Green SM contributes 20,000 billion in revenue to Vingroup

Xanh SM - Mr. Pham Nhat Vuong's taxi company - contributed more than 20,000 billion VND in revenue to Vingroup's consolidated financial report, coming from transactions with VinFast.

On the consolidated financial report of Vingroup Corporation (VIC), GSM Green and Smart Mobility Company appears in the section of Significant transactions with related parties . In which, the item of revenue from sales and service provision recorded more than VND 20,163 billion.

The company, which rents cars, electric motorbikes and provides electric taxi services, was founded by Mr. Pham Nhat Vuong in March last year. The relationship with Vingroup is introduced as a joint owner .

In 2023, the manufacturing sector will contribute more than VND28,000 billion in revenue to Vingroup, more than double the previous year's VND13,000 billion. With sales and service provision of more than VND20,000 billion, GSM contributes about 70% of this figure.

In the fourth quarter, VinFast delivered 13,513 electric vehicles, up 35% from the previous quarter. For the full year, the company delivered 34,855 electric vehicles, bringing the total number of vehicles delivered globally to 42,291 since the first delivery in 2021.

In its 2023 semi-annual report to the US Securities and Exchange Commission (SEC), VinFast said GSM was its largest buyer. The electric taxi company had received about 7,100 electric cars from VinFast by the end of the second quarter of 2023. GSM had previously signed an agreement to buy 200,000 electric motorbikes and 30,000 electric cars from VinFast.

However, Vingroup's manufacturing segment is still suffering losses. This business segment lost more than VND33,000 billion before tax in 2023. When consolidated into the group's business results, the loss was offset by profits from real estate transfer and leasing activities. Vingroup's total real estate profit recorded through Vinhomes and Vincom Retail reached more than VND32,600 billion.

Regarding business operations, VinFast has announced its strategy to expand into the markets of Indonesia, Malaysia, India and Middle Eastern countries. Currently, VinFast operates mainly in three markets: Vietnam, North America (USA, Canada) and Europe (France, Netherlands, Germany).

According to VinFast, expanding operations to other Asian countries will be an important milestone in the company's global business development strategy.

VinFast is currently an electric vehicle manufacturer with a diverse product range of 7 electric car models from minicars to large SUVs, 9 electric motorbike models from popular to high-end, electric buses, electric bicycles, charging stations and advanced energy solutions from the Vingroup ecosystem.

Minh Son

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