VIN AR15 MasterEnglish Digital 150415
Content
Table of contents
TRANSCEND
OVERVIEW
009
Key figures for 2014
010
Message from the Chairman of the
Board of Management
012
2014 Titles and Awards
PIONEERING
CORPORATE PROFILE
018
Vision, Mission and Core Values
020
Corporate Milestones
024
Organizational Structure
026
Board of Management
028
Supervisory Committee
028
Executive Committee
032 Businesses
GROWTH
OPERATIONs IN 2014
042
Operational Highlights
044
Financial Summary
046
About Vingroup’s shares in 2014
048
Shareholder Information
050
Investor Relations
FORWARD-LOOKING
MANAGEMENT AND GOVERNANCE
056
Report of the Board of Management
060
Report of the Supervisory Committee
061
Report of the Executive Committee
065
Corporate Governance Report
066
Development Strategy
068
Risk Management
070
Human Resource Management
074
Corporate Culture
TIMELESSNESS
SUSTAINABLE DEVELOPMENT
080
Sustainable Development Strategy
081
Economic Growth
082
Social Responsibility
083
Environmental Programs
TRANSPARENCY
CONSOLIDATED FINANCIAL STATEMENTS
090
VAS Consolidated Financial Statements
170
Summary of IFRS Consolidated Financial Statements
176
Reconciliation between VAS and
IFRS Consolidated Income Statements
Vinhomes Central Park
The Landmark81 is an 81-floor tower,
the tallest building in Vietnam
Tập đoàn Vingroup | Báo cáo thường niên 2014
Tập đoàn Vingroup | Báo cáo thường niên 2014
“It always seems impossible until it’s done.” – Nelson Mandela
overview
009
Key figures for 2014
010
Message from the Chairman of the
Board of Management
012
2014 Titles and Awards
Overview
Overview
Key figures
for 2014
visitors a year to
Vinpearl Land
NET REVENUE
vnd BILLION
Vingroup Joint Stock Company (“Vingroup” or the “Group”)
is one of the largest listed companies by market capitalization
in Vietnam. Vingroup focuses on long-term sustainable growth
by targeting high-quality real-estate development and hospitality. The Company has two principal brands: Vincom and
Vinpearl.
and villas, Vinpearl Golf Club. Retail: VinMart – Supermarkets,
VinMart+ – Convenience stores, VinFashion, VinDS – Chain of
speciality retail stores, VinPro – Electronics and appliances, and
Adayroi – Comprehensive E-commerce.
In addition to these three business segments, Vingroup
participates in other segments aimed at improving the quality
of life for the Vietnamese people. Among these segments are
Healthcare: Vinmec – Quality healthcare services, Education:
Vinschool – Quality education, and Agriculture: VinEco – Trusted
quality source of food and Vingroup’s newest business sector.
After more than a decade of development, Vincom is Vietnam’s
leading real estate brand with high-end shopping, office and
apartment developments in Vietnam’s largest cities. Vincom
is also leading the trend towards sustainable, luxury urban
townships in Vietnam. Vinpearl is the largest and most recognized Vietnamese hospitality and tourism brand featuring Vingroup continues to pioneer and lead consumer trends
amusement parks, golf courses hotels, resorts, and beachfront in all its businesses through offering quality products and
villas rated five or more stars.
introducing a modern life-style experience to the Vietnamese
consumers.
In January 2012, Vinpearl JSC merged with Vincom JSC to form
Vingroup Joint Stock Company.
The Group is proud to set the standard for private enterprises, built by Vietnamese people and marked by traditional
The Group has developed a diversified portfolio across six busi- Vietnamese characteristics of intelligence, daring and
ness segments: Property: Vinhomes – Luxury Apartments & ambition.
Villas, Vincom and Vincom Mega Mall – Vincom shopping malls,
Vincom Office – offices for lease, Hospitality and entertain- As a leading private group that successfully balances sustainment: Vinpearl Resort and Vinpearl Luxury – five-star resorts and able and dynamic development in Vietnam, Vingroup has the
upscale resorts, Vinpearl Land – amusement parks and family potential to achieve leadership at the regional and internationentertainment centers, Vinpearl Premium – premium resorts al levels.
TOTAL ASSETS
MARKET CAPITALIZATION
vnd BILLION
vnd BILLION
PROFIT BEFORE TAX
vnd BILLION
students attended
Vinschool in the first
academic year
TOTAL
OWNERS’ EQUITY
Over
employees
008
Vingroup Joint Stock Company | Annual Report 2014
vnd BILLION
Overview
Message from the Chairman of the Board of Management
Our key tasks in 2015 are to leverage
all of our resources to accelerate
the development of new projects,
to keep to our schedule for new
openings, and to effectively manage
our operating businesses.
Message From
the Chairman of
the Board of
Management
Simultaneously, Vingroup launched supermarket chain VinMart
and convenience store chain VinMart+ on a nationwide basis.
The Group also introduced other key businesses including
VinFashion (fast fashion for Vietnamese), VinPro (electronics
and appliances), VinDS (a chain of specialty retail stores), and
Adayroi (comprehensive e-commerce).
Dear Valued Shareholders,
On behalf of the Board of Management (BOM) and Executive
Committee, I would like to extend our warmest greetings and
wish you health, happiness and success!
Ladies and Gentlemen,
In the past few years, the global and domestic economies
encountered a series of challenges. Thousands of enterprises
have struggled with the possibility of business closure while
hundreds of thousands of workers lost their jobs. It certainly
has been a tough time for business.
Despite the economic downturn, Vingroup has met and
overcome these challenges. At the end of 2013, foreseeing
the economic fluctuations and aiming to strengthen the
internal organization of the company, the Group’s Board of
Management and management team made the decision to
restructure our management system following the theme
“Transform to Succeed.” In 2014, Vingroup successfully
010
Vingroup Joint Stock Company | Annual Report 2014
completed the decentralization of its operational model into living in Vinhomes urban communities, a new standard in
shopping and entertainment at Vincom shopping malls, new
management by business sector P&Ls.
opportunities to enjoy Vinpearl’s 5-star-and-above upscale
The watershed transformation has helped Vingroup overcome resorts, world-class healthcare services at Vinmec, and
the difficulties and challenges to expand into new areas. The high-quality education at Vinschool.
Group has established five core business sectors: Property,
Hospitality and Entertainment, Retail, Healthcare, and In 2015, Vingroup will enter the agriculture business under the
VinEco brand. VinEco will provide customers with a trusted
Education.
quality source of food for current and future generations of
Our core business sectors together create an ecosystem of Vietnamese while leveraging Vietnam’s advantages in agriculcomplementary and synergistic operations. This business tural products for export to the global market.
ecosystem sets a new standard in the market with the mission
Economic indicators point to progressive stabilization and
“to create a better life for the Vietnamese people.”
recovery, and the ASEAN Economic Community (AEC) will
In 2014, after reorganizing the company structure, Vingroup be established in 2015. Vingroup’s key tasks this year are to
also executed its aggressive growth plan to expand its opera- effectively manage the P&Ls of our operating businesses, to
leverage all of our resources to accelerate the development of
tions into key cities nationwide.
new projects and to keep to our schedule for new openings.
In Ho Chi Minh City, Vingroup broke ground on Vinhomes Vingroup is determined to achieve a breakthrough year with
Central Park, one of the most advanced luxury urban commu- major projects now being developed in Hanoi, Ho Chi Minh
nities in Vietnam and the largest mixed-use project Vingroup City, Nha Trang, Can Tho, and Ha Tinh.
has created to date.
The Group will continue to expand the coverage of its
In Phu Quoc, Vingroup’s new resort complex, Vinpearl Phu ecosystem of Vingroup products and services throughout
Vietnam with six core businesses: Property, Hospitality and
Quoc, has become a growth engine for local tourism.
Entertainment, Retail, Education, Healthcare, and Agriculture.
In Quang Ninh, the Vincom Ha Long mall commenced oper- Key goals for 2015 are to have a breakthrough year, to
ations in late 2014 and has become the shopping and enter- maintain the leading position in our core business sectors,
tainment destination for Ha Long and surrounding areas. This and to continue identifying new and promising businesses
project marked the launch of Vingroup’s national retail mall to enter. All of Vingroup’s efforts are to realize the mission “to
create a better life for the Vietnamese people.”
expansion strategy.
Vinmec high quality healthcare services and Vinschool high
quality education also recorded impressive growth with the
start of construction on four new hospitals and the opening of
Vinschool with enrollment of 6,300 K-12 students.
In addition, Vingroup will continue to strengthen operations
by implementing a major overhaul of management systems to
increase operational efficiencies in order to ensure sustainable
development in the coming years.
On behalf of the Board of Management, I would like to express
our gratitude to you for your trust, support and partnership.
We believe that through our carefully chosen strategies,
Vingroup will achieve our goals in 2015 and the years to come,
maintaining our market-leading position as one of the premier
companies in the region, while protecting and enhancing the
long-term interests of shareholders and making even greater
contributions to society.
With pioneering yet practical steps towards sustainable development, Vingroup in 2014 achieved record revenue of VND27.7
trillion, a 51% increase over 2013. This was the highest revenue Sincerely yours,
in the Group’s history and puts Vingroup in the exclusive ranks
of Vietnamese companies with revenues over a billion USD.
Also in 2014, Vingroup created more than 8,500 new jobs,
increasing the total number of employees to 17,000. Vingroup
is now ranked the best place to work in the property, architecture, and design sectors, and similarly tops the list in the investment, accounting, auditing, pharmacy, healthcare service and
biotechnology sectors. Vingroup has the confidence to lead
the changes now taking place in its business sectors.
Chairman of the Board of Management
The company is proud to have pioneered a new standard of Pham Nhat Vuong
Vingroup Joint Stock Company | Annual Report 2014
011
Overview
2014 Titles and Awards
2014 Titles and Awards
012
“Vietnam Excellent
Brand” – 7th consecutive year
“Best Retail
Development in
Vietnam” for Vincom
Mega Mall Royal City
“Best Developer in
Vietnam”
“Top 100 ASEAN
Companies 2014”
“Region’s Best
Borrower – Vietnam”
“Best Retail Developer
in Vietnam”
“Top Ten Five-star
Hotels 2014” for
Vinpearl Resort
Nha Trang – 6th
consecutive year
“Largest Private Sector
Corporate Taxpayer”
by Vietnam Economic
Times in collaboration with
Vietnam Trade Promotion
Agency (Ministry of Trade).
by Asia Pacific Property
Awards 2014.
by South East Asia
Property Awards 2014.
by Standard and Poor’s
(S&P), one of the world’s
three most respected
independent credit rating
firms.
by FinanceAsia.
by Euromoney, for the
second time.
by Vietnam Tourism
Awards 2013, Vietnam
National Administration
of Tourism, Ministry
of Culture, Sports and
Tourism and Vietnam
Tourism Association.
by the V1000 list, which
honors outstanding
enterprises making major
contributions to the
State Budget of Vietnam,
released by Vietnam
Report JSC in collaboration with the Tax Review
Magazine, the General
Department of Taxation,
and online newspaper
VietNamNet.
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
013
Vinpearl Premium Da Nang
Located at the most prime location
of Non Nuoc beach
Tập đoàn Vingroup | Báo cáo thường niên 2014
Tập đoàn Vingroup | Báo cáo thường niên 2014
A great location still needs vision to be a prime destination.
corporate identity
018
Vision, Mission and Core Values
020
Corporate Milestones
024
Organizational Structure
026
Board of Management
028
Supervisory Committee
028
Executive Committee
032 Businesses
Corporate Identity
Vision, Mission and Core Values
Vision, Mission
and Core Values
VISION
MISSION
True to its pioneering ambition, Vingroup aims to consolidate
and extend its lead among private, multi-sector businesses in
Vietnam and the region, and to establish its reputation as an
international brand.
Market: To provide unique, creative, premium products and
services of outstanding quality that meet international standards and exceed customer expectations while reflecting local
tastes and upholding Vietnamese cultural values.
Vingroup also aspires to build a brand that projects Vietnam’s Shareholders and Partners: To uphold the cooperative spirit
national pride to the international community.
of mutual development and to commit to becoming the
“Number One Companion” of our partners and shareholders
by creating sustainable value over the long-term.
Employees: To build a professional, creative, dynamic, and
humane work environment, providing all employees opportunities for career advancement based on their skills and
contributions.
Society: To demonstrate corporate social responsibility and
national pride by harmonizing corporate benefits with community contributions.
CORE VALUES:
CREDIBILITY – INTEGRITY – CREATIVITY
– SPEED – QUALITY – HUMANITY
Credibility: Vingroup vigorously protects its Credibility as one
would protect one’s own honor. The Company is always fully
prepared to execute its plans and spares no effort towards
meeting its goals.
Integrity: Vingroup considers Integrity a foundation of its business. We comply fully with the law and maintain the highest
level of professional and social ethics. Customers come first.
Creativity: We value creativity highly as a source of leverage in
our development, and uphold the spirit “dare to think, dare to
do” aimed at building an organization eager to learn.
Speed: Vingroup considers speed and efficiency in every
activity as a guiding principle. We practice “fast decision – fast
investment – fast deployment – fast sales – fast change and
quick adaptation.”
SLOGAN
Vingroup – Where the Best Gather and Grow
• Vingroup is where talented people meet and work
together to achieve the common goals of success and
social development.
• Vingroup’s people are ambitious, highly talented and
qualified in their respective fields.
• All members of the Vingroup family are treated equally,
given opportunities and placed in the most favorable
conditions to maximize their individual talents.
• The Group aims to build the Best People, the
Best Products and Services, the Best Life, and the
Best Society.
LOGO
The Vingroup logo shows a bird flying towards the sun,
Quality: The Group operates under the principle – Best People representing our strong desire to reach new heights and our
– Best Products and Services – Best Life – Best Society.
determination to achieve great success.
Humanity: Vingroup develops the human spirit by valuing The bird’s wings are in the shape of the letter V to stand for
employees as our most important resource, creating the basis Vietnam and Vingroup’s national pride, as well as for victory – a
for fairness, integrity, unity and strength.
goal that Vingroup continuously strives to achieve.
The five stars below the bird represent Vingroup’s five-star
standard criteria and principles.
The two colors red and yellow are from Vietnam’s national flag,
expressing Vingroup’s pride in Vietnamese identity, spirit and
intelligence.
018
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
019
Corporate Identity
Corporate Milestones
Corporate Milestones
2001
2002
2003
July
May
Hon Tre Tourism and Trading
Limited Liability Company (since
renamed Vinpearl JSC) was established in the coastal city of Nha
Trang, Khanh Hoa province.
Vietnam General Commercial
JSC (since renamed Vincom JSC)
was founded with initial charter
capital of VND196 billion.
2004
2006
November
The five-star Vinpearl Resort Nha
Trang commenced operation.
Vincom Ba Trieu (Towers A and B)
was launched to introduce the
modern shopping experience to
the Capital.
Vinpearl Land was opened,
turning formerly arid Hon Tre
Island into a luxury tourist
destination – a symbol of the
rapid growth of tourism in Nha
Trang, Khanh Hoa in particular and
Vietnam in general.
The Company successfully
organized and hosted the Miss
Vietnam 2006 at Vinpearl Land.
History
2007
March
July
The Vinpearl cable car linking Phu
Quy Pier and Hon Tre Island (3,320
meters in length) was launched.
Vingroup officially listed its shares on
the Ho Chi Minh City Stock Exchange
under the ticker “VIC.”
The Company also opened
Vinpearl Resort Nha Trang, raising
the total number of five-star guest
rooms to 485.
In addition, Vingroup successfully
organized the first Miss Vietnam
World at Vinpearl Nha Trang,
thus establishing its reputation
as a major destination for beauty
contests and events.
Vingroup Joint Stock Company (JSC) was established through Ha Long, Khanh Hoa – Nha Trang, Da Nang, Binh Dinh and
the merger of two companies: Vincom JSC and Vinpearl JSC in Phu Quoc.
January 2012.
Vincom JSC, formerly known as the Vietnam General
Vinpearl JSC, formerly known as Hon Tre Tourism and Trading Commercial JSC, was founded in Hanoi on 3 May 2002. Its
Investment and Development Limited Liability Company, was operations are focused on large-scale mixed-use development,
established on 25 July 2001 in Nha Trang, Khanh Hoa province sales and management and include shopping malls, offices,
and primarily engaged in the resort, tourism, hospitality and and luxury apartments and villas. The Company has developed
recreation sectors. The Company’s portfolio includes projects large-scale shopping complexes in major cities across the
in popular tourism destinations throughout Vietnam such as country, including Hanoi, Ho Chi Minh City, and Ha Long.
020
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
021
Corporate Identity
Corporate Milestones
Corporate Milestones (cont.)
2009
2010
2011
2012
2013
August
April
May
January
January
Vingroup opened the retail
component of Vincom Ba Trieu
Tower C.
Vingroup opened Vincom Dong
Khoi in Ho Chi Minh City
(Vincom B).
Vingroup successfully hosted the
second Miss Vietnam World and
Miss Earth at Vinpearl Resort
Nha Trang.
The merger with Vinpearl JSC
raised total charter capital to
approximately VND5.5 trillion
and a development strategy was
approved for the Group to be
operated under the new entity:
Vingroup JSC.
Vingroup became a
foundation member of
the World Economic Forum
(WEF).
Fourth quarter
The five-star Vinpearl Luxury
Nha Trang and Vietnam’s first
island golf course Vinpearl Golf
Club – Nha Trang were opened
simultaneously, marking the
completion of the key
components of Vinpearl Nha
Trang, the Company’s first
hospitality complex, in
development and operation for
over a decade.
Vingroup completed construction
and handed over luxury apartments at Vincom Ba Trieu.
It became the first Vietnamese
company to successfully issue
USD100 million of convertible
bonds on the Singapore Exchange
(SGX).
Vingroup officially launched
the Vinmec brand and put into
operation Vinmec International
Hospital.
July
Vacation resort Vinpearl
Premium Da Nang opened as
Vinpearl’s new resort.
December
Vincom Long Bien commenced
operation at Vinhomes Riverside.
At the same time, Vingroup
relocated its Head Office
to the Vinhomes Riverside
ecological area, located in
Long Bien district, Hanoi.
April – July
A successful issuance of
USD300 million of international
convertible bonds listed on the
Singapore Exchange. FinanceAsia
recognized this as the
“Best Vietnam Deal 2012.”
October
Vincom A Ho Chi Minh City – a
luxury retail, food and beverages
complex, commenced operation.
Subsequently, Vingroup’s full
interest in the project was sold
and recognized in 2013.
Vingroup was honored as “Best
Developer – Vietnam” by Euromoney and Vinhomes Riverside
was honored with “Best Villa
Development – Vietnam” at the
Southeast Asia Property Awards
2012 in Singapore.
022
Vingroup Joint Stock Company | Annual Report 2014
November
Vingroup successfully issued
a USD200 million international bond. FinanceAsia
named this transaction “Best
Vietnam Deal 2013,” whilst
April
IFRS Asia called it “Vietnam
Vingroup entered the
Capital Markets Deal of the
Vietnamese education sector Year 2013.”
with Vinschool, a school
system extending from
December
kindergarten to high school. Vingroup opened Vincom
Mega Mall Times City, new
May
Vinschool facilities, and
A consortium led by
Vinmec International HospiWarburg Pincus, a leading
tal at Times City.
global private equity firm
focused on growth capital,
During 2013, Vingroup
invested USD200 million in
delivered thousands of
a strategic partnership with apartments at Vinhomes
Vincom Retail, a subsidiary
Royal City and Vinhomes
of Vingroup, to substantially Times City.
expand the group’s commercial property business.
Acquisition International
recognized this investment
as “Real Estate Deal of the
Year 2013.”
July
November
2014
Vingroup opened Vincom
Mega Mall Royal City,
Asia’s largest underground
combined entertainment
and shopping complex.
July
November
Vingroup broke ground for one of
the most modern and luxurious
urban areas in Vietnam –
Vinhomes Central Park in Ho
Chi Minh City. Vingroup also
announced its strategy to expand
Vinmec into a network of ten
hospitals throughout the country
over the next five years and to
establish the Vinmec Medical
University in 2015.
Vinpearl Phu Quoc, a five-star hospitality
complex was officially opened after only
over ten months of construction – a
record performance for a property of
this size and complexity.
September
Vingroup was honored with four
prestigious awards:
VinMart and VinMart+ opened their
first nine supermarkets and
convenience stores.
Vingroup opened for sale Vinhomes
Nguyen Chi Thanh – Ha Noi, a new
mixed-use project in the heart of
the Capital.
December
“Best Retail Developer in Vietnam”
from Euromoney
Vingroup was ranked as the Largest
Private Sector Corporate Taxpayer in
Vietnam based on 2013 financial results.
“Top 100 ASEAN Companies 2014”
from Standard and Poor’s (S&P)
Vingroup broke ground for the 81-floor
Landmark81 in the urban area Vinhomes
“Region’s Best Borrower – Vietnam” Central Park. The Landmark81 is expectfrom FinanceAsia
ed to be over 380 meters tall, setting
a new record for the tallest building in
“Vinpearl Resort Nha Trang – One
Vietnam.
of the Top 10 Five-star Hotels
2014” from Vietnam Tourism
Vingroup opened Almaz, a luxurious
Awards 2013.
convention, restaurant, shopping and
entertainment center in Vinhomes
Vinschool K-12 school opened at
Riverside.
Times City with 6,300 students
from kindergarten to high school.
End of December 2014: Vingroup
announced a new premium resorts and
October
villas brand, Vinpearl Premium, with
Vingroup launched the VinMart
locations at Nha Trang, Phu Quoc and Da
and VinMart+ brand.
Nang, and also announced the sales of
hundreds of Vinpearl Premium villas.
Vincom Ha Long opened, increasing the number of shopping malls
under the Vincom brand to a total
of six.
Vingroup Joint Stock Company | Annual Report 2014
023
Corporate Identity
Organizational Structure
Organizational
Structure
ANNUAL
GENERAL MEETING
Board of Management
Chairman
PHAM NHAT VUONG
SUPERVISORY COMMITTEE
CEO
SPECIALIZED
COMMITTEES
COUNCILS
DUONG THI MAI HOA
FINANCE DEPARTMENT
LEGAL DEPARTMENT
PROPERTY
HOSPITALITY
& ENTERTAINMENT
RETAIL
HEALTHCARE
EDUCATION
HUMAN RESOURCE
DEPARTMENT
AGRICULTURE
INVESTMENT DEPARTMENT
Vinhomes
Vinpearl JSC
Vinhomes 1 Real Estate
Trading LLC
Vinpearl Hotel
Management Company
Vinhomes 2 Real Estate
Trading LLC
Vinpearl Golf
Course Management
VinMart
Supermarket JSC
Vinmec International
General Hospital JSC
Vinschool
Kindergarten System
VinFashion JSC
Vinmec Medical
University
Vinschool Multi-Level
Education System
VinEco Agricultural
Investment Development
and Production LLC
Vincom Construction LLCs
DEPARTMENT OF
PUBLIC RELATIONS
Vincom Security LLC
SHAREHOLDER &
INVESTOR RELATIONS
MARKETING DEPARTMENT
VinEcom LLC
INFORMATION TECHNOLOGY
DEPARTMENT
VinPro LLC
Vinhomes Property
Leasing LLC
Vinhomes Property
Management LLC
PLANNING DEPARTMENT
Vinpearl Land
Amusement LLC
VinDS LLC
VinGS General Services
Trading LLC
Vincom Retail JSC
Vincom Office LLC
RISK MANAGEMENT
DEPARTMENT
PROJECT SUPERVISORY &
CONSTRUCTION DEPARTMENT
INTERNAL SUPERVISORY
DEPARTMENT
BUSINESS SUPERVISORY
DEPARTMENT
TENDERING & PROCUREMENT
DEPARTMENT
SUPPLY CHAIN DEPARTMENT
INTERNAL SECURITY &
FIRE DEPARTMENT
024
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
025
Corporate Identity
Board of Management
Board of Management
Chairman of the
Board of Management
The Board of Management (BOM) is appointed at the Annual Current Members of the BOM
General Meeting (AGM) and entrusted with the full power to
exercise all rights and responsibilities on the Group’s behalf 01. Mr. Pham Nhat Vuong – Chairman of the BOM
except those under the jurisdiction of the AGM. The BOM
comprises ten members with the following rights and duties:
02. Ms. Pham Thuy Hang – Vice Chairwoman of the BOM
Mr. Pham Nhat Vuong
• Deciding the Group’s development and business plans 03. Ms. Pham Thu Huong – Vice Chairwoman of the BOM
and finalizing the annual budget.
• Establishing operational goals pursuant to the strategic
goals approved by the AGM.
04. Ms. Nguyen Dieu Linh – Vice Chairwoman of the BOM
05. Ms. Vu Tuyet Hang – Vice Chairwoman of the BOM
• Reporting to the AGM on the Group’s business perfor- 06. Mr. Le Khac Hiep – Vice Chairman of the BOM
mance, planned dividends, financial statements, business
strategies and general business conditions.
07. Ms. Mai Huong Noi – Member of the BOM
• Developing the Group’s organizational structure and oper- 08. Mr. Ling Chung Yee Roy – Member of the BOM
ational rules.
• Other rights and duties in accordance with statutory regulations, the Group Charter and resolutions of
the AGM.
09. Mr. Marc Villiers Townsend – Member of the BOM
10. Mr. Joseph Raymond Gagnon – Member of the BOM
Leading the development of high
quality products and services system
of Vingroup with the mission “to create
a better life for THE Vietnamese people.”
Mr. Pham Nhat Vuong was appointed to the BOM in May 2002
and elected Chairman in November 2011. He has a long track
record as an entrepreneur both inside and outside Vietnam,
reflected in his establishment and development of the Group’s
core businesses, including two initial brands Vincom (the leading
brand in real estate) and Vinpearl (the leading brand in tourism,
hospitality and recreation). He continues to develop an ecosystem including quality products and services of Vingroup with
the mission “to create a better life for the Vietnamese people.”
degree in Geological Economic Engineering from Moscow
Geology University in Russia in 1992.
In 2012, he was recognized as Vietnam’s first billionaire by
Forbes Magazine, and continues to maintain this sole position
in 2013 and 2014.
The Group believes its growth and development have benefited significantly from Mr. Pham Nhat Vuong’s leadership and
influence.
Prior to the Group’s establishment in 2002, he was the founder
and honorable Chairman of Technocom Limited Company
(Ukraine) from 1993 to 2009. He graduated with a bachelor’s
026
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Vingroup Joint Stock Company | Annual Report 2014
027
Corporate Identity
Supervisory Committee/ Executive Committee
Supervisory Committee
CEO
The Supervisory Committee (SC) is elected by the Group’s Current Members of the Supervisory Committee
AGM. The SC has five members with five-year terms. Key tasks
of the SC include:
01. Mr. Nguyen The Anh – Head of the SC
• Monitoring BOM and Executive Committee management
and administration practices.
• Inspecting the validity, legality, transparency, corporate governance and prudence of business operations,
important business transactions, accounting and statistical practices, as well as financial reporting.
Ms. Duong Thi Mai Hoa
02. Mr. Dinh Ngoc Lan – Member of the SC
03. Ms. Nguyen Thi Van Trinh – Member of the SC
04. Ms. Do Thi Hong Van – Member of the SC
05. Ms. Hoang Thuy Mai – Member of the SC
• Evaluating the business reports, annual and semi-annual
Financial Statements of the Group, reporting on evaluations by the BOM and submitting the evaluation report of
the above issues to the shareholders at the AGM.
• Conducting other rights and obligations of the SC as
described in the law, the Group Charter and resolutions
of the AGM.
Executive Committee
The Executive Committee is appointed and dissolved by the Current Members of the Executive Committee
BOM. As of 31 December 2014, the Executive Committee
consisted of a Chief Executive Officer (CEO), six Deputy CEOs
01. Ms. Duong Thi Mai Hoa – CEO
and one Chief Accountant. The Deputy CEOs and the Chief
Accountant support the CEO by fulfilling the tasks entrusted to
02. Ms. Mai Huong Noi – Deputy CEO
them. The Executive Committee’s key responsibilities include:
03. Ms. Nguyen Dieu Linh – Deputy CEO
• Organizing the implementation of the AGM and BOM
resolutions, especially those related to the Group’s annual
04. Ms. Vu Tuyet Hang – Deputy CEO
business and investment plans.
