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|The Vinfast headquarters under construction|
According to the report of Le Khac Hiep, deputy chairman of the Board of Directors of Vingroup, at the 2018 annual shareholders’ meeting, the group’s revenue and profit soared last year in older business sectors and new ones that Vingroup has joined last year.
Accordingly, in 2017, the group earned VND89.35 trillion ($3.93 billion) in revenue and VND5.65 trillion ($248.2 million) in after-tax profit, signifying increases of 55 and 27 per cent.
|In 2018, Vingroup’s shareholders approved the plan for VND120 trillion ($5.27 billion) in net revenue and VND8.5 trillion ($373.4 million) in after-tax profit, signifying increases of 34 and 50 per cent.|
Notably, the highest-growth sector was real estate trading with the revenue of VND62.48 trillion ($2.74 billion), up 68 per cent on-year. Another sector that achieved impressive revenue was real-estate leasing and relevant services with VND4.41 trillion ($193.7 million), up 33 per cent on-year.
|Hotels, tourism, and entertainment||VND5.45 trillion ($239.4 million)||28 per cent|
|Retail||VND13.05 trillion ($573.3 million)||41 per cent|
|Healthcare and relevant services||VND1.85 trillion ($81.27 million)||70 per cent|
|Education||VND1.013 trillion ($44.5 million)||42 per cent|
In addition, last year Vingroup joined numerous new sectors, including the heavy industry via manufacturing automobiles and motorcycles.
With these positive business results, Vingroup offered its shareholders 21 per cent dividend.
In the framework of the AGM, Vingroup sought shareholders’ approval to issue preferential shares to mobilise capital for its new sectors or operation.
Vingroup expects to offer these shares to foreign investors. The firm plans to conduct the sale this year and expects to acquire VND20 trillion ($878.66 million) in proceeds. If successful, the deal will increase Vingroup’s charter capital to VND52 trillion ($2.28 billion).
This year, Vingroup will increase the presence of its brands across the country, especially the Vincom shopping centre chain and the Vinmart and Vinmart+ retail chains. Simultaneously, the group will focus on developing new sectors, including automobile and motorcycle manufacturing.
Pham Nhat Vuong, chairman of the Vingroup Board of Directors, stated that at first, Vinfast will focus on the local market. Despite the strict competition in the local automobile market, Vinfast is still optimistic thanks to the quality of its products.
Notably, according to Vuong, the quality of automobiles assembled in Vietnam is still not high and the rate of automatic assembly is still low, while at Vinfast almost all assembly processes will be automated.
Vuong also stated that in the first period, Vinfast will focus on dominating the local automobile market, instead of running after profit and will run promotion campaigns with every new model. Besides, Vinfast will also focus on after-sale and customer services.
Regarding business targets, this year Vingroup’s shareholders approved the plan for VND120 trillion ($5.27 billion) in net revenue and VND8.5 trillion ($373.4 million) in after-tax profit, signifying increases of 34 per cent and 50 per cent.