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Vingroup CEO Denies Land Grab Speculation as Group Exits Vincom Retail Business to Refocus Resources

Vingroup plans to divest from Vincom Retail, one of Vietnam's largest retail chains. Currently, Vingroup subsidiaries own a 99% stake in Sado Company, the largest shareholder of Vincom Retail. In March 2022, an agreement was signed for Vingroup to sell its entire stake in SDI Company, which holds the 99% interest in Sado Company. The divestment is expected to be completed between March 2024 and Q3 2024, at which point Vincom Retail will no longer be a subsidiary of Vingroup.

The CEO of Vingroup explained that this is a strategic decision to focus resources on other core business lines with higher growth potential. However, some speculated the true intent was to acquire prime retail real estate for residential development projects. The CEO strongly denied this claim, noting the properties were purpose-built as commercial centers according to approved master plans, making a land use change legally and practically implausible. 

He emphasized there will be no changes to Vincom Retail's operations or management model as a result of the divestment. Vingroup will sign a management contract to continue overseeing the shopping malls on Vincom Retail's behalf. All tenant rights and investor interests will remain protected under existing agreements. Renter benefits at shopping centers and for shophouse/retail investors will be unaffected.

In summary, Vingroup is exiting Vincom Retail to refocus resources, while dismissing rumors of a land grab and ensuring continuity of operations and stakeholder protections during the transition period. The divestment aims to unlock value for Vingroup through capital reallocation rather than disrupt existing retail operations or commercial master plans.

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