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TRANSCENDOVERVIEW
009 Key figures for 2014
010 Message from the Chairman of theBoard of Management
012 2014 Titles and Awards
PIONEERING
CORPORATE PROFILE
018 Vision, Mission and Core Values
020 Corporate Milestones
024 Organizational Structure
026 Board of Management
028 Supervisory Committee
028 Executive Committee
032 Businesses
GROWTH
OPERATIONS IN 2014
042 Operational Highlights
044 Financial Summary
046 About Vingroup’s shares in 2014
048 Shareholder Information
050 Investor Relations
FORWARD-LOOKING
MANAGEMENT AND GOVERNANCE
056 Report of the Board of Management
060 Report of the Supervisory Committee
061 Report of the Executive Committee
065 Corporate Governance Report
066 Development Strategy
068 Risk Management
070 Human Resource Management
074 Corporate Culture
TIMELESSNESSSUSTAINABLE DEVELOPMENT
080 Sustainabl e Development Strategy
081 Economic Growth
082 Social Responsibility
083 Environmental Programs
TRANSPARENCY
CONSOLIDATED FINANCIAL STATEMENTS
090 VAS Consolidate d Financial Statements
170 Summary of IFRS Consolidated Financial Statements
176 Reconciliation between VAS andIFRS Consolidated Income Statements
Table of contents
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Tập đoàn Vingroup | Báo cáo thường niên 2014 Tập đoàn Vingroup | Báo cáo thường niên 2014
Vinhomes Central Park
The Landmark81 is an 81-floor tower,the tallest building in Vietnam
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“It always seems impossible until it’s done.” – Nelson Mandela
009 Key figures for 2014
010 Message from the Chairman of the
Board of Management
012 2014 Titles and Awards
OVERVIEW
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Vingroup Joint Stock Company | Annual Report 201408
Overview
Vingroup Joint Stock Company (“Vingroup” or the “Group”)
is one of the largest listed companies by market capitalization
in Vietnam. Vingroup focuses on long-term sustainable growth
by targeting high-quality real-estate development and hospi-
tality. The Company has two principal brands: Vincom and
Vinpearl.
After more than a decade of development, Vincom is Vietnam’s
leading real estate brand with high-end shopping, office and
apartment developments in Vietnam’s largest cities. Vincom
is also leading the trend towards sustainable, luxury urban
townships in Vietnam. Vinpearl is the largest and most recog-
nized Vietnamese hospitality and tourism brand featuring
amusement parks, golf courses hotels, resorts, and beachfront
villas rated five or more stars.
In January 2012, Vinpearl JSC merged with Vincom JSC to form
Vingroup Joint Stock Company.
The Group has developed a diversified portfolio across six busi-
ness segments: Property: Vinhomes – Luxury Apartments &
Villas, Vincom and Vincom Mega Mall – Vincom shopping malls,
Vincom Office – offices for lease, Hospitality and entertain-
ment: Vinpearl Resort and Vinpearl Luxury – five-star resorts and
upscale resorts, Vinpearl Land – amusement parks and family
entertainment centers, Vinpearl Premium – premium resorts
and villas, Vinpearl Golf Club. Retail: VinMart – Supermarkets,
VinMart + – Convenience stores, VinFashion, VinDS – Chain of
speciality retail stores, VinPro – Electronics and appliances, and
Adayroi – Comprehensive E-commerce.
In addition to these three business segments, Vingroup
participates in other segments aimed at improving the quality
of life for the Vietnamese people. Among these segments are
Healthcare: Vinmec – Quality healthcare services, Education :
Vinschool – Quality education, and Agriculture: VinEco – Trusted
quality source of food and Vingroup’s newest business sector.
Vingroup continues to pioneer and lead consumer trends
in all its businesses through offering quality products and
introducing a modern life-style experience to the Vietnamese
consumers.
The Group is proud to set the standard for private enterpris-
es, built by Vietnamese people and marked by traditional
Vietnamese characteristics of intelligence, daring and
ambition.
As a leading private group that successfully balances sustain-
able and dynamic development in Vietnam, Vingroup has the
potential to achieve leadership at the regional and internation-
al levels.
Overview
TOTALOWNERS’ EQUITY
NET REVENUE
MARKET CAPITALIZATION
PROFIT BEFORE TAX
students attendedVinschool in the first
academic year
employees
Over
visitors a year toVinpearl Land
TOTAL ASSETS
VND BILLION
VND BILLION
VND BILLION
VND BILLION
VND BILLION
Key figuresfor 2014
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Vingroup Joint Stock Company | Annual Report 2014 Vingroup Joint Stock Company | Annual Report 201410 011
Message from the Chairman of the Board of Management
Dear Valued Shareholders,
On behalf of the Board of Management (BOM) and Executive
Committee, I would like to extend our warmest greetings and
wish you health, happiness and success!
Ladies and Gentlemen,
In the past few years, the global and domestic economies
encountered a series of challenges. Thousands of enterprises
have struggled with the possibility of business closure while
hundreds of thousands of workers lost their jobs. It certainly
has been a tough time for business.
Despite the economic downturn, Vingroup has met and
overcome these challenges. At the end of 2013, foreseeing
the economic fluctuations and aiming to strengthen the
internal organization of the company, the Group’s Board of
Management and management team made the decision to
restructure our management system following the theme
“Transform to Succeed.” In 2014, Vingroup successfully
completed the decentralization of its operational model into
management by business sector P&Ls.
The watershed transformation has helped Vingroup overcome
the difficulties and challenges to expand into new areas. The
Group has established five core business sectors: Property,
Hospitality and Entertainment, Retail , Healthcare, and
Education.
Our core business sectors together create an ecosystem of
complementary and synergistic operations. This business
ecosystem sets a new standard in the market with the mission
“to create a better life for the Vietnamese people.”
In 2014, after reorganizing the company structure, Vingroup
also executed its aggressive growth plan to expand its opera-
tions into key cities nationwide.
In Ho Chi Minh City, Vingroup broke ground on VinhomesCentral Park, one of the most advanced luxury urban commu-
nities in Vietnam and the largest mixed-use project Vingroup
has created to date.
In Phu Quoc, Vingroup’s new resort complex, Vinpearl Phu
Quoc, has become a growth engine for local tourism.
In Quang Ninh, the Vincom Ha Long mall commenced oper-
ations in late 2014 and has become the shopping and enter-
tainment destination for Ha Long and surrounding areas. This
project marked the launch of Vingroup’s national retail mall
expansion strategy.
Simultaneously, Vingroup launched supermarket chain VinMart
and convenience store chain VinMart+ on a nationwide basis.
The Group also i ntroduced other key businesses inclu ding
VinFashion (fast fashion for Vietnamese), VinPro (electronics
and appliances), VinDS (a chain of specialty retail stores), and
Adayroi (comprehensive e-commerce).
Vinmec high quality healthcare services and Vinschool high
quality education also recorded impressive growth with the
start of construction on four new hospitals and the opening of
Vinschool with enrollment of 6,300 K-12 students.
With pioneering yet practical steps towards sustainable devel-
opment, Vingroup in 2014 achieved record revenue of VND27.7
trillion, a 51% increase over 2013. This was the highest revenue
in the Group’s history and puts Vingroup in the exclusive ranks
of Vietnamese companies with revenues over a billion USD.
Also in 2014, Vingroup created more than 8,500 new jobs,
increasing the total number of employees to 17,000. Vingroup
is now ranked the best place to work in the property, architec-
ture, and design sectors, and similarly tops the list in the invest-
ment, accounting, auditing, pharmacy, healthcare service and
biotechnology sectors. Vingroup has the confidence to lead
the changes now taking place in its business sectors.
The company is proud to have pioneered a new standard of
living in Vinhomes urban communities, a new standard in
shopping and entertainment at Vincom shopping malls, new
opportunities to enjoy Vinpearl’s 5-star-and-above upscale
resorts, world-class healthcare services at Vinmec, and
high-quality education at Vinschool.
In 2015, Vingroup will enter the agriculture business under the
VinEco brand. VinEco will provide customers with a trusted
quality source of food for current and future generations of
Vietnamese while leveraging Vietnam’s advantages in agricul-
tural products for export to the global market.
Economic indicators point to progressive stabilization and
recovery, and the ASEAN Economic Community (AEC) will
be established in 2015. Vingroup’s key tasks this year are to
effectively manage the P&Ls of our operating businesses, to
leverage all of our resources to accelerate the development of
new projects and to keep to our schedule for new openings.
Vingroup is determined to achieve a breakthrough year withmajor projects now being developed in Hanoi, Ho Chi Minh
City, Nha Trang, Can Tho, and Ha Tinh.
The Group will continue to expand the coverage of its
ecosystem of Vingroup products and services throughout
Vietnam with six core businesses: Property, Hospitality and
Entertainment, Retail, Education, Healthcare, and Agriculture.
Key goals for 2015 are to have a breakthrough year, to
maintain the leading position in our core business sectors,
and to continue identifying new and promising businesses
to enter. All of Vingroup’s efforts are to realize the mission “to
create a better life for the Vietnamese people.”
In addition, Vingroup will continue to strengthen operations
by implementing a major overhaul of management systems to
increase operational efficiencies in order to ensure sustainable
development in the coming years.
On behalf of the Board of Management, I would like to express
our gratitude to you for your trust, support and partnership.
