Vincom Retail to retain name, new shareholders to boost company growth: AGM

By Khanh An, Lan Do
Tue, April 23, 2024 | 10:40 pm GMT+7

Vincom Retail leaders said Tuesday that the company does not intend to change its name for now and that it will benefit from the extensive operating experience of new shareholders.

Their statement was made in the context of the company no longer being a subsidiary of Vingroup, Vietnam’s largest private conglomerate.

The company’s 2024 AGM was deemed a success with all proposals being passed.

 Vincom Retail JSC's Annual General Meeting of Shareholders, Hanoi, April 23, 2024. Photo courtesy of Vincom Retail.

Vincom Retail JSC's Annual General Meeting of Shareholders, Hanoi, April 23, 2024. Photo courtesy of Vincom Retail.

Vincom Retail JSC, listed on the HCMC Stock Exchange (HoSE) as VRE, earned revenues exceeding VND9,700 billion ($381 million) in 2023, up 33% year-on-year.

Main earners were leasing investment real estate and providing related services with VND7,796 billion ($306 million); real estate transfer, VND1,772 billion ($69.6 million); and other sources, VND223 billion ($8.7 million).

Its net profit was VND4,409 billion ($173 million), up 59% year-on-year.

As of December 31, 2023, its assets were valued at VND47,654 billion ($1.87 billion), with the company owning and operating 83 Vincom shopping malls and trade centers nationwide, totaling 1.75 million square meters, said VRE general director Pham Thi Thu Hien.

The company expects to generate approximately VND9,500 billion ($373 million) in net revenue, with an after-tax profit of VND4,420 billion ($173 million) in 2024.

It plans to open six new shopping centers, including two Vincom Mega Malls and four Vincom Plazas with a total retail floor area of approximately 171,000 m2, bringing the total number of shopping centers to 89 in 48 out of 63 provinces and cities nationwide by end-2024.

Vincom Retail will remove education-related business segments from its registration, the meeting heard.

An item of note approved at the meeting was the removal of Thai Thi Thanh Hai and Le Mai Lan, who resigned as members of the board of directors.

Nguyen Hoai Nam was elected as a board member for the 2023–2028 term.

Nam, 54, is a business administration graduate of the University of Southern California (the U.S.). He began working as a sales director for 3C Corporation in 1992 before becoming TTT Corporation's chief financial officer and Viet Au Investment's managing director. In 2006, he became a director with Berjaya Group, one of Malaysia's leading multi-industry firms.

The election of Nam to the Vincom Retail board of directors came after Vingroup signed an agreement on March 17 to sell its entire 100% stake of Sai Dong Urban Development and Investment JSC (SDI).

SDI holds more than 99% of the charter capital of Sado Trading Commercial JSC, the main stakeholder who owns 40.5% of Vincom Retail's capital. Thus, Sado and Vincom Retail are no longer Vingroup subsidiaries.

According to SDI's revised business registration, four enterprises in Ho Chi Minh City purchased a total of 55% of the company's shares on April 4. Vingroup and its subsidiaries continue to hold approximately 45% of the remaining shares. Of the figure, Vingroup directly owns 15.7%, while Ngoc Viet Company (a 99% Vingroup-owned firm) owns 29.2%, Vincom Security Services Company Limited and Vinbus each own 0.006% of the company's stock.

SDI's new stakeholders include four newly formed entities, namely Thien Phuc Business Investment and Development and NP Business and Development each own 16% of the capital, followed by Falcon Business Investment and Development (12.5%) and Emerald Business Investment and Development (10.5%).

The VRE leadership answered several queries at the AGM.

Shopping center opening

Pham Thi Thu Hien, general director of VRE:

VRE plans to open six shopping malls this year, four of them scheduled to open in June. In Q1, we concentrated on leasing. Current occupancy rates at stand at more than 60% at new Vincom Plazas and approximately 90% at new Vincom Mega Malls.

Q1/2024 business results

Pham Thi Ngoc Ha, chief financial officer:

Q1 saw a 16% increase in revenue as a result of the handover of many shophouses in the Dong Ha Quang Tri project. Its net profit surpassed VND1,084 billion ($42.6 million), up 6% from the same period last year. Q1 revenue and profit meet 20-25% of their respective yearly targets.