05. Mr. Pham Van Khuong – Deputy CEO
• Deciding day-to-day matters related to the Group’s business activities that do not require resolutions from the
06. Mr. Dang Thanh Thuy – Deputy CEO
AGM or the BOM.
07. Ms. Nguyen Thi Diu – Deputy CEO
The CEO also has the following responsibilities:
08. Ms. Nguyen Thi Thu Hien – Chief Accountant
• Managing and supervising the Group’s day-to-day
operations.
There were clear signs of national and
global economic recovery in 2014, and
Vingroup enjoyed outstanding growth
led by completion of some major
projects and continued expansion and
impressive gains in new business areas.
Ms. Duong Thi Mai Hoa was appointed CEO as of 11 February
2014. Before joining the Group, she had 20 years of experience
and held senior leadership positions at multi-national corporations and commercial banks in Vietnam where she acquired
deep experience in finance and banking. She was Corporate
Banking General Director at Maritime Bank, General Director
of Vietnam International Bank (VIB), Deputy General Director
and Head of Retail Banking of VIB, CFO of VIB, CFO of Oracle
Vietnam – the global firm’s local branch, Chief Accountant
at Credit Lyonnais Bank’s Vietnam operation and Head of
Financial Planning Group of VMEP, one of Chinfon’s Vietnam
subsidiaries.
• Executing contracts and other obligations on the Group’s
behalf.
028
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
029
Corporate Identity
Executive Committee
Ms. Nguyen Dieu Linh
Vice Chairwoman of the BOM
cum Deputy CEO
Ms. Mai Huong Noi
Member of the BOM
cum Deputy CEO
Mr. Pham Van Khuong
Deputy CEO
030
Vingroup Joint Stock Company | Annual Report 2014
Ms. Nguyen Thi Diu
Deputy CEO
Ms. Vu Tuyet Hang
Vice Chairwoman of the BOM
cum Deputy CEO
Ms. Duong Thi Mai Hoa
CEO
Ms. Nguyen Thi Thu Hien
Chief Accountant
Mr. Dang Thanh Thuy
Deputy CEO
Vingroup Joint Stock Company | Annual Report 2014
031
Corporate Identity
Businesses
Quality shopping malls – Vincom Retail
Businesses
Vingroup’s Vincom Retail subsidiary is the leading shopping center operator in Vietnam. Vincom Retail employs two brands,
Vincom and Vincom Mega Mall, in order to differentiate between the two classes of shopping centers. Vincom uses the advantage of large scale to achieve an ideal combination of shopping and entertainment. Through the quality of space and the
style of architecture, Vincom provides the advantages of luxury, broad selection, and comfort in shopping and entertainment
destinations. In just a few short years, the business unit has set a new standard in shopping and entertainment for Vietnam.
real estate
Vincom shopping malls:
Luxury apartments and
villas – Vinhomes
Vinhomes is Vingroup’s brand for high-quality, luxury, serviced
apartments and villas. The Vinhomes brand has set a new standard of superior value, which has contributed to the reputation
of Vingroup’s urban areas as being the most livable in Vietnam,
due to their location, convenience and amenities.
All Vinhomes urban areas are located in prime locations
in Hanoi and Ho Chi Minh City. All of Vinhomes residential
developments are built with the following features: luxurious
accommodations, professional and personalized services,
environmentally-sensitive construction, community-building
activities, emphasis on security and safety, and co-location of
a comprehensive set of facilities.
Unit: VND billion
30,000
2%
R :6
25,000
CAG
20,000
*
Vinhomes properties include:
(*) Compound Annual Growth Rate
• Vinhomes Riverside (Hanoi)
• Vinhomes Nguyen Chi Thanh – Hanoi
• Vinhomes Dong Khoi (Ho Chi Minh City)
• Vinhomes Central Park (Ho Chi Minh City)
21,772
2014 was a pivotal year for Vincom Retail as it participated in the Group’s transformation initiatives to ready itself for future
growth. In 2015, Vincom Retail aims to reach 30 shopping malls throughout Vietnam encompassing more than 1 million square
meters of modern retail space.
14,658
15,000
• Vinhomes Times City (Hanoi)
Vincom’s world-class shopping malls are located in prime loca- Vincom Mega Malls are all-in-one shopping malls that provide
tions of major cities throughout Vietnam, including:
customers with a wide selection of high-quality retail and
entertainment experiences such as waterparks, ice rinks,
aquariums. At present, there are two Vincom Mega Malls
• Vincom Ba Trieu (Hanoi)
located in the Hanoi area:
• Vincom Long Bien (Hanoi)
• Vincom Mega Mall Royal City
• Vincom Ha Long (Quang Ninh)
• Vincom Mega Mall Times City
• Vincom Dong Khoi (Ho Chi Minh City)
REVENUE FROM SALE OF PROPERTIES
(2010 – 2014)
With a great effort and a transformation initiative in terms of
strategy, tactics, personnel, business systems, operations and
supporting departments, Vinhomes has decisively addressed
the residential market through rapid growth and the achievement of dominant market share in many key cities throughout
the country. This market position provides a platform for
breakthrough growth in the future.
• Vinhomes Royal City (Hanoi)
Vincom Mega Malls:
Year
10,000
5,333
5,000
3,128
Total number of
shopping malls
1,371
0
2010
2011
2012
2013
2014
Total area
GFA (sqm)
2004
2009
2010
2012
2013
2014
1
1*
2
3
5
6
27,103
42,489
93,273
131,333
482,913
513,690
2015
Target
30
1,000,000
(*) Vincom Ba Trieu (Tower C) commenced operation.
Offices for lease – Vincom Office
Vincom office buildings are located in major financial and economic centers and are designed to maximize natural light, save
energy and create a modern, professional and efficient working environment. The properties have been selected as the headquarters of financial institutions and embassies and also home to several Vietnamese and foreign organizations and companies.
Vincom Office properties include:
• Vincom Office Royal City
• Vincom Office Times City
032
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
033
Corporate Identity
Businesses
hospitality – entertainment
healthcare
education
Hospitality – Vinpearl
Entertainment – Vinpearl Land
Quality education – Vinschool
Vinpearl is the market-leading hospitality and tourism brand of
Vingroup. Beginning from Vinpearl Nha Trang and after more
than a decade of development, Vinpearl now owns a chain of
luxury hotels and resorts throughout Vietnam. These include
Vinpearl Resort (five-star resorts), Vinpearl Luxury (upscale
resorts), Vinpearl Premium (premium resorts and villas) and
Vinpearl Golf Club.
Vinpearl Land is the entertainment brand of Vingroup, offering high-quality amusement parks and family entertainment
centers. Located in Vingroup’s resorts and mixed-use developments nationwide, Vinpearl Land has the same large-scale and
high quality as other regional and global recreational theme
parks.
High quality healthcare
services – Vinmec
• Vinpearl Land Ha Long
The leading healthcare system in Vietnam carries the Vinmec
brand, owned by Vingroup. Vinmec, with a team of highly skilled
experts and doctors together with advanced modern medical
equipment and international-standard inpatient rooms and
comprehensive, professional, world-class services, has made
many great contributions to Vietnam’s healthcare industry.
Thus, Vinmec serves as a prestigious medical facility trusted by
many customers. Pro-activeness, discipline, determination and
result-orientation are priority qualities at Vinmec, just as they are
at all of Vingroup’s other units. That has led to positive, sustainable results. The secret to success for Vinmec moving forward
is the solid momentum in 2015 with the expected opening of
new Vinmec International Hospitals in Phu Quoc, Ho Chi Minh
City, and Nha Trang. In addition, construction of Vinmec Ha Long
International Hospital is currently underway.
• Vinpearl Land Phu Quoc
Vinmec properties include:
• Vinpearl Land Nha Trang
• Vinpearl Land Royal City
• Vinpearl Land Times City
Vinpearl Golf Clubs include:
• Vinpearl Golf Club – Nha Trang
• Vinpearl Golf Club – Phu Quoc
During 2014, Vinpearl Land developed a human resource
system populated with a staff of young, enthusiastic and
passionate employees who share the goal of attracting and
entertaining visitors. Vinpearl Land further expanded with
Vinpearl had a productive 2014. Vinpearl Phu Quoc was the opening of Vinpearl Land Ha Long and Vinpearl Land Phu
completed and put into operation on schedule after only ten Quoc. Peak visitors reached tens of thousands per day.
months of construction, and the Vinpearl Premium brand was
launched late in the year. In 2015, three Vinpearl projects will In 2015, Vinpearl Land aims to spread the brand throughbe finished, including Vinpearl Premium in Nha Trang and Phu out key cities nationwide to build trust and credibility with
Quoc, and the first resort in North Vietnam, Vinpearl Resort customers.
Ha Long.
160,000
R:
CAG
*
140,000
90%
116,639
120,000
150,242
31,288
80,000
83,423
44,304
70,122
11,639
5,379
6,260
2010
• Vinschool Kindergarten – Vinhomes Riverside
• Vinmec International Clinic (Royal City)
• Vinschool Elementary School – Times City
• Vinmec International Clinic (Ho Chi Minh City)
• Vinschool Secondary and High School – Times City
56,782
66,819
TOTAL NUMBER OF VISITS TO VINMEC
(2012 – 2014)
3,257,627
250,000
TOTAL NUMBER OF STUDENTS
(2013 - 2014)
CAG
2,500,000
1,000,000
1,210,772
200,076
13,499
150,000
1,768,953
988,707
7,000
%
13
R :1
*
100,000
1,237,171
86,525
7,733
43,987
2,570
50,000
500,000
2011
2012
2013
186,577
Domestic visitors
Vingroup Joint Stock Company | Annual Report 2014
2014
2011
2012
(*) Compound Annual Growth Rate
2013
2014
6,000
5,000
3,000
2,000
78,792
1,059
1,000
41,417
2010
6,300
4,000
0
International visitors
034
72,335
35%
• Vinschool Kindergarten – Royal City
200,000
1,500,000
40,000
0
*
2,000,000
67,958
60,000
20,000
R:
CAG
3,000,000
124,740
101,410
100,000
3,500,000
• Vinschool Kindergarten – Times City
• Vinmec International Hospital (Times City)
NUMBER OF VISITS TO VINPEARL LAND
(2010 – 2014)
NUMBER OF VISITS TO VINPEARL
(2010 – 2014)
Vinschool facilities include:
5%
Vinpearl premium resorts and villas include:
• Vinpearl Premium Da Nang
• Vinpearl Premium Nha Trang Bay (under construction)
• Vinpearl Premium Phu Quoc (under construction)
• Vinpearl Premium Golf Land (under construction)
CA
GR *
: 49
Vinpearl Land properties include:
Vinpearl five-star and upscale resorts include:
• Vinpearl Resort Nha Trang
• Vinpearl Luxury Nha Trang
• Vinpearl Resort Phu Quoc (Phase 1)
As a high-quality K-12 school system, Vinschool benefited from
its development strategy, infrastructure and the investment
focus of Vingroup. Vinschool aims to create a generation of
young Vietnamese whose education is dynamic and well-rounded
so that students will be fully equipped with knowledge and skills
for international integration while still grounded by Vietnamese
tradition and culture. In 2014, Vinschool expanded its scale to
a total of 6,300 students. With its educational philosophy of
“comprehensive development of future generations,” Vinschool
has gained the trust of students and parents. In the next few
years, the Vinschool business unit plans to expand to a total of
22 schools nationwide.
0
2010
2011
Inpatient services
2012
2013
Outpatient services
2014
2012
2013
2014
(*) Compound Annual Growth Rate
Vingroup Joint Stock Company | Annual Report 2014
035
Corporate Identity
Businesses
Consumer Retail
(VinMart, VinDS, VinPro,
VinFashion, and Adayroi)
In 2014, Vingroup built on its retail brand equity to expand its
footprint in a number of new sectors of the retail marketplace.
Chain of specialty retail stores
VinMart – Supermarkets and
VinMart+ – Convenience stores
VinMart and VinMart+ are Vingroup’s consumer
and retail brands that provide customers with
exceptional shopping experience and value.
VinMart supermarkets and VinMart+ convenience
stores have wide coverage across the country
and are located in densely populated areas with
convenient transportation.
VINDS
VinDS is a new retail segment within Vingroup with a chain
of specialty retail stores offering a wide range of products
including cosmetics, shoes, sportswear, furniture and household appliances. With this unique model, VinDS’s targets are to
dominate the retail market of these product categories and to
offer Vietnamese consumers both a broad range of products as
well as a newer shopping style.
VINMART
& VINMART+
VinMart’s mission is to earn customers’ trust with
the slogan “Quality of life for every household.”
VinMart has proven to Vietnamese customers
that its stores are reliable shopping destinations
in terms of product origin and quality, service
and prices, and VinMart can provide customers
with a completely new shopping style and
satisfaction.
Electronics and appliances
VINPRO
VinPro is an entirely new brand within
Vingroup’s Retail business segment.
VinPro was launched in early 2015 with
a set of product offerings that includes
smartphones, laptops, tablets, electronics, and home appliances.
Fast fashion for the Vietnamese
VinFashion’s EMIGO brand’s slogan is “Dressing
up Vietnam.” By the end of 2014, after 6 months
of operations, EMIGO has six stores in Hanoi
and Ho Chi Minh City. In 2015, EMIGO plans
to build on this base to reach even more
fashion lovers.
VINFASHION
Comprehensive E-commerce
ADAYROI
036
Vingroup Joint Stock Company | Annual Report 2014
In 2014, Adayroi took the very first steps in its journey to
conquer Vietnam’s e-commerce market. The firm has been
building a solid foundation for launching and promises to
break new grounds in the coming years. By bringing the
unprecedented convenience of ecommerce to all customers,
Adayroi aims to gradually change Vietnamese shopping
culture to fit the pace of modern life.
Vingroup Joint Stock Company | Annual Report 2014
037
Vincom Ha Long
Commenced operation in October 2014
Tập đoàn Vingroup | Báo cáo thường niên 2014
Tập đoàn Vingroup | Báo cáo thường niên 2014
Maintain leadership with continuous growth.
operations
in 2014
042
Operational Highlights
044
Financial Summary
046
About Vingroup’s shares in 2014
048
Shareholder Information
050
Investor Relations
Operations in 2014
Operational Highlights
10 Operational
highlights in 2014
1
Vinhomes Central Park Groundbreaking and
Vinhomes Nguyen Chi Thanh – Ha Noi Sales Launch
During 2014, Vingroup began construction and sales of
two major luxury projects in Hanoi and Ho Chi Minh City. In
July, construction started on Vinhomes Central Park in the
Binh Thanh District of Ho Chi Minh City. The project has a
total planned investment of VND37.7 trillion on land area of
42.2 hectares. Vinhomes Central Park is Vingroup’s first megascale mixed-use project in the Southern market. The project
features a distinctive component: Vietnam’s tallest building,
The Landmark81 over 380m, which began construction in
December 2014.
In Hanoi, Vingroup began sales of Vinhomes Nguyen Chi Thanh
– Hanoi in November. This project is located in one of the most
desirable areas in Hanoi and features an advanced, modern
design with private gardens for apartments, a luxurious touch
that is rare in Vietnam. These features make Vinhomes Nguyen
Chi Thanh – Hanoi one of the leading high-end projects
announced in Hanoi during 2014.
3
Vingroup Announces Two New Retail Chains,
VinMart and VinMart+
In October, Vingroup launched a new brand in the retail
sector. The brand will be carried by two chains of stores:
supermarkets network VinMart and convenience stores
network VinMart+. Both chains will operate nationwide.
VinMart supermarkets ranging from 3,000 to 15,000 square
meters, while VinMart+ convenience stores range from 150
to 300 square meters. In November, VinMart and VinMart+
commenced operation and both chains have expanded their
store count at a rapid rate and plans call for networks of 100
supermarkets and 1,000 convenience stores nationwide
by 2017.
4
Grand Opening of Vincom Ha Long
In October, Vincom Ha Long commenced operations, increasing the total number of shopping malls under the Vincom
brand to six. Vincom Ha Long is Vingroup’s first project in
Quang Ninh Province and the first shopping mall developed by
Vincom Retail that is not located in one of Vietnam’s two major
Together, Vinhomes Central Park and Vinhomes Nguyen Chi cities, Hanoi and Ho Chi Minh City. This project represented
Thanh – Hanoi have become the center of attention in the major progress in expanding Vingroup’s retail real-estate offermarket with sales exceeding projections.
ing on a nationwide basis. Notably, Vincom Ha Long led to the
establishment of many other major projects in Quang Ninh.
2 Grand Opening of Vinpearl Phu Quoc
Vingroup Launches Vinpearl Premium – Premium
5 Resorts and Villas Brand
In November, after just over ten months of construction,
Vingroup opened the five-star premium resort and hospitality
complex, Vinpearl Phu Quoc. As the largest and most luxurious In December, Vingroup announced a new vacation prophospitality project on the island, Vinpearl Phu Quoc represents a erty brand, Vinpearl Premium, a brand dedicated to fivetransformation for the hospitality market in Phu Quoc.
star resorts and vacation villas. Throughout the system,
Vinpearl Premium has a total of 1,500 hotel rooms and 830
Furthermore, in 2014, Vingroup also commenced and villas in four projects located in Nha Trang, Phu Quoc and
accelerated the development of many other Vinpearl projects Da Nang.
across the country.
042
Vingroup Joint Stock Company | Annual Report 2014
6
Vingroup Updates Healthcare Strategy
In July, Vingroup began construction of Vinmec International
Hospital in Phu Quoc and announced a five-year development strategy for its entire healthcare system. Vinmec will
develop ten high-quality hospitals nationwide and establish
the Vinmec Medical University in Hung Yen. These plans form
the foundation of Vingroup’s long-term vision in the premium
healthcare services sector.
7
9
Vingroup Honored
International Awards
with
National
and
During 2014 Vingroup and its business units received many
prestigious national and international awards. Vincom Mega
Mall Royal City won the “Best Retail Development Vietnam” at
the Annual Asia Pacific Property Awards.
In September, Vingroup received the highest score for “providing the best real estate products and services” and was chosen
Vinschool Becomes the Education Phenomenon “Best Retail Developer in Vietnam” by the world’s leading
financial magazine, Euromoney.
of 2014
In September, Vinschool in Times City welcomed the inaugural
batch of K-12 students and instantly became an admissions phenomenon by enrolling a total of 6,300 students.
Vinschool’s success in enrolling students and the quality
of its education offerings are evident in these enrollment
figures, confirming Vingroup’s commitment to education and
demonstrating the trust placed in Vinschool by students and
their parents.
In the financial community, Vingroup was voted “Region’s Best
Borrower – Vietnam” by FinanceAsia.
In the hospitality sector, Vinpearl Resort Nha Trang was ranked
one of the “Top 10 Best five-star Hotels” in Vietnam for the sixth
consecutive year.
10
Group’s revenue over 1 billion USD
Vingroup Leads the Private Sector as 2014’s
Largest Taxpayer and Is Named Among “Top 100
ASEAN Companies” by Standard & Poor’s Credit
Rating Agency
For 2014, Vingroup’s consolidated net revenue reached
VND27.7 trillion, and the Group contributed VND4.2 trillion
to the State Budget, 60% increase compared to 2013. Net
revenue of approximately USD1.3 billion puts Vingroup in the
exclusive ranks of Asia-Pacific companies with revenues over a
In May, Vingroup topped the list of private-enterprise taxpayers billion USD and helped to raise the Group’s regional and global
for the State Budget of Vietnam and was the first private enter- economic profile.
prise to earn a place among the top ten corporate taxpayers.
This ranking recognizes Vingroup’s significant contribution to With more than 17,000 employees, Vingroup has demonthe State Budget of Vietnam and reflects the Group’s continu- strated a leading role in all business sectors and continues to
create new trends by providing the market with innovative
ing growth in revenues and profitability during 2014.
quality products and services “to create a better life for the
Vingroup was the only Vietnamese real estate company Vietnamese people.”
named among the “Top 100 ASEAN Companies” by Standard
and Poor’s (S&P), a leading international credit rating agency,
and is one of only two Vietnamese enterprises to meet the
criteria in credit ratings, market capitalization, transparency of
information and market leadership, necessary to make the list.
Credit ratings given by S&P are considered a reliable indicator
used by sovereigns, fixed-income issuers and investors.
8
Vingroup Joint Stock Company | Annual Report 2014
043
Operations in 2014
Financial Summary
TOTAL ASSETS (2012 – 2014)
TOTAL OWNERS’ EQUITY (2012 – 2014)
Unit: VND billion
30,000
Financial Summary
R:
CAG
25,000
2013
2012
Indicator (VND)
Unit: VND billion
27,285
90,000
27,723,633,371,036
18,377,638,845,706
7,904,472,849,072
Cost of goods sold
17,284,911,479,916
11,346,984,128,307
4,092,056,174,334
Gross profit
10,438,721,891,120
7,030,654,717,399
3,812,416,674,738
5,383,641,995,457
9,606,581,419,123
2,563,499,467,407
111,050,324,885
5,671,793,229,484
393,757,169,880
5,272,591,670,572
3,934,788,189,639
2,169,742,297,527
3,776,045,741,483
7,149,288,120,557
1,846,667,924,525
86,619,253,410
4,253,844,922,113
295,317,877,410
3,689,426,488,073
2,895,443,198,444
1,551,350,047,115
8,568,084,958,380
11,626,109,861,052
3,906,553,356,182
Total assets
90,485,307,199,860
75,772,648,425,795
55,824,875,804,676
Total liabilities 2
63,200,673,940,820
57,156,105,584,507
44,951,244,544,495
Loans and borrowings 3
33,336,013,772,819
27,383,635,280,014
21,828,665,659,871
Total owners’ Equity
27,284,633,259,040
18,616,542,841,288
10,873,631,260,181
Operating profit
Profit from divestitures of equity stakes
Operating profit from core businesses
Profit after tax
Profit after tax from divestitures
of equity stakes
Profit after tax from core businesses
EBITDA
1
Indicator
Gross profit margin (%)
37.65
2013
38.26
2012
19.42
52.27
32.43
Net profit margin (%)
13.62
38.90
23.36
Net revenue growth (%)
50.86
132.50
241.63
Profit after tax from
core businesses growth (%)
27.42
86.64
270.17
Total liabilities 4/ Total Owners’ Equity (times)
1.55
1.88
2.50
Profit after tax/ Total Owners’ Equity (ROE) (%)
13.84
38.40
16.98
Earnings per share (EPS) (VND/ share)
2,447
5,310
1,819
(1) EBITDA = (Profit before tax + Interest expense + Depreciation and amortization) – Other income and interest on deposits.
(2) Including Advance of VND6,581,278,862,138 from customer, Deferred revenue of VND6,586,084,426,957 and Payment of
VND7,847,174,664,786 from customer under deposit, loan and other agreements.
20,000
5,000
10,000
0
0
2012
2013
Unit: VND billion
R* :
CAG
25,000
87%
27,724
5,000
5,333
0
R:
CAG
*
2014
48%
11,626
10,000
21,772
7,904
14,000
12,000
18,378
20,000
10,000
2013
EBITDA (2012 – 2014)
Unit: VND billion
30,000
8,568
8,000
6,000
14,658
3,907
4,000
2,000
2,571
3,720
2012
2013
Sale of properties revenue
5,952
0
2012
2014
Unit: VND billion
2014
ROE AND ROA (2012 – 2014)
70
12,000
2013
(*) Compound Annual Growth Rate
Recurring revenue
GROSS PROFIT AND NET PROFIT (2012 – 2014)
10,439
Unit: %
60
50
8,000
7,031
7,149
4,000
38.40
40
6,000
30
3,812
3,776
1,847
20
16.98
9.44
10
3.31
2012
2013
Net profit after tax
2012
2014
ROE
13.84
4.17
0
0
Gross profit
Vingroup Joint Stock Company | Annual Report 2014
2012
2014
TOTAL NET REVENUE (2012 – 2014)
(4) Excluding Advance from customer, Deferred revenue and Payment from customer under deposit, loan and other agreements.
044
55,825
30,000
2,000
(3) Loans and Borrowings from credit agencies and other organizations, Loans and Borrowings = Short-term loans and borrowings + Longterm loans & borrowings.
90,485
40,000
10,000
10,000
Source: VAS Consolidated Financial Statements for 2012, 2013, 2014
27%
50,000
48.23
Operating profit margin (%)
*
75,773
60,000
15,000
15,000
2014
R:
CAG
70,000
18,617
10,874
Net revenue
100,000
80,000
20,000
2014
*
58%
2013
2014
ROA
Vingroup Joint Stock Company | Annual Report 2014
045
Operations in 2014
About Vingroup’s shares in 2014
About Vingroup’s shares
in 2014
Shareholder structure
SHAREHOLDER OWNERSHIP STRUCTURE
As of 31 December 2014
Unit: %
0.4%
Ticker: VIC
Outstanding shares:
1,454,555,098 shares
As of 31 December 2014
No
28.66%
Founding
shareholders
Closing price (as of 31 December 2014):
VND47,700/ share
1
Market capitalization (as of 31 December 2014):
VND64.3 trillion
Other shareholders
– Foreign
Other shareholders
– Domestic
15.95%
Founding shareholders
Domestic
Major shareholders (Holding above 5%)
2
Domestic
Other shareholders
2014 SHARE PRICE MOVEMENT
0.40
1
5,861,058
0.40
1
0
0
0
799,885,941
54.99
4
799,885,941
54.99
4
0
0
0
44.61
10,137
416,875,836
28.66
9,577
Foreign
231,932,263
15.95
560
1,454,555,098
100
10,142
1,222,622,835
84.05
9,582
231,932,263
15.95
560
Foreign
Volume
(million shares)
60,000
5,861,058
648,808,099
Domestic
Vingroup share price
Number of
shareholders
Domestic
Total
Vingroup share volume
Ownership
Percentage
(%)
Foreign
3
Share
price
(VND)
Number of
shares held
Foreign
Major shareholders
54.99%
Catergory
9
8
7
55,000
Charter capital increase history (2010 – 2014)
6
5
50,000
Time of
issuance
4
3
45,000
Recipients
Capital before
the issuance
(VND)
Capital
mobilized from
the issuance
(VND)
Capital after the
issuance (VND)
Share dividend
Rights offering
Existing shareholders
1,996,272,380,000
1,199,747,240,000
3,196,019,620,000
Existing shareholders
3,196,019,620,000
402,875,740,000
3,598,895,360,000
Conversion of bonds
Convertible bondholders
3,598,895,360,000
127,357,010,000
3,726,252,370,000
2011
Conversion of bonds
Convertible bondholders
3,726,252,370,000
185,246,560,000
3,911,498,930,000
2012
Vinpearl JSC merger
(stock swap)
Existing shareholders
3,911,498,930,000
1,582,334,120,000
5,493,833,050,000
Share dividend
Existing shareholders
5,493,833,050,000
1,510,787,500,000
7,004,620,550,000
Bonus shares
Existing shareholders
7,004,620,550,000
2,276,481,600,000
9,281,102,150,000
Conversion of bonds
Convertible bondholders
9,281,102,150,000
6,966,640,000
9,288,068,790,000
PFV Co. merger
(stock swap)
Existing shareholders
9,288,068,790,000
7,968,000,000
9,296,036,790,000
Conversion of bonds
Convertible bondholders
9,296,036,790,000
722,201,960,000
10,018,238,750,000
Share dividend
Existing shareholders
10,018,238,750,000
4,527,312,230,000
14,545,550,980,000
2
1
40,000
0
Jan
2014
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
2010
Dec
Dividend payment history (2009 – 2013)
Dividend year
(%)
Form of payment
Time of payment
2009
60.10
Share
2010
2010
58.80
Cash (VND5,880/ share)
2011
2011
12.40
Share
2012
2012
15.10
Share
2012
21.49
Cash (VND2,149/ share)
2014
48.70
Share
2014
2013
046
Transaction
Vingroup Joint Stock Company | Annual Report 2014
2013
2014
Vingroup Joint Stock Company | Annual Report 2014
047
Operations in 2014
Shareholder Information
Shareholder
Information
Major shareholders holding over 5%
Insider holdings
As of 31 December 2014
As of 31 December 2014
No
Name
1
Mr. Pham Nhat Vuong
2
Ms. Pham Thu Huong
72,981,753
5.02
3
Vietnam Investment Group JSC
180,145,441
12.38
4
Ecology Investment and Development JSC
123,524,946
8.49
799,885,941
54.99
Total
Number of
shares held
Ownership
percentage (%)
423,233,801
29.10
Tittle
Transactions by key executives and related parties in 2014
Name
Relationship
with internal
shareholders
Number of shares held
prior to the transaction
Shares
1
Vinpearl JSC
Ms. Vu Tuyet Hang
is Chairwoman cum
CEO of Vinpearl JSC
Mr. Dang Thanh Thuy
is Member of Board
cum Deputy CEO of
Vinpearl JSC.
