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
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 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.”
VinFast: will Vietnam’s new locally made car take off?
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.
Stock in Ho Chi Minh-listed Vingroup rose as much as 1.4 per cent on the news of the 11.6 trillion dong investment, the biggest intraday increase in more than two weeks. The shares are up almost 30 per cent since January.
Can a real estate developer jump start Vietnam’s car industry?
A source familiar with the deal said Credit Suisse acted as the sole adviser to Vingroup.
Vingroup, once a real estate and retail conglomerate, has grown to become Vietnam’s largest listed firm with a market capitalisation of more than US$16 billion. The company recently launched smartphones and cars, and is also looking to enter the artificial intelligence sector.
Last month, Vingroup applied for a licence to launch an airline next year.
Additional reporting by Bloomberg
