A consortium led by GIC, Singapore’s sovereign wealth fund, announced an investment of USD 500 million in a subsidiary of Vietnamese conglomerate Vingroup, according to a press statement on GIC’s website.
The subsidiary, VCM Services and Trading Development Joint Stock Company, engages primarily in consumer retail in Vietnam.
The investment secured a minority stake in VCM. Following the transaction, Vingroup continues to be the controlling shareholder of VCM.
According to the statement, “GIC is confident in the growth outlook for disposable incomes and household consumption in Vietnam.”
VCM is the parent company of Vingroup’s popular supermarket chain Vinmart and smaller convenient store chain Vinmart+. VCM was established in August, when Vingroup also split its VinCommerce into two companies: P&S Trade and Investment JSC and Adayroi Commerce and Service Development JSC, according to a local media report. Adayroi is Vingroup’s e-commerce platform launched in 2015.