Retail leasing attaining the highest profit margin for Vingroup

By Dung Le - Oct 16, 2017 | 06:54 AM GMT+7

TheLEADERIn the last five years, Vingroup attained total gross profit of nearly VND40 billion (nearly US$1.8 million) out of VND100 billion (US$4.4 million) of real estate revenue but retail leasing brings highest gross margin for this group.

Retail leasing attaining the highest profit margin for Vingroup
Vinmec is one of the most modern hospital in Vietnam. Photo: Vingroup

In the first half of this year, Vingroup earned US$513 million in total gross profit. Real estate sales accounted for the largest share with US$443 million.

The remaining four parts which are consumer retail, retail leasing, hospital and entertainment services, healthcare and education contributed a total of US$70 million.

Of these five fields, retail leasing has stable rate of return which had been nearly 40% since and the highest gross margin field was the lease of real estate with over 50%.

Vingroup recently has 41 malls and it planned to open 200 malls by 2021.

The consumer retail of Vingroup having more than 1,000 stores branded Vinmart, Vinmart +, VinPro and VinDS are experiencing the decline of gross magins. In 2015, its rate of return was 13% but in the first half of this year, this figure was only 6%. This was the result of the acceleration of the number of sale points in the past two years.