We believe that through our carefully chosen strategies,
Vingroup will achieve our goals in 2015 and the years to come,
maintaining our market-leading position as one of the premier
companies in the region, while protecting and enhancing the
long-term interests of shareholders and making even greater
contributions to society.
Sincerely yours,
Message From the Chairman of
the Board ofManagement
Chairman of the Board of Management
Pham Nhat Vuong
Our key tasks in 2015 are to leverage
all of our resources to accelerate
the development of new projects,
to keep to our schedule for new
openings, and to effectively manage
our operating businesses.
Overview
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2014 Titles and Awards
2014 Titles and Awards
“Top 100 ASEANCompanies 2014”
by Standard and Poor’s
(S&P), one of the world’s
three most respected
independent credit rating
firms.
“Best Retail Developerin Vietnam”
by Euromoney, for the
second time.
“Region’s BestBorrower – Vietnam”
by FinanceAsia.
“Best RetailDevelopment inVietnam” for VincomMega Mall Royal City
by Asia Pacific Property
Awards 2014.
“Largest Private SectorCorporate Taxpayer”
by the V1000 list, which
honors outstanding
enterprises making major
contributions to the
State Budget of Vietnam,
released by Vietnam
Report JSC in collabora-
tion with the Tax Review
Magazine, the General
Department of Taxation,
and online newspaper
VietNamNet.
“Vietnam ExcellentBrand”– 7th conse-cutive year
by Vietnam Economic
Times in collaboration with
Vietnam Trade Promotion
Agency (Ministry of Trade).
“Best Developer inVietnam”
by South East Asia
Property Awards 2014.
“Top Ten Five-starHotels 2014” forVinpearl ResortNha Trang – 6th
consecutive year
by Vietnam Tourism
Awards 2013, Vietnam
National Administration
of Tourism, Ministry
of Culture, Sports and
Tour ism and Viet nam
Tourism Association.
Overview
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Vinpearl Premium Da NangLocated at the most prime location
of Non Nuoc beach
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A great location still needs vision to be a prime destination.
018 Vision, Mission and Core Values
020 Corporate Milestones
024 Organizational Structure
026 Board of Management
028 Supervisory Committee
028 Executive Committee
032 Businesses
CORPORATE IDENTITY
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Vingroup Joint Stock Company | Annual Report 2014 Vingroup Joint Stock Company | Annual Report 201418 019
Corporate Identity Vision, Mission and Core Values
Vision, Missionand Core Values
VISION
True to its pioneering ambition, Vingroup aims to consolidate
and extend its lead among private, multi-sector businesses in
Vietnam and the region, and to establish its reputation as an
international brand.
Vingroup also aspires to build a brand that projects Vietnam’s
national pride to the international community.
MISSION
Market: To provide unique, creative, premium products and
services of outstanding quality that meet international stan-
dards and exceed customer expectations while reflecting local
tastes and upholding Vietnamese cultural values.
Shareholders and Partners: To uphold the cooperative spirit
of mutual development and to commit to becoming the
“Number One Companion”of our par tners and shareholders
by creating sustainable value over the long-term.
Employees: To build a professional, creative, dynamic, and
humane work environment, providing all employees oppor-
tunities for career advancement based on their skills and
contributions.
Society: To demonstrate corporate social responsibility and
national pride by harmonizing corporate benefits with commu-
nity contributions.
CORE VALUES:CREDIBILITY – INTEGRITY – CREATIVITY– SPEED – QUALITY – HUMANITY
Credibility: Vingroup vigorously protects its Credibility as one
would protect one’s own honor. The Company is always fully
prepared to execute its plans and spares no effort towards
meeting its goals.
Integrity: Vingroup considers Integrity a foundation of its busi-
ness. We comply fully with the law and maintain the highest
level of professional and social ethics. Customers come first.
Creativity: We value creativity highly as a source of leverage in
our development, and uphold the spirit “dare to think, dare to
do”aimed at building an organization eager to learn.
Speed: Vingroup considers speed and efficiency in every
activity as a guiding principle. We practice “fast decision – fast
investment – fast deployment – fast sales – fast change and
quick adaptation.”
Quality: The Group operates under the principle – Best People
– Best Products and Services – Best Life – Best Society.
Humanity: Vingroup develops the human spirit by valuing
employees as our most important resource, creating the basis
for fairness, integrity, unity and strength.
SLOGAN
Vingroup – Where the Best Gather and Grow
• Vingroup is where talented people meet and work
together to achieve the common goals of success and
social development.
• Vingroup’s people are ambitious, highly talented and
qualified in their respective fields.
• All members of the Vingroup family are treated equally,
given opportunities and placed in the most favorable
conditions to maximize their individual talents.
• The Group aims to build the Best People, the
Best Products and Services, the Best Life, and the
Best Society.
LOGO
The Vingroup logo shows a bird flying towards the sun,
representing our strong desire to reach new heights and our
determination to achieve great success.
The bird’s wings are in the shape of the letter V to stand for
Vietnam and Vingroup’s national pride, as well as for victory – a
goal that Vingroup continuously strives to achieve.
The five stars below the bird represent Vingroup’s five-star
standard criteria and principles.
The two colors red and yellow are from Vietnam’s national flag,
expressing Vingroup’s pride in Vietnamese identity, spirit and
intelligence.
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Vingroup Joint Stock Company | Annual Report 2014 Vingroup Joint Stock Company | Annual Report 201420 021
Corporate Milestones
March
The Vinpearl cable car linking Phu
Quy Pier and Hon Tre Island (3,320meters in length) was launched.
The Company also opened
Vinpearl Resort Nha Trang, raising
the total number of five-star guest
rooms to 485.
In addition, Vingroup successfully
organized the first Miss Vietnam
World at Vinpearl Nha Trang,
thus establishing its reputation
as a major destination for beauty
contests and events.
Vinpearl Land was opened,
turning formerly arid Hon TreIsland into a luxury tourist
destination – a symbol of the
rapid growth of tourism in Nha
Trang, Khanh Hoa in particular and
Vietnam in general.
The Company successfully
organized and hosted the Miss
Vietnam 2006 at Vinpearl Land.
July
Hon Tre Tourism and Trading
Limited Liability Company (sincerenamed Vinpearl JSC) was estab-
lished in the coastal city of Nha
Trang, Khanh Hoa province.
May
Vietnam General Commercial
JSC (since renamed Vincom JSC)was founded with initial charter
capital of VND196 billion.
The five-star Vinpearl Resort Nha
Trang commenced operation.
November
Vincom Ba Trieu (Towers A and B)
was launched to introduce themodern shopping experience to
the Capital.
July
Vingroup officially listed its shares on
the Ho Chi Minh City Stock Exchangeunder the ticker “VIC.”
2001 2002 2003 2004 2006 2007
History
Vingroup Joint Stock Company (JSC) was established through
the merger of two companies: Vincom JSC and Vinpearl JSC in
January 2012.
Vinpearl JSC, formerly known as Hon Tre Tourism and Trading
Investment and Development Limited Liability Company, was
established on 25 July 2001 in Nha Trang, Khanh Hoa province
and primarily engaged in the resort, tourism, hospitality and
recreation sectors. The Company’s portfolio includes projects
in popular tourism destinations throughout Vietnam such as
Ha Long, Khanh Hoa – Nha Trang, Da Nang, Binh Dinh and
Phu Quoc.
Vincom JSC, formerly known as the Vietnam General
Commercial JSC, was founded in Hanoi on 3 May 2002. Its
operations are focused on large-scale mixed-use development,
sales and management and include shopping malls, offices,
and luxury apartments and villas. The Company has developed
large-scale shopping complexes in major cities across the
country, including Hanoi, Ho Chi Minh City, and Ha Long.
Corporate Identity Corporate Milestones
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Vingroup Joint Stock Company | Annual Report 2014 Vingroup Joint Stock Company | Annual Report 201422 023
August
Vingroup opened the retail
component of Vincom Ba Trieu
Tower C.
Fourth quarter
Vingroup completed construction
and handed over luxury apart-
ments at Vincom Ba Trieu.
It became the first Vietnamese
company to successfully issue
USD100 million of convertible
bonds on the Singapore Exchange
(SGX).
January
Vingroup became a
foundation member of
the World Economic Forum(WEF).
April
Vingroup entered the
Vietnamese education sector
with Vinschool, a school
system extending from
kindergarten to high school.
May
A consortium led by
Warburg Pincus, a leading
global private equity firm
focused on growth capital,
invested USD200 million in
a strategic partnership with
Vincom Retail, a subsidiary
of Vingroup, to substantially
expand the group’s commer-
cial property business.
Acquisition International
recognized this investment
as “Real Estate Deal of the
Year 2013.”
July
Vingroup opened Vincom
Mega Mall Royal City,
Asia’s largest underground
combined entertainment
and shopping complex.
July
Vingroup broke ground for one of
the most modern and luxurious
urban areas in Vietnam –Vinhomes Central Park in Ho
Chi Minh City. Vingroup also
announced its strategy to expand
Vinmec into a network of ten
hospitals throughout the country
over the next five years and to
establish the Vinmec Medical
University in 2015.