Mr. Nguyen The Anh
is Head of Supervisory
Committee of
Vinpearl JSC.
Mr. Dinh Ngoc
Lan is Member
of Supervisory
Committee of
Vinpearl JSC.
(%)
Number of shares held
after the transaction
Shares
Rationale
(%)
Executive
Committee
0
0
35,398,107
1
2.43
Receive transfer
of shares
Supervisory
Committee
2
Nguyen Khac Cuong
Ms. Nguyen Dieu
Linh’s father
3
Mai Tat To
Ms. Mai Huong Noi’s
father
499,598
0.03
4
Be Thi Thuan
Ms. Mai Huong Noi’s
mother
151,709
5
Mai Huong Noi
Member of Board
cum Deputy CEO
6
Nguyen Tat Thang
7
8
0
Transfer of shares
0
0
Change in ownership
0.01
26,435
0.002
Change in ownership
87,004
0.006
0
0
Change in ownership
Ms. Mai Huong Noi’s
husband
20,926
0.001
0
0
Change in ownership
Mai Thu Thuy
Ms. Mai Huong Noi’s
sister
167,471
0.01
9,391
0.0006
Change in ownership
Pham Van Khuong
Deputy CEO
3,137,964
0.21
611,580 2
0.04
217,362
0.01
0
Number of shares held
(share)
Ownership
Percentage (%)
423,233,801
29.10
Ms. Pham Thuy Hang – Vice chairwoman
48,740,005
3.35
Ms. Pham Thu Huong – Vice chairwoman
72,981,753
5.02
Ms. Nguyen Dieu Linh –
Vice chairwoman, Deputy CEO
111,966
0.01
Ms. Vu Tuyet Hang –
Vice chairwoman, Deputy CEO
15,502
0.00
Mr. Le Khac Hiep – Vice Chairman
0
0
Ms. Mai Huong Noi – Member, Deputy CEO
0
0
Mr. Ling Chung Yee Roy – Member
0
0
Mr. Marc Villiers Townsend – Member
0
0
Mr. Joseph Raymond Gagnon – Member
0
0
Ms. Duong Thi Mai Hoa – CEO
0
0
Mr. Pham Van Khuong – Deputy CEO
909,419
0.06
Mr. Dang Thanh Thuy – Deputy CEO
141,483
0.01
Ms. Nguyen Dieu Linh –
Vice chairwoman, Deputy CEO
111,966
0.01
Ms. Vu Tuyet Hang –
Vice chairwoman, Deputy CEO
15,502
0.00
Ms. Mai Huong Noi – Member of BOM, Deputy CEO
0
0
Ms. Nguyen Thi Diu – Deputy CEO
0
0
Mr. Nguyen The Anh – Head of SC
5,955
0.00
839
0.00
Ms. Nguyen Thi Van Trinh – Member
0
0
Ms. Do Thi Hong Van – Member
0
0
Ms. Hoang Thuy Mai – Member
0
0
87
0.00
111,966
0.01
546,140,810
37.55
Mr. Pham Nhat Vuong – Chairman
Board of
Management
No
Name – Position
Mr. Dinh Ngoc Lan – Member
Chief Accountant
Ms. Nguyen Thi Thu Hien – Chief Accountant
Authorized
spokesperson
Ms. Nguyen Dieu Linh –
Vice chairwoman, Deputy CEO
Total
Transfer of shares
(1) Number of shares has increased to 52,636,985 shares as Vinpearl JSC received dividend by shares.
(2) Number of shares has increased to 909,419 shares as Mr. Pham Van Khuong received dividend by shares.
048
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
049
Operations in 2014
Investor Relations
Investor Relations
The Group maintains an active investor relations program to
handle inquiries, disclose Group information, and manage relations with shareholders, investors, analysts and other interested
parties. Vingroup is committed to equitable treatment of all
shareholders, including minority and foreign shareholders. The
company encourages all shareholders to exercise their voting
rights regularly. Minority shareholders are given the right to
propose the holding of a meeting as well as the right to propose
items in the agenda of the meeting, provided that the items are
for legitimate business purposes and in accordance with the law,
jurisprudence and best practices.
Disclosure and Transparency
Vingroup is committed to providing its shareholders and the
public timely and accurate information on the Company and its
businesses. Information is prepared and disclosed in accordance
with the highest quality standards of accounting and financial
and non-financial disclosure. Investor presentation materials as
well as news and financial releases of the Group may be viewed
and downloaded from its website www.vingroup.net.
the participation of more than 40 investment funds and securities firms. Via prior appointment, investors and analysts are also
able to visit project sites in Hanoi, Ho Chi Minh City, Da Nang,
Phu Quoc and Nha Trang to see the developments firsthand.
Investor relations executives and senior management also
participate in a number of third party events in multiple countries to further ensure access for all investors. During 2014,
the Group was represented and gave presentations at several
conferences organized by leading financial institutions and
bulge-bracket investment banks. In addition, the Group also
attended the World Economic Forum in Davos, Switzerland,
and the WEF Annual Meeting of the New Champions 2014
in China.
Vingroup is committed to providing its
shareholders and the public timely and accurate
information on the Company and its businesses on
its official website www.vingroup.net.
Vingroup’s Investor Relations department will continue to
uphold the best practices in the future. We strive to steadily
increase the number of appearances and investor contact
opportunities as well as even more prompt responses to investor and analyst inquiries. The Investor Relations department can
be reached via email at [email protected].
In addition to quarterly conference calls following the release
of financial results, Vingroup also hosts regular briefings and
meetings with investors and analysts to keep them updated on
the Group’s various projects, financial and operational results.
Many of these events feature access to senior management to
answer questions regarding strategy and operational focus. The
third annual Vingroup Tour took place in November 2014 with
050
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
051
Vinpearl Phu Quoc
Five-star resort with the first international-standard
27-hole golf course in Phu Quoc
Tập đoàn Vingroup | Báo cáo thường niên 2014
Tập đoàn Vingroup | Báo cáo thường niên 2014
Today’s foundation is tomorrow’s success.
Management and
GOVERNANCE
056
Report of the Board of Management
060
Report of the Supervisory Committee
061
Report of the Executive Committee
065
Corporate Governance Report
066
Development Strategy
068
Risk Management
070
Human Resource Management
074
Corporate Culture
Management and Governance
Report of the Board of Management
SUCCESSFUL RESIDENTIAL TRANSACTIONS IN HANOI (2012 – 2014)
Unit: number of apartments
4,500
High-end
4,000
Report of the
Board of Management
3,500
Mid-end
3,000
Low-end
2,500
2,000
1,500
1,000
In 2014, Vingroup completed a record number of landmark
projects and ended the year with impressive achievements
across all business segments including property, retail, hospitality and entertainment, healthcare, and education.
The Macro-Economy in 2014
During Vietnam’s 5-year socio-economic development plan
(2011 to 2015), 2014 marked the first year that the nation
achieved nearly all (13 out of 14) of its macroeconomic targets.
This progress provided the foundation for improved growth in
the years to come.
Specifically, GDP grew 5.98% in 2014, the highest growth rate
since 2012. The agriculture, forestry and aquaculture sector
grew 3.49% against 2.64% in 2013; the industrial and construction sector had breakthrough growth of 7.14% compared with
5.43% in 2013; and the service sector increased 5.96% over the
previous year. In 2014, foreign trade turnover rose to USD150
billion in exports, an increase of 13.6%, with imports reaching
USD148 billion, an increase of 12.1% over 2013. Vietnam’s trade
surplus was USD2 billion, the highest since 2012, contributing
to the continued stability of the exchange rate and the liquidity of the foreign exchange market.
The inflow of foreign direct investment (FDI) also contributed to an outstanding year with total registered capital of
USD20.23 billion, exceeding plan by 19%. Vietnam’s real estate
sector attracted FDI of more than USD2.5 billion, accounting
for 12.6% of Vietnam’s total registered capital.
The consumer price index (CPI) increased by 1.84% in 2014
compared to 2013, the lowest increase of the last thirteen
years. The government continues control inflation successfully, stabilizing input costs and commodity prices, stimulating
consumption, and promoting economic growth.
500
GDP GROWTH OF VIETNAM (2010 – 2014)
0
Q1
2012
Along with growth in the economy, 2014 saw the property
market turn a page, encouraging the return of both domestic
056
Vingroup Joint Stock Company | Annual Report 2014
Q3
Q4
Q1
2013
Q2
Q3
Q4
Q1
2014
Q2
Q3
Q4
Source: CBRE
Unit: %
8.00
SUCCESSFUL RESIDENTIAL TRANSACTIONS IN HO CHI MINH CITY (2012 – 2014)
6.78
5.89
6.00
5.03
5.42
5.98
Unit: number of apartments
8,000
7,000
4.00
High-end
6,000
Mid-end
5,000
2.00
Low-end
4,000
3,000
2,000
0.00
2010
2011
2012
2013
2014
1,000
0
Source: General Statistics Office of Vietnam
Q1
2012
Q2
Q3
Q4
Q1
2013
Q2
Q3
Q4
Q1
2014
Q2
Q3
Q4
Source: CBRE
DISBURSED FDI IN VIETNAM (2010 - 2014)
Unit: USD billion
12.5
12.35
12
11.51
11.5
11
11
11
10.46
10.5
10
Recovery in the Property Market
Q2
9.5
2010
2011
2012
2013
2014
Source: Foreign Investment Agency – Ministry of Planning and Investment
and foreign investors. The number of successful real estate
transactions increased, especially in the Southern market.
Ministry of Construction statistics indicate a significant upward
trend in the real estate market. The total number of completed
transactions in Hanoi and Ho Chi Minh City doubled over the
previous year. Real estate mergers and acquisitions also grew
significantly in terms of both volume and transaction value,
marking a strong return of the secondary market. According
to the Ho Chi Minh City Real Estate Association, new investors
have restarted struggling projects. The real estate market
was helped by this trend, since it helped to clear inventories,
improved debt collection and supplied products that met
customers’ needs and financial capabilities. According to real
estate experts, the property market bottomed out in 2014 and
is now on an upward trend. In the overall picture of recovery,
the strongest parts of the property market appear to be the
middle and high-end segments, especially properties in prime
locations with many amenities and from developers with
strong reputations.
Vingroup Operations in 2014
The national economy experienced clear signs of recovery in
2014, and Vingroup enjoyed outstanding growth thanks to the
efforts its management and employees. Vingroup achieved
impressive business results in 2014: consolidated net revenue
reached VND27.7 trillion and gross profit recorded VND10.4 trillion, increases of 51% and 48%, respectively, compared to 2013.
Profit after tax from core businesses contributed VND3.7 trillion,
an increase of 27% over the previous year.
Residential property sector
Vingroup handed over to buyers thousands of apartments
with comprehensive facilities. The Company achieved the
highest sales of properties in its history, VND21.8 trillion or a
49% increase over 2013, due largely to handing over units at
Vinhomes Times City, Vinhomes Royal City, and final payments
for Vinhomes Riverside. The Group is now beginning the pre-sale
of two new projects, Vinhomes Central Park in Ho Chi Minh City
Overall, property markets benefited from macro-economic and Vinhomes Nguyen Chi Thanh in Hanoi, while simultaneously
trends, government policy support, improvements in product developing Phase 2 of Vinhomes Times City – Park Hill.
quality and more effective promotion programs.
Vingroup Joint Stock Company | Annual Report 2014
057
Management and Governance
Report of the Board of Management
Shopping malls
tens of thousands of patients and thousands of surgeries. As
part of the expansion of its international-standard healthcare
Vincom expanded its chain to sites outside Hanoi and Ho Chi system, Vingroup started construction of Vinmec Phu Quoc
Minh City with the grand opening of Vincom Ha Long in the Hospital and announced plans to develop ten hospitals and a
province of Quang Ninh. This expansion raised the total number medical university within the next five years.
of shopping malls to six and increased Vincom’s total retail
space to 513,690sqm. The occupancy rate for all of Vincom’s Education Sector
shopping malls remained high, due to superior amenities such
as shopping areas, food courts, cinemas and amusement parks. During 2014, Vinschool opened its K-12 school and increased
The high occupancy rate strengthened Vingroup’s reputation in the total number of students in its schools to 6,300. In only two
the retail market.
years, Vinschool already has achieved remarkable progress and
strengthened its reputation with an educational philosophy
Vincom Retail was also active in preparing for further expansion that stresses comprehensive skills development for future
in the retail market, with plans to grow the Vincom mall chain generations.
nationwide. Construction has begun on six new shopping malls:
Vincom Le Thanh Tong – Hai Phong, Vincom Nguyen Chi Thanh Management System
– Hanoi, Vincom Xuan Khanh – Can Tho, Vincom Ngo Quyen – Da
Nang, Vincom Hung Vuong – Hue, Vincom Thu Duc, and Vincom To achieve its results in 2014, Vingroup emphasized its inherent
Mega Mall Thao Dien – Ho Chi Minh City.
strengths, especially its management system framework of
processes and procedures to ensure the company can fulfill all
Retail sector
tasks required to achieve its objectives. Perhaps 2014 should
be remembered as the year of “Vingroup Transformation”
Vingroup’s retail market expansion also included the launch as the company successfully decentralized decision making
of the VinMart supermarket and VinMart+ convenience store while maintaining proper controls throughout. After twelve
chains. At the end of 2014, VinMart and VinMart+ had a total consecutive months, the new “Bottom-line Focus” has spread
of 23 supermarkets and convenience stores in major cities and throughout the Group to all of the business units, which have
provinces across the country. As part of its expansion strategy, grown in both scale and management sophistication.
Vingroup also rolled out a series of new retail store brands such
as VinFashion (fast fashion for Vietnamese), VinDS (chain of All of the Group’s functional departments and divisions have
specialty retail stores), and VinPro (electronics and appliances). gained a full understanding of their responsibility for controlling
Vingroup is also preparing to launch its e-commerce brand, profit and loss, ensuring consistency and efficiency throughout
Adayroi, together with other consumer retail brands to grab the the entire system. Vingroup is implementing a governance
system that is in line with international practices and will enable
dominant market share.
the Company to effectively manage its growth and profitability
as its scale and complexity continue to increase.
Hospitality and Entertainment Sector
Vingroup opened a new resort complex, Vinpearl Resort Phu Challenges and Opportunities in 2015
Quoc, in 2014 after just over ten months of construction. This
opening more than doubled the total number of hotel rooms in According to World Bank (WB), 2014 will be the platform for
Vinpearl Resorts to 1,600 at the end of 2014.
economic growth in 2015 for developing countries such as
Vietnam. Due to the low price of oil and global interest rates,
Vinpearl welcomed 150,242 guests, an increase of 20% over global economic growth is forecasted to reach 3% in 2015 and
2013. Foreign tourists accounted for 56% of the total. Revenue1 3.3% in 2016.
totaled VND1.35 trillion, up 29% over 2013. Vinpearl launched
a new brand, Vinpearl Premium, offering premium resorts and The stabilizing global economy will support Vietnam’s economy
villas, to differentiate its highest-end hotels and vacation prop- and maintain current growth momentum in 2015. The World
erties. The business unit is now accelerating construction of its Bank forecasts Vietnam GDP growth to be 5.6 % and 5.8% in 2015
and 2016, respectively.
projects in Nha Trang, Da Nang and Phu Quoc.
Vinpearl Land (theme parks) also had a successful year with
total revenue1 of VND905 billion, a 59% of increase over 2013.
Vinpearl Land opened two new properties in 2014, Vinpearl
Land Phu Quoc and Vinpearl Land Ha Long.
Healthcare Services
In 2015, the Vietnamese government will concentrate on enhancing macroeconomic stability, resolving difficulties in production,
restructuring the economy, transforming the national economic
growth model, improving efficiency and competitiveness, and
striving for higher growth. In addition, the Government also aims
to accelerate the restructuring of State-owned enterprises and
the stock market as previously planned. These changes should
Vinmec achieved revenue1 of VND670 billion, an increase of
133% over 2013. Vinmec recorded growth both in the number (1) Gross segment revenue includes contributions from Vingroup
of patients served and the number of surgeries performed, with subsidiaries prior to intercompany eliminations.
058
Vingroup Joint Stock Company | Annual Report 2014
attract diversified domestic and international investment, while Vincom Retail will continue to launch new shopping malls,
supporting the equitization of State-owned enterprises and increasing the number of shopping malls to 30 throughout the
resolving bad debts.
country. Vingroup will start construction of five new Vinpearl
Land recreation facilities and four Vinmec hospitals in Quang
During 2015, the property market is expected to receive Ninh, Nha Trang, Phu Quoc and Ho Chi Minh City.
wide-ranging support from policies, laws, and regulations recently approved by the National Assembly and the Government. In the retail sector, the e-commerce brand Adayroi will be
Among these changes, the Amended Housing Law and the launched and is expected to be a leader in the e-commerce
Amended Real Estate Business Law are the two most anticipated area. Other business brands in the retail segment (VinMart,
laws, which take effect on 1 July 2015. These changes will ease VinPro, VinDS, and VinFashion) will also accelerate the pace of
conditions for foreigners to purchase and own property in store openings to increase their coverage and take the lead in
Vietnam, further attracting investment into the property market. their respective segments.
In addition, Circular 36/2014 issued by the State Bank of Vietnam,
which took effect on 2 January 2015, reduces the risk factor for In 2015, Vingroup will enter the agriculture business with
real estate business loans from 250% to 150% and allows greater VinEco. Rising income and increased awareness have created
use of short-term capital for long-term loans by doubling the rate great demand for a source of trusted quality food that the
from 30% to 60%, thus increasing the Bank’s ability to lend. These Group is in a unique position to offer.
changes are expected to be positive factors for the property
market.
Management System
According to BMI research, Vietnam’s population now exceeds
90 million, 35% of which is in the youngest age groups. These
younger groups demonstrate the highest demand for housing,
hospitality and retail. Since the average person requires 15sqm
of living area, demand for living space will be approximately 500
million sqm. The total of residential space in Vietnam is currently
about 100 million sqm. Given such favorable conditions as stable
politics, a recovering economy, and rich natural resources, there
should be strong growth in demand for the property and hospitality sectors in the years ahead.
During 2015, Vingroup will implement a major project to
further improve its management systems. The main objective
will be to incorporate international best practices while retaining Vingroup’s culture and core values. Further decentralization, clearly defined delegation of authority and empowered
compliance and risk departments aim to improve operational
efficiency and increase overall productivity.
Fund raising
Vingroup will continue to consider and mobilize attractive
According to Savills Vietnam, the nation’s property market is now sources of capital in both domestic and international markets.
at the bottom of its cycle. It is expected that in 2015, increased
foreign direct investment in real estate will help to clear unsold Human resource and corporate culture
inventory and restart some stalled projects.
The Group will continue to promote training in all departments
to enhance staff performance, introduce new policies to attract
Blueprint for 2015
and retain talent and emphasize discipline and individual
The Group believes that 2015 will be a “Breakthrough Year” on responsibility to reinforce the corporate culture of “Vingroup
every front. Vingroup’s principal mission is to concentrate on – Where the Best Gather and Grow.”
achieving growth in all business sectors. The Group will also
focus on developing human resources, strengthening governance, with the aim of maintaining its position as one of the
leading private enterprises in Vietnam.
Recurring revenue
The Group continues to maintain steady revenue growth from
Vinhomes residential projects such as Vinhomes Times City,
Vinhomes Royal City, the Vincom shopping malls, Vinpearl
hotels and resorts, Vinpearl Land entertainment services,
Vinschool education system, Vinmec healthcare and medical
service as well as the other retail brands of the Group.
In 2015, Vingroup will start new Vinhomes projects in Hanoi,
Ho Chi Minh City, Bac Ninh, Ha Tinh, and Can Tho. The Group
will complete three Vinpearl Premium hospitality complexes in
Nha Trang and Phu Quoc and begin Vinpearl Resort Ha Long,
the Group’s first resort in the North.
Vingroup Joint Stock Company | Annual Report 2014
059
Management and Governance
Report of the Supervisory Committee/ Report of the Executive Committee
Report of the
Supervisory Committee
Report of the
Executive Committee
2014 Activities
2015 Plan of Action
Business performance
Members of the Supervisory Committee (SC) are elected by the
Group’s Annual General Meeting (AGM). The SC consists of five
members and has not changed since 2013. During 2014, the SC
performed the following duties:
The SC has established the programs outlined below to achieve
the goals set for 2015, evolve the Group’s development strategy to adapt to business conditions, raise economic efficiency,
improve competitive capabilities, and maintain sustainable
development:
For 2014, consolidated net revenue reached VND27.7 trillion,
and gross profit reached VND10.4 trillion, increases of 51%
and 48%, respectively, over 2013. Profit after tax from core
businesses reached VND3.7 trillion, a 27% increase over the
previous year. All of the Group’s core businesses contributed
significantly to the strong revenue growth.
• Supervised implementation of 2013 AGM’s resolutions
covering dividends, increasing charter capital, and
issuing resolutions
• Monitor the suitability and legality of management and
• Supervised the execution of business plans and progress
• Examine the implementation of the AGM and BOM’s
toward goals in order to achieve revenue targets
• Supervised financial investments and advising the BOM
on ways to lower risk and raise returns on investments
operation of the Group’s business activities
resolutions
• Review quarterly and annual financial statements for
• Advise the BOM in order to increase capital efficiency,
statements in accordance with Vietnamese Accounting
Standards and current fiscal policies in Vietnam
improve asset utilization, and minimize the risks in
managing the Group’s business activities
• Ensured the Group’s compliance with the laws and
• Implement improved inspection programs for certain
• Reviewed and evaluated related-party transactions
The SC has not reported any unusual changes in business,
investment, or finance during 2014. The SC did not perform
any unscheduled inspections during 2014, due to the stability
and transparency of activities.
Net revenue from hospitality, including Vinpearl resorts and
Vinpearl Land amusement parks, reached VND2.11 trillion, up
32% over 2013.
Net revenue from other business segments, including healthcare and education, reached VND1.71 trillion.
Net revenue from leasing activities reached VND2.13 trillion,
accuracy
• Ensured accuracy of the quarterly and annual financial
regulations on information disclosure
Net revenue from sale of properties reached VND21.8 trillion,
an increase of 49% over 2013, primarily from projects launched
in prior years, Vinhomes Royal City, Vinhomes Times City, and
Vinhomes Riverside.
up 18% from 2013. The increase came from continued revenue
growth in stabilized shopping centers, as well as contributions
from a full year of the Vincom Mega Malls at Royal City and
Times City. Vincom Ha Long also began operation during the
fourth quarter of 2014.
new sectors and based on requests from shareholders
• Coordinate activities between the SC, BOM, Executive
Committee and shareholders to eliminate overlap and
remove duplications of effort
Evaluation of the Group’s financial condition
Indicator
2014
2013
2012
Long-term assets/ Total assets (%)
61.46
47.42
48.42
Short-term assets/ Total assets (%)
38.54
52.58
51.58
Liabilities/ Total Owner’s Equity (%)
69.85
75.43
80.52
(Total Debt)/ Total Liabilities and
owner’s equity(%)
36.84
36.14
39.10
Total Owner’s Equity/ Total Liabilities and
owner’s equity (%)
30.15
24.57
19.48
Current Ratio (times)
0.74
0.78
0.43
Quick Ratio (times)
1.42
1.49
1.12
4.17
9.44
3.31
Profit after tax/ Net Revenue (%)
13.62
38.90
23.36
Profit from core business/ Net Revenue (%)
13.31
15.76
19.63
Profit after tax/ Total Owner’s Equity (%)
13.84
38.40
16.98
Profit from core business/ Total Owner’s Equity (%)
13.52
15.55
14.27
Asset Ratios
Capital structure
Liquidity Ratios
Profitability Ratios
Profit after tax/ Total assets (%)
060
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
061
Management and Governance
Report of the Executive Committee
Net revenue by sector for 2014
Net revenue
NET REVENUE BY SECTOR FOR 2014
Amount
(VND billion)
Weight
(%)
Sale of properties
21,772
78.53
Leasing activities
2,129
7.68
Amusement park and related
services
2,114
7.63
Hospital and related services
657
2.37%
7.63%
1.52%
0.83% 1.44%
Performance of current business segments
7.68%
Sale of Residential Properties
2.37
78.53%
Education and related services
230
0.83
Retail activities
421
1.52
Other services
401
1.44
27,724
100
Total
Gross profit by sector for 2014
Gross Profit
Sale of properties
Leasing activities
Sale of properties
Hospital and
related services
Leasing activities
Education and
related services
Amusement park
and related services
Retail activities
Other services
GROSS PROFIT BY SECTOR FOR 2014
Amount
(VND billion)
Weight
(%)
8,052
77.13
1,239
11.87
Hotel, amusement park and
related services
839
8.04
Hospital and related services
166
1.59
Education and related services
86
0.83
Retail activities
(7)
-0.07
1.59%
8.04%
0.83%
-0.07%
0.61%
11.87%
77.13%
Other services
Total
062
Sale of properties
Hospital and
related services
64
0.61
Leasing activities
Education and
related services
10,439
100
Hotel, amusement
park and related
services
Retail activities
Vingroup Joint Stock Company | Annual Report 2014
doubling the 2013 number. The Group’s first resort project
in the North, Vinpearl Resort Ha Long, has already begun
construction and is expected to open in 2015.
For the year, revenue from sale of residential properties was Education, healthcare
up 49% in comparison with 2013 and reached VND21.8 trillion,
Vinschool K-12 school at Times City opened for its first school
accounting for 78.5% of total net revenue.
year, increasing the total number of K-12 students to 6,300. In
Vinhomes launched the presale of two new key projects, addition, Vinmec achieved strong revenue growth which was
Vinhomes Central Park in Ho Chi Minh City and Vinhomes 133% higher than 2013.
Nguyen Chi Thanh – Hanoi, while simultaneously developing
Vinhomes Times City – Park Hill. With its prime location in the New businesses and projects
heart of the Capital, Vinhomes Nguyen Chi Thanh – Hanoi
presold nearly 70% after only two sales events. Vinhomes Supermarkets and convenience stores
Central Park, Vingroup’s first mega-scale mixed-use project in
Ho Chi Minh City, has quickly become center of attention in In 2014, Vingroup entered the retail market with a chain of 23
the real estate market with its environmentally friendly design VinMart supermarkets and VinMart+ convenient stores nationand The Landmark81. This tower will set a new record for the wide, including cities such as Hanoi, Ha Tinh, and Hai Duong.
tallest in Vietnam.
The chain is expected to continue to expand in 2015.
Design, accessibility, affordable luxury, and comprehensive
amenities are known trademarks of Vingroup projects. Each
project offers customers various facilities such as all-season
pools, lounges, tennis, badminton, and basketball courts, or
a garden for practicing tai chi. By combining prime location,
convenience, well-crafted amenities and excellent services,
Vingroup aims to provide customers with five-star living
experience. In addition, attractive value bundles and good
support packages make ownership a very pleasant experience
for customers.
