Vingroup Joint Stock Company, a portmanteau of 'Vietnam' and 'Group', is a Vietnamese conglomerate focusing on real estate development, retail, and services ranging from healthcare to hospitality. The company was founded by property developer and entrepreneur Phạm Nhật Vượng. By 2016, Vingroup operates a total of over 1,000 shops across Vietnam and served over 4 million visitors in its amusement parks yearly.[2]

Vingroup
Vingroup Joint Stock Company
Public
IndustryConglomerate
Founded1993; 27 years ago (1993)
FounderPhạm Nhật Vượng
HeadquartersVinhomes Riverside, ,
Vietnam
Area served
Vietnam
Key people
Phạm Nhật Vượng (Chairman)
Dương Thị Mai Hoa (CEO)
RevenueIncrease 89.392 trillion VND (2017)[1]
Increase 9.445 trillion VND (2017)[1]
Total assetsIncrease 213.792 trillion VND (2017)[1]
Number of employees
43,000(2017)[2]
Websitevingroup.net

HistoryEdit

Vingroup was founded in Ukraine in 1993 as Technocom by Phạm Nhật Vượng. Originally producing dried foods, such as instant noodles, mainly under the Mivina brand, in 2000, the company started operations in Vietnam. In total Vingroup has 48 subsidiary companies.[1]

Since 2007, Vingroup is listed on the Ho Chi Minh City Stock Exchange.[2]

In 2010, Vingroup sold its Ukraine operation to Nestlé for 150 million USD.

In October 2014, Vingroup bought the supermarket chain OceanMart in a move to gain market shares in the retail industry, and renamed it VinMart. In October 2015, Vingroup bought the Vietnamese supermarket chain Maximark (9 outlets).[3] In September 2015, Vingroup launched a major animal conservation program on Phú Quốc, Vietnam's largest island.[4] Vingroup also launched the ecommerce website Adayroi.com.[5] In 2016, Vingroup started operating their Vinmec healthcare and Vinschool education subsidiaries as non-profits to improve Vietnamese society.[2] The group invested 22.5 million USD in Australian real estate.[6] In September 2017, Vingroup started the construction of its own car factory.[7]

In May 2018, 10% of Vinhomes was made public and Vinhomes started trading on the Ho Chi Minh City Stock Exchange.[8] The 25 year anniversary of Vingroup was celebrated by the opening of the Vingroup owned Landmark 81 tower in Ho Chi Minh City, the tallest completed building in Southeast Asia at the time.[9] In October 2018, Vingroup announced that its car division VinFast would become the first domestic car manufacturer, with an annual production capacity of 250,000 cars. $3.5 billion were invested in the development of this project.[10] In December 2018, the group got into the smartphone market with the launch of Vsmart-branded phones running on Android. The smartphones are produced by the group' s VinFast unit. The smartphones are part of an ecosystem of smart AI devices the group plans to launch to market.[11][12]

In November 2018, the city of Hanoi announced that the city will be hosting a Formula 1 Grand Prix starting in April 2020, with Vingroup as the promoter of the project.[13]

In November 2018, Vingroup announced a 10-year plan to become a major high-tech company and issued a resolution on the establishment of four subsidiaries with a total charter capital of VND 390 billion:

  • VINCSS Network Security Services Co., Ltd.
  • VinConnect Solution and Technology Services Co., Ltd.
  • HMS Software Production and Trading Co., Ltd
  • Phuc An Tourism Development and Investment

In March 2019, Vingroup acquired the e-wallet platform MonPay.[14] In May 2019, the South Korean conglomerate SK Group bought a 6.1% stake in Vingroup for $1 billion.[15][16]

In January 2019, they announced the establishment of Vindigix Technology Development Investment, a Joint Stock Company in which VinGroup has an 80% share.[17]

In December 2019, Masan Group acquired a controlling stake in VinGroup's retail division VinCommerce.[18]

