Vingroup greenlights e-commerce venture

Vingroup greenlights e-commerce venture

The Vingroup Joint Stock Company will enter the e-commerce market with the establishment of the VinE-com Limited Liability Company, according to a decision made by its board on Tuesday.

Under the decision reached by the group's Board of Directors, Vingroup will contribute capital of about VND735 billion (US$35 million) to own 70 per cent of VinE-com.

The group also announced the appointment of Vingroup's new CEO on the same day. Duong Thi Mai Hoa, 45, will assume the role of CEO of Vingroup and will replace the current CEO Le Thi Thu Thuy.

Before joining Vingroup in 2013, Hoa was the finance director of Oracle Viet Nam Company and has previously held important positions in different commercial banks in Viet Nam.

Thuy, who is still the group's vice president, will take charge of the new e-commerce service. The new service, launched with the establishment of the VinE-com company with a charter capital of VND1.05 trillion ($50 million), aims to create a trustworthy, high-quality online shopping channel in Viet Nam.

As e-commerce has been identified as a key future strategy that has the potential to help the group garner more profits, the group has decided to appoint Thuy as both chairwoman and CEO of VinE-com. Thuy has broad experience in international markets and is known for her dynamic vision.

These appointments will take effect from the day its amended registrations are approved by the Ha Noi Department of Planning and Investment.

Vingroup is a real estate giant in Viet Nam and, besides its core business, runs businesses in various sectors, including healthcare, tourism, education and retail.

Shares of Vingroup (VIC) rose by 0.6 per cent to VND78,000 ($3.7) on Thursday but slightly lost yesterday.

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