September
Vingroup was honored with four
prestigious awards:
“Best Retail Developer in Vietnam”
from Euromoney
“Top 100 ASEAN Companies 2014”
from Standard and Poor’s (S&P)
“Region’s Best Borrower – Vietnam”
from FinanceAsia
“Vinpearl Resort Nha Trang – One
of the Top 10 Five-star Hotels
2014”from Vietnam Tourism
Awards 2013.
Vinschool K-12 school opened at
Times City with 6,300 students
from kindergarten to high school.
October
Vingroup launched the VinMart
and VinMart+ brand.
Vincom Ha Long opened, increas-
ing the number of shopping malls
under the Vincom brand to a total
of six.
April
Vingroup opened Vincom Dong
Khoi in Ho Chi Minh City
(Vincom B).
Vingroup successfully hosted the
second Miss Vietnam World and
Miss Earth at Vinpearl Resort
Nha Trang.
November
Vingroup successfully issued
a USD200 million interna-
tional bond. FinanceAsianamed this transaction “Best
Vietnam Deal 2013,”whilst
IFRS Asia called it “Vietnam
Capital Markets Deal of the
Year 2013.”
December
Vingroup opened Vincom
Mega Mall Times City, new
Vinschool facilities, and
Vinmec International Hospi-
tal at Times City.
During 2013, Vingroup
delivered thousands of
apartments at Vinhomes
Royal City and Vinhomes
Times City.
November
Vinpearl Phu Quoc, a five-star hospitality
complex was officially opened after only
over ten months of construction – arecord performance for a property of
this size and complexity.
VinMart and VinMart+ opened their
first nine supermarkets and
convenience stores.
Vingroup opened for sale Vinhomes
Nguyen Chi Thanh – Ha Noi, a new
mixed-use project in the heart of
the Capital.
December
Vingroup was ranked as the Largest
Private Sector Corporate Taxpayer in
Vietnam based on 2013 financial results.
Vingroup broke ground for the 81-floor
Landmark81 in the urban area Vinhomes
Central Park. The Landmark81 is expect-
ed to be over 380 meters tall, setting
a new record for the tallest building in
Vietnam.
Vingroup opened Almaz, a luxurious
convention, restaurant, shopping and
entertainment center in Vinhomes
Riverside.
End of December 2014: Vingroup
announced a new premium resorts and
villas brand, Vinpearl Premium, with
locations at Nha Trang, Phu Quoc and Da
Nang, and also announced the sales of
hundreds of Vinpearl Premium villas.
May
The five-star Vinpearl Luxury
Nha Trang and Vietnam’s first
island golf course Vinpearl GolfClub – Nha Trang were opened
simultaneously, marking the
completion of the key
components of Vinpearl Nha
Trang, the Company’s first
hospitality complex, in
development and operation for
over a decade.
July
Vacation resort Vinpearl
Premium Da Nang opened as
Vinpearl’s new resort.
December
Vincom Long Bien commenced
operation at Vinhomes Riverside.
At the same time, Vingroup
relocated its Head Office
to the Vinhomes Riverside
ecological area, located in
Long Bien district, Hanoi.
January
The merger with Vinpearl JSC
raised total charter capital to
approximately VND5.5 trillionand a development strategy was
approved for the Group to be
operated under the new entity:
Vingroup JSC.
Vingroup officially launched
the Vinmec brand and put into
operation Vinmec International
Hospital.
April – July
A successful issuance of
USD300 million of international
convertible bonds listed on the
Singapore Exchange. FinanceAsia
recognized this as the
“Best Vietnam Deal 2012.”
October
Vincom A Ho Chi Minh City – a
luxury retail, food and beverages
complex, commenced operation.
Subsequently, Vingroup’s full
interest in the project was sold
and recognized in 2013.
November
Vingroup was honored as “Best
Developer – Vietnam”by Euro-
money and Vinhomes Riverside
was honored with “Best Villa
Development – Vietnam”at the
Southeast Asia Property Awards
2012 in Singapore.
2009 2010 2011 2012 2013 2014
Corporate Identity Corporate Milestones
Corporate Milestones CONT.
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Vingroup Joint Stock Company | Annual Report 2014 Vingroup Joint Stock Company | Annual Report 201424 025
VinEcom LLC
VinPro LLC
VinDS LLC
VinGS General Services
Trading LLC
ANNUAL
GENERAL MEETING
EDUCATION AGRICULTURE
Board of Management
Chairman
PHAM NHAT VUONG
CEO
DUONG THI MAI HOA
COUNCILSSPECIALIZED
COMMITTEES
SUPERVISORY COMMITTEE
PROPERTYHOSPITALITY
& ENTERTAINMENTRETAIL HEALTHCARE
MARKETINGDEPARTMENT
SHAREHOLDER&
INVESTORRELATIONS
DEPARTMENTOF
PUBLICRELATIONS
INVESTMENTDEPARTMENT
HUMANRESOURCE
DEPARTMENT
LEGALDEPARTMENT
FINANCE DEPARTMENT
INFORMATIONTECHNOLOGY
DEPARTMENT
PLANNINGDEPARTMENT
RISK MANAGEMENT
DEPARTMENT
PROJECTSUPERVISORY &
CONSTRUCTIONDEPARTMENT
INTERNALSUPERVISORY
DEPARTMENT
BUSINESS SUPERVISORY
DEPARTMENT
TENDERING& PROCUREMENT
DEPARTMENT
SUPPLY CHAINDEPARTMENT
INTERNALSECURITY &
FIRE DEPARTMENT
VinEco Agricultural
Investment Development
and Production LLC
Vinhomes Vinpearl JSC
Vinpearl Land
Amusement LLC
Vinhomes 1 Real Estate
Trading LLC
Vinhomes 2 Real Estate
Trading LLC
Vinhomes Property
Leasing LLC
Vinhomes PropertyManagement LLC
Vinpearl Hotel
Management Company
Vinpearl Golf
Course Management
Vincom Retail JSC
Vincom Office LLC
VinMart
Supermarket JSC
VinFashion JSC
Vinmec International
General Hospital JSC
Vinmec Medical
University
Vinschool
Kindergarten System
Vinschool Multi-Level
Education System
Vincom Construction LLCs
Vincom Security LLC
Organizational Structure
OrganizationalStructure
Corporate Identity
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Vingroup Joint Stock Company | Annual Report 2014 Vingroup Joint Stock Company | Annual Report 201426 027
Board of Management
Chairman of theBoard of Management
Mr. Pham Nhat Vuong
Mr. Pham Nhat Vuong was appointed to the BOM in May 2002
and elected Chairman in November 2011. He has a long track
record as an entrepreneur both inside and outside Vietnam,
reflected in his establishment and development of the Group’s
core businesses, including two initial brands Vincom (the leading
brand in real estate) and Vinpearl (the leading brand in tourism,
hospitality and recreation). He continues to develop an ecosys-
tem including quality products and services of Vingroup with
the mission “to create a better life for the Vietnamese people.”
Prior to the Group’s establishment in 2002, he was the founder
and honorable Chairman of Technocom Limited Company
(Ukraine) from 1993 to 2009. He graduated with a bachelor’s
Board of Management
degree in Geological Economic Engineering from Moscow
Geology University in Russia in 1992.
In 2012, he was recognized as Vietnam’s first billionaire by
Forbes Magazine, and continues to maintain this sole position
in 2013 and 2014.
The Group believes its growth and development have bene-
fited significantly from Mr. Pham Nhat Vuong’s leadership and
influence.
The Board of Management (BOM) is appointed at the Annual
General Meeting (AGM) and entrusted with the full power to
exercise all rights and responsibilities on the Group’s behalf
except those under the jurisdiction of the AGM. The BOM
comprises ten members with the following rights and duties:
• Deciding the Group’s development and business plans
and finalizing the annual budget.
• Establishing operational goals pursuant to the strategic
goals approved by the AGM.
• Reporting to the AGM on the Group’s business perfor-
mance, planned dividends, financial statements, business
strategies and general business conditions.
• Developing the Group’s organizational structure and oper-
ational rules.
• Other rights and duties in accordance with statuto-
ry regulations, the Group Charter and resolutions of
the AGM.
Current Members of the BOM
01. Mr. Pham Nhat Vuong – Chairman of the BOM
02. Ms. Pham Thuy Hang – Vice Chairwoman of the BOM
03. Ms. Pham Thu Huong – Vice Chairwoman of the BOM
04. Ms. Nguyen Dieu Linh – Vice Chairwoman of the BOM
05. Ms. Vu Tuyet Hang – Vice Chairwoman of the BOM
06. Mr. Le Khac Hiep – Vice Chairman of the BOM
07. Ms. Mai Huong Noi – Member of the BOM
08. Mr. Ling Chung Yee Roy – Member of the BOM
09. Mr. Marc Villiers Townsend – Member of the BOM
10. Mr. Joseph Raymond Gagnon – Member of the BOM
Corporate Identity
LEADING THE DEVELOPMENT OF HIGH
QUALITY PRODUCTS AND SERVICES SYSTEM
OF VINGROUP WITH THE MISSION “TO CREATE
A BETTER LIFE FOR THE VIETNAMESE PEOPLE.”
