Singapore’s GIC leads US$500 million investment in Vietnam’s Vingroup

Vingroup, once a real estate and retail conglomerate, has grown to become Vietnam’s largest listed firm with a market capitalisation of US$16 billion

The company recently launched smartphones and cars, and is also looking to enter the artificial intelligence sector and launch an airline

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A view of Singapore’s financial district. Photo: AFP

Published: 7:13pm, 9 Sep 2019Updated: 10:40am, 10 Sep 2019

A consortium led by Singapore’s state investor GIC Private Limited has agreed with Vietnam’s largest conglomerate Vingroup JSC to buy a stake in one of the latter’s units for US$500 million, GIC said on Monday.

Vingroup will remain the controlling shareholder of the unit, VCM Services and Trading Development Joint Stock Company, after the deal, GIC said in a statement.

Vingroup Vice-President and General Director Nguyen Viet Quang. Photo: EPA

Vingroup and VCM Services and Trading Development have “established themselves as reputable retail companies with attractive brands in Vietnam’s fast-growing consumer market,” the statement said.

“As a long-term investor, GIC is confident in the growth outlook for disposable incomes and household consumption in Vietnam.”

VCM operates VinMart+ and VinMart outlet stores. There are more than 108 VinMart supermarkets and some 1,700 VinMart+ convenience stores across the country, according to the firm’s website. Vietnam’s economy is forecast to expand 6.7 per cent this year, one of the fastest among Southeast Asian nations.