Vingroup ecosystem companies often have their own separate companies owned by Pham Nhat Vuong Vietnam Investment Group or Asian Star. However, recently the VinFast founder has established businesses that share the financial difficulties faced by members of the Vingroup ecosystem.
In addition, Pham Nhat Vuong has committed to providing a non-refundable $1.5 billion to VinFast in 2023.
GLOBAL CHARGING STATION COMPANY INVESTS IN ENTIRE ELECTRIC VEHICLE INFRASTRUCTURE.
On March 18, Pham Nhat Vuong, Chairman of Vingroup (stock code: VIC), announced the establishment of V-GREEN Global Charging Station Development Company. This company, founded by VinFast, will have a 90% ownership rate and will operate independently as a partner in developing VinFast’s global charging station network.
The company will be responsible for investing in the entire electric vehicle infrastructure, thereby reducing financial pressure and enabling VinFast to focus on expanding the market and sustainable development.
In the first phase, V-GREEN will directly seek locations and partners to establish and expand the charging station network in key markets worldwide. It will also collaborate with third-party charging station providers to offer charging services for VinFast electric vehicle owners.
In Vietnam, V-GREEN will be responsible for operating and managing VinFast’s existing charging station system, while also investing an additional VND 10 trillion in the next 2 years to build and upgrade the system.
VinFast’s charging station.
GSM – THE CHALLENGE TO GRAB, GOJEK.
On March 6, 2023, Pham Nhat Vuong announced the establishment of the Green and Smart Mobility (GSM) Joint Stock Company – the world’s first multi-platform green transportation and smart taxi rental company. GSM operates in two main areas: car and electric motorcycle rental, and electric taxi service. Its initial charter capital is VND 3 trillion, with Pham Nhat Vuong contributing all of the shares.
According to the company’s business registration announced on January 24, 2024, GSM now has a charter capital of VND 9.666 trillion, 3.2 times higher than its initial capital. Nguyen Van Thanh is currently the CEO of the company.
The company aims to not only dominate the market in Vietnam but also expand into Southeast Asia and the world. On November 9, 2023, GSM expanded to its first international market, Laos. GSM’s electric taxi service will operate in the capital city of Vientiane and other provinces and cities like Luang Prabang, Savannakhet, and Champasak in subsequent phases.
Indonesia and the Philippines will be the next markets in the company’s strategy to expand its presence to nine international markets by 2025. In Indonesia, GSM even plans to invest $900 million in the country.
Recently, according to Mordor Intelligence’s report on the Vietnamese ride-hailing market in 2023, GSM currently holds an 18.17% market share, ranking second in the industry, behind Grab. GSM’s market share is double that of Be Group in third place (9.21%) and more than three times that of Gojek in fourth place (5.87%). This demonstrates the potential of Pham Nhat Vuong’s business in this sector.
VMI AND REAL ESTATE INVESTMENT SOLUTIONS FOR SMALL INVESTORS.
On October 6, 2022, Pham Nhat Vuong established the VMI Real Estate Management and Investment Corporation with an investment of over 243 million Vingroup shares, equivalent to VND 16.2 trillion based on the average market price of 50 sessions as of September 13, 2022. Consequently, he holds 90% of VMI’s shares and becomes its major shareholder. The company is also a major shareholder of Vingroup.
According to VMI representatives, the company will support small investors in participating in and managing real estate and developing Vinhomes’ secondary market.
VMI will acquire existing or future Vinhomes properties and divide the property value into 50 parts. Customers can invest in each part through a business cooperation contract. Cooperation partners with VMI will receive asset ownership certificates and profit distribution based on their investment ratio.
During the business cooperation period, VMI will formulate flexible investment cooperation policies based on market realities to maximize investors’ profits. Specifically, investors will enjoy all the benefits of increasing property value during the investment period, in addition to an annual minimum guaranteed profit by VMI to ensure a fixed income in case of unfavorable market fluctuations. VMI will publicly announce the investment cooperation policies on its online real estate platform.
VMI’s investment products are projects of Vinhomes.
In addition to these three companies, Vietnam Investment Group has long been known as Pham Nhat Vuong’s personal investment company. Vietnam Investment Group is the largest shareholder, holding a 32.6% stake in Vingroup. The company also holds a 33.48% stake in VinFast Singapore – a company that has submitted a listing registration dossier in the US.
Pham Nhat Vuong also owns Asian Trading & Investment, a company that holds a 15% stake in VinFast Singapore.