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Vingroup Joint Stock Company | Annual Report 2014 Vingroup Joint Stock Company | Annual Report 201428 029
Supervisory Committee/ Executive Committee
Supervisory Committee
Executive Committee
CEO
Ms. Duong Thi Mai Hoa
Ms. Duong Thi Mai Hoa was appointed CEO as of 11 February
2014. Before joining the Group, she had 20 years of experience
and held senior leadership positions at multi-national corpo-
rations and commercial banks in Vietnam where she acquired
deep experience in finance and banking. She was Corporate
Banking General Director at Maritime Bank, General Director
of Vietnam International Bank (VIB), Deputy General Director
and Head of Retail Banking of VIB, CFO of VIB, CFO of Oracle
Vietnam – the global firm’s local branch, Chief Accountant
at Credit Lyonnais Bank’s Vietnam operation and Head of
Financial Planning Group of VMEP, one of Chinfon’s Vietnam
subsidiaries.
The S upervisory Committee (SC) is elected by the Group’s
AGM. The SC has five members with five-year terms. Key tasks
of the SC include:
• Monitoring BOM and Executive Committee management
and administration practices.
• Inspecting the validity, legality, transparency, corpo-
rate governance and prudence of business operations,
important business transactions, accounting and statis-tical practices, as well as financial reporting.
• Evaluating the business reports, annual and semi-annual
Financial Statements of the Group, reporting on evalua-
tions by the BOM and submitting the evaluation report of
the above issues to the shareholders at the AGM.
• Conducting other rights and obligations of the SC as
described in the law, the Group Charter and resolutions
of the AGM.
Current Members of the Supervisory Committee
01. Mr. Nguyen The Anh – Head of the SC
02. Mr. Dinh Ngoc Lan – Member of the SC
03. Ms. Nguyen Thi Van Trinh – Member of the SC
04. Ms. Do Thi Hong Van – Member of the SC
05. Ms. Hoang Thuy Mai – Member of the SC
The Executive Committee is appointed and dissolved by the
BOM. As of 31 December 2014, the Executive Committee
consisted of a Chief Executive Officer (CEO), six Deputy CEOs
and one Chief Accountant. The Deputy CEOs and the Chief
Accountant support the CEO by fulfilling the tasks entrusted to
them. The Executive Committee’s key responsibilities include:
• Organizing the implementation of the AGM and BOM
resolutions, especially those related to the Group’s annual
business and investment plans.
• Deciding day-to-day matters related to the Group’s busi-
ness activities that do not require resolutions from the
AGM or the BOM.
The CEO also has the following responsibilities:
• Managing and supervising the Group’s day-to-day
operations.
• Executing contracts and other obligations on the Group’s
behalf.
Current Members of the Executive Committee
01. Ms. Duong Thi Mai Hoa – CEO
02. Ms. Mai Huong Noi – Deputy CEO
03. Ms. Nguyen Dieu Linh – Deputy CEO
04. Ms. Vu Tuyet Hang – Deputy CEO
05. Mr. Pham Van Khuong – Deputy CEO
06. Mr. Dang Thanh Thuy – Deputy CEO
07. Ms. Nguyen Thi Diu – Deputy CEO
08. Ms. Nguyen Thi Thu Hien – Chief Accountant
Corporate Identity
THERE WERE CLEAR SIGNS OF NATIONAL AND
GLOBAL ECONOMIC RECOVERY IN 2014, AND
VINGROUP ENJOYED OUTSTANDING GROWTH
LED BY COMPLETION OF SOME MAJOR
PROJECTS AND CONTINUED EXPANSION AND
IMPRESSIVE GAINS IN NEW BUSINESS AREAS.
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Vingroup Joint Stock Company | Annual Report 2014 Vingroup Joint Stock Company | Annual Report 201430 031
Corporate Identity Executive Committee
Ms. Nguyen Thi Diu
Deputy CEO
Ms. Nguyen Thi Thu Hien
Chief Accountant
Ms. Mai Huong Noi
Member of the BOM
cum Deputy CEO
Ms. Duong Thi Mai Hoa
CEO
Ms. Nguyen Dieu Linh
Vice Chairwoman of the BOM
cum Deputy CEO
Ms. Vu Tuyet Hang
Vice Chairwoman of the BOM
cum Deputy CEO
Mr. Dang Thanh Thuy
Deputy CEO
Mr. Pham Van Khuong
Deputy CEO
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Businesses
Businesses
REAL ESTATELUXURY APARTMENTS AND
VILLAS VINHOMES
Vinhomes is Vingroup’s brand for high-quality, luxury, serviced
apartments and villas. The Vinhomes brand has set a new stan-
dard of superior value, which has contributed to the reputation
of Vingroup’s urban areas as being the most livable in Vietnam,due to their location, convenience and amenities.
All Vinhomes urban areas are located in prime locations
in Hanoi and Ho Chi Minh City. All of Vinhomes residential
developments are built with the following features: luxurious
accommodations, professional and personalized services,
environmentally-sensitive construction, community-building
activities, emphasis on security and safety, and co-location of
a comprehensive set of facilities.
With a great effort and a transformation initiative in terms of
strategy, tactics, personnel, business systems, operations and
supporting departments, Vinhomes has decisively addressed
the residential market through rapid growth and the achieve-
ment of dominant market share in many key cities throughout
the country. This market position provides a platform for
breakthrough growth in the future.
Vinhomes properties include:
• Vinhomes Royal City (Hanoi)
• Vinhomes Times City (Hanoi)
• Vinhomes Riverside (Hanoi)
• Vinhomes Nguyen Chi Thanh – Hanoi
• Vinhomes Dong Khoi (Ho Chi Minh City)
• Vinhomes Central Park (Ho Chi Minh City)
QUALITY SHOPPING MALLS VI NCOM RETAIL
Vingroup’s Vincom Retail subsidiary is the l eading shopping center operator in Vietnam. Vincom Retail employs two brands,
Vincom and Vincom Mega Mall, in order to differentiate between the two classes of shopping centers. Vincom uses the advan-
tage of large scale to achieve an ideal combination of shopping and entertainment. Through the quality of space and the
style of architecture, Vincom provides the advantages of luxury, broad selection, and comfort in shopping and entertainment
destinations. In just a few short years, the business unit has set a new standard in shopping and entertainment for Vietnam.
Vincom shopping malls:
Vincom’s world-class shopping malls are located in prime loca-
tions of major cities throughout Vietnam, including:
• Vincom Ba Trieu (Hanoi)
• Vincom Long Bien (Hanoi)
• Vincom Ha Long (Quang Ninh)
• Vincom Dong Khoi (Ho Chi Minh City)
Vincom Mega Malls:
Vincom Mega Malls are all-in-one shopping malls that provide
customers with a wide selection of high-quality retail and
entertainment experiences such as waterparks, ice rinks,
aquariums. At present, there are two Vincom Mega Malls
located in the Hanoi area:
• Vincom Mega Mall Royal City
• Vincom Mega Mall Times City
OFFICES FOR LEASE VINCOM OFFICE
Vincom office buildings are located in major financial and economic centers and are designed to maximize natural light, save
energy and create a modern, professional and efficient working environment. The properties have been selected as the head-
quarters of financial institutions and embassies and also home to several Vietnamese and foreign organizations and companies.
Vincom Office properties include:
• Vincom Office Royal City
• Vincom Office Times City
30,000
25,000
20,000
15,000
10,000
5,000
0
C A G R * : 6 2
%
20142013201220112010
Unit: VND billion
REVENUE FROM SALE OF PROPERTIES
2010 2014
21,772
14,658
5,333
1,3713,128
2004Year
Total number of
shopping malls
Total areaGFA (sqm)
2009 2010 2012 2013 2014 2015
1 1* 2 3 5 6 30
27,103 42,489 93,273 131,333 482,913 513,690 1,000,000
Target
Corporate Identity
(*) Compound Annual Growth Rate
(*) Vincom Ba Trieu (Tower C) commenced operation.
2014 was a pivotal year for Vincom Retail as it participated in the Group’s transformation initiatives to ready itself for future
growth. In 2015, Vincom Retail aims to reach 30 shopping malls throughout Vietnam encompassing more than 1 million square
meters of modern retail space.
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HOSPITALITY VINPEARL
Vinpearl is the market-leading hospitality and tourism brand of
Vingroup. Beginning from Vinpearl Nha Trang and after more
than a decade of development, Vinpearl now owns a chain of
luxury hotels and resorts throughout Vietnam. These include
Vinpearl Resort (five-star resorts), Vinpearl Luxury (upscale
resorts), Vinpearl Premium (premium resorts and villas) and
Vinpearl Golf Club.
Vinpearl five-star and upscale resorts include:
• Vinpearl Resort Nha Trang
• Vinpearl Luxury Nha Trang
• Vinpearl Resort Phu Quoc (Phase 1)
Vinpearl premium resorts and villas include:• Vinpearl Premium Da Nang
• Vinpearl Premium Nha Trang Bay (under construction)
• Vinpearl Premium Phu Quoc (under construction)
• Vinpearl Premium Golf Land (under construction)
Vinpearl Golf Clubs include:
• Vinpearl Golf Club – Nha Trang
• Vinpearl Golf Club – Phu Quoc
Vinpearl had a productive 2014. Vinpearl Phu Quoc was
completed and put into operation on schedule after only ten
months of construction, and the Vinpearl Premium brand was
launched late in the year. In 2015, three Vinpearl projects will
be finished, including Vinpearl Premium in Nha Trang and Phu
Quoc, and the first resort in North Vietnam, Vinpearl Resort
Ha Long.