Fashion
VinFashion introduced its EMIGO brand to the market and
opened six stores in 2014.
Financial summary
Total Assets
As at 31 December 2014, Vingroup’s total assets were VND90.5
trillion, representing year on year growth of VND14.7 trillion.
Leasing activities
The increase is largely attributable to a growth in fixed assets
which was up by 90% compare to 2013. Other long-terms
In 2014, net revenue from leasing activities reached VND2.13 assets increased 5.4 times due to deposit of potential projects
trillion, accounting for approximately 8% of total net revenue. under development.
Vincom Retail currently operates shopping centers with nearly
513,690sqm or 43% of the available space of 1,190,000sqm Total Debt
nationwide. In Hanoi, Vincom Retail has 65% market share with
422,500sqm of mall space. The Group has a number of pipeline As at 31 December 2014, Vingroup’s total liabilities to bank
projects that will significantly increase its current 10% Ho Chi and other credit institutions were VND33.3 trillion, of which
Minh market share in 2015 and beyond.
short-term and long-term loans and borrowings were
VND1.32 trillion and VND32.01 trillion, respectively. Total loans
Hospitality and entertainment
and borrowings increased by VND5.9 trillion compared to end
of 2013.
Nationwide, Vinpearl and Vinpearl Land are first choices for
both foreign and domestic customers, helping Vinpearl to Tax Payments
achieve a high occupancy rate. At the end of 2014, Vingroup
opened Vinpearl Phu Quoc (Phase 1), increasing the total Through 31 December 2014, the Group paid total tax obliganumber of 2014 Vinpearl hotel rooms to more than 1,600, tions of VND4.2 trillion to the State Budget.
Other services
Vingroup Joint Stock Company | Annual Report 2014
063
Management and Governance
Corporate Governance Report
Corporate
Governance Report
Changes in shareholders’ equity and
dividend distributions
During the year, bondholders converted USD134.8 million
face value of bonds into 72.2 million ordinary shares of the
Company. Consequently, share capital of the Company
increased by VND722.2 billion (equivalent to 72.2 million
ordinary shares at par value of VND10,000/share) and share
premium increased by VND2.10 trillion.
On 10 April 2014, the Group completed the re-issuance of 21.6
million treasury shares. Consequently, the value of treasury
shares decreased by VND1.38 trillion (21.6 million shares worth
VND63,736/share), increasing share premium by VND29.9
billion, after deduction of re-issuance costs and related taxes
incurred.
On 24 July 2014, the shareholders of the Company passed
Resolution No. 02/2014/NQ-DHDCDVINGROUP authorizing
cash and stock dividends to its existing shareholders from
retained earnings as at 31 December 2013. Specifically:
• Payment of cash dividends of VND2,149 per share
• Payment of stock dividends to existing shareholders at
the ratio of 1,000:487
As at 31 December 2014, the Group’s share Capital was
VND14.5 trillion.
Action plan for 2015
• Continue to expand the Vinhomes brand as the largest
and most trusted property brand in Vietnam
• Complete sales and handover of remaining units in
Vinhomes Royal City and Times City Phase 1
• Progress on the development schedule for recently
launched projects: Vinhomes Central Park, Vinhomes
Nguyen Chi Thanh – Hanoi and Phase 2 of Vinhomes
Times City – Park Hill. Launch additional new projects to
add to the future pipeline
• On-schedule completion of Vinpearl projects’ expansion:
Vinpearl Premium Nha Trang Bay, Vinpearl Premium Golf
Land, Vinpearl Resort Ha Long, and Vinpearl Premium
Phu Quoc
064
Vingroup Joint Stock Company | Annual Report 2014
During 2014, the Supervisory Committee (SC) carried out the
following duties:
• Evaluating the management and business operations of
• Maintain the leadership position in shopping centers by
reaching a total of 30 malls by the end of the year, with a
true nationwide footprint
• Build on the existing base of stores towards a goal of 100
VinMart Supermarkets and 1,000 VinMart+ convenient
stores throughout Vietnam within 3 years and become
the leader in the market
• Expand complementary consumer businesses:
VinFashion, Adayroi, VinPro, VinDS, and VinEco to continue to enhance the long-term recurring revenue and profit
profile of the Group
• Realize synergies between different business units
through leveraging the strength of the Vingroup brands
by connecting them through business processes and
cross-pollination of the best management and most
innovative ideas
• Continue to maintain the high performance of regular
business operations. Enhance management information
systems by building on the successful implementation
of a world-class ERP system to give senior management
clear, timely updates on the health of each business unit
and improve operational efficiency
• Attract and retain talented managers and employees to
ensure uninterrupted future growth
In 2015, Vingroup will focus on the following goals:
Supervisory Committee Activities
• Maintain market leadership position and further leverage
advantages of the Group to keep pace with regional and
international standards
• Affirm the Group’s sustainable business development
strategy in parallel with positive contributions to the
community and social activities
• Amplify and implement effective domestic and international fund raising plans to finance the Group’s projects
Board of Management Performance
During 2014, the Board of Management (BOM) held meetings
with 100% of members in attendance and issued 93 resolutions to ratify important policies and amendments regarding
the Group’s business activities. These actions covered the
following matters:
• Strengthening and reorganizing the structure and operations of the Group and its subsidiaries, and assigning
management staff at the Group and P&L levels
• Approving the issuance of corporate bonds
• Approving the dividend payment for shareholders by
the BOM and the Executive Committee
• Reviewing the quarterly and annual financial statements
of the Group and its subsidiaries and the audit report
and the list of audited adjustment entries made by the
Group’s independent auditors
• Reviewing the business performance report of the BOM
to submit to the AGM
• Holding a monthly review and appraisal of any of the
Group’s major transactions with related parties
After conducting the reviews for 2014, the SC did not find any
activities that would lead to unscheduled inspections.
Coordinating Activities of the Board of
Management, Supervisory Committee, and
• Approving the increase of share capital related to the Executive Committee
cash and shares from the retained earnings of 2013
issuance of more shares to pay stock dividends and the
conversion of international bonds into shares
The BOM organizes regular meetings to determine effective
policies, assess risk management and ensure focused management to promptly identify problems and improve the efficienBoard of Management Supervision of
cy of the Group’s operations. Any decision or announcement
Executive Committee Activities
of the BOM is disseminated to managers of all departments.
The BOM’s supervision of the activities of the Executive The Executive Committee oversees operations to ensure they
Committee is required to comply with provisions set forth in follow the policies and decisions of the BOM.
the charter of the Vingroup Joint Stock Company (“Vingroup”),
corporate governance code, internal management rules and The SC coordinates closely with the BOM and the Executive
Committee. The SC tracks resolutions from the BOM and the
applicable statutory laws. Supervision covers the following:
Executive Committee as well as internal control policies, ensuring that resolutions are implemented in accordance with the
• Monitoring execution of all Vingroup’s projects
law and the internal governance code of the Group.
• Directing the 2014 Annual General Meeting of
Shareholders (AGM) on 18 April 2014
Changes to the Membership of the BOM, SC
• Supervising the implementation of resolutions issued
and Executive Committee
by the BOM and the AGM, and reviewing the Executive
Committee management of all business activities.
• Ms. Le Thi Thu Thuy resigned as CEO of Vingroup on 11
• Supervising and directing the timely and transparent
• Ms. Duong Thi Mai Hoa was appointed CEO on 11
disclosure of information per current regulations.
• Supervising the Executive Committee’s management
activities to improve business efficiency and to achieve
all 2014 targets.
During 2014, remuneration paid to members of the
Executive Committee and the Board of Management totaled
VND67,396,164,685.
February 2014.
February 2014.
• Ms. Le Thi Thu Thuy resigned as Vice Chairwoman of
Vingroup on 23 May 2014.
• Ms. Nguyen Thi Diu was appointed Deputy CEO on 24
July 2014.
Vingroup Joint Stock Company | Annual Report 2014
065
Management and Governance
Development
Strategy
Principles of
Management
Blueprint
for 2015
Industry
strategy
Product
strategy
Capital
strategy
Roles of the Group
• Utilize brand advantages
• Levergae the advantage
• Generate predictable cash
Orientation
• Strategy Orientation
• Development Orientation
and reputation in existing
business sectors
• Build solid foundation in
Property, Hospitality and
Entertainment, Retail,
Healthcare, Education,
and Agriculture to support
long-term development
• Develop and expand
high-potential businesses
using decades-long time
horizon
• Take advantage of links
among businesses to
create an ecosystem of
complementary products with comprehensive
value to customers
of skill and experience
to acquire prime locations for development of
housing and hospitality
projects.
• Continually seek novel
products and methods
for development of highend mixed-use projects
that combine residential,
retail, entertainment, and
outdoor components to
satisfy customer living
requirements and offer
exceptional value
• Develop amenity-rich
resorts to meet growing
demand of medium
and high-end market
segments
• Increase the products’
value to consumers
through a combination of
ecosystem links, complementary product brands,
and quality services to
realize the Group’s vission
“to create a better life for
the Vietnamese people.”
flows by emphasizing
businesses with recurring
revenue
Expand business opportunities and grow
revenue through regular
cycle of new product
introductions
Studied development
plans:
Develop residential properties for sale
Develop and operate properties with a stable source
of recurring revenues.
Schedule sales of properties to match capital
funding cycles
Utilize pre-sale proceeds
and advances from
customers to reduce
capital needs.
Balance alternative forms
of fund raising to manage
cost of capital
Support
• Optimize financial and
managerial resources
• Develop additional
brands
• Take advantage of specialized skills
Control and Evaluation
• Control business practices and compliance
with good governance
principles
• Analyze business efficiency and results
• Evaluate progress in
building Group’s culture
and core values
Roles of Business Units
(P&Ls)
• Promote
leadership
roles for all levels of
management
• Instill responsibility for
business efficiency and
results, customer service,
reputation and brand
• Build Group’s culture and
core values
066
2015 Development Orientation
Vingroup Joint Stock Company | Annual Report 2014
•
•
•
•
•
•
•
Increase the products’value to consumers
through a combination of ecosystem links,
complementary product brands, and quality
services to realize the group’s mission “to create a
better life for the vietnamese people.”
Vingroup Joint Stock Company | Annual Report 2014
067
Management and Governance
Risk Management
Using the established process, major risks of the Group are Material Price Risks
effectively identified and managed. Some of the Group’s
specific risks are described in the following sections.
The fluctuation in the cost of construction materials can significantly impact the project costs and the Group’s profit.
Risk Management
Liquidity Risks of the Real Estate Market
Liquidity risks inherent in the real estate market arise from the
fluctuation of the economy, changes in government policies
and supply-demand imbalances in the markets for the Group’s
properties. In 2014, the Group established a Real Estate
Strategy Department. This department prepares comprehensive research reports covering all market segments. These
reports have provided useful market information and attempt
to predict future trends. Each Group project is carefully evaluated based on a feasibility study and SWOT analysis in order
to develop pricing options and to plan alternative phases for
the project. This is Vingroup’s own unique approach to the real
estate market.
Risk
measurement
Risk
identification
Risk Management
Process
Risk
resolution
Transformation
of risk into
opportunity
During 2014 the Group undertook a major upgrade of its risk
management processes. Risks are meticulously managed from
the Group level down to the level of individual P&Ls in order
to maximize opportunities, minimize risks, and optimize the
benefit to business partners, investors, and employees of the
Group in particular and Vietnamese society at large.
One year after its inception, the Risk Management Department
of the Group has established a risk management program in
accordance with standards.
• Risk identification: Given the rapid growth of the Group,
risks are inherent in all activities. The task of risk identification is to recognize even the smallest potential risk.
• Risk measurement: Risk measurement is the task of effectively managing risks and quickly resolving problems, if
any.
• Risk resolution: A highly skilled and professional team is
assigned to quickly resolve the risk and minimize possible
consequences.
• Transformation of risk into opportunity: Vingroup goes
beyond risk management by transforming certain risks
into an opportunity to increase value and efficiency.
068
Vingroup Joint Stock Company | Annual Report 2014
The Group manages its material price risk by closely monitoring the purchasing and inventory management process. In
addition, the Group has conducted analyses of price trends
and has maintained close links with a network of reputable
suppliers to minimize the consequences of unfavorable
changes in materials markets, further ensuring stable inputs
into its projects.
Key Manager Risks
The Group’s rapid growth has increased demand for key
and experienced managers. Vingroup constantly focuses on
human resource management and undertakes improvements
in recruitment, training, salary, bonus, and other incentives to
maintain a stable pool of management talent. During 2014,
Macro-economic Risks
Vingroup established a Training and Talent Development
The Group has employed economic studies and regression Department and launched a systematic program to develop
models to study the relationships among macroeconomic talent by training key staff members who demonstrate the
factors such as GDP, the consumer price index, savings ratio, potential to assume increased responsibility.
investment ratio, and unemployment rate. Through such
studies, forecasts of macroeconomic change in the short term, Operational Risks
medium term and long term are made, and used to build financial management tools for use throughout the Group.
Operational risks are potential adverse effects on the Group
due to systems, processes, human factors, and external events.
In 2014, Vingroup successfully implemented tools to collect
Interest Rate and Credit Risks
and report data loss and established a system of operational
Risks related to interest rates arise mostly from floating-rate regulations, policies and processes throughout the Group.
long-term financing. The Group manages interest rate risks Using these tools, Vingroup has focused on training and
through a system of qualitative models (analysis of domestic improving the quality of human resources to minimize operand international currency markets) and quantitative models ational risks due to human factors, as well as implementing
(regression analysis based on historical variables). Depending operational risk assessment. These steps have contributed to
on the sensitivity analysis of each borrowing, with the volatility an improved risk management culture in the Group.
of interest rates, the Group will adjust its capital structure to
maintain a reasonable ratio between fixed-rate and floating-rate debt.
Credit risk arises when partners fall into insolvency. The Group
manages credit risk by analyzing the risk profile of each
partner, thereby creating different business policies for different partner categories.
Exchange Rate Risks
The exchange rate risk is the risk that the future value of cash
flows is reduced due to unfavorable changes of the exchange
rate. Understanding the importance of foreign exchange
risk management, the Group performs analysis and makes
forecasts of exchange rate volatility based on domestic and
international macro models in order to prepare appropriate
action plans and to forecast foreign currency policies.
Vingroup Joint Stock Company | Annual Report 2014
069
Management and Governance
Human Resource Management
2014 EMPLOYEE DISTRIBUTION BY EDUCATION
Human Resource
Management
2.3%
Salary and Insurance
Human Resources
Number of Employees and Average Income
Number of Employees
Average Income
VND million
per month
2010
2011
2012
2013
2014
Growth
936
2,150
5,562
8,731
17,312
98%
8.5
9.1
7.8
9.1
10.0
10%
Vingroup salaries are higher than the average for other businesses in the real estate sector. In 2014, the Company raised
salaries based on results and contributions to the Group. The
Company has a very competitive salary policy for outstanding
staff with extensive experience in their fields. This policy helps
to retain current employees and to attract new talent over the
long-term.
Vingroup’s work schedule
Recruitment
To reinforce the idea, “Vingroup – Where the Best Gather and
Grow,” the Group has recruited a skilled, progressive, highly
capable team with tremendous ability in numerous fields.
Vingroup aims to attract highly competent, qualified candidates who are interested in a dynamic work environment that
is focused on speed, creativity and efficiency. At Vingroup,
every individual can bring his or her full creativity and experAll employees are entitled to public holidays, vacation, and tise to bear.
paid personal days as stipulated by the National Labor Law.
Every job has specific selection criteria, but all workers share
the same basic requirements: appropriate qualifications, desire
Work environment
for career advancement, a strong sense of responsibility, and
Vingroup is committed to creating a professional work self-discipline. Managers must be committed to the Group’s
environment so that employees can realize their potential. core values, be willing to acquire new skills, have a creative
White-collar employees are provided comfortable, modern, spirit, and possess solid teamwork, management and leadairy offices and regular health checks. Blue-collar workers are ership skills. The requirements for senior positions are more
supplied with uniforms and all safety and sanitation equip- stringent, including relevant work experience, good judgment,
ment needed for their jobs. The Group strictly adheres to all flexibility, and decisiveness as well as excellent analytical and
problem-solving skills.
labor safety regulations.
Vingroup’s work schedule is eight hours per day with 5.5
days per week required of white-collar and six days per week
required of blue-collar employees. In the case of tight deadlines, the Company may require employees to work overtime.
Vingroup offers overtime compensation and upholds the
lawful rights of employees.
Labor Regulations
The Group and its subsidiaries keep abreast of labor regulations in accordance with the law. The Group’s labor standards
have been registered and approved by the Hanoi Department
of Labor – Invalids and Social Affairs.
Remuneration, bonuses and benefit policies
The Group has designed compensation and reward policies
commensurate with workers’ positions, skills and qualifications
that accurately assess their competence and performance and
rewards them appropriately. Vingroup motivates employees
to do their best work and improve productivity, quality and
Allowances include: mobile phone service, meals, gasoline, efficiency.
and employee shuttle buses to and from work.
070
Vingroup Joint Stock Company | Annual Report 2014
37%
Bachelor’s Degree
Below
Bachelor ‘s Degree
60.7%
Social insurance, health insurance and unemployment insurance are provided in accordance with the law, and the Group
also purchases additional life insurance and personal accident
coverage for all employees.
Bonus policies
Working Conditions
Ph.D. or
Master’s Degree
2014 EMPLOYEE DISTRIBUTION BY AGE
The Group has bonus policies to recognize and reward staff
achievements and contributions to departments and groups.
The details of bonus policies are circulated to all managers and
employees.
Types of Commendations
Extraordinary achievement awards, commendations and
rewards given to staff members and teams who make significant contributions to the successful completion of projects and
campaigns, “Good People, Good Deeds Awards,” and periodic
commendations and rewards.
4%
12.3%
Under 25
35.8%
From 25 to 35
From 35 to 45
Over 45
47.9%
Forms of Commendations
Certificates at P&L and Group levels, cash rewards, travel
rewards (domestic or foreign), promotion, and salary increase.
Benefits
2014 EMPLOYEE DISTRIBUTION BY GENDER
Benefit policies have been well developed and updated regularly by the Group’s management to maintain a high level of
benefits for employees.
Vingroup has built a multifunction sports complex where
employees can exercise regularly.
The Group has also established a “Staff Assistance Fund”
to assist employees and their family members if they face
extreme hardship. Additionally, employees are entitled to preferential treatment when using the Group’s services such as the
Vinpearl Resort, Vinpearl Luxury as well as medical services at
Vinmec International Hospital and education for their children
at Vinschool.
Male
46.7%
53.3%
Female
Vingroup Joint Stock Company | Annual Report 2014
071
Management and Governance
Staff Training
Union
Vingroup has training programs for all Group employees. These
programs include orientation programs for new employees, skills
training for staff members and management training programs for
supervisors.
Vingroup has established a Trade Union and a Communist
Party cell (founded in 2014) to improve communications, solidarity, and motivation, and to uphold the Group’s culture and
prestige. The Group’s Party cell was evaluated as an outstanding unit, and its Trade Union was recognized as a leading unit
The mandatory training program for new employees includes: of Long Bien District and Hanoi.
Orientation on corporate culture, rules, and regulations;
General knowledge of the group’s products and services; Vingroup has an Activities Committee to cultivate teamwork
Training program prescribed by the State; Training on standard and fitness among the Group’s employees. The Activities
work processes by sector; Skills training that is unique to each Committee works with employees to plan sports events such
business segment.
as football, tennis, badminton, Game show, Monthly and
Quarterly Festivals, Team Building, the Vingroup Marathon,
Vingroup also has a soft-skills training program which and many other events. Vingroup believes that its support of
covers time management and planning, positive thinking, tele- these events is helpful to strengthening its corporate culture.
phone communications, motivated communication, conscientious services, quality control, mentoring, and complaint In addition to internal activities, the Group also encourages
resolution.
employees to participate in charity activities. Employees
together participate in volunteer activities, collection drives
The management training program emphasizes subordinate for food aid, warm clothes and books to give to orphans and
development, communication skills, critical thinking, and the poor in remote areas throughout the country.
preparation for leadership. In each business segment, there is a
management training program for senior managers. Mid-level
managers participate in the Crestcom training program. The
management training program for potential managers will
focus on managers who are chosen to be the key management
resources.
In addition to general professional development and skills
training programs described above, several specific campaigns
were implemented during 2014. These include: 12H programs,
known as “Transform to Succeed,” Momentum Transfer program
and the Core Values program, the “60 Training Days” Campaign,
which has been implemented across all business units, the
“Work Culture” training program for all employees. Business
units implement various specialized programs such as “Initiative
Star” at Vincom Construction, “90-Day Transformation,” “First
Impressions” Campaign to prepare for grand opening events
at Vinpearl Resort Phu Quoc, Vincom Ha Long, and other new
facilities, “Friendly Impressions” Campaigns and “5 Things To
Do And Not Do,” “Smiling” Campaign at the hotels and other
facilities, “The Leader in Me” Program by Franklin Covey for 367
teachers, staff and parents of Vinschool students, staff training
for former Ocean Mart staff to facilitate transferring the brand
to VinMart, and the “Skill Contest” which identifies individual
employees’ skills and matches them with appropriate training
programs.
072
Vingroup Joint Stock Company | Annual Report 2014
073
Management and Governance
Corporate Culture
Corporate Culture
On Society
• Put country and national pride first.
• Respect the rule of law.
Spanning more than a decade of development and growth,
Vingroup team members have combined their skills, experience, and values to form a unique corporate culture that is the
foundation for the Group’s success today.
Vingroup brings together the most capable Vietnamese and
international professionals. Members of the Vingroup team
are chosen for their intellect, discipline, talent, work ethic, and
determination to contribute to the development of Vietnam.
On Job Duties and Responsibilities
• Believe in the Vingroup system, and dedicate all
efforts to achieving the goals of the nation and the
Group.
• Demonstrate optimism and enthusiasm for one’s
products and services.
• Help those less fortunate.
• Demonstrate a spirit of optimism.
• Conserve natural resources and protect
the environment.
assigned work.
Every Vingroup employee must demonstrate initiative, eagerness to learn, commitment to self-improvement and passion
for the Group’s culture as expressed in its six core values.
Vingroup’s working culture includes speed, efficiency and
discipline. This working culture contributes to the strength that
helps Vingroup excel in every sector.
• Maintain the highest standards for quality and
ways to achieve goals.
• Demonstrate personal acceptance of responsibility
without blame or excuse.
• Adapt to business and working conditions with
creativity.
• Build the Group’s brand and reputation while
protecting its intellectual property.
• Care for your Company as if it were your home.
074
Vingroup Joint Stock Company | Annual Report 2014
• Lend colleagues a helping hand when needed.
• Share knowledge and experience by giving and
On Partners
• Demonstrate mutual respect to achieve
mutual benefits.
On Customers
• Build sustainable partnerships with credibility,
reliability and trust.
• Remember that customers pay the bills.
efficiency.
• Plan carefully and demonstrate creativity in finding
misconduct of others.
opportunities for them to advance.
• Listen, learn and improve one’s skills.
quality of service to customers, colleagues, and
partners.
• Uphold company principles to prevent the
• Train and develop subordinates while creating
• Be humble in victory and gracious in defeat.
• Place the customer first by providing the highest
• Work together toward common goals.
receiving constructive feedback.
• Take initiative and stay dedicated.
• Be daring, take risks and seize opportunities.
On Colleagues
• Lift Vietnam’s international image through quality
On Competition
• Follow the principle that good competition
makes the best better.
• Learn from competitors’ strengths and
weaknesses.
• Encourage quality competition in each market
to raise the standards of performance throughout Vingroup’s businesses, leading to faster
development and a better society.
• Be friendly, respectful and professional while
doing the utmost to deliver support to customers.
• Keep promises to customers.
• Balance the interests of customers with those of
the Group.
• Continuously improve service quality to satisfy
customer needs.
• Anticipate trends to lead the market with the right
products and services for customers.
Vingroup Joint Stock Company | Annual Report 2014
075
Vincom Mega Mall Royal City
The first underground shopping mall in Vietnam
and the largest such mall in Southeast Asia.
Tập đoàn Vingroup | Báo cáo thường niên 2014
Tập đoàn Vingroup | Báo cáo thường niên 2014
“Leave the world a bit better” – Ralph Waldo Emerson
SUSTAINABLE
DEVELOPMENT
080
Sustainable Development Strategy
081
Economic Growth
082
Social Responsibility
083
Environmental Programs
Sustainable Development
Sustainable Development Strategy/ Economic Growth
A Strategy for
Sustainable Development
Vingroup is one of the leading private
companies in Vietnam. The Company has
multiple brands in five business sectors.
These sectors are: properties, hospitality
and entertainment, consumer retail,
healthcare and education. Vingroup has
built a strong market position and business reputation. The Group’s strategy
for sustainable development is based
on three factors: economic growth,
social contribution, and environmental
protection. In accordance with this
strategy, Vingroup has been building a
diverse ecosystem of premium products
and services that mutually reinforce
each other to realize the Group’s mission
“to create a better life for the Vietnamese
people.”
ECONOMIC GROWTH
Contribute to the State Budget
Develop innovative products
for the community
Enhance Vietnam’s image as
an attractive investment among
developing economies
SOCIAL
RESPONSIBILITY
ENVIRONMENTAL
PROTECTION
Economic growth
As a result of its growth in revenue and profits, Vingroup
continues to be a major taxpayer and is therefore one of the
leading contributors to the State budget. In 2014, Vingroup
was the leading taxpayer in the private enterprise category
and ranked seventh among the top ten largest corporate
taxpayers in Vietnam.
As a leading real estate developer, Vingroup has been a pioneer
in creating models of modern and sustainable urban communities, contributing to Vietnam’s image as a dynamic and
flourishing nation. In Hanoi, Vinhomes Times City, Vinhomes
Royal City, and Vinhomes Riverside are the first projects which
offer modern and eco-friendly urban services. These services
increase the quality of life and improve the living environment
for the community. As a result of this leadership, these projects
have become the gold standard and are considered the most
livable urban areas in Vietnam. They inspired further development in the Capital.
During 2014, Vingroup continued to develop new projects
throughout the country. These projects not only improve the
quality of life at these communities but also serve as a catalyst
for further local development. Vingroup has always recognized
its missions to bring quality services to customers throughout the nation, provide jobs for thousands of people and
contribute to social stability and economic growth.
Summary of Vingroup’s Contribution to the
State Budget (2010 – 2014)
Year
Contribution to
State Budget
(VND billion)
Increase/
Decrease
(%)
2010
537
N/A
2011
1,708
218.06
2012
1,593
-6.75
2013
2,604
63.49
2014
4,166
59.97
Top 10 Largest Corporate Taxpayers in Vietnam
No
Corporate
1
VIETNAM OIL AND GAS GROUP
2
PETRO VIETNAM EXPLORATION AND
PRODUCTION CORPORATION
3
VIETTEL GROUP
4
VIETNAM POSTS AND
TELECOMMUNICATIONS GROUP
5
PETRO VIETNAM GAS JOINT STOCK CORPORATION
6
VIETNAM MOBILE TELECOM SERVICES COMPANY
7
VINGROUP JOINT STOCK COMPANY
Balance the rights of employees,
customers and shareholders
Uphold “Small Actions Produce
Great Results” mindset
8
VIETNAM JOINT STOCK COMMERCIAL BANK FOR
INDUSTRY AND TRADE
Improve social welfare
Promote environmentally friendly products
9
VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY
Create social community
Create a better life for future generations
in harmony with nature
10
HONDA VIETNAM CO., LTD.
Source: Vietnam Report (Total corporate income tax of Top 10 in
V1000 list of 2014 based on 2013 financials: VND64 trillion).
080
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
081
Sustainable Development
Social Responsibility
THE CHARITABLE TRADITION OF VIETNAMESE CULTURE IS NOT ONLY ABOUT TAKING CARE
OF EMPLOYEES BUT ALSO ABOUT RESPONSIBILITY TO THE COMMUNITY, SOCIETY, AND
THE ENVIRONMENT.
