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2011 - a year full of ups and downs of the richest stock millionaire
The total asset of one trillion dong has helped Pham Nhat Vuong, the owner of Vingroup, consolidate his position as the richest person on the stock market. However, the “mysterious businessman” had to experience many difficulties in the year.
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| Mr Pham Nhat Vuong, the owner of Vingroup |
Vuong has been called “mysterious businessman” because, though being well- known as the owner of one of the biggest private enterprises in Vietnam and the richest stock millionaire for the last two years, Vuong and the stories about him remain unfamiliar to the public.
Therefore, in early October 2011, the appearance of a video clip on Internet showing the scenery of declaration of love of a man who was believed Pham Nhat Hoang – the son of Pham Nhat Vuong – immediately caught the special attention of the public. Though the police then affirmed that the man was not Pham Nhat Hoang, the factor showed the high attractiveness of the successful business Pham Nhat Vuong.
Vuong is one of the Vietnamese people who got rich during the time they lived and worked in Eastern Europe in the 1990s. Vuong’s name was associated with Technocom, the leading group that makes fast food in Ukraine. In early 2000, Vuong began making investment in Vietnam, setting some real estate, hotel and tourism companies, including Vincom and Vinpearl which list their shares on the HCM City bourse (VIC, VPL). Technocom has been renamed as Vingroup which now has the headquarters in Vietnam.
Vinpearl quickly became one of the well-known hotel-tourism brands, while Vincom also succeeded in the real estate market, especially in the first 10 years of operation. The huge profit of the group could be seen in the sky high dividend of 59 percent paid to shareholders. Being the biggest shareholder, Vuong himself received more than 900 billion dong out of the 2300 dong Vincom paid to shareholders.
In 2011, Vingroup launched a lot of other big projects such as Vincom Village, Times City and Royal City. However, in a gloomy stock market, Vuong’s business met a lot of difficulties. While Vincom Village and Royal City projects went smoothly, Times City met difficulties because of the rumor that the contractors withdrew capital while investors sold at big discounts on the market.
In late April 2011, Vincom decided to withdraw from Sun City Hanoi project, which stirred up the public. In early December, Vingroup once again released shocking news when announcing that it will transfer the B tower of the Vincom Center Hanoi twin tower on Ba Trieu to Techcombank.
The information raised a doubt that the owner of Vingroup was bogged down in debts which forced him to sell the building to pay debts. However, Vingroup then denied the information, saying that the transfer deal would bring capital to the group to help develop important projects.
In late 2011, Vuong decided to merge Vinpearl into Vincom. The reason given to explain the merger was that the two business fields could support and supplement each other more intimately. The conversion of stocks was completed in the last trading sessions of the stock market, with one VPL share converted into 9.77 VIC shares.
After the last trading session of the year, Vuong holds 168.5 million VIC shares, worth 16,764 billion dong, an increase of 988 billion dong from the last year. This represents the highest asset growth rate of one individual on the stock market, helping Vuong outdistanced the second richest stock millionaire – Chair of Hoang Anh Gia Lai Group Doan Nguyen Duc, who has the stocks worth 4348 billion dong.
In 2011, VIC share price increased sharply in mid year, once hitting 137,000 dong. Vuong is now a dollar millionaire with the total assets of 800 billion dollars by the end of 2011.
vietnamnet
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