HIGH QUALITY HEALTHCARE
SERVICES VINMEC
The leading healthcare system in Vietnam carries the Vinmec
brand, owned by Vingroup. Vinmec, with a team of highly skilled
experts and doctors together with advanced modern medical
equipment and international-standard inpatient rooms and
comprehensive, professional, world-class services, has made
many great contributions to Vietnam’s healthcare industry.
Thus, Vinmec serves as a prestigious medical facility trusted by
many customers. Pro-activeness, discipline, determination and
result-orientation are priority qualities at Vinmec, just as they are
at all of Vingroup’s other units. That has led to positive, sustain-
able results. The secret to success for Vinmec moving forward
is the solid momentum in 2015 with the expected opening of
new Vinmec International Hospitals in Phu Quoc, Ho Chi MinhCity, and Nha Trang. In addition, construction of Vinmec Ha Long
International Hospital is currently underway.
Vinmec properties include:
• Vinmec International Hospital (Times City)
• Vinmec International Clinic (Royal City)
• Vinmec International Clinic (Ho Chi Minh City)
ENTERTAINMENT VINPEARL LAND
Vinpearl Land is the entertainment brand of Vingroup, offer-
ing high-quality amusement parks and family entertainment
centers. Located in Vingroup’s resorts and mixed-use develop-
ments nationwide, Vinpearl Land has the same large-scale and
high quality as other regional and global recreational theme
parks.
Vinpearl Land properties include:
• Vinpearl Land Nha Trang
• Vinpearl Land Royal City
• Vinpearl Land Times City
• Vinpearl Land Ha Long
• Vinpearl Land Phu Quoc
During 2014, Vinpearl Land developed a human resource
system populated with a staff of young, enthusiastic and
passionate employees who share the goal of attracting and
entertaining visitors. Vinpearl Land further expanded with
the opening of Vinpearl Land Ha Long and Vinpearl Land Phu
Quoc. Peak visitors reached tens of thousands per day.
In 2015, Vinpearl Land aims to spread the brand through-
out key cities nationwide to build trust and credibility with
customers.
QUALITY EDUCATION VINSCHOOL
As a high-quality K-12 school system, Vinschool benefited from
its development strategy, infrastructure and the investment
focus of Vingroup. Vinschool aims to create a generation of
young Vietnamese whose education is dynamic and well-rounded
so that students will be fully equipped with knowledge and skills
for international integration while still grounded by Vietnamese
tradition and culture. In 2014, Vinschool expanded its scale to
a total of 6,300 students. With its educational philosophy of
“comprehensive development of future generations,”Vinschool
has gained the trust of students and parents. In the next few
years, the Vinschool business unit plans to expand to a total of
22 schools nationwide.
Vinschool facilities include:
• Vinschool Kindergarten – Times City
• Vinschool Kindergarten – Royal City
• Vinschool Kindergarten – Vinhomes Riverside
• Vinschool Elementary School – Times City
• Vinschool Secondary and High School – Times City
124,740
56,782
67,958
116,639
72,335
44,304
70,122
31,288
101,410
5,379
11,639
150,242
66,819
83,423
C A G R * : 9 0
%
2013201220112010 2014
NUMBER OF VISITS TO VINPEARL
2010 2014
I nt er na ti on al v is it or s D om es ti c v is it or s
6,260
60,000
40,000
20,000
00,000
80,000
60,000
40,000
20,000
0
2013201220112010 2014
NUMBER OF VISITS TO VINPEARL LAND
2010 2014
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
1,768,953
1,237,1711,210,772988,707
3,257,627
C A G R * : 3 5
%
2013201220112010 2014
TOTAL NUMBER OF VISITS TO VINMEC
2012 2014
I npa ti ent s er vi ces Ou tpa ti ent s er vi ces
250,000
200,000
150,000
100,000
50,000
86,525
78,792
7,733
43,987
41,417
2,570
200,076
186,577
13,499 C A G
R * : 1 1
3 %
0
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2013
1,059
2012 2014
6,300
TOTAL NUMBER OF STUDENTS
2013 2014
C A G R
* : 4 9 5 %
Corporate Identity Businesses
HOSPITALITY ENTERTAINMENT HEALTHCARE EDUCATION
(*) Compound Annual Growth Rate (*) Compound Annual Growth Rate
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CONSUMER RETAIL
VINMART, VINDS, VINPRO,
VINFASHION, AND ADAYROI
In 2014, Vingroup built on its retail brand equity to expand its
footprint in a number of new sectors of the retail marketplace.
VinMart – Supermarkets and
VinMart+ – Convenience stores
VinMart and VinMart+ are Vingroup’s consumer
and retail brands that provide customers with
exceptional shopping experience and value.
VinMart supermarkets and VinMart+ convenience
stores have wide coverage across the countryand are located in densely populated areas with
convenient transportation.
VinMart’s mission is to earn customers’trust with
the slogan “Quality of life for every household.”
VinMart has proven to Vietnamese customers
that its stores are reliable shopping destinations
in terms of product origin and quality, service
and prices, and VinMart can provide customers
with a completely new shopping style and
satisfaction.
VINDS
VINMART& VINMART+
VINPRO
VINFASHION
ADAYROI
Fast fashion for the Vietnamese
VinFashion’s EMIGO brand’s slogan is “Dressing
up Vietnam.”By the end of 2014, after 6 months
of operations, EMIGO has six stores in Hanoi
and Ho Chi Minh City. In 2015, EMIGO plans
to build on this base to reach even more
fashion lovers.
Chain of specialty retail stores
VinDS is a new retail segment within Vingroup with a chain
of specialty retail stores offering a wide range of products
including cosmetics, shoes, sportswear, furniture and house-
hold appliances. With this unique model, VinDS’s targets are to
dominate the retail market of these product categories and to
offer Vietnamese consumers both a broad range of products as
well as a newer shopping style.
Electronics and appliances
VinPro is an entirely new brand within
Vingroup’s Retail business segment.
VinPro was launched in early 2015 with
a set of product offerings that includes
smartphones, laptops, tablets, electron-
ics, and home appliances.
Comprehensive E-commerce
In 2014, Adayroi took the very first steps in its journey to
conquer Vietnam’s e-commerce market. The firm has been
building a solid foundation for launching and promises to
break new grounds in the coming years. By bringing the
unprecedented convenience of ecommerce to all customers,
Adayroi aims to gradually change Vietnamese shopping
culture to fit the pace of modern life.
Corporate Identity Businesses
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Tập đoàn Vingroup | Báo cáo thường niên 2014 Tập đoàn Vingroup | Báo cáo thường niên 2014
Vincom Ha LongCommenced operation in October 2014
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Maintain leadership with continuous growth.
042 Operational Highlights
044 Financial Summary
046 About Vingroup’s shares in 2014
048 Shareholder Information
050 Investor Relations
OPERATIONS
IN 2014
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Vingroup Joint Stock Company | Annual Report 2014 Vingroup Joint Stock Company | Annual Report 201442 043
Vingroup Updates Healthcare Strategy
In July, Vingroup began construction of Vinmec International
Hospital in Phu Quoc and announced a five-year develop-
ment strategy for its entire healthcare system. Vinmec will
develop ten high-quality hospitals nationwide and establish
the Vinmec Medical University in Hung Yen. These plans formthe foundation of Vingroup’s long-term vision in the premium
healthcare services sector.
Vinschool Becomes the Education Phenomenon
of 2014
In September, Vinschool in Times City welcomed the inaugural
batch of K-12 students and instantly became an admis-
sions phenomenon by enrolling a total of 6,300 students.
Vinschool’s success in enrolling students and the quality
of its education offerings are evident in these enrollment
figures, confirming Vingroup’s commitment to education and
demonstrating the trust placed in Vinschool by students and
their parents.
Vingroup Leads the Private Sector as 2014’s
Largest Taxpayer and Is Named Among “Top 100
ASEAN Companies” by Standard & Poor’s Credit
Rating Agency
In May, Vingroup topped the list of private-enterprise taxpayers
for the State Budget of Vietnam and was the first private enter-
prise to earn a place among the top ten corporate taxpayers.
This ranking recognizes Vingroup’s significant contribution to
the State Budget of Vietnam and reflects the Group’s continu-
ing growth in revenues and profitability during 2014.
Vingroup was the only Vietnamese real estate company
named among the “Top 100 ASEAN Companies” by Standard
and Poor’s (S&P), a leading international credit rating agency,
and is one of only two Vietnamese enterprises to meet the
criteria in credit ratings, market capitalization, transparency of
information and market leadership, necessary to make the list.
Credit ratings given by S&P are considered a reliable indicator
used by sovereigns, fixed-income issuers and investors.
Vingroup Announces Two New Retail Chains,
VinMart and VinMart+
In October, Vingroup launched a new brand in the retail
sector. The brand will be carried by two chains of stores:
supermarkets network VinMart and convenience stores
network VinMart+. Both chains will operate nationwide.VinMart supermarkets ranging from 3,000 to 15,000 square
meters, while VinMart+ convenience stores range from 150
to 300 square meters. In November, VinMart and VinMart+
commenced operation and both chains have expanded their
store count at a rapid rate and plans call for networks of 100
supermarkets and 1,000 convenience stores nationwide
by 2017.
