Vingroup reports first-ever loss and blames Covid-19 impacts
Vingroup’s Vincom Center in District 1, Ho Chi Minh City. Photo by Shutterstock/Alex W
Vingroup posted post-tax losses of more than VND7.5 trillion ($326 million) in 2021, its first-ever loss, citing funding for the fight against the pandemic and greater investment in the development of electric cars .
Net revenues of Vietnam’s largest private conglomerate stood at VND125.306 billion last year, up 13 percent from 2020.
Vingroup said some of its businesses, including rental properties, resorts and entertainment, have been heavily affected by the prolonged social distancing campaigns in many localities. Vincom Retail, the commercial real estate arm of conglomerate Vingroup, spent up to VND 2.115 trillion to help tenants, which also affected total revenue.
Last year, the group sponsored Covid-19 prevention and other activities worth VND 6,099 billion. It has also decided to stop production of petrol cars from the end of 2022 to focus its resources on electric vehicles.
At the end of 2021, the group’s total assets were valued at VND 427.324 trillion, up 1% from the start of the year.
Recently, the group has adjusted its orientation by redefining three poles of activities, namely technology and industry, trade and services and social charity.