How is Vincom Retail performing before Vingroup’s unexpected divestment?

 

Vingroup Corporation has decided that the corporation and its subsidiaries will sell up to 100% of the charter capital in SDI Investment and Development Trading Company Limited.

SDI is the company that owns over 99% of the charter capital of Sado Trading Joint Stock Company, a major shareholder of Vincom Retail. After this transaction is completed, SDI Company, Sado Company, and Vincom Retail Company will no longer be subsidiaries of Vingroup Corporation. The transaction is expected to be completed from March 2024 to the third quarter of 2024.

Explaining the unexpected divestment at Vincom Retail, Mr. Nguyen Viet Quang, Vice Chairman of the Board of Directors and CEO of Vingroup Corporation, said: “This is the time to concentrate all resources to develop Vingroup and key brands with high growth potential. And to achieve this mission, we will devote all our efforts, especially financial resources, to create a breakthrough in the next turning point.”

According to the financial data of Vincom Retail, as of December 31, 2023, the company had total assets of VND 47,653 billion. The market capitalization at the current time is over VND 60,000 billion.

Vincom Retail currently owns 83 commercial centers located in central locations in 44 provinces and cities of Vietnam. Last year, the company introduced 11 major international brands for the first time in Vietnam, such as Lush, ADLV, Wulao… and 10 flagship stores with different, unique models in Vincom shopping centers, such as Nike Live, Pizza 4P’s Premium, Aldo, Swarovski.

Vincom Retail said that in the past year, the company has installed a solar energy system at 54 commercial centers, saving VND 12.2 billion and reducing about 12 thousand tons of CO₂ emissions into the environment each year. Vincom Retail has carried out waste classification at the source and called for stalls in the shopping centers to participate with the result of 50 tons of recyclable waste per year from this initiative.

In 2023, Vincom Retail’s net revenue reached VND 9,791 billion, after-tax profit reached VND 4,409 billion, an increase of 33% and 58.8% respectively compared to the same period.

Since October 2023, Vincom Retail has had a change in the position of CEO, with Ms. Pham Thi Thu Hien taking over as CEO from Ms. Tran Mai Hoa.

In 2024, Vincom Retail plans to open 6 more commercial centers with a total retail floor area of about 160,000 m², maintaining its position as the leading retail real estate developer in Vietnam and the region.