Vingroup also sponsors the Promotion Fund for Vietnamese
Football Talent (PVF), which was set up in 2010 to develop
an effective system for training young footballers, something
then lacking in Vietnam. Since 2010, the Fund has held six
PVF courses with 176 participants who then repeatedly go
on to win important tournaments, including the Vietnam
National Youth Championship, the South East Asia, plus the
Pan – Asia Youth tournaments. In 2014, the Fund continued its
impressive achievements by winning a National U-17 Football
Tournament, the Thai Son Nam Cup. This victory confirms PVF’s
During 2014, Vingroup continued its practice of making national reputation in Vietnam and contributes to the longcontributions to social programs by donating to charitable term goal of earning a place for Vietnam on the regional and
social activities. Among the programs supported by the global football map.
Group are those which aid the poor, wounded veterans,
the families of martyrs, recipients of Vietnamese Heroic Collectively, these programs demonstrate Vingroup’s commitMothers Award, orphans, and other social beneficiaries. The ment to keeping its business development in line with humancompany also supported the healthcare sector, built cultural itarian, social and charitable goals. The Group has committed
facilities, promoted education and funded incentives for to maintain its involvement in such programs.
higher learning.
Another of Vingroup’s initiatives is to contribute to the develAmong the specific programs Vingroup supported in 2014 is opment of management talent so that the Group will build
Bac Ninh’s Phat Tich Custodian Care and Talent Development a pool of management talent possessing the skills, attitudes,
and leadership capabilities needed to enable the Company
Facility (Phat Tich Center):
to achieve its goals. At the beginning of 2015, Vingroup
announced the USD10 million “Future Vietnamese Manager
• Established by Vingroup’s Kind Heart Fund
Scholarship Fund” that will be used to strengthen the training
• Now home to more than 100 orphans and elderly citizens and development of promising young future general managers to make them qualified to manage and operate premium
• Provides housing while also caring for the mental health service businesses in the hotel, resort, shopping mall,
of the elderly and supporting the comprehensive devel- entertainment, education, and healthcare sectors that meet
demanding international standards.
opment of children
Social Responsibility/ Environmental Programs
Environmental
Programs
Vingroup understands that effective and efficient resource usage
is important to the sustainable development of the company. As
a pioneer enterprise in real estate and hospitality committed to
sustainable development, the Group is determined to build a
green, innovative, and eco-friendly environment not only for
employees but also for customers.
082
Vingroup Joint Stock Company | Annual Report 2014
One of the Group’s slogans is “Small Actions Produce Great
Results.” The concept behind this slogan is that all Vingroup
members can work together to build a green, clean and
well-organized work environment.
Many Vingroup buildings include green areas to remind people
to strive for efficiency in the use of limited resources. The
Group believes that raising employee awareness of the need to
protect our environment will promote the many small actions
that will produce significant results for the entire society.
Vingroup’s corporate philosophy places a high value on
maintaining a pioneering spirit that is based on the intelligence, courage, patriotism and humanity of the Vietnamese
people. As part of this philosophy, Vingroup has always been
concerned with the well-being of its employees. The Group is
actively engaged in community-building and environmental
protection programs. These programs are the hallmark of
companies that are concerned with maintaining a reputation
for socially responsible management.
These are typical of the Group’s charitable activities with
meaningful and lasting results by providing education, training, and foster care to support disadvantaged children to
become productive, capable citizens, which helps to alleviate
the State’s social work burden.
Building a Green Work Environment
Creating Green Products
and Nature-Friendly Living
Environment
Vingroup believes in the need to protect
the environment in the design, construction and operation of all of its properties:
resort complexes, shopping malls, urban
areas, offices and apartments. The development and architectural teams dedicate
themselves to this goal in every project,
aiming to build upscale complexes that
are well planned and organized, comprehensive, and sustainably developed. Such
projects can protect the natural environment by efficiently utilizing space to
create a modern living or resort complex
that exists in harmony with nature. All of
Vingroup’s projects are built according to
the standards appropriate for such structures. They are energy-saving buildings
following green architecture design
principles. Among the Group’s green
projects are its very first developments
Vinpearl Resort Nha Trang and Vincom
Ba Trieu, along with recently completed
urban communities including Vinhomes
Royal City, Vinhomes Times City, Vinhomes
Riverside, Vinhomes Central Park, Vinpearl
Premium Da Nang, and Vinpearl Phu Quoc.
Vingroup Joint Stock Company | Annual Report 2014
083
Sustainable Development
Environmental Programs
Vincom Ba Trieu
Vincom Ba Trieu is designed so that
it makes full use of natural light and
artificial energy. This complex received
the Energy Efficient Buildings Award.
The three towers of this complex
are equipped with a comprehensive
Vinhomes Nguyen Chi Thanh
– Hanoi
air-conditioning system controlled by
computer, minimizing energy use. The
roof-top ventilation system continuously
circulates air through the towers to stabilize the temperature and humidity in all
parts of the complex.
Vincom DOng Khoi
Vincom Dong Khoi was the first green
building in Vietnam and was built in
accordance with energy-saving design
standards. These standards have since
become one of the criteria used to evaluate world-class property developments.
In 2013, Vincom Dong Khoi’s
energy-efficient technology solutions
won the Energy Efficient Architecture
Award from the Vietnamese
Government’s Department of Science,
Technology and Environment in the
Ministry of Construction and the Energy
Conservation Center of Ho Chi Minh City.
Vinmec International Hospital has been
highly praised for being environmentally friendly. The rooms are designed
and equipped to meet World Health
Organization standards. The Central
Sterilizing Department operates to stop
cross-infection from unsterilized equipment and supplies. The hospital’s water
is filtered through activated charcoal and
vinhomes Royal City
Vinhomes Riverside
Vinhomes Royal City features botanical including an area devoted to Tai Chi, a
parks, a large plaza and a unique sky promenade, a pavilion, a lounge, and
garden. Gardens are modern in design flower gardens.
but incorporate Vietnamese traditions,
Vinhomes Riverside – the Peaceful
Land was based on a unique design
that includes a system of canals, botanical gardens and a low-density space
Vinhomes Times City is designed as
a modern, eco-friendly urban area
inspired by Singapore. It includes green
spaces and a lake that cover nearly
100,000 square meters. Times City has
made a profound impact by creating
Vingroup Joint Stock Company | Annual Report 2014
disinfected by ozone and UV systems to
ensure patient safety and to minimize
the spread of water-borne diseases.
Vinmec also employs an advanced
waste-treatment system and has built
high-quality medical and other waste
dumps that comply with the medical
sector’s most stringent standards.
utilization ratio. The complex also
brought in a large number of fish and
bird species to enhance the environment
and enrich the area’s ecosystem.
Vinpearl Phu Quoc
a clean, green and eco-friendly living
space, helping to change the face of the
landscape in Southern Hanoi. Vinpearlland
Aquarium Times City gathers thousands of
various sea creatures, offering a phenomenal experience in Ha Noi.
Vinhomes Central Park
Vinhomes Central Park is a green,
modern and luxurious urban community
in Vietnam. Inspired by the world-famous
Central Park in New York City, Vinhomes
Central Park has a construction density
of only 16% and devotes 14 hectares
to parks, the city’s largest green space
provides natural lighting and fresh air for
each apartment. It is also among one of
the few apartment complexes with private
gardens. With an open design in a green
space, Vinhomes Nguyen Chi Thanh –
Hanoi is able to provide an exceptional
quality of life to its residents.
Vinmec International Hospital
vinhomes Times City
084
Vinhomes Nguyen Chi Thanh – Hanoi
has a total area of 13,043 square meters
spread over two towers, one for luxury
apartments and the other a 30-story
Grade-A office and retail building. The
focal point of Vinhomes Nguyen Chi
Thanh – Hanoi is the atrium space, which
Vinpearl Phu Quoc has 750 rooms in the
hotel and villas, a Vinpearl Land amusement park, and an international-standard
27-hole golf course. The area is not just
the new destination for tourism and
recreation but also a place to experience
natural conservation and development
of biological diversity in Phu Quoc, with
the large-scale Aquarium housing tens of
thousands of sea creatures. Vinpearl Land
Phu Quoc’s designation as the host site for
the Miss Vietnam Pageant 2014 attracted
many tourists to the island and contributed to Phu Quoc’s strong growth in tourism
revenue. In 2014, Phu Quoc’s revenue from
tourism surpassed VND2.2 trillion, 84%
higher than in 2013.
Vinpearl Premium
vacation properties
along the Saigon River. With river frontage stretching more than 1 kilometer,
Vinhomes Central Park offers a green
living area in the heart of Ho Chi Minh
City and helps to clean the air for the
rest of the City.
Vinpearl Premium resorts and villas have
been one of the highlights of Vingroup’s
achievements in 2014. These include the
coastal hotels and five-star villas along
the world’s most beautiful beaches in
Da Nang, Nha Trang, and Phu Quoc. With
innovative programs to help owners
lease out unused time in their vacation
properties, Vinpearl Premium offers
buyers an opportunity to own and enjoy
a resort set on a piece of a beautiful,
green nature, while earning an attractive
return on investment.
Vingroup Joint Stock Company | Annual Report 2014
085
Vinschool
Vinschool became an admissions
phenomenon by enrolling a total of 6,300 students.
Tập đoàn Vingroup | Báo cáo thường niên 2014
Tập đoàn Vingroup | Báo cáo thường niên 2014
Transparency is the basis for trust and confidence.
CONSOLIDATED
FINANCIAL STATEMENTS
090
VAS Consolidated Financial Statements
170
Summary of IFRS Consolidated Financial Statements
176
Reconciliation between VAS and
IFRS Consolidated Income Statements
VAS consolidated financial statements
General information/ Report of Management
General information
Report of
Management
The company
Vingroup Joint Stock Company (“the Company”) is a joint stock
company established in Vietnam in accordance with the Business
Registration Certificate No. 0103001016 issued by the Hanoi
Department of Planning and Investment on 3 May 2002 and
the Business Registration Certificate No. 0101245486 re-issued
on 12 May 2010. The Company also subsequently received
the 55th amended Business Registration Certificate dated 18
November 2014.
The current principal activities of the Company in this year are
to carry out investment activities and to provide the general
administrative services.
The Company’s head office is registered at No. 7, Bang Lang
1 street, Vinhomes Riverside Eco-urban Area, Viet Hung ward,
Long Bien district, Hanoi, Vietnam. Its branch is located at No. 72,
Le Thanh Ton and No. 45A, Ly Tu Trong street, Ben Nghe ward,
district 1, Hochiminh city, Vietnam.
The Company’s shares were officially listed on the Hochiminh City
Stock Exchange (“HOSE”) from 19 September 2007 in pursuant to
Decision No.106/QD-TTGDHCM issued by the Director of HOSE
on 7 September 2007.
Board of directors
Management
Management of Vingroup Joint Stock Company (“the Company”) Management confirmed that it has complied with the above
is pleased to present its report and the consolidated financial requirements in preparing the accompanying consolidated
statements of the Company and its subsidiaries (collectively financial statements for the year ended 31 December 2014.
referred to as “the Group”) for the year ended 31 December 2014.
Management’s responsibility in respect of the
consolidated financial statements
The management is responsible for the consolidated financial
statements of each financial year which give a true and fair view
of the consolidated financial position of the Group and of the
consolidated results of its operations and its consolidated cash
flows for the year. In preparing those consolidated financial
statements, management is required to:
• Select suitable accounting policies and then apply them
Statement by Management
Management does hereby state that, in its opinion, the
accompanying consolidated financial statements give a true
and fair view of the consolidated financial position of the Group
as at 31 December 2014 and of the consolidated results of its
operations and its consolidated cash flows for the year then
ended in accordance with Vietnamese Accounting Standards,
Vietnamese Enterprise Accounting System and the statutory
requirements relevant to preparation and presentation of
consolidated financial statements.
consistently;
Members of the Board of Directors during the year and at the Members of the Management during the year and at the date
date of this report are:
of this report are:
• Make judgements and estimates that are reasonable and
prudent;
General Director
Le Thi Thu Thuy
(Resigned on 11 February 2014)
General Director
Pham Nhat Vuong
Chairman
Le Khac Hiep
Deputy Chairman
Pham Thuy Hang
Deputy Chairwoman
Pham Thu Huong
Deputy Chairwoman
Mai Huong Noi
Deputy General Director
Nguyen Dieu Linh
Deputy Chairwoman
Pham Van Khuong
Deputy General Director
Le Thi Thu Thuy
(Resigned on 23 May 2014)
Deputy Chairwoman
Nguyen Dieu Linh
Deputy General Director
Vu Tuyet Hang
Deputy Chairwoman
Dang Thanh Thuy
Deputy General Director
Ling Chung Yee Roy
Member
Vu Tuyet Hang
Deputy General Director
Mai Huong Noi
Member
Nguyen Thi Diu
(Appointed on 24 July 2014)
Deputy General Director
Marc Villiers Townsend
Member
Joseph Raymond Gagnon
Member
Board of Supervision
Members of the Board of Supervision during the year and at
the date of this report are:
090
Duong Thi Mai Hoa
(Appointed on 11 February 2014)
Legal representative
The legal representative of the Company during the period from
1 January 2014 to 10 February 2014 is Ms Le Thi Thu Thuy and
from 11 February 2014 to the date of these financial statements
is Ms Duong Thi Mai Hoa.
Nguyen The Anh
Head of Board
of Supervision
Auditors
Dinh Ngoc Lan
Member
The auditor of the Company is Ernst & Young Vietnam Limited.
Do Thi Hong Van
Member
Hoang Thuy Mai
Member
Nguyen Thi Van Trinh
Member
Vingroup Joint Stock Company | Annual Report 2014
For and on behalf of management:
• State whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the consolidated financial statements; and
• Prepare the consolidated financial statements on the going
concern basis unless it is inappropriate to presume that
the Group will continue its business.
Management is responsible for ensuring that proper accounting
records are kept which disclose, with reasonable accuracy at
any time, the consolidated financial position of the Group and
to ensure that the accounting records comply with the applied Duong Thi Mai Hoa
accounting system. It is also responsible for safeguarding the General Director
assets of the Group and hence for taking reasonable steps for
the prevention and detection of fraud and other irregularities. Hanoi, Vietnam
16 March 2015
Vingroup Joint Stock Company | Annual Report 2014
091
VAS consolidated financial statements
Independent auditors’ report/ Consolidated balance sheet
Consolidated balance sheet
Independent
auditors’ report
To: The Shareholders of Vingroup Joint Stock Company
We have audited the consolidated financial statements of
Vingroup Joint Stock Company (“the Company”) and its
subsidiaries (collectively referred to as the “Group”) as prepared
on 16 March 2015 and set out on pages 6 to 88, which comprise
the consolidated balance sheet as at 31 December 2014, the
consolidated income statement and consolidated cash flow
statement for the year then ended and the notes thereto.
Management’s responsibility
as at 31 December 2014
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the
auditors’ judgment, including the assessment of the risks of
material misstatement of the consolidated financial statements,
whether due to fraud or error. In making those risk assessments,
the auditors consider internal control relevant to the entity’s
preparation and fair presentation of the consolidated financial
statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal
control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the
overall presentation of the consolidated financial statements.
Management is responsible for the preparation and fair
presentation of these consolidated financial statements
in accordance with Vietnamese Accounting Standards,
Vietnamese Enterprise Accounting System and the statutory
requirements relevant to preparation and presentation of We believe that the audit evidence we have obtained is sufficient
consolidated financial statements, and for such internal control as and appropriate to provide a basis for our audit opinion.
management determines is necessary to enable the preparation
and presentation of consolidated financial statements that are Opinion
free from material misstatement, whether due to fraud or error.
In our opinion, the consolidated financial statements give a
Auditors’ responsibility
true and fair view, in all material respects, of the consolidated
financial position of the Group as at 31 December 2014, and of the
Our responsibility is to express an opinion on these consolidated consolidated results of its operations and its consolidated cash
financial statements based on our audit. We conducted our audit flows for the year then ended in accordance with Vietnamese
in accordance with Vietnamese Standards on Auditing. Those Accounting Standards, Vietnamese Enterprise Accounting System
standards require that we comply with ethical requirements and the statutory requirements relevant to preparation and
and plan and perform the audit to obtain reasonable assurance presentation of consolidated financial statements.
about whether the consolidated financial statements are free
from material misstatement.
Code
ASSETS
100
A. CURRENT ASSETS
110
I. Cash and cash equivalents
111
1. Cash
112
2. Cash equivalents
120
II. Short-term investments
121
1. Short-term investments
129
2. Provision for diminution in value of short-term
investments
130
III. Current accounts receivable
131
1. Trade receivables
132
2. Advances to suppliers
135
3. Other receivables
139
4. Provision for doubtful debts
140
IV. Inventories
141
1. Inventories
149
2. Provision for obsolete inventories
150
V. Other current assets
151
1. Short-term prepaid expenses
152
2. Value-added tax deductible
154
3. Tax and other receivables from the State
158
4. Other current assets
200
B. NON-CURRENT ASSETS
220
I. Fixed assets
221
1. Tangible fixed assets
Tran Phu Son
Deputy General Director
Audit Practising Registration Certificate:
0637-2013-004-1
Hanoi, Vietnam
18 March 2015
092
Vingroup Joint Stock Company | Annual Report 2014
Nguyen Quang Trung
Auditor
Audit Practising Registration Certificate No.:
1938-2013-004-1
Notes
5
6
7
8
9
10
11
12
Ending balance
Beginning balance
34,875,607,760,407
39,844,677,687,769
7,607,513,719,673
7,534,048,703,295
1,709,677,822,085
830,198,384,281
5,897,835,897,588
6,703,850,319,014
6,168,171,238,968
5,512,841,034,628
6,245,416,256,668
5,564,825,407,070
(77,245,017,700)
(51,984,372,442)
2,863,604,538,747
3,791,905,544,739
833,001,466,347
906,583,310,596
1,459,215,551,015
1,067,203,605,764
626,203,073,987
1,848,565,858,757
(54,815,552,602)
(30,447,230,378)
16,598,350,983,526
18,913,717,422,013
16,653,246,649,293
18,922,655,956,360
(54,895,665,767)
(8,938,534,347)
1,637,967,279,493
4,092,164,983,094
175,767,407,122
112,995,880,636
549,937,309,384
235,932,586,540
29,443,682,396
20,328,613,273
882,818,880,591
3,722,907,902,645
55,609,699,439,453
35,927,970,738,026
22,319,696,291,092
11,724,114,750,744
10,526,340,741,649
5,645,716,640,220
222
Cost
12,125,926,443,789
6,707,573,344,357
223
Accumulated depreciation
(1,599,585,702,140)
(1,061,856,704,137)
520,367,279,711
504,491,185,676
227
Ernst & Young Vietnam Limited
Currency: VND
2. Intangible fixed assets
13
228
Cost
613,140,927,890
576,932,515,265
229
Accumulated amortisation
(92,773,648,179)
(72,441,329,589)
230
3. Construction in progress
14
11,272,988,269,732
5,573,906,924,848
240
II. Investment properties
15
15,399,141,224,526
13,628,734,369,628
16,337,225,559,687
14,148,672,844,583
(938,084,335,161)
(519,938,474,955)
241
1. Cost
242
2. Accumulated depreciation
250
III. Long-term investments
4,949,144,342,213
4,532,383,326,606
252
1. Investments in associates
1,030,494,731,370
1,829,738,207,290
258
2. Other long-term investments
3,921,649,610,843
2,705,645,119,316
259
3. Provision for diminution in value
of long-term investments
(3,000,000,000)
(3,000,000,000)
260
IV. Other long-term assets
6,727,259,904,943
1,238,826,097,403
1,770,073,401,504
1,195,471,414,505
56,584,412,187
42,623,898,681
261
1. Long-term prepaid expenses
262
2. Deferred tax assets
17
18
36.2
268
3. Other long-term assets
19
4,900,602,091,252
730,784,217
269
V. Goodwill
20
6,214,457,676,679
4,803,912,193,645
270
TOTAL ASSETS
90,485,307,199,860
75,772,648,425,795
Vingroup Joint Stock Company | Annual Report 2014
093
VAS consolidated financial statements
Consolidated balance sheet
Consolidated balance sheet (continued)
as at 31 December 2014
Code
RESOURCES
300
Currency: VND
Notes
Ending balance
Beginning balance
A. LIABILITIES
63,200,673,940,820
57,156,105,584,507
310
I. Current liabilities
24,603,801,398,740
26,675,265,408,188
311
1. Short-term loans and borrowings
1,321,194,605,718
3,023,470,785,606
312
2. Trade payables
1,628,746,222,883
1,158,828,828,873
313
3. Advances from customers
6,581,278,862,138
16,150,044,422,734
3,299,807,295,074
11,686,251,139,746
21
22
Down payment from customers for purchase of
inventory properties
Advances from other customers
314
315
5. Payables to employees
316
6. Accrued expenses
319
094
4. Statutory obligations
23
24
Euro
Singapore dollar
-
British pound
150
-
Canadian dollar
41,416,688,481
1,254,563,464,393
864,555,492,034
1,019,478,498,366
959,682,490,193
10,333,943,140,608
1,101,799,359,637
Payment from customers under deposit, loan and
other agreements
7,847,174,664,786
88,740,877,355
Other payables
2,486,768,475,822
1,013,058,482,282
330
II. Non-current liabilities
38,596,872,542,080
30,480,840,176,319
333
1. Other long-term liabilities
26
6,413,683,795,382
6,023,851,978,161
334
2. Long-term loans and debts
27
32,014,819,167,101
24,360,164,494,408
335
3. Deferred tax liabilities
36.2
168,369,579,597
96,823,703,750
400
B. OWNERS’ EQUITY
20,396,041,296,100
14,471,837,198,264
410
I. Capital
28.1
20,396,041,296,100
14,471,837,198,264
411
1. Share capital
28.1
14,545,550,980,000
9,296,036,790,000
412
2. Share premium
28.1
4,582,534,150,067
1,781,641,494,624
414
3. Treasury shares
28.4
(2,974,924,074,484)
(4,351,625,014,572)
418
4. Financial reserve fund
28.2
22,845,114,930
17,845,114,930
420
5. Undistributed earnings
28.1
4,220,035,125,587
7,727,938,813,282
439
C. MINORITY INTERESTS
29
6,888,591,962,940
4,144,705,643,024
440
TOTAL LIABILITIES AND OWNERS’ EQUITY
90,485,307,199,860
75,772,648,425,795
100
63,000
55,874,576,362
Accrual for construction costs
1,346,262
300
20
Australian dollar
Other accrued expenses
1,322,830
70,000
4,463,793,282,988
1,267,702,309,535
Beginning balance
Japanese yen
2,107,765,031,095
3,091,940,291,762
Vingroup Joint Stock Company | Annual Report 2014
United States dollar
3,281,471,567,064
1,371,617,698,518
Ending balance
Foreign currencies
1,037,104,329,754
3,645,659,661,277
25
ITEMS
Hong Kong dollar
Accrual for bond and loan interests
7. Other payables
Off balance sheet items
Ngo Nguyet Hang
Preparer
Nguyen Thi Thu Hien
Chief Accountant
15
-
300
1,000
-
1,000
Duong Thi Mai Hoa
General Director
16 March 2015
Vingroup Joint Stock Company | Annual Report 2014
095
VAS consolidated financial statements
Consolidated income statement/ Consolidated cash flow statement
Consolidated income statement
Consolidated cash flow statement
for the year ended 31 December 2014
Currency: VND
Code
ITEMS
Notes
01
1. Revenue from sale of goods and rendering of services
30.1
Current year
Previous year
27,726,701,600,235
18,379,268,633,216
02
2. Deductions
30.1
(3,068,229,199)
(1,629,787,510)
10
3. Net revenue from sale of goods and rendering
of services
30.1
27,723,633,371,036
18,377,638,845,706
11
4. Cost of goods sold and services rendered
32
(17,284,911,479,916)
(11,346,984,128,307)
20
5. Gross profit from sale of goods and rendering
of services
10,438,721,891,120
7,030,654,717,399
21
6. Finance income
22
7. Finance expenses
23
30.2
1,346,022,091,036
6,436,048,755,221
33
(3,491,052,587,060)
(1,943,627,332,561)
(2,711,269,664,974)
(1,459,922,785,660)
(739,332,476,177)
(450,072,453,875)
(2,170,716,923,462)
(1,466,422,267,061)
5,383,641,995,457
In which: Interest expense
24
8. Selling expenses
25
9. General and administrative expenses
30
10. Operating profit
for the year ended 31 December 2014
Code
ITEMS
Currency: VND
Notes
Current year
Previous year
5,409,680,638,498
9,740,085,981,878
1,582,956,786,204
1,178,743,735,837
95,586,098,902
53,343,819,374
I. CASH FLOWS FROM OPERATING ACTIVITIES
01
Profit before tax
Adjustments for:
02
Depreciation and amortisation
03
Changes in provisions
40
04
Unrealised foreign exchange losses
33
153,521,258,290
91,401,429,917
05
Profits from investing activities
40
(1,333,188,623,458)
(6,445,646,204,571)
06
Interest expenses
2,711,269,664,974
1,459,922,785,660
08
Operating income before changes in working capital
8,619,825,823,410
6,077,851,548,095
(Increase)/decrease in receivables
(236,771,046,585)
1,506,465,991,329
10
Decrease/(increase) in inventories
7,828,554,877,896
(53,674,323,727)
9,606,581,419,123
11
(Decrease)/increase in payables (other than interest,
corporate income tax payables)
(435,168,123,808)
5,739,159,477,741
12
(Increase)/decrease in prepaid expenses
(774,696,243,771)
367,776,128,547
09
31
11. Other income
34
261,925,884,973
135,646,492,056
32
12. Other expenses
34
(227,116,582,678)
(56,842,117,086)
13
Interest paid
(3,191,276,794,957)
(2,550,652,028,899)
40
13. Other profit
34,809,302,295
78,804,374,970
14
Corporate income tax paid
(1,910,568,513,664)
(1,803,518,979,544)
45
14. Shares in net (loss)/profit of associates
(8,770,659,254)
54,700,187,785
15
Other cash inflows from operating activities
-
641,182,106
50
15. Profit before tax
5,409,680,638,498
9,740,085,981,878
16
51
16. Current corporate income tax expenses
36.1
(1,653,273,503,894)
(2,594,314,637,696)
20
52
17. Deferred income tax income
36.2
60
18. Net profit after tax
17.1, 31
(3,085,600,466)
-
9,896,814,378,055
9,284,048,995,648
(12,078,574,548,052)
(10,489,796,722,908)
1,233,509,487,141
39,220,197,524
19,638,606,879
3,516,776,375
3,776,045,741,483
7,149,288,120,557
21
Purchase, construction of fixed assets and other
long-term assets
617,463,065,409
369,775,972,604
22
Proceeds from disposals of fixed assets and other
long-term assets
3,158,582,676,074
6,779,512,147,953
23
Loans to other entities and payments for purchase
of debt instruments of other entities
40
(4,394,117,030,716)
(8,069,778,802,040)
Basic
2,447
5,310
24
Collections from borrowers and proceeds from sale
of debt instruments of other entities
40
3,944,306,480,156
4,780,340,308,582
Diluted
2,344
5,089
25
Payments for equity investments in other entities
40
(12,714,336,731,816)
(6,150,167,058,980)
26
Proceeds from disposals of equity investments in
other entities
40
2,592,111,751,675
10,458,023,592,091
27
Interest and dividends received
1,017,729,795,067
539,692,018,943
(20,399,370,796,545)
(8,892,466,466,788)
II. CASH FLOWS FROM INVESTING ACTIVITIES
Attributable to
61
18.1. Minority interests
62
18.2. Equity holders of the parent
70
Other cash outflows from operating activities
Net cash flows from operating activities
29
28.1
19. Earnings per share
38
30
Ngo Nguyet Hang
Preparer
Nguyen Thi Thu Hien
Chief Accountant
Net cash flows used in investing activities
40
Duong Thi Mai Hoa
General Director
16 March 2015
096
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Vingroup Joint Stock Company | Annual Report 2014
097
VAS consolidated financial statements
Consolidated cash flow statement/ Notes to the consolidated financial statements
Consolidated cash flow statement (continued)
for the year ended 31 December 2014
Code
Currency: VND
ITEMS
Notes
Current year
Previous year
1,411,009,772,856
-
2,948,518,325,753
3,256,960,309,647
-
(2,953,978,284,083)
III. CASH FLOWS FROM FINANCING ACTIVITIES
31
Capital contribution and issuance of shares
40
Capital contribution from minority interests
32
Payment for acquiring treasury shares
33
Drawndown of borrowings
17,264,986,730,202
16,614,545,541,480
34
Repayment of borrowings
(8,682,400,989,542)
(11,103,071,677,430)
36
Dividends paid to equity holders of the parent
(1,844,966,743,620)
(288,850,999,997)
Dividends paid to minority interests
(521,509,281,485)
-
40
Net cash flows from financing activities
10,575,637,814,164
5,525,604,889,617
50
Net increase in cash and cash equivalents
73,081,395,674
5,917,187,418,477
5
7,534,048,703,295
1,616,855,174,935
383,620,704
6,109,883
5
7,607,513,719,673
7,534,048,703,295
60
Cash and cash equivalents at the beginning of the year
61
Impact of exchange rate fluctuation
70
Cash and cash equivalents at the end of the year
Notes to the
consolidated financial statements
1. Corporate information
Vingroup Joint Stock Company (“the Company”) is a joint stock
company established in Vietnam pursuant to the Business
Registration Certificate No. 0103001016 issued by the Hanoi
Department of Planning and Investment on 3 May 2002 and
the Business Registration Certificate No. 0101245486 re-issued
on 12 May 2010. The Company also subsequently received
the 55th amended Business Registration Certificate dated 18
November 2014.
