its body shop has a fully automated spot welding system with more than 1,200 robots in service.

    Parts like crankshaft and transmission are also automatically manufactured, ensuring the car’s quality, and making engine run smoothly,” Vuong explained.

    While promoting the cars in both domestic and foreign markets, the focus will be on “down-to-earth” consumers looking for value for their money, the chairman said.

    VinFast will have a very good chance to compete well with carmakers in Eastern Europe as Vingroup understands this market very well, Vuong said. The group chairman is a former long-term resident of the former Soviet Union.

    Vuong said automobile production will be the company’s spearhead in the coming time, but did not rule out the possibility of other products once the brand was well established.

    “Given our supporting ecosystem and great capabilities, it [heavy industry] will be a new horizon for Vingroup,” said the chairman, who’s one among a handful of Vietnamese billionaires.

    Last September, Vingroup broke ground on its subsidiary VinFast’s new car manufacturing complex in the northern port city of Hai Phong. The complex would start manufacturing electric scooters in 12 months, sedans and SUVs in 24 months and electric cars in 3 years. By 2025, VinFast is expected to be producing 500,000 cars a year, making it a leading automobile manufacturer in Southeast Asia.

    The company will be working with German partners in product development and management of the new manufacturing complex. Its cars will be designed by Italian design houses, while main components such as engines will be bought in from the U.S. and European companies.

    However, VinFast will still cooperate with Vietnamese companies to manufacture most car accessories. The company’s products will have a localization rate of 60 percent, making them qualify for tax incentives when exported to other countries in the region.

    The new complex, which would also include a research and development (R&D) center, is expected to attract European experts, and will be cooperating with many large R&D centers in Europe. The company will be using technology transfer contracts to help improve its expertise in product development.

    Its cars will use eco-friendly technologies to meet Euro 5.0 and Euro 6.0 emission standards. VinFast will also be using green energy in its factories and plans to invest in a facility to treat used batteries.

    Vietnam will emerge as the second fastest-growing production hub for cars in Southeast Asia after the Philippines between 2017 and 2021, according to BMI Research, a part of Fitch Group.

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  • Vinhomes’ shares jump 20 percent shortly after listing on Vietnam’s stock market

    Vinhomes’ shares jump 20 percent shortly after listing on Vietnam’s stock market

    Vinhomes JSC, the residential property developer of Vietnam’s biggest conglomerate Vingroup, saw its share price rise 20 percent from VND92,100 to VND110,500 ($4.85) per share in its first trading session after it was officially listed on the Ho Chi Minh Stock Exchange (HoSE) on Thursday morning.

    The company put 2.68 billion shares on Vietnam’s main bourse HoSE, and by Thursday afternoon, its market cap jumped to more than VND296 trillion ($12.9 billion).

    This means Vinhomes is now the company with second biggest market cap on the country’s stock market, standing behind its parent Vingroup, which is currently valued at VND333 trillion.

    An initial equity offering of Vinhomes JSC, the residential property development unit of Vingroup JSC, raised about $1.35 billion in Vietnam’s biggest ever issue, sources said earlier this month.

    Existing Vinhomes investors were selling about 268 million shares, or 10 percent of the firm’s equity capital, at VND114,700 ($5.03) each, versus an indicative range of VND110,500-114,700, said the sources, who are familiar with the matter but did not want to be named as terms of the pricing were confidential.

    This eclipsed an equity offering from Vietnam Technological and Commercial Joint Stock Bank, or Techcombank, which raised about $920 million last month.

    Vingroup JSC has been looking to raise as much as $2 billion from the listing of Vinhomes.

    Last month, Singapore wealth fund GIC came in as a pre-IPO investor and took a roughly 7 percent stake in Vinhomes for about $853 million by buying shares from Vingroup and other shareholders, sources said.

    Vinhomes’ first-quarter net profit jumped five times from the same period last year to VND3.99 trillion, and revenue surged three times to VND10.54 trillion, its financial statements showed.

