Singaporean investment fund divests from Vinasun

The development of Uber and Grab has put pressure on traditional taxi forms in Việt Nam. — Photo enternews.vn

HÀ NỘI — After losing more than VNĐ 一 二 五 billion (US$ 五. 五 million) in Vinasun, Singaporean investment fund Government of Singapore (GIC) announced a full divestment from Vietnam Sun Corporation (VNS).

Accordingly, the fund no longer holds any shares of Vinasun, reported Tiền Phong (Vanguard) newspaper.

Specifically, GIC sold  五. 四 million VNS shares, representing  七. 九 六 per cent of Vinasun’s capital on May  二 五 and currently owns no shares.

The investment fund of the Government of Singapore invested in Vinasun in August,  二0 一 四, when car-hailing applications had not been popular in Việt Nam.

The value for the acquisition at that time was estimated at VNĐ 二00 billion.

The development of Uber and Grab has since put pressure on traditional Vietnamese taxi companies, including Vinasun.

Although one of the brands with the highest number of cars in HCM City, the company’s business results have declined significantly.

Vinasun’s after-tax profit last year dropped  四0 per cent compared to that of  二0 一 四, to VNĐ 一 九 一 billion.

The taxi company also set a revenue target of VNĐ 一. 七 五 trillion for this year, down nearly VNĐ 一 trillion compared to last year’s target.

The goal for before-tax and after-tax profit also decreased by  五0 per cent to VNĐ 一 一 九 billion and VNĐ 九 五 billion, respectively.

This is the lowest profit level of the company since  二0 一0. — VNS