Vingroup empire just keeps getting bigger and bigger

The Thanh Hoa provincial People’s Committee recently asked local agencies to help with investment procedures and find locations for the VinFast service complex, a project of Vingroup.



The quick response by the provincial authorities to Vingroup’s application for investment in the locality is understandable. Vingroup’s projects will bring big benefits to development.



Vingroup has also asked Lang Son provincial authorities’ for support for its VinFast service complex in the locality. Sources said the complex would arise in many localities throughout the country to provide services to electric vehicles that Vingroup is manufacturing.



Each location would cover several to tens of hectares, and be in advantageous positions with high traffic density.

Some days ago, VinFast made an impressive launch of its first sedan and electric motorbike models.



The news about the events organized by Vingroup, whose CEO is the US dollar billionaire Pham Nhat Vuong, received a great deal of press coverage.



Some analysts, however, doubt the feasibility of Vingroup’s projects because the conglomerate has been expanding too rapidly. Others believe the projects are within Vingroup’s reach. 



One year ago, Vingroup was allocated hundreds of hectares of land in Hai Phong where the VinFast complex was built.



Local authorities and lenders have confidence in Vingroup because the conglomerate has set up a powerful ‘empire’ with its affiliates present in nearly all important business fields of the national economy.



In November, Vingroup kicked off VinCity urban area, covering an area of hundreds of hectares in Hanoi. It is projected to become a ‘university city’.



Vingroup now has thousands of Vinmart+ convenience stores, VinMart supermarkets, and Vincom shopping malls. It recently developed VinFa drugstore chain, and acquired the mobile phone distribution chain Vien Thong A. In addition, high-end Vinpearl hotels and resorts are well known.



Established initially as a real estate firm, Vingroup has invested in many other business fields in recent years. It has stated that in the next 10 years, technology will be its core business field. 



With new brands Vietnam Grand Priz, VinSmart and VinTech, Vingroup has been expanding. Its capitalization value has reached over $13 billion, equal to the total capitalization value of  two other big corporations – Vinamilk (dairy producer) and the Bank for Investment & Development of Vietnam (BIDV).



Vingroup’s chair Pham Nhat Vuong is the first Vietnamese dollar billionaire recognized by Forbes. His stock asssets had reached $6.7 billion as of November 29.