Vingroup chairman sets up joint property investment company

By Tam Anh   October 6, 2022 | 02:04 am PT
Vingroup chairman sets up joint property investment company
Residential area of Vinhomes Central Park in Ho Chi Minh City. Photo by Shutterstock/Ho Su A Bi
Vietnam’s richest man Pham Nhat Vuong has established a new company, VMI JSC, which offers to split a Vinhomes property into 50 smaller pieces for investors to buy.

The buyer of each of these pieces will be certified of their asset and earn profit should the property value go up.

VIM also offers a minimum annual profit guarantee in case market conditions are unfavorable, but the company has not revealed a specific figure.

"We expect to create a product to help customers with small capital to invest in the property market and help boost the secondary market," said CEO Phan Thanh Long.

Vuong, chairman of conglomerate Vingorup, contributes VND16.2 trillion ($678.39 million) worth of capital using 243 million of Vingroup’s VIC shares.

This means he accounts for a 90% stake in the VND18 trillion company.

Joint property investment has been adopted by several companies in Vietnam in recent years.

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