Referring to the name “Vingroup”, many people may be greatly impressed by the strong breakthrough of this national enterprise. Vingroup is the largest private enterprise in Vietnam which is considered a version of a chaebol, a type of multidisciplinary corporation responsible as the flagship of the economy. Vingroup’s products are extremely popular in Vietnam, easily obtained and used in any field of life. People often jokingly say that all consumers needs are offered by Vingroup: giving birth with “Vinmec”, studying at “Vinschool”, living in “Vinhome”, driving “VinFast”, going on vacation in “Vinpearl”, communicating by VinSmart phone, shopping in “Vinmart” and “Vincom” shopping centers.
10 years ago, Vingroup’s forerunner was Technocom, a company established in the Ukraine by Mr Pham Nhat Vuong and some other Vietnamese associates. In 2010, when Nestle SA of Switzerland bought Technocom with 150 million USD, Mr Vuong invested in Vietnam with a focus on tourism – real estate with two strategic brands of Vinpearl and Vincom. In 2012, Vinpearl and Vincom were merged and officially put into operation as a group model – Vingroup which has grown rapidly and become a private economic group with the largest charter capitalization in the Vietnamese market.
Vingroup is an ambitious corporation, reflected in its achievement within core areas.
Regarding real estate, Vingroup owns famous brands: Vinhomes, Vincity, Vincom and Vinpearl. These brands have widespread coverage within prime locations of Vietnam, playing the role of leading the consumption trends of the Vietnamese people. Especially, Vinpearl, as a leading brand in the tourism and resort industry in Vietnam, which includes golf courses, high-end entertainment areas, safaris and restaurants of international quality etc.
In February 2020, Vinpearl announced its strategy of approaching international markets, including China, Russia, Australia, Japan, and South Korea; comprehensive cooperation with domestic airlines and providing high-end package travel services to get more tourists using the Vinpearl system in particular and coming to Vietnam in general. Potential regions such as Europe, the US, Canada and other Southeast Asian countries are also a part of Vinpearl’s roadmap for market expansion and diversification.
In 2018, Vinfast took over an entire GM factory in Hanoi and built an all-new line of vehicles licensed by GM, while manufactured and sold under the “VinFast” trademark, together with the Chevrolet dealer network across the country to become the exclusive distributor of Chevrolet products and related services in Vietnam. Similarly, Vingroup entered the production of smartphones branded Vsmart by a strategic partnership agreement with BQ – a Spanish smartphone brand, to shorten its smartphone manufacturing strategies in accordance with international standards.
Regarding education, Vingroup successfully established the “Vinschool” system, from Kindergarten to High School, with a methodical investment in infrastructure, curriculum and teaching quality. In 2020, Vingroup has officially ventured into higher education – “VinUni”.
In the field of heavy industry, Vingroup is a pioneer in the automobile industry of Vietnam with the “VinFast” brand. In October 2018, at the Paris Motor Show, VinFast was honored as the “new star” of the world auto industry. In addition, VinFast also introduced its electric motorcycle and systems of electric buses in Hanoi and Ho Chi Minh City.
In the retail sector, Vingroup has built many brands that are trusted in the local market, owned by its subsidiary – VinCommerce, including chains of supermarkets and convenience stores, e-commerce sites and electronic retail systems.
In the agricultural sector, Vingroup established VinEco in 2015 with the goal of providing clean and safe agricultural products. After only 2 years, the VinEco has 14 farms, 1,000 cooperatives for farmers and 3,000 hectares of production that generates 2,000 tons of agricultural products each month. At the end of 2019, Vingroup transferred VinEco and VinCommerce to Masan Group in order to focus on its new goal of Heavy Industry – “Vinfast”.
In the recent past, Vingroup has cooperated with leading partners in different sectors such as real estate (ATKINS UK and GENSLER USA), the medical field (GE Healthcare USA and DKSH Switzerland) and telecommunications (SK Group of South Korea)
In the period from 2013 to 2019, this group made 17 international capital mobilization transactions with a total amount of 7.6 billion USD, including both loans and equity for Vingroup and its member units. It is known that in 2019, Vingroup issued 750 million USD of international bonds (non-convertible, not accompanied by warrants, without collateral) listed on the Singapore Stock Exchange (SGX).
Vingroup is seen as a potential investment destination for many international investors because of its growth prospects and diverse ecosystem. If you are looking for a potential Vietnamese partner, D’Andrea and Partners Legal Counsel with our international and multilingual experts, is available to support you. Do not miss our countless articles about investing in Vietnam on our website or contact us at email@example.com.