Dividends, protection of shareholder rights

Pham Thi Ngoc Ha:

The company will retain all accumulated profits until 2023 for business purposes. We currently have a plan for repaying loans. The company also intends to develop an extra 800,000 square meters between 2024 and 2027, necessitating capital. Its future project development will result in sustainable growth; therefore, long-term collaboration with VRE will benefit shareholders.

Shopping mall expansion, new stakeholders

Tran Mai Hoa, vice chairman of the board of directors:

The Board of Directors' report has detailed VRE's future strategy, as we have been doing for nearly eight years.

VRE's medium- and long-term plan has not changed; nevertheless, its implementation status will be reviewed annually. The overall strategy remains unchanged, forming the company's operational guideline.

In the projects with investments from Vinhomes and Vingroup, the policies will remain the same. Vingroup will continue to be with VRE, and Vincom Retail's shopping mall chain will still go hand in hand with Vingroup's ecosystem, The two sides will have a management contract in the near future to ensure consolidation and development of the industrial apparatus.

Benefits of having new group of strategic shareholders

Tran Mai Hoa:

We believe the new shareholders have retail experience and successful store formats. Retailers play a vital role in the success of shopping malls. We believe that Nam's experience and that of the new shareholders will be shared with VRE. They have extensive experience serving on the board of directors, which will be an advantage for us.

Name change, removal of "Vin"prefix

Tran Mai Hoa:

Vincom is the first Vietnamese shopping mall brand. Vincom Retail has been with the people for 20 years. The name is a source of pride, and it has worked hard to achieve the system it has now. I believe that many people share this sentiment about a company that has faced ups and downs, hardships, and learnt numerous lessons over the course of 20 years. Vincom brand's retention of the term "Vin" is subject to approval by the future board of directors. If something changes, shareholders will be notified.

Comments (0)
  • Read More
Construction trio keen on building $1.5 bln expanded expressway in southern Vietnam

Construction trio keen on building $1.5 bln expanded expressway in southern Vietnam

Three construction majors in Vietnam are interested in building an expanded expressway connecting Ho Chi Minh City with the Mekong Delta provinces of Long An and Tien Giang for an estimated VND38.6 trillion ($1.52 billion).

Infrastructure - Tue, November 19, 2024 | 8:18 pm GMT+7

Singapore, Germany upgrade relations to strategic partnership

Singapore, Germany upgrade relations to strategic partnership

Singapore and Germany have decided to elevate their ties to a Strategic Partnership to promote closer cooperation in areas of mutual interest such as security, artificial intelligence (AI) and clean energy.

Southeast Asia - Tue, November 19, 2024 | 8:01 pm GMT+7

Thailand’s rice shipment up 20% in 10 months

Thailand’s rice shipment up 20% in 10 months

Thailand exported 8.37 million tons of rice in January-October, a year-on-year increase of 20%, according to the Ministry of Commerce.

Southeast Asia - Tue, November 19, 2024 | 8:00 pm GMT+7

Vietnam’s inconsistent legal framework poses problems for FDI sector: Deep C exec

Vietnam’s inconsistent legal framework poses problems for FDI sector: Deep C exec

Vietnam’s legal framework lacks consistency and the foreign direct investment (FDI) sector will soon face challenges related to the Law on Environmental Protection, says Bruno Jaspaert, CEO of Deep C Industrial Zones.

Economy - Tue, November 19, 2024 | 6:30 pm GMT+7

Vietnam shares sink on extended foreign selloffs

Vietnam shares sink on extended foreign selloffs

Vietnamese equities fell for a fourth consecutive day on Tuesday as foreign traders extended their selling spree.

Finance - Tue, November 19, 2024 | 5:10 pm GMT+7

Germany’s household product firm QuickPack to invest $32 mln in Vietnam

Germany’s household product firm QuickPack to invest $32 mln in Vietnam

Germany’s QuickPack, a specialist for household goods and hygiene products, will invest €30 million ($31.8 million) in Vietnam’s Mekong Delta province of Long An.