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  • Vingroup eyes stake in mobile device retailer Vien Thong A

    Vingroup eyes stake in mobile device retailer Vien Thong A

    VinPro, the electronics retail arm of Vietnamese conglomerate Vingroup, may invest in mobile device retailer Vien Thong A.

    However, Vien Thong A GM Hoang Ngoc Vy has denied the media reports, before enigmatically adding that further information would be forthcoming.

    VinPro was launched in March 2015 as part of the property giant’s foray into the nation’s US$4.5-billion electronics retail market. It has two brands: VinPro for big stores in Vincom Retail’s shopping malls, and VinPro+ for smaller stores.

    Established in November 1997, Vien Thong A has nearly 200 stores across Vietnam and 100 warranty centres.

    Vietnam’s electronic and electrical appliances market is expected to expand by 11.9 per cent by 2020, according to Boston Consulting Group and consumer information company GFK Vietnam.

    Meanwhile, the market is dominated by FPT Retail and Mobile World, which has just acquired about 95 per cent of Hanoi-based Tran Anh Digital World. Earlier, Thailand’s Central Group bought a 49 per cent stake in electronics retailer Nguyen Kim Trading.

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  • Vietnam to celebrate its new retail sales highest record US$129 billion

    Vietnam to celebrate its new retail sales highest record US$129 billion

    Spurred by a rising middle class and influx of international retailers, Vietnam retail sales hit a record US$129.6 billion last year.

    This was growth of 10.9 per cent over 2016, according to the Vietnam General Statistics Office (GSO).

    Vietnam’s largest real estate company, Vingroup, starting expanding its Vinmart Plus convenience store chain in 2016 and has already topped 1000 stores – it opened 100 last month alone. It is predicted the store network could reach 3000 this year.

    Meanwhile, Vietnam last year saw the arrival of a slew of foreign retail brands, headed by Japan’s Seven & I Holdings opening its first Vietnamese 7-Eleven convenience store in Ho Chi Minh City in June.

    Swedish fast-fashion brand H&M followed in September with a store in the same city, while Zara, the chain of Spanish rival Inditex, opened its second Vietnam location in Hanoi in November (its first store, covering two levels, launched at Vincom Centre Dong Khoi in Ho Chi Minh City in September 2016).

    Thailand’s Central Group has made several acquisitions in Vietnam, including the Big C supermarket chain and electronics retailer Nguyen Kim Trading. It also launched its first stationery and office supplies store in Vietnam last year.

    South Korea’s GS Retail partnered with Vietnam’s Son Kim Group 12 months ago to open the first of their convenience stores in Ho Chi Minh City this month. They plan to open 2000 locations within 10 years.

    Double-digit growth

    Since joining the World Trade Organisation in 2007 and opening up to foreign goods and businesses, Vietnam has seen continued double-digit growth, led by a 31.5 per cent spike in 2008. With the Association of Southeast Asian Nations Economic Community taking full effect this month, Vietnam has eliminated nearly all tariffs on goods from within the region.

    Meanwhile, supermarkets and convenience stores are selling meat and vegetables at prices that are 20 to 30 per cent higher than at traditional markets, and the number of specialty shops selling organic vegetables is growing.

    Spending on cars, home electronics and other consumer durables is also brisk, with 70 per cent of Vietnam’s GDP coming from personal consumption.

    The GSO says auto sales grew by 14 per cent in value, gemstone and precious metals by 13.2 per cent, food and foodstuffs by 11.1 per cent, cultural and educational products by 10.2 per cent, apparel by 9.6 per cent, and home products by 8.5 per cent.

    Vietnam still has room for growth as modern retail channels like supermarkets and shopping centres account for only a quarter of total retail sales, and most of these businesses are in big cities, reports VIetnamNet. By 2020, the proportion of modern retail channels is forecast to rise to 45 per cent.

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  • Vietnam’s richest man makes huge jump up global billionaires list

    Vietnam’s richest man makes huge jump up global billionaires list

    Pham Nhat Vuong, Vietnam’s first billionaire and owner of giant conglomerate Vingroup, has leapt 97 positions to become the 543rd richest person in the world, released on Tuesday.

