Vingroup plans to spend $28 million to set up a subsidiary in Congo
Pham Nhat Vuong's conglomerate will spend $28 million, equivalent to more than VND700 billion, to set up a subsidiary in Congo to develop real estate and electric vehicles.
According to Vingroup, the move is intended to study the market and seek investment opportunities in real estate, electric cars and several other business areas in Congo. The group's subsidiary is expected to be named Vingroup DRC Holdings SARL, based in Kinshasa, Congo.
In late October, billionaire Pham Nhat Vuong's conglomerate signed a memorandum of understanding (MoU) with Congo to study and develop a riverside mega-urban area project spanning about 6,300 hectares. The project also includes converting more than 300,000 gasoline-powered vehicles to electric vehicles, establishing an electric bus system and charging station infrastructure.
The urban area will include housing, villas, hospitals, schools, shopping centers, hotels, entertainment areas, along with space for future government agencies and ministries. The group was granted land free of charge by the Congolese side to implement the project.
Vingroup's VinFast factory complex in Hai Phong. Photo: VinFast.
Before Congo, Vingroup already had subsidiaries in Singapore, the US, the Netherlands, Canada, Indonesia, Thailand, Kazakhstan...
Vingroup is currently the largest listed company by market capitalization on Vietnam's stock market, at VND1.1 quadrillion, nearly seven times higher than a year ago. With VIC shares up more than 600% since the start of the year, the wealth of Pham Nhat Vuong, Vingroup's chairman, reached $25.5 billion, ranking 91st in the world.
In the first nine months, Vingroup's total net revenue reached VND169,611 billion, up 34%. Profit after tax reached VND7,565 billion, 1.9 times the level in the same period last year. At this level, the group completed 76% of this year's plan.
As of September 30, Vingroup's total assets had risen 30% from the start of the year to VND1.08 quadrillion. Financial borrowings stood at more than VND321,900 billion, up 44% from the start of the year and double equity. Retained earnings after tax reached VND52,505 billion.
