Company Profile - Vingroup - Q2 2013

Vietnam - Real Estate - 11 Mar 2013

SWOT Analysis

Strengths

One of Vietnam's largest real estate developers, and the largestregistered on the country's stock market.

Diverse operations across a breadth of sub-sectors.

Strong financial capacity.

In November 2012, Vingroup won two prestigious awards at the South EastAsia Property Awards 2012 held by Ensign Media, including Best Developerin Vietnam - Vingroup and Best Villas Development in Vietnam - VincomVillage.

Vingroup's US$300mn convertible bonds was named The Best Deal fromVietnam for 2012, by The Asset - a prominent magazine, public relation andadvisory organisation in the field of finance in Asia.

Weaknesses

Downgrade of Vietnam's foreign and local debt currency debt ratings byMoody's .

Comparative newcomer to the market.

Opportunities

Modernisation and Industrialisation of Vietnam.

International aspirations.

Mergers and acquis itions.

Adjustment of available room of foreign ownership to 22%.

ThreatsSusceptible to any vulnerability in the Vietnamese economy.

Difficulties in the transition from domestic to international player.

CompanyOverview

Vingroup Joint Stock Company (formerly Vincom Joint Stock Company and the VietnamGeneral Commercial Joint Stock Company) was established in 2002 and isheadquartered in Hanoi. Vingroup is publicly listed. Its initial public offering (IPO) wascarried out in 2007.

Vingroup is one of Vietnam's largest real estate developers. It operates throughnumerous subsidiaries to develop and construct offices, retail outlets and res identialprojects, and to provide financial services. The company's key projects include theVincom Center in central Ho Chi Mih City (HCMC); the high-end Vincom Hai Phong retail,office and res idential complex in the heart of Hai Phong; the Vincom Financial Tower inHCMH, which the company has touted as Vietnam's Wall Street; the Eco City res identialproject in Hanoi; and the upscale res idential Royal City Project in Hanoi.

In January 2012, the company completed procedures for the merger of Vinpearl JointStock Company into Vincom, increasing the total charter capital to approximatelyVND5,500bn; Approved the Company's construction and development strategy withfour focal brand names: Vincom (Real estate), Vinpearl (Tourism & Recreation),Vincharm (Fitness and Beauty Care), Vinmec (high quality Healthcare Services),operating under a new legal instituition: Vingroup.

On October 10 2012, Vincom Center A Ho Chi Minh City shopping mall commencedoperations, located at the heart of HCMC, with four facades on the main streets of LeLoi - Dong Khoi - Le Thanh Ton and Nguyen Hue. The project comprises nine aboveground floors and s ix underground floors with a GFA up to 98,000sq m; of which theretail area covers 39,000sq m on three basements and four above ground floors;Vinpearl Luxury Ho Chi Minh City - the five-star hotel with 293 exclus ively luxuriousrooms; and an underground parking of over 25,000 sq m.

Strategy

Guided by its pioneering aspiration as well as sustainable investment - developmentstrategy, with a focus on Real Estate and Hospitability, Vingroup has been striving tobecome the leading multisectoral business group in VietNam and in the region.

Vingroup aspires to establish a Vietnamese brand, demonstrating Vietnameseintellectual stature and pride in the international arena.

For the market: To provide premium products and services of international standardsthat are original, highly creative and embedded with local identities. In addition to itsoutstanding quality, each product - service contains a cultural message with a view tobest catering for customers' legitimate needs.

FinancialData

As of June 2012, the company has a chart capital of VND7,000bn

The latest available data (February 2013) relates to 9M12.

For the period ended September 30 2012, Vingroup has achieved VND5,069bn inrevenue and VND1,474bn in profit after tax, which represents an increase of350% and 81% y-o-y, equivalent to 41% and 48% plan respectively.

Company Details

7th Floor

Tower B

Vincom City Towers

191 Ba Trieu, Hanoi

Fax: 84 4 39748888

This material is protected by international copyright laws, and use of this is subject to our Terms& Conditions. © 2013 Business Monitor International Ltd