Outline

I. Introduction

-
Vingroup Joint Stock Company is the largest conglomerate in Vietnam,
focusing on technology, industry, real estate development, retail, and
services ranging from healthcare to hospitality. The company was founded
by property developer and entrepreneur Phạm Nhật Vượng in Ukraine in
1993 as Technocom and was originally producing food products.
- Type of business: Joint Stock Company
- Headquarters: Vinhomes Riverside, Long Bien District, Hanoi, Vietnam
- Member Brand:
o VinMec hospital
o VinPearl Hotel Nha Trang
o Vinhomes: Residential real estate development
o VinFast: Automobile, cars, and motorbike manufacturing
o VinBus: Operator of electric buses
o VinSmart: Smartphones and televisions
o Vincom: Shopping malls (Vincom Centre, Vincom Plaza, Vincom Mega
Mall, Vincom+)
o VinPearl: Resorts
o VinSchool: K-12 Education
o VinWonders: Amusement parks and attractions such as an ice skating
rink and a water park and Vinpearl Safari Phu Quoc
o VinMec: Officially opened in 2012, VinMec currently consists of 7
general hospitals and 2 clinics
o VinUniversity: Higher education institution, in partnership with Cornell
University and University of Pennsylvania
o VinFa: Pharmaceutical
o VinID: Technology product development – providing Fintech, Loytal,
and Digital Marketing services with roughly 7 million users in 2019.
o VinCommerce: Convenience stores (VinMart+) and supermarkets
(VinMart). The controlling stake was sold to Masan Group in 2019, but
VinGroup retains a large stake. South Korean conglomerate SK Group
has agreed to acquire a 16.3%
o VINCSS: Network Security Services
o Vincom Office: Office real estate
o VinES (Vin Energy Solution): EV battery manufacturer
o VinBigData: Big Data
o VinAI: Artificial Intelligence
o Thien Tam Fund: Philanthropical organization on behalf of Vingroup

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 II. Stakeholder

Managers

Name Position
Quang Viet Nguyen Vice Chairman & Chief Executive Officer
Noi Huong Mai Deputy General Director
Khuong Van Pham Deputy General Director
Thuy Thanh Dang Deputy General Director
Pham Hien Leasing Manager
Hien Tran Project Manager
Dang Tran Head-Legal Department
Thu Hien Thi Nguyen Chief Accountant

Members of the board

Name Position
Vuong Nhat Pham Chairman
Hiep Khac Le Vice Chairman
Marc Villiers Townsend Independent Director
Hang Thuy Pham Vice Chairman
Huong Thu Pham Vice Chairman
Linh Dieu Nguyen Vice Chairman
Thu Thuy Thi Le Vice Chairman
Quang Viet Nguyen Vice Chairman & Chief Executive Officer
Woncheol Park Director

Shareholders Holdings
Vietnam Investments Group LLC VINHOMES (VHM)
Vuong Nhat Pham VINCOM RETAIL (VRE)
Sk South East Asia Investment Pte, Ltd. VINGROUP (VIC)
Huong Thu Pham
Hang Thuy Pham
Vingroup Joint Stock Company

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Fubon Asset Management Co., Ltd.
Van Eck Associates Corp.
Dragon Capital Management Co. Ltd.
BlackRock Fund Advisors

III. Analysis of the Balance Sheet

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 Table: Balance Sheet of Vingroup from 2019 to 2022, unit: million dong

1. Current Assets to Total Assets

Comparision analysis
100%

80% 75%

60%

40%

20%

0%
-3%
-20% -16%

-40%
2020/2019 2021/2020 2022/2021

Common-sized analysis
60%

49% 49%
50%

39% 38%
40%

30%

20%

10%

0%
2019 2020 2021 2022

2. Long-term Assets to Total Assets

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 Comparision analysis
30%

25% 24%

20%

15%
10%
10%

5% 4%

0%
2020/2019 2021/2020 2022/2021

Common-sized analysis
70%
61% 62%
60%
51% 51%
50%

40%

30%

20%

10%

0%
2019 2020 2021 2022

3. Liabilities to Total Asset

a. Short-term liabilities

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 Comparision analysis
120%
104%
100%

80%

60%

40%

20%

0%
-7%
-20% -13%
2020/2019 2021/2020 2022/2021

Common-sized analysis
60%
52%
50%
45%
40%
40%
34%
30%

20%

10%

0%
2019 2020 2021 2022

b. Long-term liabilities

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 Comparision analysis
18% 17%
16% 15%
14%
12%
10%
8%
6%
4%
4%
2%
0%
2020/2019 2021/2020 2022/2021

