Vingroup sets 2020 profit target at 4-year low to $214mln, 35% less than 2019

Despite the pandemic has left unprecedented challenges to the group which is owned by Vietnam’s richest man Pham Nhat Vuong, it targets 2020 revenue at VND145 trillion ($6.2 billion), up 12% from 2019, while profit is projected to drop 35%.

This is the lowest profit in the past 4 years for Vietnam's largest private enterprise.

Vingroup's board of directors said that in order to take initiative in its resources to cope with the instabilities caused by the Covid-19 epidemic by strictly controlling investment and expenditures, optimizing the performance of existing fields.

In the first quarter of 2020 of Vingroup reported net profit at more than VND438 billion ($19 million), down 58% from the same period last year, According to the consolidated financial statements.

Total consolidated net revenue in 1Q was VND15,368 billion ($660.5 million), down 30% compared to the same period last year.

Vingroup's net revenue mainly came from real estate transfer (44.79%), production activities (21.21%), investment property leasing (11.69%), and hotel and entertainment services (11.75%).

As of March 31, 2020, Vingroup's total assets reached VND413,613 billion ($17.8 billion), a slight increase of 2%.

► Vingroup earns $361.5mln from selling retail arm's shares to Masan