Vingroup reports first-ever loss

Vingroup made after-tax losses of over VND7.5 trillion ($326 million) in 2021, its first-ever loss, citing funding for the pandemic fight and heavier investments in electric car development.

Vietnam’s biggest private conglomerate’s net revenues stood at VND125.306 trillion last year, up 13 percent over 2020.

Vingroup said some of its businesses, including real estate for rent, resort, and entertainment, were greatly affected by the prolonged social distancing campaigns in many localities. Vincom Retail, the retail real estate arm of conglomerate Vingroup, spent up to VND2.115 trillion assisting tenants, which also affected total revenues.

Last year, the group sponsored Covid-19 prevention and other activities to the tune of VND6.099 trillion. It also decided to stop producing gasoline-powered cars from the end of 2022 to focus resources on electric vehicles.

By the end of 2021, the group’s total assets were valued at VND427.3 trillion ($18.87 billion), up 1 percent from the beginning of the year.

Recently the group adjusted its orientation, redefining three focus groups of activities, namely technology and industry, trade and service, and social charity.