The Company’s shares were officially listed on the Hochiminh City
Stock Exchange (“HOSE”) from 19 September 2007 pursuant to
Decision No.106/QD-TTGDHCM issued by the Director of HOSE
on 7 September 2007.
The current principal activities of the Company in this year are
to carry out investment activities and to provide the general
administrative services.
As at 31 December 2014, the Company has 55 subsidiaries. The
information on these subsidiaries, along with the Company’s
voting rights and equity interest in each subsidiary are detailed
in the Appendix 1.
Pursuant to the Security Agreement among Vincom Retail JSC,
WP Investments III B.V. (“Warburg Pincus”) and Credit Suisse AG,
Singapore Branch (“Credit Suisse”) dated 12 July 2013 with later
amendments in relation to the convertible loans as presented
in Note 27.1.7 and the preference shares issued by Vincom
Retail JSC as presented in Note 29, the entire equity interest
of Vincom Retail JSC in Vincom Center Ba Trieu LLC, Vincom
Center Long Bien LLC, Vincom Center B HCMC LLC, Hai Phong
Land LLC and 50% equity interest of VMM Times City LLC have
been used as collaterals for irrevocably guaranteeing Vingroup’s
obligations under the transaction documents and for founders
and Vingroup’s obligations relating to put option for founders
signed with Warburg Pincus and Credit Suisse.
The Company’s head office is located at No. 7, Bang Lang 1 street,
Vinhomes Riverside Eco-urban Area, Viet Hung ward, Long Bien At 31 December 2014, the Company also holds investments in
district, Hanoi, Vietnam. Its branch is located at No. 72, Le Thanh a number of associates as disclosed in Note 17.1.
Ton street and No. 45A, Ly Tu Trong street, Ben Nghe ward, district
1, Hochiminh city, Vietnam.
Ngo Nguyet Hang
Preparer
Nguyen Thi Thu Hien
Chief Accountant
Duong Thi Mai Hoa
General Director
The number of the Company’s employees as at 31 December
2014 is 532 (31 December 2013: 219).
16 March 2015
098
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Vingroup Joint Stock Company | Annual Report 2014
099
VAS consolidated financial statements
Notes to the consolidated financial statements
2. Basis of preparation
2.1 Accounting standards and system
3. Summary of significant accounting policies
CDKT dated 4 May 2012 on supplementing details to the forms
of the financial statements.
The consolidated financial statements of the Group, which are
expressed in Vietnam dong (“VND”), are prepared in accordance 2.2 Applied accounting documentation system
with Vietnamese Enterprise Accounting System and Vietnamese
Accounting Standards issued by the Ministry of Finance as per: The Company’s applied accounting documentation system is
the General Journal system.
• Decision No. 149/2001/QD-BTC dated 31 December 2001
on the Issuance and Promulgation of Four Vietnamese 2.3 Fiscal year
Accounting Standards (Series 1);
The Group’s fiscal year applicable for the preparation of its
• Decision No. 165/2002/QD-BTC dated 31 December consolidated financial statements starts on 1 January and ends
2002 on the Issuance and Promulgation of Six Vietnamese on 31 December.
Accounting Standards (Series 2);
2.4 Accounting currency
• Decision No. 234/2003/QD-BTC dated 30 December
2003 on the Issuance and Promulgation of Six Vietnamese The consolidated financial statements are prepared in VND
Accounting Standards (Series 3);
which is also the Company’s accounting currency.
• Decision No. 12/2005/QD-BTC dated 15 February 2005 2.5 Basis of consolidation
on the Issuance and Promulgation of Six Vietnamese
Accounting Standards (Series 4); and
The consolidated financial statements comprise the financial
statements of the parent company and its subsidiaries for the
• Decision No. 100/2005/QD-BTC dated 28 December 2005 year ended 31 December 2014.
on the Issuance and Promulgation of Four Vietnamese
Accounting Standards (Series 5).
Subsidiaries are fully consolidated from the date of acquisition,
being the date on which the Group obtains control, and
Accordingly, the accompanying consolidated balance sheet, continued to be consolidated until the date that such control
consolidated income statement, consolidated cash flow ceases.
statement and related notes, including their utilisation are
not designed for those who are not informed about Vietnam’s The financial statements of subsidiaries are prepared for the
accounting principles, procedures and practices and furthermore same reporting year as the parent company, using consistent
are not intended to present the financial position and results accounting policies.
of operations and cash flows in accordance with accounting
principles and practices generally accepted in countries other All intra-company balances, income and expenses and unrealised
than Vietnam.
gains or losses result from intra-company transactions are
eliminated in full.
For the purpose of preparing the consolidated balance sheet,
the Group has also supplemented details of certain line items Minority interests represent the portion of profit or loss and
in the balance sheet, i.e. “Advances from customers” (Code net assets not held by the Group and are presented separately
313), “Accrued expenses” (Code 316) and “Other short-term in the consolidated income statement and within equity in the
payables” (Code 319). The purpose of presenting these additional consolidated balance sheet, separately from parent shareholders’
details in the consolidated balance sheet is to provide more equity.
relevant information to the users of these consolidated financial
statements. These changes were approved by the Ministry of
Finance in accordance with the Official Letter No. 5966/BTC/
3.1 Changes in accounting policies and disclosures
The perpetual method is used to record the costs of other
inventories, in which construction materials are valued at the
The accounting policies adopted by the Group in preparation of cost of purchase, on a first in first out basis.
the consolidated financial statements are consistent with those
followed in the preparation of the Group’s consolidated financial Provision for obsolete inventories
statements for the year ended 31 December 2013.
An inventories provision is created for the estimated loss arising
due to the impairment of value (through diminution, damage,
3.2 Cash and cash equivalents
obsolescence, etc.) of raw materials, finished goods, and other
Cash and cash equivalents comprise cash on hand, cash in inventories owned by the Group, based on appropriate evidence
banks and short-term, highly liquid investments with an of impairment available at the balance sheet date. Increases and
original maturity of less than three months that are readily decreases to the provision balance are recorded into the cost
convertible into known amounts of cash and that are subject of goods sold account in the consolidated income statement.
to an insignificant risk of change in value.
3.4 Receivables
3.3 Inventories
Receivables are presented in the consolidated financial
statements at the carrying amounts due from customers and
Inventory property
other debtors, after provision for doubtful debts.
Property acquired or being constructed for sale in the ordinary
course of business, rather than to be held for rental or capital The provision for doubtful debts represents amounts of
appreciation, is held as inventory and is measured at the lower outstanding receivables at the balance sheet date which are
of cost and net realisable value.
doubtful of being recovered. Increases and decreases to the
provision balance are recorded as general and administrative
expense in the consolidated income statement.
Cost includes:
• Freehold and leasehold rights for land;
3.5 Tangible fixed assets
• Amounts paid to contractors for construction;
Tangible fixed assets are stated at cost less accumulated
depreciation.
• Borrowing costs, planning and design costs, costs of
site preparation, professional fees for legal services, The cost of a tangible fixed asset comprises its purchase price
property transfer taxes, construction overheads and other and any directly attributable costs of bringing the tangible fixed
related costs.
asset to working condition for its intended use. Expenditures
for additions, improvements and renewals are added to the
Net realisable value is the estimated selling price in the ordinary carrying amount of the assets and expenditures for maintenance
course of the business, based on market prices at the reporting and repairs are charged to the consolidated income statement
date and less costs to completion and the estimated costs of sale. as incurred.
The cost of inventory recognised in profit or loss on disposal is
determined with reference to the specific costs incurred on the
property sold and an allocation of any non-specific costs based
on the relative size of the inventory property sold.
When tangible fixed assets are sold or retired, their costs and
accumulated depreciation are removed from the consolidated
balance sheet and any gain or loss resulting from their disposal
is included in the consolidated income statement.
Other inventories
Inventories are carried at the lower of cost incurred in bringing
each product to its present location and condition and net
realisable value.
Net realisable value represents the estimated selling price in the
ordinary course of business less the estimated costs to complete
and the estimated costs necessary to make the sale.
100
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Vingroup Joint Stock Company | Annual Report 2014
101
VAS consolidated financial statements
Notes to the consolidated financial statements
3.6 Intangible assets
Development costs capitalised as asset are stated at cost less
accumulated amortisation. Amortisation of the asset begins
Intangible assets are stated at cost less accumulated amortisation. when development is completed and the asset is available
for use.
The cost of an intangible asset comprises its purchase price
and any directly attributable costs of preparing the intangible 3.7 Depreciation and amortisation
fixed asset for its intended use. Expenditures for additions,
improvements are added to the carrying amount of the assets Depreciation and amortisation of tangible fixed assets and
and other expenditures are charged to the consolidated income intangible assets are calculated on a straight-line basis over the
estimated useful life of each asset as follows:
statement as incurred.
When intangible assets are sold or retired, their costs and
accumulated amortisation are removed from the consolidated
balance sheet and any gain or loss resulting from their disposal
is included in the consolidated income statement.
Land use rights
Land use rights with indefinite or definite term are recorded as
intangible assets based the land use right certificate issued by
the relevant authority.
Buildings and structures
10 – 50 years
Other structures
10 – 20 years
Machineries and equipment
3 – 15 years
Means of transportation
3 – 12 years
Office equipment
4 – 8 years
Computer software
3 – 8 years
Copy rights
4 – 8 years
Land use rights with definite terms
50 years
Land rental rights
20 years
The advance lump-sum payment for land rental, of which the
Others
8 – 15 years
land lease contracts have effectiveness prior to 2003 and the land
use right certificate being issued by the relevant authority, are
recorded as intangible asset according to Circular No. 45/2013/ No amortisation is charged on the land use rights with indefinite
TT-BTC issued by the Ministry of Finance on 25 April 2013 guiding terms and project development right.
the management, use and depreciation of fixed assets (“Circular
45”).
3.8 Investment properties
Research and development costs
Investment properties are stated at cost including transaction
costs less accumulated depreciation.
Research costs with significant value are initially recognized
as prepayment and expensed over a period of 3 years on a Subsequent expenditure relating to an investment property
straight-line basis.
that has already been recognized is added to the net book
value of the investment property when it is probable that future
Development expenditure on an individual project is recognized economic benefits, in excess of the originally assessed standard
as an intangible asset only if the Group can demonstrate all of of performance of the existing investment property, will flow
the following conditions:
to the Group.
• The technical feasibility study of completing the intangible Depreciation and amortisation of investment properties are
asset so that it will be available for use or sale;
• The intention to complete and use or sell the
intangible asset;
• The ability to use or sell the intangible asset;
• The
asset will
economic benefits;
generate
probable
calculated on a straight-line basis over the estimated useful life
of each asset as follows:
Land use rights with definite term
46 – 48 years
Buildings
30 – 50 years
Machinery and equipment
8 – 15 years
future
Amortisation of land use rights with definite terms presented as
a part of investment properties is calculated on a straight-line
• The availability of resources to complete the development basis over the definite term.
and to use or sell the intangible asset;
No amortization is charged on the land use rights with indefinite
• The ability to measure reliably the expenditure during the terms presented as a part of investment properties.
development; and
Investment properties are derecognised when either they
• They are estimated to meet all criteria for use duration and have been disposed of or when the investment properties
value prescribed for intangible fixed asset.
are permanently withdrawn from use and no future economic
102
Vingroup Joint Stock Company | Annual Report 2014
benefit is expected from its disposal. The difference between
the net disposal proceeds and the carrying amount of the assets
is recognised in the consolidated income statement in the year
of retirement or disposal.
Transfers are made to investment properties when, and only
when, there is a change in use, evidenced by ending of owneroccupation, commencement of an operating lease to another
party or ending of construction or development. Transfers are
made from investment properties when, and only when, there
is change in use, evidenced by commencement of owneroccupation or commencement of development with a view to
sale. The transfer from investment property to owner-occupied
property or inventories does not change the cost or the carrying
value of the property for subsequent accounting at the date of
change in use.
3.9 Borrowing costs
Borrowing costs consist of interest and other costs that an entity
incurs in connection with the borrowing of funds. Borrowing
costs are recorded as expense during the year in which they
are incurred, except to the extent that they are capitalized as
explained in the following paragraph.
Goodwill acquired in a business combination is initially measured
at cost being the excess of the cost the business combination
over the Group’s interest in the net fair value of the acquiree’s
identifiable assets, liabilities and contingent liabilities. If the cost
of a business combination is less than the fair value of the net
assets of the subsidiary acquired, the difference is recognized
directly in the consolidated income statement. After initial
recognition, goodwill is measured at cost less any accumulated
amortization. Goodwill is amortized over 10-year period on a
straight-line basis.
Property acquisitions and business combinations
The Group acquires subsidiaries that own real estate properties.
At the time of acquisition, the Group considers whether the
acquisition represents the acquisition of a business or not. The
Group accounts for an acquisition as a business combination
where an integrated set of business activities is acquired in
addition to the properties.
When the acquisition of subsidiaries does not represent an
acquisition of business, it is accounted for as an acquisition of
a group of assets and liabilities. The cost of the acquisition is
allocated to the assets and liabilities acquired based upon their
relative fair values, and no goodwill or deferred tax is recognised.
Borrowing costs that are directly attributable to the acquisition,
construction or production of an asset that necessarily take a Changes in ownership interest in subsidiaries without loss
substantial period of time to get ready for its intended use or of control
sale are capitalized as part of the cost of the respective asset.
When the Company acquires a minority interest in an existing
3.10 Prepaid expenses
subsidiary, the difference between the consideration paid and
the carrying value of net assets acquired is presented as goodwill
Prepaid expenses are reported as short-term or long-term prepaid in the consolidated balance sheet.
expenses on the consolidated balance sheet and allocated over
the period for which the amount are paid or the period in which Where there is a partial disposal of ownership interest in
economic benefits are generated in relation to these expenses. an existing subsidiary without loss of control, a gain or loss
is recognised in the consolidated income statement at the
Long-term prepaid expenses include long-term prepaid difference between the consideration received and the carrying
land rental, bond issuance costs and other long-term expenses value of net assets disposed.
that bring future economic benefits for more than one year
period.
Business combinations involving entities or businesses
under common control
The prepaid land rental represents the unamortised balance of
advance payment made in accordance with the lease contract Business combinations involving entities or businesses under
signed with the government authority. Such prepaid rental is common control are accounted for as follows:
recognised as a long-term prepaid expense for allocation to the
consolidated income statement over the remaining lease period
• The assets and liabilities of the two combined entities are
according to Circular 45.
reflected at their carrying amounts on the date of business
combination;
3.11 Business combinations and goodwill
• No goodwill is recognised from the business combination;
Business combinations are accounted for using the purchase
method. The cost of a business combination is measured as the
• The consolidated income statement reflects the results
fair value of assets given, equity instruments issued and liabilities
of the combined entities from the date of the business
incurred or assumed at the date of exchange plus any costs
combination;
directly attributable to the business combination. Identifiable
assets and liabilities and contingent liabilities assumed in a
• Any difference between the consideration paid and the
business combination are measured initially at fair values at
net assets of the “acquiree” is recorded in equity.
the date of business combination.
Vingroup Joint Stock Company | Annual Report 2014
103
VAS consolidated financial statements
3.12 Investments
Investment in associates
The Group’s investment in its associates is accounted for using the
equity method of accounting. An associate is an entity in which
the Group has significant influence that is neither subsidiaries nor
joint ventures. The Group generally deems they have significant
influence if they have over 20% of the voting rights.
Under the equity method, the investment is carried in the
consolidated balance sheet at cost plus post acquisition changes
in the Group’s share of net assets of the associates. Goodwill
arising on acquisition of the associate is included in the carrying
amount of the investment and is amortized over 10-year period.
The consolidated income statement reflects the share of the
post-acquisition results of operation of the associate.
Notes to the consolidated financial statements
the average monthly salary for each year of service up to the
31 December 2008 in accordance with the Labour Code, the
Law on Social Insurance and related implementing guidance.
Commencing 1 January 2009, the average monthly salary used in
this calculation will be revised at the end of each reporting year
following the average monthly salary of the 6-month period up
to the reporting date. Any changes to the accrued amount will
be taken to the consolidated income statement. This accrued
severance pay is used to settle the termination allowance to
be paid to employee upon termination of their labour contract
following Article 48 of the Labour Code.
3.15 Provisions
Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
The share of post-acquisition profit/(loss) of the associates is estimate can be made of the amount of the obligation.
presented on face of the consolidated income statement and its
share of post-acquisition movements in reserves is recognised When the Group expects some or all of a provision to be
in reserves. The cumulative post-acquisition movements are reimbursed, for example under an insurance contract, the
adjusted against the carrying amount of the investment. reimbursement is recognised as a separate asset but only when
Dividend/profit sharing received or receivable from associates the reimbursement is virtually certain. The expense relating to
reduces the carrying amount of the investment.
any provision is presented in the consolidated income statement
net of any reimbursement.
The financial statements of the associates are prepared for the
same reporting year as the Group. Where necessary, adjustments If the effect of the time value of money is material, provisions
are made to bring the accounting policies in line with those of are discounted using a current pre tax rate that reflects, where
the Group.
appropriate, the risks specific to the liability. Where discounting
is used, the increase in the provision due to the passage of time
Investments in securities and other investments
is recognised as a finance cost.
The Group maintains the financial reserve fund which is
appropriated from the Group’s net profit as proposed by the
Board of Directors and subject to approval by shareholders at
the annual general meeting. This fund is set aside to protect the
Group’s normal operations from business risks or losses, or to
prepare for unforeseen losses or damages for objective reasons
and force majeure, such as fire, economic and financial turmoil
of the country or elsewhere.
as the excess of selling prices against the cost of securities sold.
Such gain is recognised on the trading date when the relevant
contracts are executed.
3.19 Advances from customers
Dividends
3.14 Accrual for severance pay
Net profit after tax (excluding unrealised exchange gains as at the
balance sheet date) is available for appropriation to shareholders
The severance pay to employee is accrued at the end of each after approval in the annual general meeting, and after making
reporting year for all employees who have more than 12 months appropriation to reserve funds in accordance with the Company’s
in service up to the reporting date at the rate of one-half of Charter and the Vietnamese regulatory requirements.
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Vingroup Joint Stock Company | Annual Report 2014
Revenue is recognised as the interest accrues (taking into account
the effective yield on the asset) unless collectability is in doubt.
Down payments from customers for the purchase of residential Income is recognised when the Group’s entitlement as an investor
properties in the future that do not meet the conditions for to receive the dividend is established.
revenue recognition, are recognized and presented as “Advances
from customers” in the liability section of the consolidated 3.21 Taxation
balance sheet.
Current income tax
Payments received from customers under deposit, loan and other
agreements are recognized and presented as “Other short-term Current income tax assets and liabilities for the current and prior
payables” in the liability section of the consolidated balance years are measured at the amount expected to be paid to (or
recovered from) the taxation authorities. The tax rates and tax
sheet.
laws used to compute the amount are those that are enacted
as at the consolidated balance sheet date.
3.20 Revenue recognition
Revenue is recognised to the extent that it is probable that
the economic benefits will flow to the Group and the revenue
can be reliably measured regardless of when payment is being
made. Revenue is measured at the fair value of the consideration
received, excluding discounts, rebates, and sales taxes or duty.
The following specific recognition criteria must also be met
before revenue is recognised:
Revenue from sale of inventory property
Investments in securities and other investments are stated at 3.16 Foreign currency transactions
their acquisition costs.
Transactions in currencies other than the Group’s reporting
currency of VND are recorded at the exchange rates ruling
Provision for diminution in value of investments
at the date of the transaction. At the end of the year, monetary
Provision is made for any diminution in value of the marketable assets and liabilities denominated in foreign currencies
investments at the balance sheet date in accordance with the are translated at buying exchange rate announced by the
guidance under the Circular No. 228/2009/TT-BTC dated 7 commercial bank where the Group maintains bank accounts
December 2009 and the Circular No. 89/2013/TT-BTC dated 28 at the balance sheet date. All realised and unrealised foreign
June 2013 issued by Ministry of Finance. Increases and decreases exchange differences are taken to the consolidated income
to the provision balance are recorded as finance expense in the statement.
consolidated income statement.
3.17 Treasury shares
3.13 Payables and accruals
Own equity instruments which are reacquired (treasury shares)
Payables and accruals are recognised for amounts to be paid are recognised at cost and deducted from equity. No gain or
in the future for goods and services received, whether or not loss is recognised in profit or loss upon purchase, sale, issue or
billed to the Group. Payables to contractors are recorded based cancellation of the Group’s own equity instruments.
on interim work certificates between two parties, regardless of
whether or not billed to the Group.
3.18 Appropriation of net profits
Interest
Current income tax is charged or credited to the consolidated
income statement, except when it relates to items recognised
directly to equity, in which case the current income tax is also
dealt with in equity.
Current income tax assets and liabilities are offset when there
is a legally enforceable right for the Group to set off current tax
assets against current tax liabilities and when the Group intends
to settle its current tax assets and liabilities on a net basis.
Revenue from sale of inventory property is recognised when Deferred income tax
the significant risks and rewards of ownership of the properties
have passed to the buyer.
Deferred tax is provided using the liability method on temporary
differences at the consolidated balance sheet date between the
tax base of assets and liabilities and their carrying amount for
Revenue from leasing of investment properties
financial reporting purposes.
Rental income arising from leased investment properties is
accounted for on a straight line basis over the lease terms of Deferred tax liabilities are recognised for all taxable temporary
differences, except:
ongoing leases.
Sale of goods
Revenue is recognised when the significant risks and rewards of
ownership of the goods have passed to the buyer, usually upon
the delivery of the goods.
Rendering of services
Revenue from hotel, amusement park, education, hospital,
beauty, property management and other related services is
recorded when the services are rendered.
• Where the deferred tax liability arises from the initial
recognition of an asset or liability in a transaction which
at the time of the related transaction affects neither the
accounting profit nor taxable profit or loss;
• In respect of taxable temporarily differences associated with
investments in subsidiaries and associates, and interests in
joint ventures where timing of the reversal of the temporary
difference can be controlled and it is probable that the
temporary difference will not reverse in the foreseeable
future.
Gains from securities trading/capital transfer
Deferred tax assets are recognised for all deductible temporary
differences, carried forward unused tax credit and unused tax
Gains from securities trading and capital transfer are determined losses, to the extent that it is probable that taxable profit will
Vingroup Joint Stock Company | Annual Report 2014
105
VAS consolidated financial statements
be available against which deductible temporary differences, International Financial Reporting Standards on presentation
carried forward unused tax credit and unused tax losses can and disclosures of financial instruments (“Circular 210”) are
be utilised, except:
classified, for disclosures in the notes to the consolidated financial
statements, as financial assets at fair value through profit or loss,
• Where the deferred tax asset in respect of deductible held-to-maturity investments, loans and receivables or availabletemporary difference which arises from the initial for-sale financial assets as appropriate. The Group determines
recognition of an asset or liability which at the time of the classification of its financial assets at initial recognition.
the related transaction, affects neither the accounting
profit nor taxable profit or loss;
All financial assets are recognised initially at cost plus directly
attributable transaction costs.
• In respect of deductible temporarily differences associated
with investments in subsidiaries, associates, and interests The Group’s financial assets include cash, cash equivalents, shortin joint ventures, deferred tax assets are recognised only to term deposits, trade and other receivables, loan receivables,
the extent that it is probable that the temporary differences quoted and unquoted financial instruments.
will reverse in the foreseeable future and taxable profit
will be available against which the temporary differences Financial liabilities
can be utilised.
Financial liabilities within the scope of Circular 210 are classified,
The carrying amount of deferred income tax assets is reviewed for disclosures in the notes to the consolidated financial
at each balance sheet date and reduced to the extent that statements, as financial liabilities at fair value through profit
it is no longer probable that sufficient taxable profit will be or loss or financial liabilities measured at amortised cost as
available to allow all or part of the deferred income tax asset to appropriate. The Group determines the classification of its
be utilised. Previously unrecognised deferred income tax assets financial liabilities at initial recognition.
are re assessed at each balance sheet date and are recognised
to the extent that it has become probable that future taxable All financial liabilities are recognised initially at cost plus directly
profit will allow the deferred tax assets to be recovered.
attributable transaction costs.
Notes to the consolidated financial statements
convertible bonds. This amount is classified as a financial liability
measured at amortised cost (net of transaction costs) until it
is extinguished on conversion or redemption. The remainder
of the proceeds is allocated to the conversion option that is
recognised and included in shareholders’ equity. Transaction
costs are deducted from equity, net of associated income tax.
The carrying amount of the conversion option is not re-measured
in subsequent years.
Transaction costs are apportioned between the liability and
equity components of the convertible bond based on the
allocation of proceeds to the liability and equity components
when the instruments are initially recognised.
In 2012, the Group issued US$300 million convertible bonds with
a term of 5 years (Note 27.2). Management has assessed that
there is no equity component in these convertible bonds (since
there is no known fixed number of shares to be converted on
issue date) and as a result, has recognized the entire convertible
bonds as financial liabilities.
Deferred income tax assets and liabilities are measured at the The Group’s financial liabilities include trade and other payables,
tax rates that are expected to apply in the period when the asset accruals, corporate bonds, convertible bonds, convertible loans,
realised or the liability is settled based on tax rates and tax laws other loans and borrowings.
that have been enacted at the consolidated balance sheet date.
Financial instruments – subsequent re-measurement
Deferred tax is charged or credited to the consolidated income
statement, except when it relates to items recognised directly There is currently no guidance in relation to subsequent
to equity, in which case the deferred tax is also dealt with in re-measurement of financial instruments in Circular 210.
the equity account.
Accordingly, financial instruments are subsequently carried
at cost.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right for the Group to off-set current tax assets Offsetting of financial instruments
against current tax liabilities and when they relate to income
taxes levied by the same taxation authority on:
Financial assets and financial liabilities are offset and the net
amount reported in the consolidated balance sheet if, and only if,
• Either the same taxable entity; or
there is a currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis, or to
• When the Group intends either settle current tax liabilities realise the assets and settle the liabilities simultaneously.
and assets on a net basis or to realise the assets and settle
the liabilities simultaneously, in each future period in which 3.23 Convertible bonds
significant amounts of deferred tax liabilities or assets are
expected to be settled or recovered.
