The stock market started the new week with excitement led by the “Vingroup” group of stocks. Vingroup’s VIC, Vinhomes’ VHM, and Vincom Retail’s VRE stocks all saw strong increases, contributing significantly to the VN-Index. VIC and VHM are both currently at their 5-month highs. The trading volume for these three stocks was also very active, with the trading volume in the morning session of February 19th higher than the entire previous session.
Vingroup’s stocks are rising strongly in the context of the conglomerate continuously receiving good news from VinFast. The latest news, according to the Deccan Herald of India, is that VinFast has been given approximately 400 acres of land in the industrial park owned by the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) in Thoothukudi for its first factory in India.
The “principle” land allocation at SIPCOT in the port city, 620 km from Chennai, takes place just one month after VinFast and the Tamil Nadu government signed a Memorandum of Understanding (MoU) to build an electric car and electric vehicle battery factory. The Deccan Herald adds that VinFast has committed to investing USD 500 million in the first phase of the project over 5 years, with the total investment potentially reaching USD 2 billion.
Prior to this, VinFast introduced its range of reverse-driving electric cars at the 2024 Indonesia International Motor Show (IIMS) which opened on February 15th. The VF 5, VF e34, VF 6, and VF 7 models in segments A to C are expected to be sold in this market in the near future. VinFast then signed a Letter of Intent to cooperate with the first 5 dealers to expand its distribution network. This is the sales model that VinFast has been implementing in the United States recently.
Not only in manufacturing, but Vingroup’s real estate sector also received good news when the Long An Department of Planning and Investment announced the results of the registration dossier opening for the new Phuoc Vinh Tay New Urban Area project in Can Giuoc district, with the Vinhomes JSC – Vietnam Investment Group Joint Stock Company (VIG) consortium as the sole investor registered to implement the above-mentioned new urban area.
The Phuoc Vinh Tay New Urban Area project has an area of about 1,090 hectares, with a population scale of about 89,960 people. The project’s operating term is 50 years, with a implementation period of 7 years (from the date of investor approval). The preliminary total implementation cost of the project is 80,000 billion VND, and the land costs are 10,678 billion VND.
In 2023, Vingroup achieved record revenue of 161,634 billion VND, a 59% increase compared to 2022. The main growth was due to the speed of delivering low-rise real estate units in the Vinhomes Ocean Park 2 and Vinhomes Ocean Park 3 projects, as well as the strong growth of electric vehicle sales compared to the previous year.
Vingroup’s pre-tax profit in 2023 reached 13,681 billion VND, and after-tax profit reached 2,051 billion VND, fulfilling the business plan set at the 2023 Annual General Meeting of Shareholders. As of December 31, 2023, Vingroup’s total assets reached 669,617 billion VND, a 16% increase compared to the previous year.
Meanwhile, Vinhomes is still the largest real estate company on the stock market and is the champion of profit in 2023 with pre-tax profit of up to 43,243 billion VND, a 12% increase compared to 2022. However, this figure is still lower than the record profit of over 48,000 billion VND that the real estate company achieved in 2021.
Vincom Retail had a strong 2023 with net revenue reaching 9,791 billion VND and after-tax profit of 4,409 billion VND, increasing by 33% and 58.8% respectively compared to the same period. This is a record profit that the company has achieved while operating 83 shopping centers nationwide, since its establishment.