    The magazine’s real-time list of the world’s billionaires showed that Vuong’s assets had expanded by more than 14 percent to $4 billion in just 13 days.

    He’d already marked a milestone on November 8 by climbing 227 places in eight months to 640th on the list, with his net worth growing by more than $1 billion.

    His rise came following the IPO of Vingroup’s retail unit Vincom early this month, which was hailed as the biggest IPO debut ever in the country after raising nearly $709 million and valuing the mall operator at around $3.4 billion.

    Vingroup’s shares have also gained nearly 100 percent since mid-2017, closing at VND77,000 ($3.40) on Tuesday. Vuong, 49, owned more than a 27 percent stake in Vingroup as of June this year.

    Vingroup is one of Vietnam’s largest real estate conglomerates, and has been expanding rapidly into retail, logistics, agriculture, education and healthcare. As of the end of September, its subsidiary Vincom Retail was managing, operating and renting 41 shopping malls with a total area of over 1.1 million square meters (272 acres). It also has 22 projects under construction and another 50 in early development.

    Nguyen Thi Phuong Thao, the only other Vietnamese billionaire and owner of budget carrier Vietjet, now ranks 1,177th on the Forbes list with assets worth around $2 billion.

    At the top of the list are Amazon’s founder Jeff Bezos with a net worth of $94.9 billion, followed by Microsoft co-founder Bill Gates with $89 billion and Warren Buffet with $77.9 billion.

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  • Vingroup to invest in HCM City sports complex

    Vingroup to invest in HCM City sports complex

    HCM City’s People’s Committee had given Vingroup Joint Stock Company (Vingroup JSC) the go-ahead to invest in a sports and entertainment complex in District 2’s new Thủ Thiêm urban area.

    The complex would be located on 31.39 hectares, and the People’s Committee has approved a district planning scale of 1/2,000, the city’s department of planning and architecture (DPA) said on Monday.

    The project would require an estimated total capital of VNĐ6.77 trillion (US$305.1 million), excluding compensation for site clearance.

    So far, 99 per cent of the land in Thủ Thiêm urban area had been cleared, with 382 hectares set aside for residential purpose and another 334 hectares for commercial purpose. Once Thủ Thiêm had been developed, it would be able to house 150,000 residents and attract 220,000 workers.

    Vingroup JSC had acquired approval to build the complex as part of the second functional area in Thủ Thiêm and An Lợi Đông wards, Disctrict 2. The total construction is expected to take 36 months; the project utility period would be 50 years.

    Vingroup JSC’s sports complex would have infrastructure so it could be used as a multifunctional sporting halt and an amusement park. It is considered to be one of the key high-value projects in the planning of Thủ Thiêm urban area.

    Recently, many domestic and foreign investors had expressed interest in putting money into housing, commercial and office projects in Thủ Thiêm.

  • 7-Eleven plans in Vietnam

    7-Eleven plans in Vietnam

    Convenience-store giant 7-Eleven plans to enter Vietnam by taking over VinGroup’s VinMart+ chain, marketplace sources say.

    In a statement from the US last year, 7-Eleven said it would build stores as well as convert “existing locations”. Now industry insiders are saying the group will swallow VinMart+, but there has been silence from both brands.

    The 7-Eleven Vietnam franchise is a partnership between IFB Vietnam, which owns Pizza Hut Vietnam, and Seven System Vietnam. The chain has announced plans to establish 100 stores in its first three years, with 1000 outlets within a decade. Its initial store will be in Ho Chi Minh City, scheduled for early next year.

    VinMart+ is Vietnam’s largest c-store chain with more than 700 outlets. It has plans to expand to 10,000 stores in next 10 years.

    Vietnam is 7-Eleven’s second Pacific Rim market after Indonesia, where it launched in 2009. It also has stores in Australia, China, Japan, Malaysia, Singapore, South Korea, Taiwan, Thailand and the Philippines.

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