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VinGroup Founder Establishes New Companies to Support Business Growth

Pham Nhat Vuong, the founder and chairman of Vingroup - Vietnam's largest private conglomerate, has established three new holding companies over the past year that aim to assist the long-term financial needs of its various business divisions. This move demonstrates Vuong's continued commitment to developing an expansive business ecosystem capable of accelerating Vietnam's economic transformation.

The first company established was V-Green, founded in March 2023 to exclusively focus on developing the critical charging infrastructure needed for Vingroup's electric vehicle arm, VinFast, to achieve global expansion ambitions. As the world transitions to electric mobility, building out a comprehensive nationwide and international charging network is imperative. By hiving off this function to a standalone entity, V-Green can leverage dedicated resources and expertise to rapidly deploy chargers across Vietnam and target markets like the US. This will alleviate financial obligations from VinFast to accelerate. 

In October 2022, Vuong launched Vietnam Investment Management, or VMI, to facilitate direct property investment for retail investors. VMI will purchase high-quality residential and commercial assets from Vingroup subsidiaries like Vinhomes, and fractionalize ownership into affordable shares. This lowers barriers for smaller investors and the public to gain exposure to Vinhomes' premier developments. VMI also provides upside potential from capital appreciation plus an assured annual return.

The third new company is Green and Smart Mobility, established in March 2023 as a platform to lease electric vehicles and operate ride-hailing services. It competes directly with established mobility giants like Grab and Gojek while advancing Vingroup's sustainability agenda. In just one year, GSM has rapidly grown its fleet and taken 18% market share in Vietnam by effectively leveraging Vuong's financial support. It aims to replicate this success across Southeast Asia and potentially global markets over time.

Through these new holding companies, Vuong is promoting diversification, specialization and financial support across Vingroup's expanding network of subsidiaries. From electric vehicles and mobility to real estate and infrastructure, Vuong's ambitious vision is transforming multiple industries simultaneously. By adopting a long-term "ecosystem approach", each company is strategically positioned to reinforce others' sustainable growth while creating innovative new financial access points for smaller investors to participate in Vietnam's ongoing economic rise. Vuong's aligned companies exemplify how business conglomerates can power broader development when guided by a clear strategic master plan.

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