Largest conglomerate Vingroup expands

By Michael Lim

May 7, 2017 12:00 PM SGT

Vingroup, one of Vietnam’s largest listed conglomerates, was founded by the country’s richest man, billionaire Pham Nhat Vuong, who according to Forbes, has a net worth of US$2.3 billion ($3.2 billion). The company saw total revenue of more than US$2 billion in 2016.

The biggest revenue contributor was its property development business, which is said to have sold 15,000 houses and apartments last year, generating total sales of VND83 trillion (US$3.65 billion, $5.1 billion), up 18% from the previous year.

Vingroup has diversified into other sectors, including retail, logistics, agriculture, education and healthcare. It has opened 18 shopping centres in Vietnam: seven in Hanoi, four in Ho Chi Minh City, and one each in Viet Tri, Ha Long, Hai Phong, Da Nang, Bien Hoa, Can Tho and Long Xuyen. The group’s net sales came in at VND57.6 trillion (US$2.5 billion, $3.49 billion) last year, up 70% y-o-y.

Responsible for biggest, tallest local projects

Duong Mai Hoa, CEO of Vingroup, says it plans to open 70 to 80 VinMart supermarkets and more than 1,000 VinMart+ convenience stores in at least 30 provinces by year-end, she adds.

Duong says Vingroup plans to open more VinMart supermarkets and VinMart+ convenience stores in at least 30 provinces by year-end

Vingroup’s biggest project is the US$1.5 billion Vinhomes Central Park township, which features an 81-storey skyscraper Landmark 81, 10,000 apartments and villas, as well as a park inspired by New York City's Central Park. When completed at end-2018, Landmark 81 will be the tallest tower in Vietnam.

Vinhomes Central Park occupies a 43.9ha site. Besides apartments and villas, it also has a 40,000 sq m shopping centre, a hospital and a school catering for students from kindergarten to secondary school. The hospital and school will be operated by Vinmec and Vinschool respectively, wholly-owned units of Vingroup.

A Vinmec hospital in Times City, Vingroup’s township development in Hanoi

According to CBRE Vietnam, the residential units at Vinhomes Central Park — which range from 50 to 200 sq m — are priced from US$1,986 to US$2,205 psm (US$184 to US$205 psf).

New brand of affordable housing

Vingroup also plans to launch a new brand of affordable housing called VinCity in the suburbs of new towns. VinCity will join Vingroup’s three other brands: Vinhomes, which focuses on residential developments; Vinpearl, which specialises in resort properties; and Vincom, which is involved in marketing commercial and mixed-use developments.

Vingroup plans to launch its new residential project Vinhomes Smart City later this quarter, the first project in Vietnam to incorporate smart-home technology. The flagship Vinhomes Smart City is located on Nguen Trai Street in Hanoi. Vingroup plans to launch the project overseas, including Singapore. “By participating in this public housing segment, Vingroup is looking forward to bringing modern, safe and affordable homes catering to middle-income families,” says Duong.

Hospitality, commercial

Another sector that Vingroup has entered is hospitality. Its flagship development is the 225-room, Vinpearl Nha Trang Resort, built in 2001. Vinpearl has developed and is managing a string of five-star resorts in Hon Tre, Nha Trang City (which features the Vinpearl Amusement Park), Vinpearl Luxury Nha Trang (with an 18-hole golf course by the sea), Vinpearl Ha Long Bay Resort and Vinpearl Luxury Danang.

Vinpearl Ha Long Bay Resort is located on its own private island of Dao Reu and enjoys spectacular views of the limestone pillars stretching across the Gulf of Tonkin

Vingroup completed its first commercial development — Vincom Center Ba Trieu — in 2002, followed by high-end townships in Hanoi, including luxury villa development Vincom Village, Royal City, Times City and Vinhomes Riverside.

The company is building a theme park complex on Phu Quoc Island, which the government has designated as a tourist destination.

Vingroup founder and chairman Pham is reportedly in the process of raising money from “strategic investors” in the hopes of listing his firm on the Singapore Exchange.

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