Bonds that are convertible by the holder into a fixed number of
ordinary shares of the entity are separated into financial liability
3.22 Financial instruments
(a contractual arrangement to deliver cash or another financial
asset) and equity instrument (a call option granting the holder
Financial instruments – initial recognition and presentation the right, for a specified period of time) based on the terms of
the contract. In cases where the numbers of ordinary shares
to be converted is not fixed, the entire convertible bonds are
Financial assets
classified as a financial liability.
Financial assets within the scope of the Circular No.210/2009/
TT-BTC issued by the Ministry of Finance on 6 November On issuance of the convertible bonds, the fair value of the liability
2009 providing guidance for the adoption in Vietnam of the component is determined using a market rate for equivalent non-
106
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
107
VAS consolidated financial statements
Notes to the consolidated financial statements
On 1 July 2014, the General Meeting of Shareholders of Tan Lien
Phat JSC, a subsidiary, has issued the Decision No. 05/2014/QDDHDCD-TLP approving the increase of its charter capital from
VND 500 billion to VND 5,800 billion through the issuance of
ordinary shares to existing shareholders in proportion to their
interest ownership.
4. Significant acquisitions and disposals
4.1 Significant acquisitions
Currency: VND
Acquisition of Vincom Construction LLC, a new subsidiary
On 8 January 2014, the Group acquired 100% equity interest
in Vincom Construction LLC and thereby, Vincom Construction
LLC became a subsidiary of the Group.
Vincom Construction was established in Vietnam in accordance
with the Business Registration Certificate No. 0103012410 issued
by the Hanoi Department of Planning and Investment on 31 May
2006 and the Business Registration Certificate No. 0101959829
re-issued on 16 September 2010. The principal activities of
Vincom Construction LLC are civil constructions, architecture and
related technical consultancy, supervision and quality inspection.
The Group has acquired Vincom Construction LLC in order to
enhance its capacity in managing and supervising real estate
projects of the Group.
The fair value of the identifiable net assets and liabilities of
Vincom Construction LLC as at the date of the acquisition is
presented as table beside:
Fair value
recognized on
acquisition date
Assets
Cash and cash equivalents
14,441,090,352
Inventories
34,952,847,681
Other current assets
696,494,538
Fixed assets
242,247,369
Other non-current assets
443,052,420
Short term investments
Liabilities
Trade payables
Other payables
Fair value of net assets
Minority interests
The profit before tax of Vincom Construction LLC for the period
from the date of acquisition to 31 December 2014 is VND 89.5
billion.
Acquisition of additional equity interest in Tan Lien Phat
JSC, a new subsidiary
On 25 February 2014, the Group completed the acquisition of an
additional 30% of the voting shares of Tan Lien Phat JSC with total
cash consideration of VND1,266 billion. In combination with 30%
of the voting shares of Tan Lien Phat JSC held by Vincom Retail
JSC, a subsidiary, whose carrying value at acquisition date was
VND1,266 billion, the Group took control over Tan Lien Phat JSC.
Management has reviewed and assessed that the acquisition of
Tan Lien Phat JSC is the acquisition of a group of assets, rather
than a business acquisition. Accordingly, the total consideration
paid was allocated to the assets acquired based on their fair
value on acquisition date, with the remaining consideration
being allocated to the land development right and recorded
in construction in progress. The minority interests were also
recognised at their relative proportion of the interest in the assets
acquired. These assets are presented in the same categories
as other similar assets held by the Group in the consolidated
statement of financial position.
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Vingroup Joint Stock Company | Annual Report 2014
81,500,000,000
133,090,602,393
Accrued expenses
Total consideration of the acquisition was VND 120 billion which
was fully paid in cash.
814,870,033
Receivables
Goodwill arising on combination
Total consideration paid
20,100,999,108
1,827,785,022
11,161,818,263
100,000,000,000
20,000,000,000
120,000,000,000
Cash flow on acquisition
Net cash acquired with the subsidiary
Cash paid
Net cash flow on acquisition
814,870,033
120,000,000,000
119,185,129,967
Management has reviewed and assessed that the acquisition
of Riverview Danang LLC is the acquisition of a group of
assets, rather than a business acquisition. Accordingly, the
total consideration for this acquisition was allocated to the
assets acquired based on their fair value on acquisition date,
with the remaining consideration being allocated to the
value of the land rental right and recorded in construction
in progress. The minority interests were also recognised at their
relative proportion of the interests in the assets acquired. These
assets are presented in the same categories as other similar
assets held by the Group in the consolidated balance sheet.
On 21 August 2014, the General Meeting of Shareholders of Tan
Lien Phat JSC, a subsidiary, has issued the Decision No. 09/2014/
QD-DHDCD-TLP approving the increase of its charter capital from
VND 5,800 billion to VND 6,550 billion through the issuance of
ordinary shares to existing shareholders in proportion to their
interest ownership.
Acquisition of additional voting shares of Sai Dong JSC, an
existing subsidiary
On 15 August 2014 and 27 November 2014, the Group completed
the acquisition of additional 5% and 10% of the voting shares
of Tan Lien Phat JSC with considerations of VND459 billion and
VND1,600 billion, respectively. Accordingly, the Group’s equity
interest in this entity increased to 74.38%. The total difference of
VND17.8 billion and VND498.6 billion between the considerations
paid and the value of the additional net assets acquired from
minority interests was recognised as finance income in the
consolidated income statement (see Note 30.2) and goodwill
in the consolidated balance sheet (see Note 20), respectively.
On 18 August 2014, the Group acquired an additional 20% of
voting shares of Sai Dong JSC from a corporate counterparty. This
transaction increased the equity interest of the Group in this Sai
Dong JSC to 94%. This transaction also indirectly increased the
equity interest of the Group in a number of other subsidiaries.
The cash consideration for this transaction is VND565 billion and
total carrying value of the equity interest acquired was VND603
billion. The difference of VND861 billion between the total of (i)
such consideration and (ii) VND899 billion being the adjustment
Acquisition of Metropolis LLC, a new subsidiary
for the share of consideration to minority interests when Sai
Dong JSC acquired 44.9% equity interest in Hanoi South JSC,
On 12 August 2014, the Group acquired 100% of the voting another subsidiary, in previous years and the carrying value of
shares of Metropolis LLC from a corporate counterparty and the equity interest acquired was recognised as goodwill in the
individuals with total consideration of VND1,622 billion and consolidated balance sheet (see Note 20).
thereby, Metropolis LLC became a subsidiary of the Group.
Metropolis LLC is in the progress of developing a potential real Acquisition of Hong Ngan JSC, a new subsidiary
estate project on a land plot of 31,072 sqm in Thao Dien ward,
district 2, Hochiminh city, Vietnam.
On 10 September 2014, the Group acquired 99% of the
voting shares of Hong Ngan JSC from individuals with total
Management has reviewed and assessed that the acquisition of consideration of VND2,316 billion and thereby, Hong Ngan
Metropolis LLC is the acquisition of a group of assets, rather than a JSC became a subsidiary of the Group. Hong Ngan JSC is in the
business acquisition. Accordingly, the total consideration for this progress of developing a potential real estate project on a land
acquisition was allocated to the assets acquired based on their plot of 151,569 sqm in Cau Dien ward, Nam Tu Liem district,
fair value on acquisition date, with the remaining consideration Hanoi, Vietnam.
being allocated to the value of the land use right with definite
term and recorded in construction in progress. The minority Management has reviewed and assessed that the acquisition
interests were also recognised at their relative proportion of of Hong Ngan JSC is the acquisition of a group of assets,
the interest in the assets acquired. These assets are presented rather than a business acquisition. Accordingly, the total
in the same categories as other similar assets held by the Group. consideration for this acquisition was allocated to the assets
acquired based on their fair value on acquisition date, with
Acquisition of Riverview Danang LLC, a new subsidiary
the remaining consideration being allocated to the value of
the land development right and recorded in construction
On 13 August 2014, the Group completed the acquisition of in progress. The minority interests were also recognised at their
90% of the voting shares of Riverview Danang LLC with total relative proportion of the interests in the assets acquired. These
consideration of VND182.2 billion. Accordingly, Riverview Danang assets are presented in the same categories as other similar
LLC became a subsidiary of the Group. Riverview Danang LLC assets held by the Group in the consolidated balance sheet.
is in the progress of developing a potential real estate project
on a land plot of 20,707 sqm in Ngo Quyen street, An Hai Bac Acquisition of Vinmart JSC, a new subsidiary
ward, Son Tra district, Da Nang, Vietnam.
On 7 October 2014, the Group acquired 70% of voting shares of
Ocean Retail & Assets Management Joint-stock Company (“ORC
Vingroup Joint Stock Company | Annual Report 2014
109
VAS consolidated financial statements
JSC”) from a corporate party with total consideration of VND 560 Total consideration of the acquisition was VND560 billion which
billion. Consequently, ORC JSC became a new subsidiary of the was fully paid in cash.
Group and was renamed to Vinmart JSC.
The loss before tax of Vinmart JSC for the period from the date
Principal activities of Vinmart JSC are to retail goods in of acquisition to 31 December 2014 is VND93 billion.
supermarkets and specialized stores. Vinmart JSC is currently
operating a chain of 13 supermarkets and convenience stores Acquisition of additional equity interest in Viettronics Land
located in Hanoi and other provinces in the North. The Group JSC, an existing subsidiary
has acquired Vinmart JSC as part of its strategy of penetrating
in the retail business.
On 4 November 2014, the Group acquired an additional 16%
of the voting shares of Viettronics Land JSC from individuals.
The fair value of the identifiable assets and liabilities of Vinmart This transaction increased the equity interest of the Group
JSC as at the date of acquisition were:
in Viettronics Land JSC to 98.08%. Total consideration for this
transaction was VND400.8 billion and total carrying value of the
equity interest acquired was VND401.4 billion. The difference of
Currency: VND VND0.6 billion between the consideration and the carrying value
of the equity interest acquired was recognised as finance income
Fair value
in the consolidated balance sheet (see Note 30.2).
recognized on
acquisition
Assets
Notes to the consolidated financial statements
Acquisition of Khanh Gia JSC, a new subsidiary
Total consideration of the acquisition was VND783.7 billion
which was fully paid in cash.
On 12 December 2014, the Group acquired 94% of the voting
shares of Khanh Gia JSC with total consideration of VND783 The loss before tax of Khanh Gia JSC for the period from the date
billion. Accordingly, Khanh Gia JSC became a subsidiary of the of acquisition to 31 December 2014 is VND222 million.
Group.
4.2 Significant disposals
The principal activities of Khanh Gia JSC are investing, developing
and leasing retail space. The Group has acquired Khanh Gia as Partial disposal of equity interest in Sai Dong JSC, an
existing subsidiary
part of its strategy of expanding property leasing activities.
The fair value of the identifiable assets and liabilities of Khanh In April 2014, the Group disposed of 5% of the voting shares of
Gia JSC as at the date of acquisition were:
Sai Dong JSC, an existing subsidiary and thereby, reduced its
equity interest in this subsidiary to 74%. This transaction also
indirectly reduced the equity interest of the Group in a number
Currency: VND of other subsidiaries.
Fair value
recognized on
acquisition
Assets
Cash and cash equivalents
77,976,795,197
Cash and cash equivalents
9,560,663,550
Trade and other receivables
144,875,930,227
Trade and other receivables
10,089,500,747
Inventories
119,846,573,783
Advance to suppliers
26,739,737,958
52,244,474,369
Other current assets
20,865,947,368
Other current assets
Fixed assets
Construction in progress
328,590,273,218
3,244,925,454
Other long-term investments
207,939,183,333
Other long-term assets
179,407,714,671
Fixed assets
34,747,626
Construction in progress
602,433,027,000
Investment properties
132,300,000,000
802,023,624,249
1,114,125,870,252
Liabilities
Short-term borrowings
92,400,000,000
264,623,916,786
Trade and other payables
11,830,967,250
2,785,833,180
Advance from customers
12,782,270,425
Liabilities
Trade and other payables
Other long-term payables
Long-term borrowings
Total identifiable net assets at fair value
838,000,000,000
8,716,120,286
Other payables
Deferred tax liabilities
Total identifiable net assets at fair value
Minority interests
Goodwill arising on acquisition
Purchase consideration transferred
The total consideration for this disposal was VND187 billion and
the carrying value of the disposed net asset of the Group in Sai
Dong JSC and a number of other subsidiaries as at disposal date
was VND384 billion. The difference of VND197 billion between
the consideration and the carrying value of the equity interest
disposed was recognised in the consolidated income statement.
Disposal of Viet Thanh – Sai Dong Limited Liability
Company (“Viet Thanh – Sai Dong LLC”)
On 9 July 2014, the Group disposed of the entire 73.51% equity
interest in Viet Thanh – Sai Dong LLC to individuals for the
consideration of VND167 billion. The difference of VND88 billion
between the consideration and the carrying value of the equity
interest disposed was recognised in the consolidated income
statement (Note 30.2).
7,728,664,927
77,223,969,218
600,057,752,429
2,614,836,086
553,898,715,800
560,000,000,000
Minority interests
Goodwill arising on acquisition
Purchase consideration transferred
36,003,465,146
219,657,806,517
783,712,093,800
Cash flow on acquisition
Net cash acquired with the subsidiary
Cash paid
Net cash flow on acquisition
77,976,795,197
560,000,000,000
482,023,204,803
Cash flow on acquisition
Net cash acquired with the subsidiary
Cash paid
Net cash flow on acquisition
110
Vingroup Joint Stock Company | Annual Report 2014
9,560,663,550
783,712,093,800
774,151,430,250
Vingroup Joint Stock Company | Annual Report 2014
111
VAS consolidated financial statements
5. Cash and cash equivalents
Notes to the consolidated financial statements
8. Other receivables
Currency: VND
Ending balance
Beginning balance
Cash on hand
9,220,874,607
3,734,876,934
Cash in banks
1,697,280,782,527
826,463,507,347
Cash equivalents
5,897,835,897,588
6,703,850,319,014
3,176,164,951
-
7,607,513,719,673
7,534,048,703,295
Cash in transit
TOTAL
Cash equivalents represent deposits at banks
in VND with terms of 1 month to 3 months and
earn interest at rates ranging from 4% to 7.5%
per annum.
Currency: VND
Ending balance
Beginning balance
-
360,000,000,000
(i) This is a dividend advanced to a related party
and was collected in the year (Note 37).
428,978,175,621
262,930,214,880
Dividend advanced to a related
party (i)
-
205,200,000,000
Receivables from State Budget
(ii)
(ii) The receivable from the State Budget as of
31 December 2013 is related to the cessation
of a potential project in Hochiminh City and
was fully collected in the year.
-
800,000,000,000
36,115,522,222
-
Others
161,109,376,144
220,435,643,877
TOTAL
626,203,073,987
1,848,565,858,757
625,477,109,487
1,632,135,173,957
725,964,500
216,430,684,800
Receivables from disposal of the
investment in an associate
Interest receivables
Dividend receivable
6. Short-term investments
Currency: VND
Ending balance
Beginning balance
3,516,847,342,390
3,929,051,166,950
497,621,378,611
-
2,026,383,376,327
1,454,775,074,182
Current portion of loans to
customers (Note 17.2)
82,578,564,022
148,531,872,120
Loans to related parties
(Note 37)
16,204,181,818
98,181,818
105,781,413,500
32,369,112,000
Short-term deposits (i)
Current portion of bank deposits
(Note 17.2)
Loans to others (ii)
(i) Short-term deposits as of 31 December 2014
include deposits at banks with terms of more
than 3 months which earn interest at rates
ranging from 4% to 7.5% per annum.
(ii) Loans to others as of 31 December 2014
represents unsecured loans to corporate
counterparties which earn interest at rates
ranging from 10% to 18% per annum.
In which:
Other receivables
Other receivables from related
parties (Note 37)
9. Inventories
Currency: VND
Ending balance Beginning balance
Short-term investments in listed
securities
Completed inventory properties
2,983,199,417,908
82,135,723,455
12,981,426,785,251
18,747,390,465,018
25,068,106,693
19,481,411,812
233,060,588,602
59,341,273,203
Tools and equipment
84,779,811,576
14,129,048,644
Goods in transit
14,404,215,653
178,034,228
331,307,723,610
-
16,653,246,649,293
18,922,655,956,360
(54,895,665,767)
(8,938,534,347)
16,598,350,983,526
18,913,717,422,013
Inventory properties under construction
Total short-term investments
6,245,416,256,668
Provision for diminution in
short-term investments
TOTAL
(77,245,017,700)
6,168,171,238,968
5,564,825,407,070
(51,984,372,442)
5,512,841,034,628
Materials for construction
Inventories for hospital, supermarket and
retail outlets
Others
7. Trade receivables
Currency: VND
Ending balance
Beginning balance
Receivables from sale of inventory
properties
454,239,396,887
406,263,089,905
Receivables from leasing activities and
rendering related services
222,450,897,154
391,312,752,468
Receivables from rendering hotel,
amusement park and related services
46,193,370,495
32,837,034,046
Receivables from rendering hospital and
related services
24,415,240,296
43,616,926,983
Receivables from sale of goods in
supermarkets and retail outlets
2,824,255,316
215,135,830
Receivables from rendering education and
related services
2,969,286,736
32,177,197
79,909,019,463
32,306,194,167
Other receivables
TOTAL
Net value of inventories
833,001,466,347
906,583,310,596
Trade receivables
669,871,388,587
898,600,737,662
Receivables from related parties (Note 37)
163,130,077,760
7,982,572,934
In which:
112
Provision for obsolete inventories
Vingroup Joint Stock Company | Annual Report 2014
10. Short-term prepaid expenses
See Note 25 and 27 for the details of
inventory property used as collaterals
for borrowings and corporate bonds of
the Group.
Currency: VND
Ending balance
Beginning balance
Bond issue costs
9,303,353,064
2,970,617,785
Selling expenses related to apartments not
yet handed over
1,645,051,805
16,498,231,735
Expenses for tools and equipment
92,926,354,559
48,579,300,709
Prepaid interest expense
20,667,325,201
19,965,840,294
Others
51,225,322,493
24,981,890,113
TOTAL
175,767,407,122
112,995,880,636
Vingroup Joint Stock Company | Annual Report 2014
113
VAS consolidated financial statements
Notes to the consolidated financial statements
11. Other current assets
Advances to employees
Deposits for investment purpose (i)
Currency: VND
Ending balance
Beginning balance
13,722,309,095
10,636,708,629
783,166,666,670
2,832,200,000,000
Short-term deposits (ii)
64,258,393,012
880,071,194,016
Others current assets
21,671,511,814
-
882,818,880,591
3,722,907,902,645
882,818,880,591
3,522,907,902,645
-
200,000,000,000
TOTAL
In which:
Other current assets
Current assets from related parties (Note 37)
(i) Deposits for investment purpose are for
acquiring shares in other entities. As at 31
December 2013, deposits for investment
purpose also comprised a deposit of VND1,100
billion for securing the right to participate in
a potential real estate in Hung Yen province
which were reclassified to other long-term
assets (Note 19)
(ii) As at 31 December 2013, short-term deposits
mainly comprised an escrow amount of US$40
million deposited at Credit Suisse AG, Singapore
Branch (“Credit Suisse”) and being used as a
security for Credit Suisse for certain equity
swap agreements that Credit Suisse has entered
into with certain holders of the convertible
bonds issued by the Company in July 2012. The
Company fully collected this escrow amount
in the year.
12. Tangible fixed asset
Currency: VND
Buildings & construction
Machinery & equipment
Motor vehicles
Office equipment
Others
Total
Beginning balance
4,155,350,273,457
2,038,258,860,738
278,817,951,977
74,705,585,423
160,440,672,762
6,707,573,344,357
Additions
3,652,750,991,892
1,435,644,969,003
101,567,627,249
224,478,632,429
47,146,964,536
5,461,589,185,109
134,868,671,202
306,799,804,727
36,008,467,458
141,887,630,980
8,083,838,520
627,648,412,887
Cost:
In which:
Newly purchased
2,401,018,889,735
813,977,927,716
47,388,164,894
10,787,736,189
39,063,126,016
3,312,235,844,550
Transfer from investment properties
Newly constructed
904,766,093,193
268,431,766,003
-
-
-
1,173,197,859,196
Acquisition of subsidiary
212,097,337,762
46,435,470,557
18,170,994,897
71,803,265,260
-
348,507,068,476
(1,552,011,922)
(28,712,158,488)
(6,241,661,323)
(3,861,532,704)
(2,868,721,240)
(43,236,085,677)
(1,552,011,922)
(21,533,068,491)
(5,695,211,605)
(3,037,926,115)
(2,804,235,304)
(34,622,453,437)
-
(7,179,089,997)
(546,449,718)
(823,606,589)
(64,485,936)
(8,613,632,240)
7,806,549,253,427
3,445,191,671,253
374,143,917,903
295,322,685,148
204,718,916,058
12,125,926,443,789
456,933,838
62,300,427,417
2,449,384,871
16,762,570,592
9,868,886,654
91,838,203,372
Beginning balance
357,427,839,275
525,501,233,125
84,023,346,967
43,277,952,981
51,626,331,789
1,061,856,704,137
Addition
173,501,116,186
295,221,630,250
37,297,138,360
25,743,490,150
21,494,213,751
553,257,588,697
500,519,874,509
Decreases
In which:
Sold, disposed
Other reductions
Ending balance
In which:
Fully depreciated
Accumulated depreciation:
In which:
151,422,776,935
275,376,977,743
34,735,280,394
17,490,625,686
21,494,213,751
Transfer from investment properties
Depreciation for the year
11,774,974,420
16,327,268,784
-
-
-
28,102,243,204
Acquisition of subsidiary
10,303,364,831
3,517,383,723
2,561,857,966
8,252,864,464
-
24,635,470,984
(1,246,974,349)
(9,796,988,243)
(2,293,132,776)
(1,408,738,073)
(782,757,253)
(15,528,590,694)
(1,246,974,349)
(9,056,304,475)
(2,056,504,302)
(663,365,240)
(748,185,864)
(13,771,334,230)
Decreases
In which:
Sold, disposed
Other reductions
-
(740,683,768)
(236,628,474)
(745,372,833)
(34,571,389)
(1,757,256,464)
529,681,981,112
810,925,875,132
119,027,352,551
67,612,705,058
72,337,788,287
1,599,585,702,140
Beginning balance
3,797,922,434,182
1,512,757,627,613
194,794,605,010
31,427,632,442
108,814,340,973
5,645,716,640,220
Ending balance
7,276,867,272,315
2,634,265,796,121
255,116,565,352
227,709,980,090
132,381,127,771
10,526,340,741,649
Ending balance
Net carrying amount:
114
Vingroup Joint Stock Company | Annual Report 2014
See Note 27 for the details of tangible
fixed assets used as collaterals for
borrowings and corporate bonds of
the Group.
Vingroup Joint Stock Company | Annual Report 2014
115
VAS consolidated financial statements
Notes to the consolidated financial statements
13. Intangible fixed assets
Currency: VND
Indefinite land
use right
Definite land
use right
Land rental right (i)
Project development
right (ii)
Copyrights
Computer software
Total
51,430,769,964
173,065,510,181
184,938,875,055
136,500,000,000
2,172,915,416
28,824,444,649
576,932,515,265
-
31,547,071,966
-
-
407,648,545
22,743,887,597
54,698,608,108
-
31,547,071,966
-
-
407,648,545
15,317,702,141
47,272,422,652
-
-
-
-
-
7,426,185,456
7,426,185,456
(14,302,800,000)
(3,450,784,900)
-
-
-
(736,610,583)
(18,490,195,483)
Cost:
Beginning balance
Additions
In which:
Newly purchased
Acquisition of subsidiary
Decreases
In which:
Sold, disposed
-
-
-
-
-
(736,610,583)
(736,610,583)
(14,302,800,000)
(3,450,784,900)
-
-
-
-
(17,753,584,900)
37,127,969,964
201,161,797,247
184,938,875,055
136,500,000,000
2,580,563,961
50,831,721,663
613,140,927,890
-
-
-
-
68,643,000
12,382,479,903
12,451,122,903
Beginning balance
-
12,679,496,345
40,887,073,429
-
1,706,280,517
17,168,479,298
72,441,329,589
Addition
-
4,674,087,681
9,217,901,051
-
359,510,828
9,209,914,495
23,461,414,055
Amortization for the year
-
4,674,087,681
9,217,901,051
-
359,510,828
7,845,223,769
22,096,723,329
Acquisition of subsidiary
-
-
-
-
-
1,364,690,726
1,364,690,726
-
(2,424,791,152)
-
-
-
(704,304,313)
(3,129,095,465)
Transfer to construction in progress
Ending balance
In which:
Fully depreciated
Accumulated amortization:
In which:
Decreases
In which:
Sold, disposed
-
-
-
-
-
(704,304,313)
(704,304,313)
Transfer to construction in progress
-
(2,424,791,152)
-
-
-
-
(2,424,791,152)
-
14,928,792,874
50,104,974,480
-
2,065,791,345
25,674,089,480
92,773,648,179
Beginning balance
51,430,769,964
160,386,013,836
144,051,801,626
136,500,000,000
466,634,899
11,655,965,351
504,491,185,676
Ending balance
37,127,969,964
186,233,004,373
134,833,900,575
136,500,000,000
514,772,616
25,157,632,183
520,367,279,711
Ending balance
Net carrying amount:
(i) This is land rental right incurred when the Group invested in Hai
Phong Land LLC in 2009.
(ii) This is project development right incurred when Vinpearl JSC invested
in Hon Mot JSC in 2010.
See Note 27 for the details of intangible fixed assets used as collaterals
for borrowings and corporate bonds of the Group.
116
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
117
VAS consolidated financial statements
Notes to the consolidated financial statements
14. Construction in progress
15. Investment properties
Currency: VND
Ending balance
Beginning balance
Vinhomes Central Park project
2,663,931,085,123
-
Vinhomes Nguyen Chi Thanh – Ha Noi project
1,315,763,194,052
2,753,337,185,551
Vincom Megamall Thao Dien project
1,623,262,808,291
-
Green City project
943,994,136,107
-
Vinhomes Times City project
784,581,629,027
939,734,920,148
Vincom Thu Duc project
602,433,027,000
-
Can Tho project
501,086,251,562
-
Xavinco project
442,467,019,372
441,076,325,736
Vinpearl Quy Nhon project
377,985,958,115
342,456,728,761
Lang Van project
232,705,632,840
105,544,108,578
Vinpearl Phu Quoc project
222,041,798,848
41,244,521,584
Vinhomes Riverside project
173,608,954,750
403,742,203,923
Land use right
Building and structures
Machinery and
equipment
Total
Beginning balance
2,454,317,955,619
9,606,573,191,831
2,087,781,697,133
14,148,672,844,583
Additions
2,580,784,033,702
1,562,412,159,950
188,547,987,934
4,331,744,181,586
Cost:
In which:
Newly purchased
2,430,156,177,446
380,267,626,406
4,116,837,145
2,814,540,640,997
Transfer from
construction in
progress
78,153,695,008
1,075,345,656,634
184,431,150,789
1,337,930,502,431
Acquisition of
subsidiary
72,474,161,248
106,798,876,910
-
179,273,038,158
(189,815,489,180)
(1,552,978,033,130)
(400,397,944,172)
(2,143,191,466,482)
(122,823,022,524)
(692,026,165,903)
(131,966,178,171)
(946,815,366,598)
(66,992,466,656)
(837,773,626,537)
(268,431,766,001)
(1,173,197,859,194)
-
(23,178,240,690)
-
(23,178,240,690)
4,845,286,500,141
9,616,007,318,651
1,875,931,740,895
16,337,225,559,687
Decreases
In which:
Disposals
Vinpearl Premium Nha Trang Bay project
168,844,771,919
-
Vincom Center Da Nang project
154,536,473,549
-
Tay Ho View project
136,450,339,308
117,428,351,772
An Giang project
101,750,000,000
-
E-commerce project
96,888,466,776
-
Future Property Invest project
85,922,322,766
84,767,670,050
Accumulated
amortization:
Vinpearl Hoi An project
77,195,990,564
72,919,202,464
Beginning balance
80,576,420,451
241,036,416,788
198,325,637,716
519,938,474,955
Ho Tay project
73,828,685,818
42,348,897,818
Addition
52,881,740,049
213,582,683,692
191,806,801,978
458,271,225,719
Reclassification to fixed
assets
Other decreases
Ending balance
Vinpearl Ha Long project
67,929,253,870
-
In which:
Vinmec project
65,900,291,896
-
23,203,364,160
196,288,021,423
191,806,801,978
411,298,187,561
Vinpearl Premium Golf Land and Vinpearl Spa
project
Amortization for the
year
62,659,288,859
-
29,678,375,889
17,294,662,269
-
46,973,038,158
Hon Mot project
57,259,570,979
27,694,769,417
Acquisition of
subsidiary
Vincom Hai Phong project
33,642,217,961
16,620,436,143
(5,271,853,461)
(16,603,309,217)
(18,250,202,835)
(40,125,365,513)
Vinpearl Cam Ranh project
16,793,310,727
-
-
(10,100,188,265)
(1,922,934,051)
(12,023,122,316)
(5,271,853,461)
(6,503,120,952)
(16,327,268,784)
(28,102,243,197)
128,186,307,039
438,015,791,263
371,882,236,859
938,084,335,161
Beginning balance
2,373,741,535,168
9,365,536,775,043
1,889,456,059,417
13,628,734,369,628
Ending balance
4,717,100,193,102
9,177,991,527,388
1,504,049,504,036
15,399,141,224,526
Vinpearl Nha Trang – Dolphin performance
area
-
25,410,059,929
Others
189,525,789,653
159,581,542,974
TOTAL
11,272,988,269,732
5,573,906,924,848
Construction in progress for inventory property is presented See Note 27 for details of construction in progress used as
in Note 9.
collaterals for borrowings and corporate bonds of the Group.
