Hospitality arm Vinpearl separates from Vingroup

Vietnam’s largest private conglomerate Vingroup has announced it will separate from its hospitality arm Vinpearl and set up a new subsidiary in a move to restructure its member companies and improve business operations.

Under a new resolution issued by the board of directors, the new company that Vingroup, listed on the Ho Chi Minh Stock Exchange (HoSE) as VIC, plans to establish is Ngoc Viet Business and Trading Joint Stock Company (Ngoc Viet).

The new legal entity will have charter capital of VND20.42 trillion ($841 million), with Vingroup holding a 99.96% stake.

In July 2023, Vingroup approved a decision to separate from Vinpearl and rename it Vinpearl Cua Hoi JSC (Vinpearl Cua Hoi), which would have had charter capital of over VND1.26 trillion ($52 million), with 99.99% contributed by Vingroup.

Vinpearl is the largest brand in tourism, resort and entertainment services in Vietnam. It now boasts 36 hotels and resorts with over 18,500 rooms in 17 famous tourist destinations across the country, such as Phu Quoc, Nha Trang, Da Nang, Nam Hoi An and Ha Long.

Previously, Vinpearl was listed on the HoSE as VPL. In late 2011, VPL shares were exchanged to VIC shares when Vinpearl merged with Vincom JSC into Vingroup.

At the end of Q3/2023, Vingroup had 100% voting and interest in Vinpearl, with total investment reaching VND37.53 trillion ($1.55 billion).

Vingroup reported record revenue of VND47.95 trillion ($1.95 billion) in Q3/2023, a year-on-year increase of 66.5%. The group’s pre-tax profit reached over VND4.47 trillion ($182.1 million), down nearly 15% from the same period last year, according to its financial statement.

In the first nine months of the year, the group's total consolidated net revenue hit VND134.2 trillion ($5.46 billion), an increase of 122% year-on-year, mainly thanks to the handover of low-rise houses at Vinhomes Ocean Park 2 and 3 projects in Hung Yen province neighboring Hanoi, and strong growth of electric vehicle sales.

Its nine-month consolidated pre-tax profit reached VND12.37 trillion ($503.4 million), up 42%, while the after-tax figure was VND1.56 trillion ($63.48 million), or 78% of the yearly plan.

As of September 30, Vingroup's total assets had reached VND625.4 trillion ($25.45 billion), a slight increase compared to June 30.

Vingroup has targeted a net revenue of VND190 trillion ($8 billion) and post-tax profit of VND2 trillion ($85.25 million) in 2023, up 86.6% and unchanged from 2022 respectively.

In the stock market, VIC closed the Friday session at VND41,350 ($1.7) per share.