Vingroup is a Vietnamese corporation specializing in technology, industry, real estate development, retail and services, ranging from healthcare to hospitality.
The history of Vingroup begins with the founding of Technocom Corporation in 1993 in Ukraine, thanks to an ambitious group of young Vietnamese. Technocom started with food production, achieving great success with the Mivina brand. In 2000 it moved to Vietnam with two strategic brands, Vincom and Vinpearl, and the ambition to contribute to the development of the country. In January 2012, Vinpearl JSC merged with Vincom JSC to form Vingroup Joint Stock Company, becoming - with a market capitalization of approximately $ 3 billion - the largest privately held company in the nation. Pham Nhat Vuong, the first billionaire in Vietnam's history, is the Group's president, founder and largest shareholder.
A multi-sector company with 19 member brands, Vingroup is recognized as one of the most dynamic, successful, and well-capitalized companies in Vietnam. The main axes of its business are technology and industry; trade and services; social enterprise. In 2013, Vingroup raised approximately $ 200 million from the US investment fund Warburg Pincus to invest in four areas: commercial facilities, tourism, hospitals, and schools. The Vietnamese giant is currently concentrating resources on automobiles and real estate businesses. At the end of 2019, Vingroup announced its intention to stop retail operations - the largest in Vietnam - and last May it decided to stop the production of smartphones and televisions as well.
Vingroup entered the automotive industry in 2019, founding the subsidiary VinFast and its automotive plant in Haiphong with an annual capacity of approximately 250,000 vehicles. Profitability is still an issue. The company sold around 30,000 vehicles last year, enough to satisfy only around 10% of the Vietnamese market. Vingroup's automotive-focused manufacturing segment posted a pre-tax loss of 11.3 trillion dong in the first half of 2021, more than double the previous year. Pham Nhat Vuong recently told local media that further losses in the automotive sector are expected in the near term.
The company's future is currently focused on the electric vehicle business, launched in late 2021. Le Thi Thuy, Vingroup Vice President and CEO of VinFast Global, recently said that Vinfast will officially become a 100% electric car company by the end of 2022, definitively ceasing the production of petrol vehicles. Around 35,000 electric vehicles were ordered at the beginning of January, including orders from Western markets. The goal is raising $ 1.5 billion through bonds and strengthen its electric vehicle business with a new lithium-ion battery plant. The five-year dollar-denominated bonds will help finance the automotive unit that Vingroup hopes to list in the United States. It has already invested $ 5 billion in this sector. The issue of international bonds is expected in the first quarter of this year. VinFast has just unveiled five electric vehicles at CES 2022 in Las Vegas, an important debut that intends to develop a sales network in the United States and Europe. Delivery of the first two electric vehicles, the VF 8, and the VF 9, is expected by the end of the year. In December, VinFast began sales of its electric vehicles in Vietnam, becoming the first national car company to sell EVs in the country. The Vietnamese giant is thus preparing to face an increasingly competitive market. By entering the electric vehicle market before the pecking order is firmly established, Vingroup aims to carve out a strategic position that will drive its future actions.