Customers enter Vinmart supermarket in Nguyen Chi Thanh Street in Ha Noi. Photo foody.vn

Singapore’s sovereign wealth fund, GIC announced on Monday that its consortium bought US$500 million stake in one of the subsidiaries of Viet Nam's largest conglomerate Vingroup JSC.

The consortium signed agreements with Vingroup for a collective investment of $500 million for a minority stake in VCM Services and Trading Development Joint Stock Company (VCM), which was established last month to manage the chains of 121 Vinmart supermarkets and more than 1,900 Vinmart+ convenient stores.

GIC said after the transaction, Vingroup continues to be the controlling shareholder of VCM.

GIC said Vingroup and VCM have established themselves as reputable retail companies with attractive brands in Viet Nam’s fast-growing consumer market, adding that as a long-term investor, GIC is confident in the growth outlook for disposable incomes and household consumption in Viet Nam.

GIC is one of the three reserves management entities of the Government of Singapore and is now one of the largest financial investors in the Vietnamese capital market.

At present, GIC’s main investments in Viet Nam include Masan Group (some 5 per cent of the shares), Vietjet Air (5 per cent), Vinamilk (0.7 per cent), FPT (3.5 per cent) as well as PAN Group and Vinasun, with a total value of some VND15 trillion ($657.9 million).

In April, GIC invested $1.3 billion another subsidiary of Vingroup which is VinHome realty.

Beginning as a realty developer, Vingroup has grown to become the local largest listed firm with a market capitalisation of more than $16 billion. Most recently, it sets a footprint in hi tech industry launching smartphones, cars, and also aims to invest in the artificial intelligence sector. Last month, Vingroup applied for a licence to launch an airline next year. — VNS