Vingroup gains $44 mln in H1 profit

Vingroup, Vietnam's largest listed conglomerate, attained an after-tax profit of VND1,028 billion ($44 million) in the first half of the year, down 30% year-on-year.

The group's consolidated net revenue during the period reached VND32,083 billion ($1.37 billion), down 47%.

In the second quarter, Vingroup recorded a net revenue and after-tax profit of VND13,854 billion ($593.3 million) and VND516 billion ($22.1 million), down 63% and 14% year-on-year, respectively.

The corporation's revenue and profit decreased as some real estate projects are under construction and expected to be handed over in the second half of this year, according to its financial report.

"Currently, construction remains on schedule, ensuring the handover and revenue recognition at the end of the year, thereby helping the real estate segment complete the set year plan," it notes.

Other business segments like investment real estate leasing (mainly commercial center business), hotel services, tourism, entertainment, health care and education all recorded strong recovery after the period of social distancing.

As of June 30, 2022, Vingroup's total assets reached VND508,609 billion ($21.78 billion), up 19% compared to the beginning of the year, mainly thanks to deposits from real estate buyers for newly launched projects.

Vingroup completed the mobilization of $525 million in international bonds on May 10, Hanoi Stock Exchange reported. Each bond will have a face value of $1 million and a five-year maturity, with the option to receive shares of VinFast, the group's electric vehicle maker. The bonds were issued under the U.S. Securities Act of 1933.

The group last year had endorsed a decision to issue international bonds worth $1.5 billion. The issuance was scheduled to take place in the first quarter of 2022. However, it has been revised to be completed in two phases in 2022.

Following the first release, Vingroup is expected to proceed with the second offering worth $975 million.

In the technology-industry segment, VinFast recorded total sales of nearly 8,000 vehicles in the second quarter. VF e34 became the first electric car model in the top 10 best-selling cars in June in Vietnam.

In mid June, the company revealed at the European premiere of its VF 8 and VF 9 EVs in Norway that it plans to open more than 50 stores in Germany, France and the Netherlands.

In the U.S. market, VinFast in July opened the first six U.S. stores in California and secured a $1.2 billion incentive package from the State of North Carolina for its electric vehicle manufacturing project in the U.S.

The residential real estate segment continues to be a bright spot. Following the success of the Vinhomes Ocean Park 1 project in Hanoi's Gia Lam district, Vingroup member Vinhomes opened in late April the Vinhomes Ocean Park 2 mega-urban project - The Empire - for sale.

The project, located in Van Giang district, Hung Yen province, owns many facilities seen for the first time in Vietnam, including the world's largest Royal Wave Park artificial wave park complex with a total area of up to 18 hectares and the Vinmec Health Resort five-star hospital.

Vingroup is listed on the Ho Chi Minh City Stock Exchange (HoSE) as VIC. At the closing session on July 29, VIC shares were priced at VND64,000 ($2.74) per unit.