VinGroup is the largest conglomerate in Vietnam, accounting for 28% of the free-float shares on the Vietnam Stock Exchange. Its subsidiaries Vinhomes and Vincom Retail are the giants in Vietnam’s property industry. After years of rapid growth, VinGroup is now looking to expand globally. Its electric vehicle brand VinFast aims to list in the US this year and open showrooms across the West. Clearly, VinGroup provides tremendous investment opportunities for global investors. Specifically, there are three major growth areas that vin investors should pay attention to.
Rapid growth of Vinhomes and Vincom Retail in domestic property market
As mentioned above, Vinhomes and Vincom Retail are the cornerstones of VinGroup’s empire, generating most profits for the group. Vietnam’s property market has experienced a strong rebound since the country reopened its economy. Leading developers like Vinhomes saw sales surge over 80% in Q3 2021. Its share price jumped nearly 10% within a week in late October. Other major players like Vingroup and Novaland also enjoyed substantial share price growth. The vibrant momentum is expected to continue through 2021 and attract significant investor interest.
Global expansion of electric vehicle brand VinFast
VinFast is VinGroup’s latest bet to crack the global tech market, especially in electric vehicles (EVs). It has rapidly shifted focus from traditional autos to EVs this year, aiming to stop petrol car production by end of 2021. VinFast offers competitive EV models with innovative battery leasing model to lower cost. Its first US factory will be built in North Carolina with $2 billion investment and capacity of 150k EVs per year. VinFast’s expansion mirrors the global EV boom and is endorsed by the Vietnamese government. However, it remains to be seen whether VinFast can compete with EV giants like Tesla. The upcoming US IPO will be crucial for vin investors to gauge its real prospects.
Potential opportunities in renewable energy
To power its EV ambition, VinGroup established VinES in 2021 to produce EV batteries. This offers direct exposure to the exponentially growing battery market. Moreover, Vietnam’s renewable energy sector is still in early development stage but has huge potential. The government aims to raise the share of renewable energy to 15-20% by 2030, up from current 10%. VinGroup has the scale and resource to tap into this opportunity. Vin investors should monitor if VinES or other VinGroup subsidiaries will expand into renewable energy production to capitalize on Vietnam’s energy transition.
In summary, VinGroup provides vin investors three major opportunities to benefit from Vietnam’s economic boom – the property giants Vinhomes and Vincom Retail in domestic market, global EV brand VinFast, and potential expansion into renewable energy production. Vin investors should closely track these strategic moves from VinGroup.