Common-sized analysis
30%
29%
29%
28%
28%

27%

26%
25% 25%
25%

24%

23%
2019 2020 2021 2022

IV. Analysis of Income Statement

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 Table: Income Statement of Vingroup from 2019 to 2022, unit: million dong

1. Gross Profit

Table: Gross profit of Vingroup from 2019 to 2022, unit: million dong

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 Comparision analysis
120%
97%
100%
80%
60%
40%
20%
0%
-20%
-40%
-60% -54% -57%
-80%
2020/2019 2021/2020 2022/2021

In general, Vingroup's gross profit growth rate increased significantly, from -54% to
97% in the first period and decreased sharply in the later period, from 97% to -57%.
This is a big change. The reason is that net sales increased sharply from -15% to 14%
(from 2019 - 2021) then dropped to -19% by 2022. And the main reason is due to the
impact of the Covid 19 pandemic.

Common-sized analysis
35%

30% 29%
27%
25%

20%
16%
15% 14%

10%

5%

0%
2019 2020 2021 2022

The percentage of Gross Profit to Net Sales fluctuated over the years. It slightly
decreased from 29% in 2019 to 16% for 2 years before jumping back to 27% in 2021.
In the next year, jumping back continued again. The percentage decreased to 14%,
almost similar to the situation in 2020. In general, Gross Profit decreased due to the
impact of Covid-19.

2. Net Profit from Operating Activities

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Table: Net Profit from Operating activities of Vingroup from 2019 to 2022, unit:
million dong

Comparision analysis
10%
3%
0%

-10% -7%

-20%

-30%

-40%

-50% -47%
2020/2019 2021/2020 2022/2021

Net Profit from Operating activities dropped from -7% to -47% in the first period.
But growth bounced back to 3% in the following period. The reason is that Other
Expenses plummeted from 241% to -82% in the Income statement analysis

Common-sized analysis
14% 13%
12%
12%

10%
8%
8%
6%
6%

4%

2%

0%
2019 2020 2021 2022

Net Profit from Operating Activities percentage slowly increased by 1% within 1

year (from 2019 to 2020). In 2021, it slightly decreased to 6%, and in 2022 it
moved in a small uptrend to 8%. In general, the percentage tends to fall off

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 inconsiderably. Because net profit tends to decrease, it shows that this business
has not controlled costs well.

3. Pretax Profit

Table: Pretax Profit from Operating activities of Vingroup from 2019 to 2022,
unit: million dong

Comparision analysis
350%
305%
300%
250%
200%
150%
100%
50%
0%
-11%
-50%
-100% -77%
2020/2019 2021/2020 2022/2021

The Pretax Profit from Operating activities strong growth, from -11% and a
dizzying growth of 305% during the entire period. This shows that the company is
operating in a healthy way, has an effective business model and has pricing
power.

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 Common-sized analysis
14% 13% 13%
12%
12%

10%

8%

6%

4% 3%
2%

0%
2019 2020 2021 2022

Pretax Profit increased stay steady at 12% - 13% within 3 years ( 2019, 2020, and
2022). But in the period from 2020 – 2021, it dropped sharply to 3%. The reason
for the decrease in Pretax Profit is that the business has to bear a lot of financial
costs.

4. Net Profit After Tax

Table: Net Profit After Tax from Operating activities of Vingroup from 2019 to
2022, unit: million dong

Comparision analysis
0%

-50% -41%

-100%

-150% -127%

-200%

-250%
-266%
-300%
2020/2019 2021/2020 2022/2021

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Net Profit After Tax experienced an alarmingly negative growth, from -41% to -
266%. Later stage there is improvement by increasing to -127%. But the situation
is still very alarming, proving that the business is making a loss, which can lead to
bankruptcy for a long time.

Common-sized analysis
8%
6%
6%
4%
4%
2%
2%

0%

-2%

-4%

-6%
-6%
-8%
2019 2020 2021 2022

Within 2 years (2019 - 2020), the situation has not changed too much. There is a
little decrease in the Net Profit After Tax to Net Sales percent ( from 6% to 4%).
But 1 year later, it grew negatively to -6%. Thereby showing that the business's
operation was not good even though the business had made a large profit before.
The situation has changed for the better in 2022, it increases by 8% and becomes
2%.

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