Vingroup transfers 80% stake in real estate subsidiary to foreign investors

Conglomerate Vingroup has decided to transfer an 80% stake in its real estate subsidiary, VYHT JSC, to foreign investor(s), the Vietnamese corporate giant announced in a board resolution.

The firm did not disclose the identities of the overseas parties involved.

Listed on the Ho Chi Minh Stock Exchange as VIC, Vingroup also transferred the remaining 19.93% stake in VYHT to its housing development arm, Vinhomes (HoSE: VHM).

As a result, Vingroup will no longer be VYHT's parent company.

Established in June 2024, VYHT is currently developing part of the $2.4 billion Vinhomes Royal Island urban project, located on Vu Yen Island in Hai An district, Hai Phong city.

This 877-hectare project, put up for sale in March, is the largest project under construction by Vingroup and is expected to generate significant revenue for the company.

The project features 11 subdivisions, including villas, townhouses, shophouses, a golf course, entertainment areas, shopping centers, parks, a racecourse, and more.

Last year, Vinhomes got approval to develop a VND23 trillion ($907 million) urban project covering 240 hectares in Kien Thuy district, Hai Phong city.

Vinhomes booked a net profit of VND19,642 billion ($777 million) in the first three quarters this year, down 39.2% year-on-year, according to its consolidated quarterly financial statement.

This year, the developer has set a target of making a net profit of VND35 trillion ($1.38 billion) on revenue of VND120 trillion.

VIC shares closed Friday at VND40,500 VND ($1.6) each.