How much is Vincom shopping mall system valued?

Vietnamese retail giant

Vincom is the retail real estate brand of Vincom Retail, a business owned by billionaire Pham Nhat Vuong, with 4 product lines: Vincom Center, Vincom Mega Mall, Vincom Plaza and Vincom+.

In 2004, Vincom opened its first shopping mall in Hanoi . In 2010, Vincom entered Ho Chi Minh City with its first mall in Dong Khoi.

In 2013, the first two "giant" underground shopping malls appeared: Vincom Mega Mall Royal City and Vincom Mega Mall Times City.

In the following years, Vincom grew strongly in both quantity and scale. In addition to major cities, Vincom also appeared in many provinces nationwide. In particular, the new opening record belonged to 2018 with 20 shopping centers opened.

In 2022, despite the impact of the epidemic, Vincom Retail is the only investor to open 3 new shopping centers with Vincom Mega Mall Smart City (Hanoi), Vincom Plaza My Tho, Vincom Plaza Tran Huynh ( Bac Lieu ).

The number of shopping malls has jumped since 2015. (Chart: Duy Anh)
Currently, Vincom owns 83 shopping malls in 44 provinces and cities. The total floor area is up to 1.75 million m2, leading the entire market.

According to the plan, this year, Vincom will open two new shopping malls: Vincom Mega Mall (Grand Park, Ho Chi Minh City) and Vincom Plaza (Ha Giang). In the next three years, Vincom plans to continue opening four shopping malls in Ho Chi Minh City, Dong Anh, Hanoi, Bac Giang and Nghe An.

According to statistics from Viet Capital Securities (VCSC), Vincom Retail's total number of shopping malls surpasses that of its peers in Southeast Asia such as SM Prime, Central Pattana, AEON, and Lotte.

Vincom Retail's shopping mall. (Photo: Duy Anh)

Business results

In 2022, Vincom Retail recorded an impressive recovery and profit. Total consolidated net revenue in the fourth quarter reached VND 2,084 billion, up 53% over the same period last year.

Of which, shopping mall business activities recorded revenue of VND 1,906 billion, an increase of 114% over the same period in 2021.

With this result, Vincom Retail recorded VND 791 billion in consolidated profit after tax in the fourth quarter, an increase of more than 549% over the same period in 2021.

(Chart: Duy Anh)

In 2022, Vincom Retail recorded VND 7,309 billion in total revenue, up 24% year-on-year. Profit after tax reached VND 2,735 billion, up 108% year-on-year and reaching 114% of the annual plan. Profit margin after tax was an impressive 37% of revenue.

According to VCSC, Vincom Retail's total retail leasable floor area will reach 1.94 million square meters by the end of 2023, compared to 1.57 million square meters at the end of 2019 (before the Covid-19 pandemic).

(Chart: Duy Anh)

Vincom Retail's total retail leasable floor area will increase by approximately 240,000 m2/year in the 2024-2027 period. Accordingly, this unit forecasts the net profit growth rate in the 2023-2027 period to reach 21%.

For 2023 business results, VCSC forecasts that Vincom Retail's gross profit from retail leasing will grow by 26% to VND4,300 billion. Net profit will also reach VND3,300 billion, up 35% compared to the 2022 forecast.

Assessing the potential of shopping malls, Ms. Hoang Dieu Trang, Senior Manager, Commercial Leasing Department, Savills Hanoi said that shopping malls with prime locations, good construction quality, reputable investors, and good reputations attract tenants. The demand for premises in these projects is always high, even brands have to be on the waiting list to be able to have premises for rent in such shopping malls.

According to Ms. Nguyen Thao, a real estate expert, Vincom's shopping malls are all in prime locations in Hanoi and Ho Chi Minh City, the centers of provinces and cities, with real estate values reaching billions of VND/m2. Therefore, Vincom has a huge advantage in market share, attracting large international brands to rent space, and high occupancy rates in the central area.

In addition to real estate value, this chain of shopping malls also has brand value. Depending on the location of each shopping mall, the real estate value of each place is different, but the whole chain must be worth up to billions of USD.

Billionaire Pham Nhat Vuong once attracted attention in the market when he sold Vincom Center A (HCMC) for nearly VND10,000 billion after only 4 months of opening. Vincom Center A HCMC is a high-end real estate complex, with a prime location and the most luxurious class in HCMC.

The project includes 6 basements and 9 upper floors; of which, 3 basements are for parking, the remaining 3 basements and 4 upper floors are for shopping - entertainment - culinary center; from the 5th floor up is a luxury 5-star hotel.

Portrait of a Thai tycoon spending billions of dollars to acquire Vietnamese retail giants Central Retail is one of the tycoons spending huge amounts of money to acquire retail empires. Recently, it has been rumored that it is negotiating a huge deal to acquire a large shopping mall system in Vietnam.

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