Billionaire-owner funds new businesses with 535 million Vingroup shares

By Trong Hieu July 14, 2025 | 06:37 pm PT

Vingroup chairman Pham Nhat Vuong. Photo courtesy of Vingroup

Vietnam's richest man, Pham Nhat Vuong, has used over 535 million Vingroup shares in the last three years to start new companies in the property, ride-hailing, energy, and rail sectors.

The country's laws allow the use of shares as capital for a new company besides other assets such as cash and gold, and the value of the shares needs to be agreed upon by both parties at the outset.

Since the end of 2022 the chairman of Vietnam's largest private conglomerate Vingroup has established property firm VMI, ride-hailing firm GSM, energy firm VinEnergo and railroad developer VinSpeed.

He owns majority stakes in these companies by dint of transferring his Vingroup shares to them.

He transferred 243 million shares to VMI, which he established to divide Vinhomes property products into smaller parts for minor investors.

He owns a 90% stake in the company.

He transferred 50.8 million shares to GSM, a company that provides electric vehicle rental and taxi services, and got a 95% stake, 105.7 million shares to VinEnergo, which produces electricity and electrical equipment and 135.6 million shares to VinSpeed, which he founded to bid for construction of the high-speed rail route between Hanoi and Ho Chi Minh City.

He owns 51% of the latter two companies.

At Vingroup's annual general meeting in April, a shareholder inquired about which business areas the company plans to pursue and which ones Vuong would personally oversee.

The billionaire replied: "The group will invest in the juicy sectors, and I will take on the tough ones."

Vingroup identifies property, technology-industry and social philanthropy as its main pillars and plans to enter the infrastructure and energy sectors.

Early last month it announced it would partner with Vuong's VinEnergo to invest in the Hai Phong LNG thermal power plant in the namesake northern port city.

The plant will have a designed capacity of 4,800 megawatts.

VinSpeed is seeking license for the high-speed rail project, which will cost US$61.35 billion, equivalent to 13% of Vietnam's GDP last year.

The company promises to complete the work in five years.

VinSpeed has offered to bring in 20% of the cost and borrow the remaining 80% interest-free from the government for 35 years.

However, analysts estimate the payback period at 70 years.

VinSpeed also wants to develop urban and property projects near the stations along the route as part of the package.