Vincom Retail executives have just stated that the company has no plans to change its name, despite it no longer being a subsidiary of Vietnamese conglomerate Vingroup and the introduction of a new group of shareholders.

Pham Thi Thu Hien, CEO of Vincom Retail, made the announcement at the 2024 annual meeting on Tuesday, amidst shareholder concerns about the impacts of Vingroup’s divestment, the direction under the new shareholder group, and potential changes to the business name.

Earlier this month, Vingroup announced the transfer of 55 percent of the charter capital of SDI Trading Development and Investment JSC. 

SDI holds 99 percent of the shares in Sado Trading Commercial JSC, which is a major shareholder owning 41.5 percent of Vincom Retail. 

Following the transaction, Vincom Retail is no longer a subsidiary of Vingroup.

During Tuesday’s meeting, a shareholder inquired whether the company intended to remove the ‘Vin’ element from its name following Vingroup’s divestment. 

“Vincom Retail has no intention of altering its name,” Hien, who was just reappointed CEO on Monday, responded affirmatively, citing the strong brand value of ‘Vincom’ to consumers.

Tran Mai Hoa, still deputy chairwoman at Vincom Retail when the meeting was organized, highlighted the intrinsic value and pride associated with the ‘Vincom’ brand, noting its 20-year legacy as a Vietnamese pioneer of shopping center chains in the country. 

Vincom operated as a network of shopping centers under the same name, managed by Vincom Retail. 

Additionally, it was among the first legal entities established after Vingroup transitioned its operating model to a corporation.

Addressing queries regarding the post-divestment relationship between Vincom Retail and Vingroup, Hoa reassured that existing collaborations, including those involving deposits made with Vingroup and its residential real estate company Vinhomes, will continue to benefit from preferential policies. 

“Vingroup will continue to collaborate closely with Vincom Retail, ensuring the Vincom shopping centers remain integral to the Vingroup ecosystem,” Hoa added.

Concerning the impact of the new shareholder Nguyen Hoai Nam, Hoa noted that while Nam lacks direct experience in managing shopping centers, his substantial retail expertise could significantly benefit Vincom Retail, particularly in retail development and operational management.

Nam is related to one of four businesses in Ho Chi Minh City that have acquired a 55-percent stake in SID.

They include Thien Phuc Service and Trading Development Investment Company and NP Business Investment JSC, each acquiring 16 percent of SDI’s capital, Falcon Investment and Development Company Limited, holding 12.5 percent, and Emerald Business Investment and Development Company Limited, owning 10.5 percent.

Nam, holding a 90-percent stake in NP Business Investment JSC and serving as the CEO of property developer Berjaya Vietnam, was elected to Vincom Retail’s board of directors for the 2023-28 term with unanimous approval, following the dismissal of two other board members, Le Mai Lan and chairwoman Thai Thi Thanh Hai.

Following the meeting, Hoa was announced as the new chairwoman of Vincom Retail on Wednesday morning.

For 2024, Vincom Retail targets a revenue of VND9.5 trillion (US$373.8 million) and a profit after tax of VND4.42 trillion ($173.9 million). 

Looking ahead, the company plans to expand its portfolio by developing larger Vincom Mega Malls within major residential projects that cater to substantial populations. 

By the end of 2023, Vincom Retail managed 83 shopping centers nationwide, covering 44 provinces and cities with a total retail floor space of 1.75 million square meters, according to news site VnExpress. 

The company aims to inaugurate six new centers this year, increasing its footprint to 89 shopping centers across 48 provinces and cities.

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