In a few corporate updates from Vietnam, Vingroup has announced its foray into smartphone manufacturing while HDBank has targeted that its profit would touch over $200 million following its merger PGBank.
Vingroup forays into smartphone manufacturing
Vingroup, Vietnam’s leading real estate developer run by Forbes billionaire Pham Nhat Vuong, has announced its foray into smartphone manufacturing and research in artificial intelligence (AI).
The group said in an announcement on Tuesday that it has established VinSmart Co with charter capital of VND3 trillion ($131.54 million) to produce smartphones and other smart electronics devices.
VinSmart will be located in the port city of northern Haiphong province where it also conduct research on AI and new generation materials.
The realty giant in April announced its foray into the pharmaceutical market with the launch of a $96.8-million entity, Vinfa JSC.
Local Vietnamese smartphone brands have only 8 per cent market share, according to the latest research from Counterpoint’s Market Monitor service.
The country’s smartphone market is driven by the fast-growing $100-$150 price segment which is contributing to almost a third of the shipments. The premium smartphone segment (>$400) continues to do well in Vietnam, mainly driven by Samsung and Apple.
HDBank targets profit of over $200m after merger with PGBank
Ho Chi Minh City Development Bank (HDBank), whose vice-chairwoman is Vietnam’s first female billionaire Nguyen Thi Phuong Thao, has set a profit target of over $200 million this year and is open to attract more foreign investment following its merger with Petrolimex Group Commercial Joint Stock Bank (PGBank).
The bank is carrying out procedures to complete the merger plan. “Currently, the merger plan of PG Bank is still pending approval of the State Bank of Vietnam,” the HD Bank’s media representative told DEALSTREETASIA in an interaction.
The bank aims to focus more on retail and SMEs strategies after the merger which will enable it to expand its client base, including with Vietnam National Petroleum Group.
Room for foreign investors, meanwhile, is expected to increase significantly thanks to adding 30 per cent from PGBank that is expected to continue to increase the attractiveness of HDBank shares, said the bank’s senior representatives.
The bank in April announced that its shareholders approved a plan to merge with unlisted PGBank in a share-swap deal. Each share of PGBank will be converted into 0.621 HDBank shares. HDBank will issue 300 million ordinary shares for the conversion.