Business

SK Group chips in VinCommerce

By Kieu Mai April 06, 2021 | 04:10 PM GMT+7

Transaction values VinCommerce at $2.5 billion for 100 per cent of its equity.

South Korea’s conglomerate, SK Group, announced acquisition of a 16.26 per cent stake in VinCommerce, a retail affiliate of Masan Group, for a total cash consideration of $410 million.

Masan is planning to use the proceeds from this transaction, amount of approximately $225 million, to strengthen its balance sheet and to fund future growth initiatives.

SK said that its investment validates Masan’s turnaround execution capabilities through store network and assortment optimization, continuous profitability improvement through disciplined commercial margin enhancement, and operating cost-saving rationalization.

SK Group is one of the largest corporate groups in South Korea, with businesses across energy, chemicals, telecommunications, semiconductors, logistics and service sectors. SK Group operates globally across over 40 countries and had a consolidated revenue of $86 billion as of year-end 2020.

VinCommerce achieved EBITDA break-even in the last quarter last year and delivered positive EBITDA in the first three months of this year. It is expected to to achieve positive EBIT in the second half of 2021.

In 2021, VinCommerce has laid out a clear plan to strengthen its platform to deliver high-growth and sustainable profits.

It plans to make commercial margin improvement of 2.0 per cent via direct fresh sourcing and strategic supplier contracts, nationwide rollout of pilot store models by the second quarter of 2021, and to enhance supply chain model empowered by auto-replenishment engines shared at Masan’s recent annual shareholder meeting.

VinCommerce operates the largest nation-wide grocery modern trade retail platform in Vietnam with supermarket chain VinMart and minimart chain VinMart+. It also owns VinEco – the largest vegetable and fruit brand in Vietnam that is available exclusively at VinMart and VinMart+ stores.

Vietnam’s modern trade grocery retail market is expected to increase its share from 8 per cent to 50 per cent of the retail landscape, making Vietnam the fastest growing modern trade grocery retail market in the Asia Pacific region over the next decade.

Singapore’s GIC-led consortium invests $500 million in Vinmart and Vinmart+

Singapore’s GIC-led consortium invests $500 million in Vinmart and Vinmart+

National Focus -  5 year
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.
Singapore’s GIC-led consortium invests $500 million in Vinmart and Vinmart+

Singapore’s GIC-led consortium invests $500 million in Vinmart and Vinmart+

National Focus -  5 year
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.
Menas brings Da Lat agricultural products to Mena Gourmet Market

Menas brings Da Lat agricultural products to Mena Gourmet Market

Business -  3 day

Menas has recently signed a strategic partnership agreement with Ngoc Duy Group and Da Dream Farm to introduce high-quality agricultural products from Lam Dong province to the nationwide distribution network of Mena Gourmet Market.

MISS EDE debuts in US market with high-quality Vietnamese robusta

MISS EDE debuts in US market with high-quality Vietnamese robusta

Business -  4 day

MISS EDE's recent shipment of 18,000 packages of roasted coffee to the US marks a pivotal step for Dak Lak’s coffee industry toward global recognition.

Desert Harbour Tourism marks 8 years, serves over 20,000 visitors to Dubai

Desert Harbour Tourism marks 8 years, serves over 20,000 visitors to Dubai

Business -  5 day

Desert Harbour Tourism, a Dubai-based destination management company founded by Vietnamese entrepreneurs, has marked its eighth year in operation, having facilitated trips for more than 20,000 visitors, with over 70 per cent coming from Vietnam.

Phu Long partners with 54 to advance Vietnam's golf industry

Phu Long partners with 54 to advance Vietnam's golf industry

Business -  1 week

Phu Long Company and 54, a prominent player in the sports and entertainment industry, have entered a strategic partnership to drive the rapid expansion of Vietnam's burgeoning golf market.

Vietnam's opportunity in a shifting global EV market

Vietnam's opportunity in a shifting global EV market

Business -  2 week

The global electric vehicle boom presents numerous opportunities for Vietnam's economy, supported by leading technology suppliers like Bühler Group.

Maersk expands northern Vietnam operations with first bonded warehouse

Maersk expands northern Vietnam operations with first bonded warehouse

Business -  4 week

A.P. Moller–Maersk has launched its first bonded warehouse in Vietnam, situated in the SLP Park in Nam Dinh Vu Industrial Park, Haiphong.