Tourism player Vinpearl and property developer Vincom both owned by the Vingroup have received approval to merge to heighten the group’s competitiveness.

Proposed Vingroup real estate project in Hanoi

The Boards of Directors of the two companies held a meeting on October 4 to ratify their merger, which they believe will bolster their financial capacity, heighten brand awareness and expand their business and investment operations.

Following the merger, all of Vinpearl’s shares (VPL) will be converted into Vincom shares under the VIC stock market coded. Their merger will lead to the establishment of a new company – the Vietnam Investment Group Joint Stock Company.

Le Khac Hiep, Vice Chairman of Vingroup cum Chairman of Vincom said, “The merger is aimed to improve business administration and consolidate leadership and business strategies. Following the merger, there should be increased mutual support in new business and investment plans.”

According to Hiep, Vingroup will continue to focus its operations on four major brands, including Vincom for real estate, Vinpearl for tourism and entertainment, Vincharm for health and beauty care, and Vinmec providing high-quality medical services.

Vingroup will continue its restructuring plans to ensure more positive growth in the time to come, he added.