SubsidiariesEdit

 
VinMart supermarket in Hanoi
 
Vinmec hospital
 
Vinpearl Hotel Nha Trang
 
VSmart TV KE8500 at Times City[19]
  • Vinhomes: residential real estate development (Landmark 81, Times City)
  • VinCity: middle-income targeted residential real estate development
  • VinCommerce: convenience stores (VinMart+), supermarkets (VinMart), electronics stores (VinPro) and home and beauty stores (VinDS), plus E-commerce operations under Adayroi.com. Controlling stake sold to Masan Group in 2019, but VinGroup retains a large stake.[18]
  • Vincom: shopping malls (Vincom Centre, Vincom Plaza, Vincom Mega Mall, Vincom+ mall)
  • Vincom Office: office real estate
  • Vinpearl Land: Amusement parks and attractions such as an ice skating rink and a water park and Vinpearl Safari Phu Quoc.
  • Vinpearl: Vinpearl owns major resorts in Vietnam such as Vinpearl Nha Trang, Vinpearl Da Nang and other projects such as Vinpearl Village, Vinpearl Hai Giang
  • Vinmec: Healthcare including Vinmec International Hospital, Times City Hanoi, Vinmec Royal International
  • Vinschool: education from kindergarten, elementary school, middle school to high school, with a total of 13,000 students enrolled.
  • VinUni: University, in partnership with Cornell University and University of Pennsylvania[20][21]
  • VinDS: Fashion- Sport- Shoes- Beauty and Index Living Mall.
  • VinPro: electronic technology center
  • VinEco: agricultural production, operating 14 farms spanning 2,000 hectares (7.7 sq mi) of land.
  • VinFast: automobile, cars and motorbike manufacturing, planning to release first model in 2018[22][23]
  • VinSmart: The Vingroup Smartphone Company with BQ in Spain.
  • VinID: A technology product development - developing a super app called VinID providing Fintech, Loytal and Digital Marketing services with roughly 7 million users in 2019.
  • VINCSS: Network Security Services
  • VinConnect: Internet and Mobile Telephony service provider
  • HMS: Software Development
  • Phuc An: Tourism Development and Investment
  • VinFa: pharmaceuticals and traditional medicine
  • VinKC: children's goods and services for childcare.[24]
  • Vintata: animation studio
  • Almaz: high-end restaurant and conference centre[25]
  • Thien Tam Fund: philanthropical organisation on behalf of Vingroup[26]

OwnershipEdit

The group is 53%-owned by the first official Vietnamese billionaire Phạm Nhật Vượng.[27]

See alsoEdit

ReferencesEdit

  1. ^ a b c d Consolidated Financial Statements (PDF), Vingroup Joint Stock Company Consolidated Financial Statement, 31 December 2017
  2. ^ a b c d Annual Report 2016 (PDF)
  3. ^ "Vingroup announces plan to buy supermarket chain". vietnamnews.vn. Retrieved 2019-06-02.
  4. ^ "Vingroup begins animal conservation programme on Phu Quoc; safari next". 15 September 2015. Retrieved 2 June 2019.
  5. ^ "Vingroup e-commerce foray gains pace; launches Adayroi.com beta version". DealStreetAsia. Retrieved 2019-06-02.
  6. ^ "Vietnam's Vingroup enters Australian property market with $22.5m land deal - DealStreetAsia".
  7. ^ "Vietnam's Vingroup starts construction on $1-1.5 billion first..." Reuters. 2017-09-02. Retrieved 2019-06-02.
  8. ^ Daga, Anshuman. "Vinhomes raises $1.35 billion in Vietnam's biggest share issue:..."
  9. ^ VnExpress. "Vietnam's tallest Landmark opens for business - VnExpress International".
  10. ^ "Fast and serious: Vietnam's first domestic car manufacturer bets big". Reuters. 2018-10-03. Retrieved 2019-06-02.
  11. ^ Reed, John (15 December 2018). "Vingroup targets 30% Vietnam smartphone market with first mobile". Financial Times. Retrieved 2019-06-02.
  12. ^ "Vietnam's Vingroup targets global markets with smartphones in tech..." Reuters. 2018-12-14. Retrieved 2019-06-02.
  13. ^ "Vietnam to host Formula 1 Grand Prix from 2020 | Formula 1®". www.formula1.com. Retrieved 2019-06-02.
  14. ^ "Vietnam's Vingroup acquires e-wallet platform MonPay". DealStreetAsia. Retrieved 2019-06-02.
  15. ^ "SK Group invests $1 billion in Vingroup as part of Vietnam expansion". Reuters. 2019-05-16. Retrieved 2019-06-02.
  16. ^ "SK Group to buy 6.1% stake in Vietnam's Vingroup for US$1b". The Business Times. 2019-05-16. Retrieved 2019-06-02.
  17. ^ Vingroup sets up another technology company, charter capital of VND 300 billion
  18. ^ a b https://vietnaminsider.vn/vincommerce-and-vineco-of-vingroup-will-be-merged-with-masan-consumer/
  19. ^ Vingroup Launches 5 First Smart TV Models Viet Nam News December, 15/2019 - 08:05
  20. ^ VinUni creates breakthrough in higher education quality Update: April, 19/2018 - 14:49
  21. ^ "Cornell to collaborate with Vingroup to establish VinUniversity in Hanoi, Vietnam - Cornell Chronicle". news.cornell.edu.
  22. ^ Vasilash, Gary S. "VinFast: A Vietnamese Auto Startup Living Up to Its Name". www.adandp.media.
  23. ^ "Subscribe to read". Financial Times.
  24. ^ Launching Vinkc Brand, Vingroup To Officially Enter Retail Market | News & Events
  25. ^ bizhub.vn. "Vingroup opens Almaz centre in Ha Noi".
  26. ^ "Quỹ Thiện Tâm - Giới thiệu - LỜI MỞ ĐẦU". quythientam.com.
  27. ^ Noer, Michael. "Vietnam's First Billionaire And The Triumph Of Capitalism". Forbes. Retrieved 2019-06-02.

External linksEdit