Grand Opening of Vincom Ha Long
In October, Vincom Ha Long commenced operations, increas-
ing the total number of shopping malls under the Vincom
brand to six. Vincom Ha Long is Vingroup’s first project in
Quang Ninh Province and the first shopping mall developed by
Vincom Retail that is not located in one of Vietnam’s two major
cities, Hanoi and Ho Chi Minh City. This project represented
major progress in expanding Vingroup’s retail real-estate offer-
ing on a nationwide basis. Notably, Vincom Ha Long led to the
establishment of many other major projects in Quang Ninh.
Vingroup Launches Vinpearl Premium – Premium
Resorts and Villas Brand
In December, Vingroup announced a new vacation prop-
erty brand, Vinpearl Premium, a brand dedicated to five-
star resorts and vacation villas. Throughout the system,
Vinpearl Premium has a total of 1,500 hotel rooms and 830
villas in four projects located in Nha Trang, Phu Quoc and
Da Nang.
Vingroup Honored with National and
International Awards
During 2014 Vingroup and its business units received many
prestigious national and international awards. Vincom Mega
Mall Royal City won the “Best Retail Development Vietnam” at
the Annual Asia Pacific Property Awards.
In September, Vingroup received the highest score for “provid-
ing the best real estate products and services”and was chosen
“Best Retail Developer in Vietnam” by the world’s leading
financial magazine, Euromoney.
In the financial community, Vingroup was voted “Region’s Best
Borrower – Vietnam”by FinanceAsia.
In the hospitality sector, Vinpearl Resort Nha Trang was ranked
one of the “Top 10 Best five-star Hotels”in Vietnam for the sixth
consecutive year.
Group’s revenue over 1 billion USD
For 2014, Vingroup’s consolidated net revenue reached
VND27.7 trillion, and the Group contributed VND4.2 trillion
to the State Budget, 60% increase compared to 2013. Net
revenue of approximately USD1.3 billion puts Vingroup in the
exclusive ranks of Asia-Pacific companies with revenues over a
billion USD and helped to raise the Group’s regional and global
economic profile.
With more than 17,000 employees, Vingroup has demon-
strated a leading role in all business sectors and continues to
create new trends by providing the market with innovative
quality products and services “to create a better life for the
Vietnamese people.”
Operations in 2014 Operational Highlights
10 Operationalhighlights in 2014
Vinhomes Central Park Groundbreaking and
Vinhomes Nguyen Chi Thanh – Ha Noi Sales Launch
During 2014, Vingroup began construction and sales of
two major luxury projects in Hanoi and Ho Chi Minh City. In
July, construction started on Vinhomes Central Park in the
Binh Thanh District of Ho Chi Minh City. The project has atotal planned investment of VND37.7 trillion on land area of
42.2 hectares. Vinhomes Central Park is Vingroup’s first mega-
scale mixed-use project in the Southern market. The project
features a distinctive component: Vietnam’s tallest building,
The L andmark81 over 380m, which began constru ction in
December 2014.
In Hanoi, Vingroup began sales of Vinhomes Nguyen Chi Thanh
– Hanoi in November. This project is located in one of the most
desirable areas in Hanoi and features an advanced, modern
design with private gardens for apartments, a luxurious touch
that is rare in Vietnam. These features make Vinhomes Nguyen
Chi Thanh – Hanoi one of the leading high-end projects
announced in Hanoi during 2014.
Together, Vinhomes Central Park and Vinhomes Nguyen Chi
Thanh – Hanoi have become the center of attention in the
market with sales exceeding projections.
Grand Opening of Vinpearl Phu Quoc
In November, after just over ten months of construction,
Vingroup opened the five-star premium resort and hospitality
complex, Vinpearl Phu Quoc. As the largest and most luxurious
hospitality project on the island, Vinpearl Phu Quoc represents a
transformation for the hospitality market in Phu Quoc.
Furthermore, in 2014, Vingroup also commenced and
accelerated the development of many other Vinpearl projects
across the country.
1
2
3
4
5
6
7
8
9
10
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Financial Summary
Financial Summary
2014 2013 2012
Indicator (VND)
Net revenue 27,723,633,371,036 1 8, 37 7, 63 8, 84 5, 70 6 7 ,9 04 ,4 72 ,8 49 ,0 72
Cost of goods sold 17,284,911,479,916 1 1, 34 6, 98 4, 12 8, 30 7 4 ,0 92 ,0 56 ,1 74 ,3 34
Gross profit 10,438,721,891,120 7 ,0 30 ,6 54 ,7 17 ,3 99 3 ,8 12 ,4 16 ,6 74 ,7 38
Operating profit 5,383,641,995,457 9 ,6 06 ,5 81 ,4 19 ,1 23 2 ,5 63 ,4 99 ,4 67 ,4 07
Profit from divestitures of equity stakes 111,050,324,885 5,671,793,229,484 393,757,169,880
Operating profit from core businesses 5,272,591,670,572 3,934,788,189,639 2,169,742,297,527
Profit after tax 3,776,045,741,483 7 ,1 49 ,2 88 ,1 20 ,5 57 1 ,8 46 ,6 67 ,9 24 ,5 25Profit after tax from divestitures
of equity stakes86,619,253,410 4,253,844,922,113 295,317,877,410
Profit after tax from core businesses 3,689,426,488,073 2,895,443,198,444 1,551,350,047,115
EBITDA1 8,568,084,958,380 1 1, 62 6, 10 9, 86 1, 05 2 3 ,9 06 ,5 53 ,3 56 ,1 82
Total assets 90,485,307,199,860 7 5, 77 2, 64 8, 42 5, 79 5 5 5, 82 4, 87 5, 80 4, 67 6
Total liabilities2 63,200,673,940,820 5 7, 15 6, 10 5, 58 4, 50 7 4 4, 95 1, 24 4, 54 4, 49 5
Loans and borrowings 3 33,336,013,772,819 2 7, 38 3, 63 5, 28 0, 01 4 2 1, 82 8, 66 5, 65 9, 87 1
Total owners’Equity 27,284,633,259,040 1 8, 61 6, 54 2, 84 1, 28 8 1 0, 87 3, 63 1, 26 0, 18 1
Indicator
Source: VAS Consolidated Financial Statements for 2012, 2013, 2014
(1) EBITDA = (Profit before tax + Interest expense + Depreciation and amortization) – Other income and interest on deposits.
(2) Including Advance of VND6,581,278,862,138 from customer, Deferred revenue of VND6,586,084,426,957 and Payment ofVND7,847,174,664,786 from customer under deposit, loan and other agreements.
(3) Loans and Borrowings from credit agencies and other organizations, Loans and Borrowings = Short-term loans and borrowings + Long-term loans & borrowings.
(4) Excluding Advance from customer, Deferred revenue and Payment from customer under deposit, loan and other agreements.
Operations in 2014
2014 2013 2012
Gross profit margin (%) 37.65 38.26 48.23
Operating profit margin (%) 19.42 52.27 32.43
Net profit margin (%) 13.62 38.90 23.36
Net revenue growth (%) 50.86 132.50 241.63
Profit after tax fromcore businesses growth (%)
27.42 86.64 270.17
Total liabilities4 / Total Owners’Equity (times) 1.55 1.88 2.50
Profit after tax/ Total Owners’Equity (ROE) (%) 13.84 38.40 16.98
Earnings per share (EPS) (VND/ share) 2,447 5,310 1,819
30,000
25,000
20,000
15,000
10,000
5,000
0
2013
18,378
14,658
3,720
2012
7,904
2,571
5,333
2014
27,724
21,772
5,952
Recurring revenue
Unit: VND billion
Sale of properties revenue
TOTAL NET REVENUE 2012 2014
C A G R * : 8 7
%
30,000
25,000
20,000
15,000
10,000
5,000
0
2013
18,617
2012
10,874
2014
27,285
Unit: VND billion
TOTAL OWNERS’EQUITY 2012 2014
C A G R * : 5 8
%
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2013
11,626
2012
3,907
2014
8,568
Unit: VND billion
EBITDA 2012 2014
C A G R * : 4 8
%
100,000
90,000
80,000
60,000
70,000
40,000
50,000
30,000
20,000
10,000
0
2013
75,773
2012
55,825
2014
90,485
Unit: VND billion
TOTAL ASSETS 2012 2014
C A G R * : 2 7
%
12,000
10,000
8,000
6,000
4,000
2,000
0
2014
10,439
3,776
2012
Unit: VND billion
GROSS PROFIT AND NET PROFIT 2012 2014
Gross profit Net profit after tax
2013
7,031 7,149
3,812
1,847
Unit: %
ROE AND ROA 2012 2014
ROE ROA
70
60
50
3.31
9.44
4.17
38.40
16.9813.84
40
30
20
10
0
201420132012
(*) Compound Annual Growth Rate
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Shareholder Information
Transactions by key executives and related parties in 2014
Major shareholders holding over 5%As of 31 December 2014
Insider holdingsAs of 31 December 2014
No Name Number ofshares held
Ownershippercentage (%)
1 Mr. Pham Nhat Vuong 423,233,801 29.10
2 Ms. Pham Thu Huong 72,981,753 5.02
3 Vietnam Investment Group JSC 180,145,441 12.38
4 Ecology Investment and Development JSC 123,524,946 8.49
Total 799,885,941 54.99
Tittle Name – Position Number of shares held(share)
OwnershipPercentage (%)
Board ofManagement
Mr. Pham Nhat Vuong – Chairman 423,233,801 29.10
Ms. Pham Thuy Hang – Vice chairwoman 48,740,005 3.35
Ms. Pham Thu Huong – Vice chairwoman 72,981,753 5.02
Ms. Nguyen Dieu Linh –Vice chairwoman, Deputy CEO
111,966 0.01
Ms. Vu Tuyet Hang –Vice chairwoman, Deputy CEO
15,502 0.00
Mr. Le Khac Hiep – Vice Chairman 0 0
Ms. Mai Huong Noi – Member, Deputy CEO 0 0
Mr. Ling Chung Yee Roy – Member 0 0
Mr. Marc Villiers Townsend – Member 0 0
Mr. Joseph Raymond Gagnon – Member 0 0
ExecutiveCommittee
Ms. Duong Thi Mai Hoa – CEO 0 0
Mr. Pham Van Khuong – Deputy CEO 909,419 0.06
Mr. Dang Thanh Thuy – Deputy CEO 141,483 0.01
Ms. Nguyen Dieu Linh –Vice chairwoman, Deputy CEO
111,966 0.01
Ms. Vu Tuyet Hang –Vice chairwoman, Deputy CEO
15,502 0.00
Ms. Mai Huong Noi – Member of BOM, Deputy CEO 0 0
Ms. Nguyen Thi Diu – Deputy CEO 0 0
SupervisoryCommittee
Mr. Nguyen The Anh – Head of SC 5,955 0.00
Mr. Dinh Ngoc Lan – Member 839 0.00
Ms. Nguyen Thi Van Trinh – Member 0 0
Ms. Do Thi Hong Van – Member 0 0
Ms. Hoang Thuy Mai – Member 0 0
Chief Accountant Ms. Nguyen Thi Thu Hien – Chief Accountant 87 0.00
Authorized
spokesperson
Ms. Nguyen Dieu Linh –
Vice chairwoman, Deputy CEO111,966 0.01
Total 546,140,810 37.55
ShareholderInformation
No Name Relationshipwith internalshareholders
Number of shares heldprior to the transaction
Number of shares heldafter the transaction
Rationale
Shares (%) Shares (%)
1 Vinpearl JSC
Ms. Vu Tuyet Hangis Chairwoman cumCEO of Vinpearl JSCMr. Dang Thanh Thuyis Member of Boardcum Deputy CEO ofVinpearl JSC.Mr. Nguyen The Anhis Head of SupervisoryCommittee ofVinpearl JSC.Mr. Dinh NgocLan is Memberof SupervisoryCommittee ofVinpearl JSC.
