VIC approves mixed targets for 2017
VIC approves mixed targets for 2017
Vingroup (HOSE: VIC) targeted a total revenue of VND80 trillion ($3.52 billion) and profit after corporate tax of about VND3 trillion ($132 million) in 2017.
This plan was approved at the shareholders’ meeting on April 26. Last year, its after-tax profit was VND3.513 trillion ($155 million), higher than this year’s profit target and much higher than 2015’s after-tax profit of VND1.501 trillion ($66 million). In 2016, Vingroup’s net revenue was VND57.614 trillion ($2.54 billion), an increase of 69 per cent compared to 2015.
Of all Vingroup businesses in 2016, the most impressive revenue derived from the retail business of the supermarket and grocery stores system and some other retail stores. This arm of Vingroup had a growth rate of 115 per cent compared to 2015 and a revenue of VND9.248 trillion ($407 million).
Some other businesses also had high revenue compared to 2015. Revenue from real estate transfer was VND37.296 trillion ($1.64 billion), an increase by 25 per cent, Revenue from hotels, tourism, and entertainment services was VND4.257 trillion ($187.3 million), up 49 per cent. Revenue from hospital and other related services was VND1.093 trillion ($48.1 million), an increase by 42 per cent. Revenue from education activities was VND713 billion ($31.37 million), up 39 per cent.
Total taxes paid by Vingroup were VND6.187 trillion ($272.2 million).
Also, at this meeting, Vingroup provided an update on its projects’ progress.
Also at the meeting, Pham Nhat Vuong, Vingroup’s chairman, talked about the five new factors of Vingroup’s governance revolution, with the target of professionalising and adapting to the 4th industrial revolution.
First of all, Vingroup will focus on human resources. Everyone, from leaders to employees, will have to be responsible for his or her own quantity of tasks implemented, as well as enhancing quality, and efficiency.
The second factor is standardisation of process.
The third one is simplifying. The standardisation of all process, procedures, KPI, and other standards will lead to simplification, so that Vingroup can enhance its efficiency.
Next is the automation. In the fourth industrial revolution, Vingroup will concentrate on automation through employing technology and enhanced governance principles.
The fifth focus was “sharing,” which is related to the sharing economy.
“With these five orientations of governance revolution, expenses will decline significantly and efficiency will be enhanced. In case expenses increase this year, or in the next few years, it will originate from the expansion of investments. In each business, Vingroup always puts efficiency in the first place,” Vuong said.
Vuong added that after implementing these revolutionary principles, on April 29, Vingroup will launch 15 new service facilities, including seven hotels, one golf course, two entertainment zones, five shopping malls. At the same time, its staff will increase by about 7 to 8,000 only. Thus, recruitment and training are now much easier.
