GIC buys into Vietnam’s Vingroup retail unit
A GIC-led investment group has purchased a minority shareholding in a Vingroup JSC retail business for US$500 million.
The Vietnamese business, VCM Services and Trading Development JSC, is a recent venture set up to oversee the group’s VinMart-branded supermarket and convenience store chains.
A statement by the Singapore sovereign wealth fund released last week stated that the subsidiary and its parent firm had “established themselves as reputable retail companies with attractive brands in Vietnam’s fast-growing consumer market”.
GIC’s investment is intended as a signal of confidence in the growth outlook for disposable incomes and household consumption in Vietnam.