Vingroup’s Vuong makes the billionaires’ roster

Pham Nhat Vuong was born in 1968  in Hanoi, founded Technocom Ltd. Co. (later to become known as Technocom Group) in Kharkov, Ukraine, focusing on instant noodle production. In 2001, Vuong returned to Vietnam to set up Vincom and Vinpearl. In September, 2012, Vincom and Vinperal were merged into Vingroup. Vuong becomes the first billionaire in Vietnam’s stock market since March 2011 with the asset value of more than $1 billion and consistently has kept the position of the richest man in stock market in 2010, 2011 and 2012. In 2013, Vuong becomes the first ever Vietnamese listed in the global billionaire list of Forbes.

Forbes estimates that Vuong’s worth $1.5 billion based largely on the 53 per cent stake in Vingroup, his real estate development firm.  He ranked in  the 974th position of Forbes’s list.

Vuong’s success story, by some accounts, started in Ukraine during in 1990s. Vuong had developed the  Technocom group into a leader in fast-food production - instant noodles.  Vuong’s company exported goods to 29 other international markets.

In the beginning of 2000s, Vuong decided to come back to Vietnam to develop his private business in his homeland, focusing on real estate and tourism. The two first properties Vuong developed have become successes:  Vinpearl Nha Trang and Vincom City Towers in Hanoi.

In 2009, Vuong sold his properties in Ukraine, which was collecting an annual revenue of around $100 million, to Nestle and transferred his money to Vietnam.

Vuong then embarked on a range of large-scale property projects, including resorts, offices and mix-used developments.

In 2012, Vuong decided to merge Vinpearl and Vincom, to be the current Vingroup Joint Stock Company (Vingroup).

As of June 2012, with the charter capital of more than VND7,000 billion ($335 million), Vingroup has become the largest real estate company in Vietnam’s stock market by charter capital and market capitalisation.

Vingroup now has a portfolio of 31 property projects nationwide. Of those 12 were completed and put into operation, the other three are under construction and the rest were planned.

Vuong’s success has stood out amid a slump in the Vietnamese economy, especially in the real estate sector.

And what is the success secret for Vingroup? It was the focus on “young customers” who wish to have and enjoy a better life than the older generation.

In addition to investing in  real estate, tourism and recreation, Vingroup has branched out into fitness and beauty care with Vincharm spas and high-quality healthcare service with Vinmec International Hospital.

According to financial report of Vingroup released on  March 5, 2013, the group reported  an  impressive  revenue  of  more  than  VND7,904  billion ($378 million),  an  increase  of  242 per cent compared  to  2011,  thanks  to  sales of villas at  Vincom Village and Vinpearl  Luxury Danang, and sales of the office tower at Vincom Centre Ba Trieu.  

In addition, after the merger of Vinpearl into Vincom, the group has further consolidated revenues  from  the  hospitality  sector,  healthcare  and  beauty  care  services.  

After-tax profit  in  2012  was VND1,847 billion ($88.4 million), an increase of 72 per cent compared to 2011.

In 2013, Vingroup will hand over to customers approximately 8,000 apartments at Royal City and Times City in Hanoi.

These two mega projects are expected to contribute to upgrade Hanoians’ living standards through their excellent standard of  amenities.  

In 2012, while most other developers were stuck with bad debts and few new sales, Vingroup was able to earn high revenue in sales and presales.

This so good performance allowed Vingroup to successful raise $300 million in the international bond market.

Vuong says his dream is to make Hanoi and Ho Chi Minh City streets become as modern as those in Hong Kong and Singapore.

‘“If I could do that, even if it costs me a few billion, I would be happy,” he said. “I would leave something behind. You can’t bring money with you when you die,” he added.

Vingroup is now in the process of raising money from several “strategic investors,” with the ultimate goal of listing his firm on Singapore’s stock exchange, which would legitimate its stock price, and represent another milestone: the first Vietnamese company to be listed overseas.