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Sunday, April 14, 2024

Vingroup divests Vincom Retail to focus on core operations

The Saigon Times

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HCMC – In a strategic move aimed at consolidating its focus on core businesses, Vingroup has inked a deal to sell its entire stake in SDI which currently owns 99% of Sado Trading Commercial Joint Stock Company, a major shareholder in Vincom Retail.

The transaction, slated to be completed from March 2024 to the third quarter of 2024, will result in SDI, Sado, and Vincom Retail ceasing to be subsidiaries of Vingroup.

The local media quoted Nguyen Viet Quang, vice chairman and CEO of Vingroup, as saying Vingroup needs to concentrate resources on developing Vingroup and its key brands with high growth potential. “To accomplish this mission, we will channel all efforts, especially financial resources, to allow for breakthrough development in the next pivotal phase.”

Following the transaction, Vingroup will enter into contracts with Vincom Retail to manage the operations of its commercial centers.

Vincom Retail made VND9.79 trillion in gross revenue and VND4.41 trillion in after-tax profit last year, up by 33% and 58.8% respectively, said local news reports.

Vincom Retail now owns 83 commercial centers in prime locations across 44 provinces and cities in Vietnam. This year, it plans to put into service an additional six commercial centers with 160,000 square meters of retail space.

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