Billionaire Nguyen Dang Quang will build The CrownX into a $10 billion firm and change the name of VinMart to WinMart, which will follow a new operation model after Vingroup, owned by Pham Nhat Vuong, leaves.
Billionaire Nguyen Dang Quang
Pham Nhat Vuong is the first Vietnamese dollar billionaire recognized by Forbes with the assets of $8.5 billion as of April 5.
A representative of Masan Group has confirmed that VinMart (supermarket) and VinMart+ (convenience store) will change to WinMart in 2021 after Masan completes the restructuring of the chains.
Masan plans to expand the retail chain and 20,000 stores will be franchised through the modernization of retail shops into Points of Life by providing finance, digital entertainment, education and health care services.
Masan released its retail development plan following information that Vingroup wants to get rid of VinMart and VinMart+ by divesting all shares it holds in The CrownX, the owner of the retail chain.
In 2020, Vingroup transferred 2 million The CrownX stock options and converted all the stock options into shares, then sold them to Masan.
A Vingroup audited finance report showed that on December 31, 2020 the group signed a contract on the deposit for the transfer of all shares left in The CrownX to another business. The transfer price was not fixed, while the original price was VND5.538 trillion.
If things go as planned, Vingroup, owned by billionaire Pham Nhat Vuong, will leave the retail market and its position in the market will be taken by another large group, Masan, owned by billionaire Nguyen Dang Quang.
Danny Le, CEO of Masan Group, said VinMart and VinMart+ will try to franchise and deploy financial services. It is expected that it will have 30,000 stores by 2025, serving 30-50 million consumers.
Masan intends to join forces with Techcombank owned by billionaire Ho Hung Anh to implement its plan. Masan will jump to online retail.
Once it has good supply chains for offline sales, it will also sell online on Techcombank’s app with 5 million users, other super-apps with 10 million users, and e-commerce marketplaces.
According to Quang, financial services suited to local demand are still lacking in rural areas.
Vietnam is one of a few countries in the world where banks have to mobilize capital at high interest rates. In order to encourage people to use non-cash payment methods, solutions are needed to make non-cash payments as convenient as cash payments.
VN-Index drops with trade value surges
Vietnam’s benchmark VN-Index fell 0.7 percent to 1,241.81 points Friday with trading value hitting a 10-session high.
The index stayed in the red throughout the day, dipping to around 1,231 points in the early afternoon before climbing and ending with a near 9-point fall. This is its biggest plunge in the last seven sessions.
Trading value on the Ho Chi Minh Stock Exchange (HoSE), on which the index is based, rose 10 percent to VND22.4 trillion ($975 million), the highest of the past 10 sessions.
The VN30 basket, comprising the largest 30 capped stocks, saw 22 tickers in the red, with VCB of state-owned lender Vietcombank and VNM of dairy giant Vinamilk the biggest contributors to the drop of VN-Index.
VCB fell 2.3 percent. The ticker has been going sideways around the VND100,000 level since February after climbing to a new historic peak of VND107,000 in early January.
VNM dropped 2.9 percent to a nine-month low. The ticker continued its downward trend that began in January, having lost 25 percent in four months.
VHM of real estate giant Vinhomes fell 1.6 percent to its lowest level since March 30.
BID of state-owned lender BIDV lost 1.5 percent, having fallen nearly 17 percent since its mid-January peak.
On the winning side, HPG of steelmaker Hoa Phat Group rose 2.4 percent, and CTG of state-owned lender VietinBank gained, 2.1 percent. They were the top tickers pushing up the VN-Index this session.
Foreign investors were net sellers for the fifth session in a row to the tune of VND330 billion, with the strongest pressure on VPB of private lender VPBank and HPG.
The HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, fell 0.44 percent while the UPCoM-Index for the Unlisted Public Companies Market dropped 0.41 percent.
Inflation fears begin as economy recovers
HCM CITY — The cost of raw materials used in many industries have risen sharply in the last few months, putting pressure on the prices of many essential goods.
Instant noodles, seasoning, cooking oil, and others have seen prices increase by 7 -10 per cent since the end of 2020.
The price of meat and poultry has increased by 10 -15 per cent.
Nguyễn Thị Trâm, a pig farmer in Đồng Nai Province’s Thống Nhất District, said the price of a 25kg bag of bran has increased from VNĐ245,000 in October last year to VNĐ295,000 now.
Prices of raw materials used to make feed, such as corn, rice bran and fish flour, are also rising.
But farmers cannot hike poultry price since they have to compete with cheap imported products.
Globally, the prices of raw materials and fuels are expected to rise again as COVID is gradually controlled, vaccination is done on a large scale and production and trade recover.
Dr Nguyễn Ngọc Tuyến of the Academy of Finance predicted the consumer price index (CPI) to rise more than last year but remain below 4 per cent for the year, the target set by the National Assembly.
Nguyễn Anh Tuấn, director of the Ministry of Finance’s price management department, warned there would be pressure on prices this year because of the rise in fuel prices.
But a spokesperson for a large supermarket chain in HCM City said the price of each item would be carefully considered before any increase is made, and essential goods are not expected to be affected much in general. —
FTA providing impetus for Việt Nam – Chile trade
HÀ NỘI — Despite there being no commitments on services and investment in the Việt Nam – Chile Free Trade Agreement (FTA), the pact has boosted trade and economic ties between the two countries.
The view was shared at the fourth meeting of the Việt Nam – Chile free trade council, which was held online and chaired by Deputy Minister of Industry and Trade (MoIT) Đỗ Thắng Hải and Vice Minister of Trade at Chile’s Ministry of Foreign Affairs, Rodrigo Yanez on Thursday.
According to the Ministry of Industry and Trade’s European – American Market Department, the two countries have enjoyed robust relations over the years.
Despite the difficulties posed by the COVID-19 pandemic, two-way trade in 2020 topped US$1.28 billion, up 4.43 per cent year-on-year and 2.5-fold higher than the figure recorded in 2013, prior to the FTA coming into effect.
Chile is one of Việt Nam’s four largest trade partners in Latin America, while Việt Nam is the largest trade partner of Chile in ASEAN.
Goods trade in the first four months of this year rose 15.3 per cent year-on-year to $401.1 million, with Việt Nam’s exports standing at $321.3 million, up 11.8 per cent.
Both sides recognised the efforts made to implement the FTA.
The subcommittee for trade in goods discussed matters regarding tariffs and origin of goods and considered the application of electronic certificates of origin to simplify procedures for exporters in both countries.
Meanwhile, the subcommittee for hygiene and phytosanitation worked on import procedures for several agricultural products.
Việt Nam has begun risk analysis on Chilean kiwi fruit while the South American country said it will begin analyses of Vietnamese rambutan in July.
Both agreed to step up measures to help Vietnamese and Chilean businesses capitalise on the Việt Nam – Chile FTA as well as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) after it is ratified by Chile. —
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