Vincom Retail, one of the leading retail real estate companies in Vietnam, is poised for substantial growth in the latter half of 2024, according to a recent analysis report by VNDIRECT Securities Corporation. The report highlights the company’s strategic focus on the sale of shophouses, with a remarkable 272% year-over-year growth in the first half of 2024, amounting to VND 744 billion in revenue.
Vincom Retail has ambitious plans to expand its shophouse portfolio, having placed deposits on three new projects in Quang Ninh, Hai Phong, and Nha Trang, acquired from Vinhomes, Vingroup, and Winwonders Nha Trang, respectively. The first two projects, Vinhomes Golden Avenue in Quang Ninh and Vinhomes Royal Island in Hai Phong, are slated for launch in early 2025 and are expected to significantly boost the company’s profitability in 2025-2026.
Vinhomes Golden Avenue, Quang Ninh (Image source: cafef.vn)
However, the Nha Trang project has faced delays, leading Vincom Retail to halt its investment and withdraw its deposit of VND 1,335.6 billion, along with a penalty fee, within six months. Despite this setback, Vincom Retail’s leadership remains optimistic, reporting outstanding shophouse sales of VND 230 billion, expected to be recognized in the latter half of the year.
VNDIRECT’s analysis also sheds light on Vincom Retail’s prudent financial management. The company is set to retrieve VND 2,350 billion in related-party loans in September 2024. As of June 2024, Vincom Retail had VND 2,350 billion in receivables from related parties, including VND 1,900 billion from VinFast and VND 450 billion from Vinbus, with an annual interest rate of 12%. These loans will mature in September, and the funds are anticipated to be recovered by the end of Q3/2024.
VinFast – A VinGroup Company (Image source: cafef.vn)
In parallel, Vincom Retail’s core business of shopping malls is also witnessing significant developments. Three new malls, including Vincom Mega Mall (VMM) Grand Park in Ho Chi Minh City, VCP Dien Bien Phu, and VCP Ha Giang, were inaugurated in June 2024, alongside the reopening of VCP 3/2 in Ho Chi Minh City. These new malls will start contributing rental income from Q3/2024 onward, with VCP Bac Giang joining in Q4. Additionally, the company plans to launch Vincom Plaza Dong Ha Quang Tri in November 2024.
Vincom Plaza – Vincom Retail’s Shopping Mall Brand (Image source: cafef.vn)
With 87 shopping malls and over 1.83 million square meters of retail space as of August 2024, Vincom Retail solidifies its position as Vietnam’s largest retail space leasing company. The company’s strategic expansion and diverse portfolio of shophouse and mall projects underscore its commitment to driving growth and enhancing shareholder value.
Over 3 Million Visitors Choose Vincom Shopping Malls for National Day Celebrations and Shopping
Throughout the 4-day National Day holiday this year, the Vincom shopping mall chain, with 87 locations nationwide, welcomed approximately 3.3 million visitors. It continues to be a top destination for entertainment, shopping, and cultural experiences, beloved by millions of Vietnamese families.
The Stock Market’s Resurgence: A Week of Robust Recovery
The stock market witnessed a robust recovery this week, with real estate stocks soaring in both volume and liquidity. Meanwhile, Tan Tao Group Joint Stock Company’s shares continue their steep downward correction, as news emerges of a company linked to Ms. Dang Thi Hoang Yen registering to purchase nearly 6 million ITA shares. In other news, FPT Retail’s stock has been consistently reaching new price peaks.
The Power of Persuasive Writing: “Vincom Retail (VRE) Stock Soars as Vingroup Loan Recall Looms”
In April 2024’s investor meeting, Vincom Retail’s management announced their intention to retrieve all related-party loans by the end of September 2024.
Is It Worth Investing in Hai Phong Real Estate Now?
The Hai Phong real estate market is experiencing a vibrant resurgence, attracting the attention of savvy investors. This northern Vietnamese city is brimming with potential, and investors are recognizing this opportune moment to make their move. With a flourishing economy and a wealth of untapped possibilities, Hai Phong is poised to become a thriving hub, offering a golden opportunity for those bold enough to seize it.
