Brian Jeffrey
VinGroup’s Stock Movements Spark Interest
Recent developments within Vuong’s business network have led to notable fluctuations in the stock prices of VinGroup companies.
After experiencing a downward trend for three years, shares in the VinGroup family showed resilience, particularly towards the end of August when Vinhomes (VHM) announced a VND 13 trillion buyback plan for 370 million shares, representing 8.5 percent of its total shares.
VHM’s stock price rose from a low of VND 34,500 in early August to around VND 43,000-45,000. Similarly, Vingroup’s shares (VIC) increased from VND 40,000 to VND 45,000 before adjusting to VND 42,000.
Vinhomes’ Dominance in the Real Estate Market
Among the Vin-family enterprises, Vinhomes has solidified its status as Vietnam’s leading property developer, boasting a land reserve of 19,600 hectares.
While Vinhomes awaits approval for its share buyback, foreign investor withdrawals from Vin-family stocks have sharply declined, leading to renewed interest in VIC, VHM, and Vincom Retail (VRE) shares.
The launch of residential offerings from the Vinhomes Co Loa project and the upcoming sales at Vinhomes Dan Phuong (Vinhomes Wonder Park) have captured investors’ attention.
VnDirect Securities noted a 33% increase in Vinhomes’ sales by June 2024, amounting to VND 118.7 trillion compared to the previous year, contributing positively to its share price.
Contributions from its subsidiary, Vincons, which serves as the EPC contractor for major Vinhomes projects, as well as favorable trends in the industrial real estate sector, have enhanced Vinhomes’ revenue prospects. Furthermore, the approval of a new industrial zone development in the Vung Ang Economic Zone also boosts its strategy.
Vingroup’s Electric Taxi Advancements
Vingroup is also progressing in the electric taxi sector, strategically boosting VinFast’s revenues. The company’s taxi division, managed by GSM, reported VND 5.76 trillion in revenues, marking a slight uptick from the previous year.
As of mid-2024, GSM operates 30,000 electric taxis across 45 locations, collaborating with numerous partners. Since its launch, GSM has significantly expanded its market presence, ranking as the second largest operator behind Grab, with an 18.2% market share.
Gojek’s recent exit from the Vietnamese market, announced on September 16, is anticipated to benefit both Grab and GSM significantly.
Xanh SM Bike Platform Launch
Vuong has unveiled the Xanh SM Bike platform, akin to Grab Bike and Be Bike, which provides an appealing profit-sharing model that allocates 80% of earnings to drivers. Initially, this service will roll out in major cities like Hanoi, Ho Chi Minh City, Da Nang, Binh Duong, and Dong Nai.
This initiative is part of Xanh SM’s strategy to broaden its network and increase market share. Moreover, GSM is exploring entry into international markets, with plans to launch in Laos by late 2023 and aims for further expansion into Indonesia and the Philippines as part of a broader strategy to enter nine foreign markets by 2025.
Vuong’s Rising Wealth and Future Plans
On October 1, Vuong convened with 50 transportation leaders in Hanoi to strategize on establishing a robust electric vehicle brand along with an integrated app and transport company to synergize operations.
As a result of the revived stock performance of VIC in Vietnam and VFS on the Nasdaq, Vuong’s wealth escalated from $4.1 billion in mid-July to $4.3 billion by October 2, ranking him 833rd on Forbes’ list of billionaires, with VFS shares priced at $3.7.
By early 2024, Bloomberg reported Vuong’s assets skyrocketing to $9 billion, elevating his ranking to 257th, primarily driven by VinFast’s performance.
Vuong’s wealth primarily originates from his stakes in two publicly listed entities: Vingroup (VIC) and VinFast (VFS).
