Vietnam's largest private firm Vingroup posts record revenue of nearly $2 bln in Q3

Vingroup reported record revenue of VND47.95 trillion ($1.95 billion) in the third quarter of 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 Q3 financial statement.

In the first nine months of the year, Vingroup’s total consolidated net revenue hit VND134.2 trillion ($5.46 billion), an increase of 122% over the same period last 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.

Other fields including real estate, hotel and tourism services, entertainment and manufacturing all recorded good growth.

Its nine-month consolidated pre-tax profit reached VND12.37 trillion ($503.4 million), up 42% over the same period in 2022, while the after-tax figure was VND1.56 trillion ($63.48 million), or 78% of the year plan.

As of September 30, the total assets of Vingroup, listed on the Ho Chi Minh Stock Exchange (HoSE) as VIC, had reached VND625.4 trillion ($25.45 billion), a slight increase compared to June 30.

Vingroup’s technology-industry field recorded historic progress. On August 15, its electric vehicle maker VinFast officially listed shares on the tech-heavy Nasdaq after successfully completing a business combination agreement with the U.S.’s Black Spade Acquisition Co.

In Q3/2023, VinFast launched three new EV models including the VF 3, VF 6, and VF 7, and its first electric bicycle model in the Vietnamese market. The company delivered 10,027 electric vehicles in Q3, an increase of 5% from the second quarter, bringing the total number of EVs delivered in the first nine months to 21,342.

In the year to September 30, VinFast had 126 showrooms, including 91 in Vietnam and 25 abroad. It plans to expand its distribution channel system through cooperation with agents and distributors globally. This model is expected to help the automaker quickly expand its access to customers as well as its presence in target markets.

The government has taken flexible monetary policies and interest rate reductions to promote the recovery of the property market, so Vinhomes (HoSE: VHM), Vingroup’s real estate arm, recorded positive results in Q3.

The company's total consolidated net revenue reached VND32.7 trillion ($1.33 billion), soaring 84% compared to the same period in 2022, as a result of the on-time handover of 2,400 low-rise units at the Vinhomes Ocean Park 3 project. The company's after-tax profit hit VND10.72 trillion ($436.2 million), down 26% year-on-year.

In the nine-month period, Vinhomes' total consolidated net revenue, including revenue from its activities, business cooperation contracts (BCCs) and real estate transfers, reached VND108.4 trillion ($4.41 billion), a surge of 118% over the same period last year.

The company's nine-month accumulated consolidated after-tax profit exceeded the yearly plan, hitting VND32.4 trillion ($1.32 billion), a year-on-year rise of 62%.

As of September 30, Vinhomes' total assets and equity were VND417 trillion ($16.97 billion) and VND181 trillion ($7.37 billion), up 15% and 22% respectively from the beginning of the year, retaining its position as one of the largest real estate developers in Vietnam.

Meanwhile, Vincom Retail (HoSE: VRE), another real estate subsidiary of Vingroup, posted net revenue of VND7.45 trillion ($303.15 million) and after-tax profit of VND3.34 trillion ($135.9 million) in the first nine months of 2023, growing 43% and 72% respectively year-on-year, thanks to the handover of 268 commercial townhouses at the Vincom Shophouse Dong Ha project in the central province of Quang Tri and Vincom Shophouse Dien Bien project in the northwestern province of Dien Bien, as well as continuously growing revenue from commercial center leasing.

In the field of tourism and entertainment, Vinpearl recorded strong growth in its business results with the number of room bookings in Q3 expanding 34% year-on-year and recovering by more than 90% compared to the same period in 2019.

With e-visas officially re-issued after a two-year pause due to the Covid-19 pandemic, Vietnam promises to become a friendly and attractive destination, promoting the number of visitors to Vinpearl and its VinWonders parks to grow strongly in the coming time.

Closing the Tuesday session, VIC was at VND43,450 ($1.77) per share, VHM at VND44,600 ($1.81), and VRE at VND26,600 ($1.08).

Vingroup is the largest private company in Vietnam by market capitalization.