On April 25, the Vingroup Corporation (stock code: VIC) held its 2024 annual general meeting of shareholders. According to the company’s meeting materials, the group has set revenue and profit after-tax targets of 200,000 billion VND and 4,500 billion VND, respectively, for this year. Compared to the previous year, Vingroup’s revenue is projected to increase by 23.7% while its profit will soar by 119%.
VINPEARL MAY BE LISTED IN 2024
In 2024, VinFast aims to boost its vehicle delivery volume and focus on cost optimization through innovations in design, procurement, and manufacturing. The electric vehicle manufacturer will continue to expand its distribution channels, leveraging local networks and expertise of its dealerships to reach approximately 400 points of sale globally by the end of 2024. Additionally, VinFast plans to deliver a new model to the US market, export vehicles to Europe, and commence distribution in Indonesia within the same year.
To optimize costs, VinFast is exploring design initiatives to reduce material costs while also seeking efficient sourcing and procurement.
In the real estate sector, Vinhomes is fortifying its distribution channels and reinforcing its 020 model in preparation for a new growth cycle in the market. Specifically, Vinhomes is establishing a self-operated distribution system alongside its existing nationwide dealer network, fostering long-term partnerships, and maintaining a fair and ethical playing field to ensure alignment in achieving the company’s business objectives.
In the tourism and entertainment sector, Vinpearl anticipates a continued strong recovery in the market in 2024, particularly from international visitors, and aims for substantial growth compared to 2023. The company plans to achieve this through enhanced customer acquisition, optimized sales channels, and the implementation of innovative marketing strategies.
Notably, Mr. Pham Nhat Vuong, Chairman of the Board of Directors, announced that Vingroup is working to complete the procedures for listing Vinpearl this year. In addition, the billionaire revealed that his private company, GSM, intends to expand globally and pursue an IPO in a foreign market.
VINGROUP WILL NEVER ABANDON VINFAST
Mr. Pham Nhat Vuong stated that doubts about Vingroup’s cash flow and capabilities are unfounded. The company has never defaulted on any bank debt. While the company is currently facing challenges, the worst is behind it. VinFast has become the best-selling automotive brand in Vietnam for the first time.
“Nobody said that building VinFast would be easy; if it were easy, we wouldn’t have done it. We created VinFast to fulfill a national mission. We are still pouring all our resources into VinFast,” said Mr. Pham Nhat Vuong.
Mr. Vuong emphasized that VinFast represents Vingroup’s mission, honor, and future, and the company will never abandon it. He personally plans to invest an additional 1 billion USD in VinFast in the near future. No company within the group will shirk its responsibility to support the electric vehicle manufacturer, but it must be done in accordance with legal regulations. Vingroup has even divested certain assets to its subsidiaries or externally to concentrate its efforts on supporting VinFast.
THE FUTURE OF ELECTRIC CARS MAY ‘OVERTAKE’ GASOLINE-POWERED VEHICLES
Mr. Pham Nhat Vuong shared that establishing a factory overseas presents tremendous advantages for VinFast. For example, if VinFast invests 2 billion USD in a US plant, it could receive over 2 billion USD in support from government policies and tax incentives. VinFast faces difficulties in competing with other manufacturers due to high logistics costs, but building a factory in the US can reduce expenses and capture a larger market share there.
Mr. Pham Nhat Vuong does not believe that electric vehicles will become obsolete; rather, he sees them as a sustainable development solution. “Battery packs are becoming increasingly affordable, and electric vehicles will gradually become as inexpensive as gasoline-powered ones. Additionally, VinFast offers a battery leasing program, making its vehicles competitive with gasoline cars and even potentially more affordable. With lower maintenance and warranty costs, there is no reason why electric vehicles cannot ‘overtake’ gasoline-powered ones,” said the Chairman of Vingroup.
Mr. Pham Nhat Vuong – Chairman of the Board of Directors, Vingroup“I believe that electric vehicles represent the future. We will compete directly with gasoline-powered vehicles. I will personally invest an additional 10,000 billion VND to construct charging stations in Vietnam