0 0 35,398,107 1 2.43Receive transferof shares
2 N gu yen Kh ac Cuo ngMs. Nguyen DieuLinh’s father
217,362 0.01 0 0 Transfer of shares
3 Mai Tat ToMs. Mai Huong Noi’sfather
499,598 0.03 0 0 Change in ownership
4 Be Thi ThuanMs. Mai Huong Noi’smother
151,709 0.01 26,435 0.002 Change in ownership
5 Mai Huong NoiMember of Boardcum Deputy CEO 87,004 0.006 0 0
Change in ownership
6 N gu yen Ta t T ha ngMs. Mai Huong Noi’shusband
20,926 0.001 0 0 Change in ownership
7 Mai Thu ThuyMs. Mai Huong Noi’ssister
167,471 0.01 9,391 0.0006 Change in ownership
8 Pham Van Khuong Deputy CEO 3,137,964 0.21 611,580 2 0.04 Transfer of shares
(1) Number of shares has increased to 52,636,985 shares as Vinpearl JSC received dividend by shares.
(2) Number of shares has increased to 909,419 shares as Mr. Pham Van Khuong received dividend by shares.
Operations in 2014
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Vingroup Joint Stock Company | Annual Report 2014 Vingroup Joint Stock Company | Annual Report 201450 051
Investor Relations
Investor Relations
The Group maintains an active investor relations program to
handle inquiries, disclose Group information, and manage rela-
tions with shareholders, investors, analysts and other interested
parties. Vingroup is committed to equitable treatment of all
shareholders, including minority and foreign shareholders. The
company encourages all shareholders to exercise their voting
rights regularly. Minority shareholders are given the right to
propose the holding of a meeting as well as the right to proposeitems in the agenda of the meeting, provided that the items are
for legitimate business purposes and in accordance with the law,
jurisprudence and best practices.
Disclosure and Transparency
Vingroup is committed to providing its shareholders and the
public timely and accurate information on the Company and its
businesses. I nformation is prepared and disclosed in accordance
with the highest quality standards of accounting and financial
and non-financial disclosure. Investor presentation materials as
well as news and financial releases of the Group may be viewed
and downloaded from its website www.vingroup.net.
In addition to quarterly conference calls following the release
of financial results, Vingroup also hosts regular briefings and
meetings with investors and analysts to keep them updated on
the Group’s various projects, financial and operational results.
Many of these events feature access to senior management to
answer questions regarding strategy and operational focus. The
third annual Vingroup Tour took place in November 2014 with
the participation of more than 40 investment funds and securi-
ties firms. Via prior appointment, investors and analysts are also
able to visit project sites in Hanoi, Ho Chi Minh City, Da Nang,
Phu Quoc and Nha Trang to see the developments firsthand.
Investor relations executives and senior management also
participate in a number of third party events in multiple coun-
tries to further ensure access for all investors. During 2014,the Group was represented and gave presentations at several
conferences organized by leading financial institutions and
bulge-bracket investment banks. In addition, the Group also
attended the World Economic Forum in Davos, Switzerland,
and the WEF Annual Meeting of the New Champions 2014
in China.
Vingroup’s Investor Relations department will continue to
uphold the best practices in the future. We strive to steadily
increase the number of appearances and investor contact
opportunities as well as even more prompt responses to inves-
tor and analyst inquiries. The Investor Relations department can
be reached via email at [email protected].
VINGROUP IS COMMITTED TO PROVIDING ITS
SHAREHOLDERS A ND THE PUBLIC TIMELY AND ACCURATEINFORMATION ON THE COMPANY AND ITS BUSINESSES ON
ITS OFFICIAL WEBSITE WWW.VINGROUP.NET.
Operations in 2014
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Tập đoàn Vingroup | Báo cáo thường niên 2014 Tập đoàn Vingroup | Báo cáo thường niên 2014
Vinpearl Phu QuocFive-star resort with the first international-standard
27-hole golf course in Phu Quoc
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Today’s foundation is tomorrow’s success.
056 Report of the Board of Management
060 Report of the Supervisory Committee
061 Report of the Executive Committee
065 Corporate Governance Report
066 Development Strategy
068 Risk Management
070 Human Resource Management
074 Corporate Culture
MANAGEMENT AND
GOVERNANCE
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Management and Governance Report of the Board of Management
Report of theBoard of Management
In 2014, Vingroup completed a record number of landmark
projects and ended the year with impressive achievements
across all business segments including property, retail, hospi-
tality and entertainment, healthcare, and education.
The Macro-Economy in 2014
During Vietnam’s 5-year socio-economic development plan
(2011 to 2015), 2014 marked the first year that the nation
achieved nearly all (13 out of 14) of its macroeconomic targets.
This progress provided the foundation for improved growth in
the years to come.
Specifically, GDP grew 5.98% in 2014, the highest growth rate
since 2012. The agriculture, forestry and aquaculture sector
grew 3.49% against 2.64% in 2013; the industrial and construc-
tion sector had breakthrough growth of 7.14% compared with
5.43% in 2013; and the service sector increased 5.96% over the
previous year. In 2014, foreign trade turnover rose to USD150
billion in exports, an increase of 13.6%, with imports reaching
USD148 billion, an increase of 12.1% over 2013. Vietnam’s trade
surplus was USD2 billion, the highest since 2012, contributing
to the continued stability of the exchange rate and the liquidi-
ty of the foreign exchange market.
The i nflow of foreign direct i nvestment (FDI) also contrib-
uted to an outstanding year with total registered capital of
USD20.23 billion, exceeding plan by 19%. Vietnam’s real estate
sector attracted FDI of more than USD2.5 billion, accounting
for 12.6% of Vietnam’s total registered capital.
The consumer price index (CPI) increased by 1.84% in 2014
compared to 2013, the lowest increase of the last thirteen
years. The government continues control inflation successful-
ly, stabilizing input costs and commodity prices, stimulating
consumption, and promoting economic growth.
Recovery in the Property Market
Along with growth in the economy, 2014 saw the property
market turn a page, encouraging the return of both domestic
and foreign investors. The number of successful real estate
transactions increased, especially in the Southern market.
Ministry of Construction statistics indicate a significant upward
trend in the real estate market. The total number of completed
transactions in Hanoi and Ho Chi Minh City doubled over the
previous year. Real estate mergers and acquisitions also grew
significantly in terms of both volume and transaction value,
marking a strong return of the secondary market. According
to the Ho Chi Minh City Real Estate Association, new investors
have restarted struggling projects. The real estate market
was helped by this trend, since it helped to clear inventories,
improved debt collection and supplied products that met
customers’needs and financial capabilities. According to real
estate experts, the property market bottomed out in 2014 and
is now on an upward trend. In the overall picture of recovery,
the strongest parts of the property market appear to be the
middle and high-end segments, especially properties in prime
locations with many amenities and from developers with
strong reputations.
