Singapore’s GIC-led consortium invests $500 million in Vinmart and Vinmart+
By Trang Nguyen
September 10, 2019 | 03:23 PM GMT+7
The consortium led by the Singaporean sovereign wealth fund has collectively invested $500 million (VND11.6 trillion) for a minority stake in VCM Services and Trading Development JSC, a consumer retail arm of Vingroup.
Vingroup currently has a network of 2,122 VinMart supermarkets and VinMart+ convenient stores nationwide
According to GIC, Vingroup and VCM have established themselves as reputable retail companies with attractive brands in Vietnam’s fast-growing consumer market.
“As a long-term investor, GIC is confident in the growth outlook for disposable incomes and household consumption in Vietnam,” the investment firm noted in its statement released on September 9.
Following the transaction, Vingroup continues to be the controlling shareholder of VCM, a unit that was established in early August to oversee the operations of its supermarket chain Vinmart and convenient stores Vinmart+.
VCM was set up as a subsidiary of Vingroup that received the transfer of the conglomerate’s holdings at its retail business VinCommerce. According to Vingroup’s half-year financial statement, it held 64.3 per cent at VinCommerce. VCM is now the direct holding parent company of VinMart and Vinmart +.
Vingroup currently has a network of 2,122 VinMart supermarkets and VinMart+ convenient stores nationwide, which have been both organically grown and acquired through its rivals.
In the second quarter alone, Vingroup reported a total revenue of VND39.5 trillion ($1.71 billion) and post-tax profit of VND2.3 trillion ($100 million), an up of 22.4 per cent and 218.1 per cent on-year, respectively.
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