A consortium led by Singapore sovereign wealth fund GIC has invested US$500 million in VCM Services and Trading Development JSC (VCM), a subsidiary of Vietnamese conglomerate, Vingroup.
GIC said this is in line with long-term expectations of growth in household consumption in Vietnam. Vingroup has expanded beyond real estate and retail to become Vietnam’s largest listed firm. It recently launched smartphones and cars. In August, Vingroup applied for a license to launch an airline in 2020. CNA reports.
According to another report on the Vietnam Investment Review (VIR), last month, Vingroup split VinCommerce, the former entity that ran its retail business, into P&S Trade and Investment JSC and Adayroi Commerce and Service Development JSC. Adayroi is Vingroup’s e-commerce venture. In conjunction with the split, Vingroup also set up VCM to indirectly hold shares in VinCommerce.
Vingroup now holds 64.3 per cent in VCM.
GIC is showing interested in the Vietnamese market by pouring money in giant groups like Masan, Vietjet, Vinamilk, FPT, or PAN Group. GIC also invested $853 million in Vinhomes after the company’s IPO in 2018.
Since 2013, Vingroup has mobilized $6.9 billion via 15 transactions, including investments and loans.
After shifting towards becoming a technology group and producing automobiles, Vingroup sold 6 per cent of its stake to South Korea’s SK Group for $1 billion.
In 2018, Hanwha Asset Management also spent $400 million on Vingroup’s convertible preference shares.
On the first half of 2019, Vingroup’s revenue reached VND61.16 trillion ($2.66 billion), a slight increase compared to the same period last year. Pre-tax profit increased by 19 per cent to VND6.84 billion ($297.39 million).
- CNA/VIR | Featured image: Nikkei