Vingroup to set up medical tech company

Vingroup, Vietnam’s largest private conglomerate, is establishing a medical technology subsidiary in Hanoi.

The group's board of directors has approved its capital contribution of 99% to the new unit, VinMedtech Joint Stock Company.

The subsidiary, with charter capital of VND300 billion ($12.74 million), will focus on investment in high-tech medicine.

Vingroup was established in 1993 by Pham Nhat Vuong and focuses on three main areas: technology and industry; services; and social business. He is among the richest people in Vietnam by stock market assets, according to Forbes.

The group in May started engaging in industrial real estate development and investment consulting as new business lines following electric vehicle manufacturing. Also in May, it decided to sell its stake in GeneStory JSC after more than a month of capital contributions. GeneStory’s main business lines include scientific research and technological development in the field of science and technology.

Vingroup’s VinES Energy Solutions and China-based Gotion High-Tech started construction of their $275 million battery factory in Vietnam in the central province of Ha Tinh in November. The factory - the first LFP battery plant in Vietnam - is the second electric vehicle battery plant of VinES.

Vingroup's car unit VinFast, dubbed Vietnam's Tesla, is expanding its global distribution networks in the U.S., Canada, and Europe. The electric vehicle maker last week filed for an initial public offering (IPO) in the U.S. where it plans to build a manufacturing complex in North Carolina.

The multi-business group earned after-tax profits of VND1,571 billion ($63 million) in the first nine months of the year, down 8% year-on-year and fulfilling 26% of the annual target. Its consolidated net revenue reached VND60,356 billion ($2.43 billion) in the period, down 33.5%.