Vingroup to divest from gene decoding subsidiary

Vingroup, Vietnam's largest listed conglomerate, has decided to sell its stake in GeneStory JSC after more than a month of capital contribution.

GeneStory’s main business lines include scientific research and technological development in the field of science and technology.

The company was established on March 30, 2022 with an initial charter capital of VND102.3 billion ($4.4 million). Of this, Vingroup accounted for 99% of ownership, with the remaining held by two individuals.

Vingroup has not disclosed the proportion of shares to be sold or the value of the transaction. Following the transfer, the conglomerate would no longer be GeneStory's parent company.

GeneStory’s headquarters is in the Vinhomes Riverside Eco-Urban Area, Phuc Loi ward, Long Bien district, Hanoi

The firm is affiliated with another Vingroup subsidiary, VinBigData or the Institute of Big Data. Vu Ha Van, the founder of GeneStory, is the scientific director of VinBigData, while Le Thuy Anh, CEO of Vinmec International General Hospital, serves as its strategic adviser.

The GeneStory divestment plan comes in the context that Vingroup is strengthening its three business pillars, namely technology-industry, trade in services, and social charity.

The giant planned to diversify its products and services of each vertical, offering attractive and high-quality products, thereby diversifying revenue sources and encouraging customers to use products in the corporation's ecosystem, according to Vingroup’s documents for its recent annual general meeting.

Vingroup is betting on the U.S. market, putting its efforts into developing VinFast electric vehicles. The corporation on May 10 completed the mobilization of $525 million in international bonds to fund subsidiary VinFast's automobile manufacturing.

Pham Nhat Vuong, Chairman of Vingroup, told the group's shareholder meeting on May 11 that the big shortage of electric vehicles is a golden opportunity for VinFast to conquer the global market and build its brand. "The world is very short of electric cars. Therefore, good products will sell very well," he said.

Vuong added that about 600,000 EVs to be sold in the U.S. will be made in Vietnam as the capacity of its factory there is only 150,000 units per year, while the plan is to sell 750,000 to this market by 2026.

VinFast has issued four tranches of domestic bonds totaling VND11,500 billion ($497.3 million) since November 2021, with a 36-month maturity and a 9% annual interest rate.

Bond proceeds will be used to fund VinFast's investment programs and projects, including the procurement of machinery, equipment, copyrights, and services for VinFast's automotive manufacturing project.