Overall, property markets benefited from macro-economic
trends, government policy support, improvements in product
quality and more effective promotion programs.
8.00
6.00
4.00
2.00
0.00
2013
5.42
2012
5.03
2011
5.89
2010
6.78
2014
5.98
Source: General Statistics Office of Vietnam
GDP GROWTH OF VIETNAM 2010 2014
Unit: %
12.5
12
11
11.5
10.5
10
9.5
2013
11.51
2012
10.46
2011
1111
2010 2014
12.35
Source: Foreign Investment Agency – Ministry of Planning and Investment
Unit: USD billion
DISBURSED FDI IN VIETNAM 2010 2014
Source: CBRE
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
SUCCESSFUL RESIDENTIAL TRANSACTIONS IN HANOI 2012 2014
Unit: number of apartments
High-end
Mid-end
Low-end
Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4
Vingroup Operations in 2014
The national economy experienced clear signs of recovery in
2014, and Vingroup enjoyed outstanding growth thanks to the
efforts its management and employees. Vingroup achieved
impressive business results in 2014: consolidated net revenue
reached VND27.7 trillion and gross profit recorded VND10.4 tril-
lion, increases of 51% and 48%, respectively, compared to 2013.
Profit after tax from core businesses contributed VND3.7 trillion,
an increase of 27% over the previous year.
Residential property sector
Vingroup handed over to buyers thousands of apartments
with comprehensive facilities. The Company achieved the
highest sales of properties in its history, VND21.8 trillion or a
49% increase over 2013, due largely to handing over units at
Vinhomes Times City, Vinhomes Royal City, and final payments
for Vinhomes Riverside. The Group is now beginning the pre-sale
of two new projects, Vinhomes Central Park in Ho Chi Minh City
and Vinhomes Nguyen Chi Thanh in Hanoi, while simultaneously
developing Phase 2 of Vinhomes Times City – Park Hill.
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
SUCCESSFUL RESIDENTIAL TRANSACTIONS IN HO CHI MINH CIT Y 2012 2014
Unit: number of apartments
High-end
Mid-end
Low-end
Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4
Source: CBRE
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Shopping malls
Vincom expanded its chain to sites outside Hanoi and Ho Chi
Minh City with the grand opening of Vincom Ha Long in the
province of Quang Ninh. This expansion raised the total number
of shopping malls to six and increased Vincom’s total retail
space to 513,690sqm. The occupancy rate for all of Vincom’s
shopping malls remained high, due to superior amenities such
as shopping areas, food courts, cinemas and amusement parks.
The high occupancy rate strengthened Vingroup’s reputation in
the retail market.
Vincom Retail was also active in preparing for further expansion
in the retail market, with plans to grow the Vincom mall chain
nationwide. Construction has begun on six new shopping malls:
Vincom Le Thanh Tong – Hai Phong, Vincom Nguyen Chi Thanh
– Hanoi, Vincom Xuan Khanh – Can Tho, Vincom Ngo Quyen – Da
Nang, Vincom Hung Vuong – Hue, Vincom Thu Duc, and Vincom
Mega Mall Thao Dien – Ho Chi Minh City.
Retail sector
Vingroup’s retail market expansion also included the launch
of the VinMart supermarket and VinMart+ convenience store
chains. At the end of 2014, VinMart and VinMart+ had a total
of 23 supermarkets and convenience stores in major cities and
provinces across the country. As part of its expansion strategy,
Vingroup also rolled out a series of new retail store brands such
as VinFashion (fast fashion for Vietnamese), VinDS (chain of
specialty retail stores), and VinPro (electronics and appliances).
Vingroup is also preparing to launch its e-commerce brand,
Adayroi, together with other consumer retail brands to grab the
dominant market share.
Hospitality and Entertainment Sector
Vingroup opened a new resort complex, Vinpearl Resort Phu
Quoc, in 2014 after just over ten months of construction. This
opening more than doubled the total number of hotel rooms in
Vinpearl Resorts to 1,600 at the end of 2014.
Vinpearl welcomed 150,242 guests, an increase of 20% over
2013. Foreign tourists accounted for 56% of the total. Revenue 1
totaled VND1.35 trillion, up 29% over 2013. Vinpearl launched
a new brand, Vinpearl Premium, offering premium resorts and
villas, to differentiate its highest-end hotels and vacation prop-
erties. The business unit is now accelerating construction of its
projects in Nha Trang, Da Nang and Phu Quoc.
Vinpearl Land (theme parks) also had a successful year with
total revenue1 of VND905 billion, a 59% of increase over 2013.
Vinpearl Land opened two new properties in 2014, Vinpearl
Land Phu Quoc and Vinpearl Land Ha Long.
Healthcare Services
Vinmec achieved revenue1 of VND670 billion, an increase of
133% over 2013. Vinmec recorded growth both in the number
of patients served and the number of surgeries performed, with
tens of thousands of patients and thousands of surgeries. As
part of the expansion of its international-standard healthcare
system, Vingroup started construction of Vinmec Phu Quoc
Hospital and announced plans to develop ten hospitals and a
medical university within the next five years.
Education Sector
During 2014, Vinschool opened its K-12 school and increased
the total number of students in its schools to 6,300. In only two
years, Vinschool already has achieved remarkable progress and
strengthened its reputation with an educational philosophy
that stresses comprehensive skills development for future
generations.
Management System
To achieve its results in 2014, Vingroup emphasized its inherent
strengths, especially its management system framework ofprocesses and procedures to ensure the company can fulfill all
tasks required to achieve its objectives. Perhaps 2014 should
be remembered as the year of “Vingroup Transformation”
as the company successfully decentralized decision making
while maintaining proper controls throughout. After twelve
consecutive months, the new “Bottom-line Focus”has spread
throughout the Group to all of the business units, which have
grown in both scale and management sophistication.
All of the Group’s functional departments and divisions have
gained a full understanding of their responsibility for controlling
profit and loss, ensuring consistency and efficiency throughout
the entire system. Vingroup is implementing a governance
system that is in line with international practices and will enable
the Company to effectively manage its growth and profitability
as its scale and complexity continue to increase.
Challenges and Opportunities in 2015
According to World Bank (WB), 2014 will be the platform for
economic growth in 2015 for developing countries such as
Vietnam. Due to the low price of oil and global interest rates,
global economic growth is forecasted to reach 3% in 2015 and
3.3% in 2016.
The stabilizing global economy will support Vietnam’s economy
and maintain current growth momentum in 2015. The World
Bank forecasts Vietnam GDP growth to be 5.6 % and 5.8% in 2015
and 2016, respectively.
In 2015, the Vietnamese government will concentrate on enhanc-
ing macroeconomic stability, resolving difficulties in production,
restructuring the economy, transforming the national economic
growth model, improving efficiency and competitiveness, and
striving for higher growth. In addition, the Government also aims
to accelerate the restructuring of State-owned enterprises and
the stock market as previously planned. These changes should
attract diversified domestic and international investment, while
supporting the equitization of State-owned enterprises and
resolving bad debts.
During 2015, the property market is expected to receive
wide-ranging support from policies, laws, and regulations recent-
ly approved by the National Assembly and the Government.
Among these changes, the Amended Housing Law and the
Amended Real Estate Business Law are the two most anticipated
laws, which take effect on 1 July 2015. These changes will ease
conditions for foreigners to purchase and own property in
Vietnam, further attracting investment into the property market.
In addition, Circular 36/2014 issued by the State Bank of Vietnam,
which took effect on 2 January 2015, reduces the risk factor for
real estate business loans from 250% to 150% and allows greater
use of short-term capital for long-term loans by doubling the rate
from 30% to 60%, thus increasing the Bank’s ability to lend. These
changes are expected to be positive factors for the property
market.
According to BMI research, Vietnam’s population now exceeds
90 million, 35% of which is in the youngest age groups. These
younger groups demonstrate the highest demand for housing,
hospitality and retail. Since the average person requires 15sqm
of living area, demand for living space will be approximately 500
million sqm. The total of residential space in Vietnam is currently
about 100 million sqm. Given such favorable conditions as stable
politics, a recovering economy, and rich natural resources, there
should be strong growth in demand for the property and hospi-
tality sectors in the years ahead.
According to Savills Vietnam, the nation’s property market is now
at the bottom of its cycle. It is expected that in 2015, increased
foreign direct investment in real estate will help to clear unsold
inventory and restart some stalled projects.
Blueprint for 2015
The Group believes that 2015 will be a “Breakthrough Year”on
every front. Vingroup’s principal mission is to concentrate on
achieving growth in all business sectors. The Group will also
focus on developing human resources, strengthening gover-
nance, with the aim of maintaining its position as one of the
leading private enterprises in Vietnam.
Recurring revenue
The Group continues to maintain steady revenue growth from
Vinhomes residential projects such as Vinhomes Times City,
Vinhomes Royal City, the Vincom shopping malls, Vinpearl
hotels and resorts, Vinpearl Land entertainment services,
Vinschool education system, Vinmec healthcare and medical
service as well as the other retail brands of the Group.
In 2015, Vingroup will start new Vinhomes projects in Hanoi,
Ho Chi Minh City, Bac Ninh, Ha Tinh, and Can Tho. The Group
will complete three Vinpearl Premium hospitality complexes in
Nha Trang and Phu Quoc and begin Vinpearl Resort H