Big Plans for Vietnam's Vingroup
Big Plans for Vietnam's Vingroup
Conglomerate pursues US listing for carmaking unit as it aims to take on Tesla
By: Helen Clark
Vingroup, Vietnam’s closest thing to a homegrown chaebol, is looking to be one of the first Vietnamese companies to list on a major US exchange and hoping to raise US$3 billion for an IPO for its car maker subsidiary in the second half of next year.
It is the country’s largest conglomerate, recognizable everywhere, privately run and owned by Vietnam’s richest man and first billionaire Pham Nhat Vuong. In June, local news reported that the group and three Vietnamese banks had made it onto the Forbes Global 2000 list despite a fall in ranking.
“Vingroup fell 116 spots to 1,650th with revenues of US$4.7 billion and a market value of US$21 billion,” Forbes said. “It has been expanding after starting as a property company, entering retail, logistics, agriculture, education, healthcare, auto, and electronics.”
Only the car arm of the group is looking to go global. Its first cars were available in 2019 and despite initial skepticism did very well. It sold 30,000 of its locally made cars last year and according to reports has sold 25,000 this year, helped along by favorable financing and good terms for those who already own property in one of the Vingroup many housing developments. Ideally, the middle class could pick up snacks at a Vin Mart then drive their Vin Fast car back to a Vin Home…