Vingroup, listed on the Ho Chi Minh Stock Exchange under the ticker VIC, is Vietnam’s largest private conglomerate. Founded in 1993 by Pham Nhat Vuong, Vingroup operates across various sectors including real estate, retail, healthcare, education, tourism, and automotive manufacturing. The group is best known for its real estate brand, Vinhomes, which develops luxury residential and commercial properties, and VinFast, Vietnam’s first global electric vehicle manufacturer.
In the first half of 2024, Vingroup’s revenue and profit before tax reached US$2.5 billion and US$261.4 million, down 25.7 percent and 16.6 percent year-over-year, respectively. This decline was primarily driven by a decrease in Vinhomes property sales. which accounted for 41 percent of total revenue.
Conversely, manufacturing revenue surged by 44.8 percent to US$557.9 million, with Vinfast’s revenue rising by 53 percent year-over-year. This was driven by VinFast’s delivery of 21,747 electric cars in the first half of the year, representing a 92 percent increase compared to the first half of 2023. However, about half of these vehicles were sold to related parties, mostly electric taxi firm Xanh GSM. Furthermore, with the cost of goods sold surpassing revenue and a gross profit margin of negative 61 percent, Vinfast reported a net loss of US$1.3 billion.
Notably, in the first half of 2024, Vingroup sold the majority of its equity capital of Vincom Retail, which owns and leases a range of commercial spaces around Vietnam. This led to leasing revenue declining by 46 percent.
Additionally, hotel and amusement park service revenue reached US$156 million, a slight decrease of 6.8 percent.
Disclosure: The author does not have any financial interest in VIC stock.