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|Constructing the Vinfast automobile manufacturing facility within 21 months is a testament to the power of Vingroup|
Vinhomes JSC has released information that it acquired part of the shares owned by Vingroup in Vinhomes Industrial Park Investment JSC to become its parent company.
This move marks Vingroup's entry into the industrial park real estate sector and follows a plan based on Vietnam's economic stability as well as increasing foreign direct investment (FDI) and a growing manufacturing sector.
With its favourable geographic position, diverse human resources, and the government's open policies, Vinhomes believes Vietnam has become an attractive investment destination in Southeast Asia for multinational technology and industrial groups alike.
Furthermore, consecutive increases in FDI, especially in the manufacturing and agricultural sectors, raised the demand for industrial park infrastructure.
Vinhomes entering the development of industrial parks also contributes to creating favourable conditions for the world’s leading auxiliary equipment providers to establish their first manufacturing facilities in Vietnam and then build out an ecosystem for domestic automobile manufacturing, aligning with Vingroup’s overall target of developing the industrial sector.
Previously, in December 2019, Vingroup gave up control of its retail operations as it wants to concentrate on the technology and industrial sectors. The multi-sector conglomerate has taken the next step in its restructuring plan to direct all resources into technology and industrial development.
In January 2020, Japan’s Mitsubishi Corporation and Nomura Real Estate Development announced that they will join hands with Vingroup on a smart urban development project in Ho Chi Minh City.
The Japanese companies will invest nearly ¥100 billion ($908 million) in the project. For the urban development project, Mitsubishi and Nomura Real Estate are partnering with Vinhomes to construct 21 apartment buildings. The project is expected to add approximately 10,000 homes to the city. The two Japanese firms will each invest 40 per cent and Vinhomes the remaining 20 per cent in the subdivision.