Recently, Vingroup Joint Stock Company (VIC) announced a resolution to merge its subsidiaries including Ngoc Viet Trading and Business JSC, and VSN Trading and Business Company Limited into VinSmart Research and Manufacturing JSC in order to serve the purpose of internal restructuring and streamlining the companies, on 22/04/2024.
The Board of Directors has authorized the representative of Vingroup Corporation in the aforementioned companies to decide on issues related to the merger, in accordance with legal regulations.
Ngoc Viet Trading and Business JSC is a company spun off from Vinpearl in November 2023 with a charter capital of over VND 20,420 billion, in which Vingroup holds 99.96% of the charter capital. The main business line is real estate.
VSN Trading and Business Company Limited was established in late December 2023, with a charter capital of VND 4,974.7 billion and wholly owned by Vingroup. According to the business registration, the main business line of the company is also real estate trading.
Meanwhile, VinSmart has a total charter capital of VND 10,400 billion and is known as a Vietnamese smartphone manufacturer that was launched in 2018. VinSmart has launched 18 phone models since the commencement of the project.
At the peak, Vsmart once accounted for over 16% of market share in Vietnam (April 2020), ranked among the top 3 largest manufacturers in the market (after Samsung and Oppo). The company’s mobile models belonging to the Live, Joy or Active lines received positive reviews thanks to their high configuration, attractive prices compared to competitors, and superior warranty policy (18 months compared to 12 months from competitors). Some of Vsmart’s mobiles also set records for orders when they were launched and became “national” phone models. Vsmart also made its mark when it was the first mobile brand to introduce smartphones with an under-screen camera to the country with the Aris and Aris Pro versions.
However, in May 2021, VinSmart abruptly announced that it would stop manufacturing smartphones and TVs in Vietnam to focus on VinFast.
In terms of business results, in 2023, Vinsmart lost VND 1,785 billion, while in 2022, it lost VND 1,079 billion. As of December 31, 2023, Vinsmart’s equity was negative VND 2,228 billion.
