Vingroup announces additional capital injection into GSM
The Board of Directors of Vingroup issued a resolution approving the plan to inject more capital into GSM during 2024.
Leading business conglomerate Vingroup JSC (VIC), has announced its plans to inject additional capital into Việt Nam's Green and Smart Mobility JSC (GSM) in 2024, with the condition that its ownership of GSM's charter capital does not exceed 5 per cent at each contribution point.
On March 29, the Board of Directors of Vingroup, one of the nation's largest real estate developers and a retail sector giant, issued a resolution approving the plan to inject more capital into GSM during 2024.
GSM, established in March 2023, operates in two main sectors: electric vehicle and electric motorcycle rentals, as well as launching an electric taxi service. Initially, its charter capital was VNĐ3 trillion, with Việt Nam's wealthiest billionaire, Phạm Nhật Vượng (who is also the chairman of Vingroup), contributing the entire amount in VIC shares.
By December 28, 2023, the company's charter capital had increased to VNĐ6.19 trillion, and on January 24, 2024, it further rose to VNĐ9.66 trillion, more than tripling its initial value. Currently, the CEO of GSM is Nguyễn Văn Thanh.
According to a recent report by Mordor Intelligence on the Vietnamese ride-hailing market in 2023, GSM holds an 18.17 per cent market share, ranking second in the industry after Grab. GSM's market share is twice that of Be Group, which holds the third position with 9.21 per cent, and more than three times that of Gojek, which stands at fourth place with 5.87 per cent.
As part of its expansion strategy into nine international markets by 2025, GSM plans to target Indonesia and the Philippines as its next markets. In fact, GSM has set a goal to invest US$900 million in Indonesia.
According to Vingroup's financial report, in 2023, Vingroup earned VNĐ20.1 trillion from sales and service provision to GSM. — VNS