Industries - Tue, November 19, 2024 | 4:24 pm GMT+7

Malaysian millionaire willing to invest in convicted Vietnamese tycoon’s property project: lawyers

Malaysian millionaire willing to invest in convicted Vietnamese tycoon’s property project: lawyers

Malaysian millionaire Vincent Tan has evinced investment interest in a residential project owned by convicted tycoon Truong My Lan, chairwoman of Van Thinh Phat Group, lawyers for the latter have disclosed.

Real Estate - Tue, November 19, 2024 | 4:17 pm GMT+7

‘Bottleneck of bottlenecks’ continues to dog Vietnam's property, infrastructure projects

‘Bottleneck of bottlenecks’ continues to dog Vietnam's property, infrastructure projects

Limited consultations between state agencies and the parliament’s primary focus on wording are issues with Vietnam’s legal framework adversely affecting property and infrastructure projects, say experts and corporate leaders.

Economy - Tue, November 19, 2024 | 3:40 pm GMT+7

President Xi Jinping hastens construction of 3 Vietnam-China rail routes

President Xi Jinping hastens construction of 3 Vietnam-China rail routes

Chinese President Xi Jinping has called for more substantial cooperation between China and Vietnam, including the pacier implementation of three railway routes linking the two nations.

Infrastructure - Tue, November 19, 2024 | 3:08 pm GMT+7

Vietnam developers offer deferred principal payments, interest support to boost year-end sales

Vietnam developers offer deferred principal payments, interest support to boost year-end sales

Vietnamese housing developers are offering several incentives including deferred principal payments and interest support to stimulate demand and boost liquidity as the year nears its end.

Real Estate - Tue, November 19, 2024 | 2:29 pm GMT+7

Australia's EQ Resources acquires TMG Group with Vietnam-based ferrotungsten factory

Australia's EQ Resources acquires TMG Group with Vietnam-based ferrotungsten factory

Australia-based EQ Resources Limited has acquired its fellow firm Tungsten Metals Group (TMG), which owns and operates the largest ferrotungsten (FeW) factory outside China.

Companies - Tue, November 19, 2024 | 11:00 am GMT+7

Techcom Securities becomes largest broker in Vietnam by capital base

Techcom Securities becomes largest broker in Vietnam by capital base

Techcom Securities JSC (TCBS) has become the largest securities company in Vietnam by charter capital after finishing a rights offering last week.

Finance - Tue, November 19, 2024 | 9:11 am GMT+7

Vietnam airport operator ACV looks to better exploit non-aviation service potential: exec

Vietnam airport operator ACV looks to better exploit non-aviation service potential: exec

Vietnam's airports operator ACV expects to earn $145 million from non-aviation services this year, accounting for around 18.83% of its total revenue, which is modest compared to other countries, said deputy general director Nguyen Duc Hung.

Companies - Tue, November 19, 2024 | 7:45 am GMT+7

The Investor to host seminar on removing legal bottlenecks for infrastructure, property investment

The Investor to host seminar on removing legal bottlenecks for infrastructure, property investment

A seminar themed “Removing legal bottlenecks for infrastructure and property investment” will be organized by The Investor in Hanoi on Tuesday.

Companies - Tue, November 19, 2024 | 7:00 am GMT+7

Indonesia promises Asia-Pacific investors more incentives

Indonesia promises Asia-Pacific investors more incentives

Indonesian President Prabowo Subianto recently told the press that he will create more incentives and expand special economic zones (SEZs) so as to lure investors from Asia-Pacific.

Southeast Asia - Mon, November 18, 2024 | 11:01 pm GMT+7

Indonesia, Brazil enhance aviation cooperation

Indonesia, Brazil enhance aviation cooperation

Indonesia's state-owned aircraft manufacturer, Dirgantara Indonesia (DI), and Brazilian aerospace company Embraer have signed a memorandum of understanding (MoU) to expand collaboration in the commercial aviation sector.

Southeast Asia - Mon, November 18, 2024 | 11:00 pm GMT+7