Vingroup has restructured a startup venture into an industrial real estate investment unit, identifying it as a new growth pillar.
The biggest private conglomerate in Vietnam has changed the name of its Vingroup Ventures into Vinhomes Industrial Zone Investment (Vinhomes IZ).
The majority of Vinhomes IZ stake, which was not revealed, was transferred to Vinhomes, the real estate arm of Vingroup.
Vingroup Ventures was established in December 2018 to support startups. It had a charter capital of VND70 billion ($3 million), in which Vingroup held a 70 percent stake.
Vinhomes said in a statement that industrial real estate will be one of three pillars of real estate growth, with the other two being apartments and offices.
The development of industrial real estate will also create opportunities for Vietnamese manufacturers to join the auto supply chain and produce made-in-Vietnam cars, it added.
Vingroup’s revenue last year rose 7.3 percent to VND130.79 trillion ($5.6 billion), in which almost half came from Vinhomes.