118
Currency: VND
Vingroup Joint Stock Company | Annual Report 2014
Decreases
In which:
Disposals
Reclassification to fixed
assets
Ending balance
Net carrying amount:
Vingroup Joint Stock Company | Annual Report 2014
119
VAS consolidated financial statements
So sánh Kết quả hoạt động kinh doanh giữa VAS và IFRS
15. Investment properties (continued)
As at 31 December 2014, the market value of the Group’s investment properties is determined as follows:
• By an independent valuer per its draft reports:
Investment properties
• Estimated by the Group:
VND Billion
Vincom Center Ba Trieu – Tower A & B
(retail component)
1,931
Vincom Center Ba Trieu – Tower C (retail
component)
1,210
Vincom Center Dong Khoi (office
component)
4,654
Vincom Center Dong Khoi (retail
component)
4,716
Vincom Center Long Bien
353
Vinhomes Riverside project (school
component)
245
Royal City project (school component)
132
Vinpearlland Amusement Park
Investment properties
VND Billion
Residential apartments at Royal City project
under long-term lease contract
2,234
Villas at Vinhomes Riverside Eco-urban Area
2,810
Land use right and assets on the land of residential apartments of
Vinhomes Royal City project under a long-term lease contract are
being used as collaterals for the loan of a corporate counterparty.
See Note 27 for details of remaining investment properties
used as collaterals for borrowings and corporate bonds of
the Group.
60
Vincom Mega Mall Royal City
5,299
Vincom Mega Mall Times City
2,420
Vincom Center Ha Long
343
307-309 Vo Van Ngan
132
The Group is proud to set the standard for private
enterprises, built by Vietnamese people and
marked by traditional Vietnamese characteristics
of intelligence, daring and ambition.
16. Capitalized borrowing costs
During the year, the Group capitalised borrowing costs amounting to VND617,501,738,772 (2013: VND1,495,120,954,681).These
costs related to borrowings made generally and specifically to finance the real estate projects of the Group.
The amount of borrowing costs of general borrowings eligible for capitalisation is determined by applying capitalisation rates
ranging from 7.00% to 15.55% (2013: from 13.00% to 19.78%) to the accumulated weighted average expenditure of the real estate
projects. The capitalization rates used are the weighted average of the borrowing costs applicable to the general borrowings of
the Group that are outstanding during the year.
17. Long-term investments
Currency: VND
Note
Ending balance
Opening balance
Investment in associates
17.1
1,030,494,731,370
1,829,738,207,290
Other long-term investments
17.2
Total long term investments
Provision for other long-term
investments
120
Vingroup Joint Stock Company | Annual Report 2014
3,921,649,610,843
2,705,645,119,316
4,952,144,342,213
4,535,383,326,606
(3,000,000,000)
(3,000,000,000)
4,949,144,342,213
4,532,383,326,606
Vingroup Joint Stock Company | Annual Report 2014
121
VAS consolidated financial statements
Notes to the consolidated financial statements
17.1 Investment in associates
Currency: VND
Hanoi Breed JSC
Foreign Trade JSC
Green City
JSC
Thang Long JSC
Eight Lions
JSC
Vien Dong Pearl LLC
Tan Lien Phat JSC
Total
-
12,687,104,718
669,324,368,968
19,815,115,758
27,911,617,846
-
1,100,000,000,000
1,829,738,207,290
48,027,183,334
-
246,500,000,000
-
9,000,000,000
6,000,000,000
166,666,666,665
476,193,849,999
-
665,585,470
27,197,650,951
844,710,147
(36,911,617,846)
108,844,987
-
(8,094,826,291)
(675,832,963)
-
-
-
-
-
-
(675,832,963)
-
-
-
-
-
-
(1,266,666,666,665)
(1,266,666,666,665)
47,351,350,371
13,352,690,188
943,022,019,919
20,659,825,905
-
6,108,844,987
-
1,030,494,731,370
As at 1 January 2014
Increase during the year
Share in profit/ (loss)
Amortisation of goodwill
Reclassify to investment into
subsidiaries (Note 4.1)
As at 31 December 2014
The information on these associates, along with the Company’s voting rights and equity interest in each associate are as follows:
17.2 Other long-term investment
No
1
Name
Foreign Trade Concrete JSC
(“Foreign Trade JSC”)
Voting
Equity
rights (%) interest (%)
30.00
Head office
Principal activities
30.00
Floor 1, 35 – 37 Chuong
Duong Port, Nguyen
Thai Binh Ward, District 1,
Hochiminh City
Manufacturing and trading
concrete
Green City Development JSC
(“Green City JSC”)
49.10
47.66
No. 72 Le Thanh Ton, Ben
Nghe Ward, District 1,
Hochiminh City
Real estate development
3
Thang Long Real Estate Trading
Investment JSC (“Thang Long
JSC”)
35.00
35.00
No. 191 Ba Trieu,Hai Ba Trung
District, Hanoi
Real estate development
4
Vien Dong Pearl Urban
Development Investment
Company Limited (“Vien Dong
Pearl LLC”)
45.00
No. 72 Le Thanh Ton, Ben
Nghe Ward, District 1,
Hochiminh City
26.32
No. 77 Le Hong Phong,
Nguyen Trai Ward, Ha Dong
District, Hanoi
Hanoi Breeds JSC
Loans to related parties
45.00
37.60
Number of shares
904,533,000,000
904,533,000,000
117,578,059,260
185,531,367,356
In which: current portion of loans to customers
(Note 6)
(82,578,564,022)
(148,531,872,120)
939,532,495,238
1,181,532,495,236
1,093,496,443,945
1,093,496,443,945
12,400,000,000
12,400,000,000
Thanh Nien Media JSC
8/3 Investment JSC
Breeding livestock
3,000,000,000
3,000,000,000
Bank for Investment and Development of Vietnam
-
73,412,301,500
Thanh Nien Real Estate JSC
-
56,016,217,443
3,000,000,000
3,000,000,000
Beginning balance
Value Number of shares
The Vietnam National Textile and Garment Group
551,685,000,000
-
Ocean Thang Long JSC
152,000,000,000
-
1,815,581,443,945
1,241,324,962,888
-
266,500,000,000
1,664,157,050,271
16,287,661,192
Value
Hanoi Breed JSC
676,800
47,351,350,371
-
-
Foreign Trade JSC
900,000
13,352,690,188
900,000
12,687,104,718
73,650,000
943,022,019,919
49,000,000
669,324,368,968
1,750,000
20,659,825,905
1,750,000
19,815,115,758
Long-term bank deposits
-
4,900,000
27,911,617,846
In which: current portion of bank deposits (Note 6)
(*)
6,108,844,987
-
-
-
-
15,000,000
1,100,000,000,000
76,976,800
1,030,494,731,370
71,550,000
1,829,738,207,290
Eight Lions JSC (i)
Vien Dong Pearl LLC
Tan Lien Phat JSC
(*) This is a limited liability company.
(i) On 24 May 2014, the Group disposed of its 49% equity interest in
Eight Lions JSC and together with the establishment of New Eight Lions
LLC on 19 May 2014 for the purpose of purchasing inventories, fixed
assets and operating rights from Eight Lions JSC, these transactions
have been assessed as the acquisition of a business. A goodwill of VND
122
240,000,000,000
Loans to individuals (i)
Ecology Developing Investment JSC
Real estate development
Currency: VND
TOTAL
-
Investment in unquoted shares
Ending balance
Thang Long JSC
Beginning balance
Loans to customers(ii)
Thuan Phong Energy Development JSC
Green City JSC
Ending balance
Long-term loans
2
5
Currency: VND
Vingroup Joint Stock Company | Annual Report 2014
100 billion arising from this transaction is recognized and presented in
Note 20. This amount of goodwill has been provisionally recognized in
the 2014 consolidated financial statement as the Group is in the process
of determining the fair value of net asset acquired.
Other long-term investments
Business Co-operation Contract with Green City
TOTAL
(i) Including loans provided to individuals for purchasing shares of Green
City JSC. These loans have a term of 3 years starting from 25 July 2013
and earn interest at rate based on the weighted average borrowing cost
of the Group. The collateral for these loans is the shares of Green City
JSC purchased by these individuals.
(497,621,378,611)
-
1,166,535,671,660
282,787,661,192
3,921,649,610,843
2,705,645,119,316
(ii) Long-term loans to others represent loans provided to tenants at trade
centers of the Group with original terms of 3 years and earn interest at
rates ranging from 10% to 25% per annum. These loans are pledged
either by the shares of the tenant held by its major shareholders or by
all assets and inventories in tenants’ stores.
Vingroup Joint Stock Company | Annual Report 2014
123
VAS consolidated financial statements
Notes to the consolidated financial statements
17.2 Other long-term investments (continued)
Investment in unquoted shares and other long-term investments
Details of the Group’s investments in other entities as at 31 December 2014 are as follows:
Ending balance
Number of
shares
18. Long-term prepaid expenses
Opening balance
Equity Value
interest (%)
Number of
shares
Equity Value
interest (%)
Ecology
Investment and
Development JSC
80,470,000
18.25
1,093,496,443,945
80,470,000
18.25
1,093,496,443,945
Thanh Nien Media
JSC
400,000
3.87
12,400,000,000
400,000
3.87
12,400,000,000
8/3 Investment
JSC
300,000
10.00
3,000,000,000
300,000
10.00
3,000,000,000
Bank for
Investment and
Development of
Vietnam
-
-
-
4,410,767
0.16
73,412,301,500
-
-
5,600,000
10.57
56,016,217,443
300,000
3.00
3,000,000,000
300,000
3.00
3,000,000,000
The Vietnam
National Textile
and Garment
Group
50,000,000
10.00
551,685,000,000
-
-
-
Ocean Thang
Long JSC
15,200,000
13.10
152,000,000,000
-
-
-
TOTAL
Ending balance
Beginning balance
Bonds issue costs and loan arrangement fees
595,884,775,537
611,948,422,558
Prepaid land rentals
193,397,545,649
174,253,985,665
Selling expenses for apartments not yet
handed over
124,072,317,512
89,515,586,247
13,927,460,074
12,322,441,075
Selling expenses related to leasing activities
Mock houses
Thanh Nien Land
JSC
Thuan Phong
Energy
Development JSC
Currency: VND
1,519,226,771
13,390,059,518
42,770,778,456
194,811,641,748
Tools and equipment
558,191,520,089
84,308,274,233
Pre-operating expenses
Corporate income tax prepayment
136,731,575,820
746,564,124
Prepaid rental fee for supermarket areas
34,668,669,724
-
Other long-term prepaid expenses
68,909,531,872
14,174,439,337
1,770,073,401,504
1,195,471,414,505
TOTAL
146,670,000
1,815,581,443,945
91,480,767
1,241,324,962,888
19. Other long-term assets
Currency: VND
Ending balance
Deposits for investment purpose (i)
4,800,000,000,000
-
99,679,218,417
-
922,872,835
730,784,217
4,900,602,091,252
730,784,217
Long-term deposits for rental of retail outlets
Other long-term assets
TOTAL
Beginning balance
(i) Including deposits for:
•
•
124
Vingroup Joint Stock Company | Annual Report 2014
Securing the right to participate in a potential real estate project
in Hung Yen province;
Investing in a potential real estate project in Long Bien district,
Hanoi; and
•
Purchasing retail space in a potential real estate project in Cau
Giay district, Hanoi.
Vingroup Joint Stock Company | Annual Report 2014
125
VAS consolidated financial statements
Notes to the consolidated financial statements
20. Goodwill
Currency: VND
Goodwill on
acquisition of
Hanoi South JSC
Goodwill on
acquisition of
PFV JSC
Goodwill on
acquisition of
Sai Dong JSC
(Note 4)
Goodwill on
acquisition of
Royal City JSC
Goodwill on
acquisition of
Vinpearl Da
Nang LLC
Goodwill on
acquisition of
Vincom
Long Bien LLC
Goodwill on
Goodwill on
acquisition of acquisition of
Tan Lien Phat JSC Eight Lions JSC
(Note 4)
(Note 17,1)
Goodwill on
acquisition
of Vincom
Construction
(Note 4)
Goodwill on
acquisition of
Vinmart JSC
(Note 4)
Beginning
balance
2,385,114,095,843
567,441,137,177
1,484,234,497,977
1,262,707,762,179
233,207,819,085
33,000,000,000
-
Additions
-
-
861,522,988,666
-
-
-
Disposed
(139,092,042,084)
-
(93,934,195,332)
-
(11,815,234,273)
Ending balance
2,246,022,053,759
567,441,137,177
2,251,823,291,311
1,262,707,762,179
Goodwill on
Goodwill on
acquisition of acquisition of
Khanh Gia JSC Ocean Express
(Note 4)
JSC
Total
-
-
-
-
-
5,965,705,312,261
498,584,453,672
100,000,000,000
20,000,000,000
553,898,715,800
219,657,806,517
4,532,698,829
2,258,196,663,484
-
-
-
-
-
-
-
(244,841,471,689)
221,392,584,812
33,000,000,000
498,584,453,672
100,000,000,000
20,000,000,000
553,898,715,800
219,657,806,517
4,532,698,829
7,979,060,504,056
Cost:
Accumulated amortisation:
Beginning
balance
479,832,254,464
129,344,976,352
199,227,295,472
286,018,188,090
65,170,404,238
2,200,000,000
-
-
-
-
-
-
1,161,793,118,616
Amortization
228,869,472,956
53,856,285,189
173,524,383,344
126,270,776,218
23,320,781,910
3,300,000,000
4,154,870,447
19,444,444,444
2,000,000,000
13,050,764,263
1,143,424,198
106,797,836
649,042,000,805
Disposed
(30,883,852,648)
-
(15,348,439,396)
-
-
-
-
-
-
-
-
-
(46,232,292,044)
Ending balance
677,817,874,772
183,201,261,541
357,403,239,420
412,288,964,308
88,491,186,148
5,500,000,000
4,154,870,447
19,444,444,444
2,000,000,000
13,050,764,263
1,143,424,198
106,797,836
1,764,602,827,377
Beginning
balance
1,905,281,841,379
438,096,160,825
1,285,007,202,505
976,689,574,089
168,037,414,847
30,800,000,000
-
-
-
-
-
-
4,803,912,193,645
Ending balance
1,568,204,178,987
384,239,875,636
1,894,420,051,891
850,418,797,871
132,901,398,664
27,500,000,000
494,429,583,225
80,555,555,556
18,000,000,000
540,847,951,537
218,514,382,319
4,425,900,993
6,214,457,676,679
Net carrying amount:
126
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
127
VAS consolidated financial statements
Notes to the consolidated financial statements
21. Short-term loans
Currency: VND
Ending balance
Current portion of long-term corporate
bonds (Note 27.2)
Current portion of long-term loans from
banks (Note 27.1)
Short-term convertible loans (i)
Others (ii)
TOTAL
23. Statutory obligations
Beginning balance
Ending balance
Beginning balance
Corporate income tax (Note 36.1)
503,959,105,076
896,557,840,180
Value added tax payable
128,974,462,211
162,109,926,290
25,209,166,721
9,760,917,781
371,099,590,034
1,036,404,229,407
Others
7,862,005,712
2,932,117,437
TOTAL
1,037,104,329,754
2,107,765,031,095
-
2,250,000,000,000
1,198,994,605,718
369,483,285,606
Personal income tax
Property tax, land use fees and land rental
fees payable
-
368,987,500,000
122,200,000,000
35,000,000,000
1,321,194,605,718
3,023,470,785,606
1,311,194,605,718
3,023,470,785,606
10,000,000,000
-
Currency: VND
In which
Short-term loans
Short-term loans from related parties (Note 37)
(i) These are convertible loans from Credit Suisse and Warburg Pincus
as presented in Note 27.1. On 11 July 2014, the Group has completed
necessary procedures to extend the term of these loans to 2019.
(ii) Including an unsecured loan from an individual who bought villas at
Phu Quy villas project with the amount of VND32 billion (interest rate
of 2% per annum), an unsecured short-term loan from an individual
with the amount of VND80.2 billion (interest rate of 7.5% per annum)
and from a related party with the amount of VND 10 billion (interest
rate of 7% per annum).
22. Advance from customers
Currency: VND
Ending balance
Beginning balance
Down payment from customers under real
estate sale and purchase agreements
3,299,807,295,074
11,686,251,139,746
Advance from customers under other
contracts
3,281,471,567,064
4,463,793,282,988
7,908,840,017
27,902,954,317
3,110,184,032,352
4,293,845,278,053
Advance from customers for purchase of
resettlement apartments
Advance from long-term lease contract for
apartments (i)
Advance from hospitality services
113,443,693,274
125,847,866,400
Advance from hospital services
17,150,880,830
15,286,940,003
Advance from education services and
others
32,784,120,591
910,244,215
TOTAL
6,581,278,862,138
16,150,044,422,734
24. Accrued expenses
Ending balance
Beginning balance
Accrual for bond and loan interests
1,371,617,698,518
1,267,702,309,535
Accrual for construction costs
1,254,563,464,393
864,555,492,034
709,720,429,437
869,496,711,976
Accrual for future costs of properties sold
Accrual for severance allowance
Accrual for warranty cost of inventories sold
Other accrued expenses
TOTAL
Advance from customers
Advance from related parties (Note 37)
(i) This represents an advance under the Apartment Long-term Lease
Contract signed between Royal City JSC and a corporate customer on
1 August 2013 with term of 50 years since the contract date. In case of
16,125,987,481,196
5,305,702,116
24,056,941,538
finding customers who have demand of purchasing apartments, this
contract will be amended or terminated.
9,675,868,647
-
200,769,427,750
80,509,909,570
3,645,659,661,277
3,091,940,291,762
Currency: VND
Ending balance
Beginning balance
Payment from customers under deposit, loan
and other agreements (i)
7,847,174,664,786
88,740,877,355
Other short – term payables
2,486,768,475,822
1,013,058,482,282
Deferred revenue to be realised within the
next 12 months (Note 26)
502,313,840,716
300,336,578,824
Deposits from tenants to be refunded
within the next 12 months (Note 26)
126,677,298,798
76,495,457,781
Payables for investment activities (ii)
494,312,091,675
92,592,000,000
Collection on behalf
150,466,699,390
197,481,558,063
38,062,015,345
21,328,124,997
6,572,609,862
5,542,117,918
Payable to customers due to cancelation of
contracts
104,206,086,965
6,729,628,926
Apartment maintenance fund hold on
behalf of customers
604,895,150,936
299,276,623,131
Payable to customer due to amendments of
the lease contract (Note 22)
271,317,937,777
-
Other payables
187,944,744,358
13,276,392,642
10,333,943,140,608
1,101,799,359,637
10,332,020,042,258
1,085,453,547,978
1,923,098,350
16,345,811,659
Social insurance payables
6,575,973,160,022
9,361,134,677
99,627,506,502
25. Other short-term payables
Dividends payable
In which:
Currency: VND
TOTAL
In which:
Other short-term payables
Other short-term payables to related parties
(Note 37)
128
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
129
VAS consolidated financial statements
Notes to the consolidated financial statements
27. Long-term loans and debts
25. Other short-term payables (continued)
Currency: VND
Notes
Ending balance
Beginning balance
Long-term loans
27.1
10,980,994,453,392
5,847,125,072,771
Corporate bonds
27.2
21,033,824,713,709
18,513,039,421,637
32,014,819,167,101
24,360,164,494,408
(i) Including:
•
•
A deposit of VND2,400 billion from a corporate customer which
bears interest at rate of 6% per annum. This deposit is secured by
assets legally owned by the Company (or owned by third parties
if having the agreement).
•
A number of land parcels of Vinpearl Premium Nha Trang
Bay Project and future assets attached to these land parcels;
• A number of apartments to be formed in the future of Vinhomes
Central Park Project with total ground floor area of 17,869.5 m2.
(ii) Including deposits from third parties for acquiring investments of
Deposits with total amount of VND4,916 billion from corporate the Group.
counterparties under Deposit Agreements for the purpose of signing
Investment Cooperation Contract in relation to the development
of the Group’s real estate projects. Following terms of Deposit
Agreements, the Group has used the following assets as collaterals
for borrowings of these counterparties from banks:
27.1 Long-term loans
Lender
Note
Bank for Investment and Development of
Vietnam – Quang Trung Branch
27.1.1
In which: current portion
Bank for Investment and Development of
Vietnam – Khanh Hoa Branch
26. Other long-term liabilities
Deferred revenue
In which: Deferred revenue to be realised within the next 12 months
(Note 25)
Deposits from tenants
Deposits from tenants to be refunded within the next 12 months (Note
25)
Currency: VND
Ending balance
Beginning balance
1,814,169,164,331
1,087,903,139,336
(401,487,780,110)
(199,510,518,218)
1,412,681,384,221
888,392,621,118
In which: current portion
Joint Stock Commercial Bank for Foreign
Trade of Vietnam
27.1.4
In which: current portion
(147,363,803,718)
(147,363,803,719)
187,869,966,672
271,050,790,168
(70,950,552,000)
(83,328,126,005)
3,970,000,000,000
1,095,000,000,000
(195,000,000,000)
-
2,027,296,322,565
423,863,549,615
(64,274,000,000)
(138,791,355,882)
Saigon Thuong Tin Joint Stock Commercial
Bank
27.1.5
1,771,617,555,000
-
-
527,125,000,000
(126,677,298,798)
(76,495,457,781)
Convertible loan
27.1.7
427,500,000,000
-
International syndicated loan
27.1.8
3,206,250,000,000
3,162,750,000,000
(721,406,250,000)
-
10,980,994,453,392
5,847,125,072,771
Long-term loans
12,179,989,059,110
6,216,608,358,377
Current portion (Note 21)
(1,198,994,605,718)
(369,483,285,606)
4,872,741,323,233
In which: Deferred revenue to be realised within the next 12 months
(Note 25)
(100,826,060,606)
(100,826,060,606)
41,562,659,358
976,054,358
6,413,683,795,382
6,023,851,978,161
In which: current portion
In which
27.1.1 Loan from Bank for Investment and Development of Vietnam – Quang Trung Branch
In which:
(i) Including deferred revenue and advance from a customer with the
amount of VND159 billion and VND4,612 billion, respectively under the
Office Lease Contract signed between Times Trading LLC and a corporate
27.1.3
736,819,018,594
27.1.6
4,771,915,262,626
Other long-term liabilities to related parties
Vietnam Joint Stock Commercial Bank for
Industry and Trade
589,455,214,873
VIAC No. 1 Limited
Payment under the office lease contract at Vincom Center Dong
Khoi (i)
Other long-term liabilities
In which: current portion
Beginning balance
439,063,497,839
362,568,040,058
TOTAL
27.1.2
Ending balance
415,027,848,581
288,350,549,783
Other long term liabilities
Currency: VND
6,413,683,795,382
6,020,428,093,634
-
3,423,884,527
customer on 5 July 2013 with a duration from the starting date (being
the date of completing prerequisites by parties as stated in the lease
contract) to 20 February 2058.
Details of loans Bank for Investment and Development of Vietnam – Quang Trung Branch are as follows:
Contract number
Maturity date
Interest rate
VND
(% per annum)
01/2012/2390074/HĐTD
589,455,214,873
18 January 2019
12-month VND saving rate (interest paid
in arrears) for individual customers
plus 4,5%
In which: current portion
(147,363,803,718)
Total
31 December 2014
442,091,411,155
This loan is secured by the land use right and the assets on the land, real estates, medical equipment of Vinmec International General Hospital
at No.458, Minh Khai street, Vinh Tuy ward, Hai Ba Trung district, Hanoi.
130
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
131
VAS consolidated financial statements
Notes to the consolidated financial statements
(i) This loan is secured by:
27.1.2 Bank for Investment and Development of Vietnam – Khanh Hoa Branch
• All properties of Vinhomes Riverside project developed and owned by Sai Dong JSC, a subsidiary, including all upgrades
and other assets already constructed, or to be formed in future, excluding the villa area, the E3, E6, G1, G2 and a part of G3
area, excluding Vincom Center Long Bien;
Details of loans from Bank for Investment and Development of Vietnam – Khanh Hoa Branch are as follows:
Contract number
(i)
02/2006/HDTD dated 17 April 2006
In which: current portion
(ii)
(iii)
31 December 2014
USD
VND
499,331
10,675,686,945
(200,400)
(4,284,552,000)
02/2006/HDTD dated 17 April 2006
133,267,851,466
In which: current portion
(53,166,000,000)
04/2007/HDTD dated 7 April 2007
43,926,428,261
In which: current portion
Maturity date
Interest rate
12 March 2017
Fixed rate 6.5%
12 March 2017
12-month VND
savings rate + 4%
15 August 2017
12-month VND
savings rate + 4%
(13,500,000,000)
TOTAL
• Assets on the land at E3 area of Vinhomes Riverside project owned by a company under common owner with the Company;
(% per annum)
• Land use right for the 145 ha of land at Vinhomes Riverside project (equivalent to the whole project area excluding the
villas) but do not include E3, E6, G1, G2 and a part of G3 areas. All assets formed by the expenditures of project, including
but are not limited to machineries and other assets;
• All asset rights, benefits, compensation and other payments in relation to Vinhomes Riverside project at present and in
the future;
• 20,096,805 shares of Vingroup JSC owned by a subsidiary (Note 28.4);
• Land use right and assets on the land at No.7 Tran Phu street, Nha Trang city, Khanh Hoa province in accordance with
116,919,414,672
Certificate of Land use right No. BA171887 owned by Hon Mot JSC; and
• All rights arising from the transfer agreement of land use rights with attached infrastructure between Sai Dong JSC and a
In which:
Long-term loans
187,869,966,672
Current portion
(70,950,552,000)
number of secondary investors.
(ii) This loan is secured by all asset rights, benefits, compensation and other payments in relation to Vinhomes Central Park project
at present and in the future, excluding those collateral assets presented in Note 25.
These loans are secured by 15,760,918 Vingroup shares owned by Vinpearl JSC and 8,031,080 Vingroup shares owned by Vinpearl
Hoi An LLC as disclosed in Note 28.4.
27.1.4 Joint Stock Commercial Bank for Foreign Trade of Vietnam
27.1.3 Vietnam Joint Stock Commercial Bank for Industry and Trade
Details of loans from Joint Stock Commercial Bank for Foreign Trade of Vietnam are as follows:
Details of loans from Vietnam Joint Stock Commercial Bank for Industry and Trade are as follows:
Contract number
Contract number
(i)
01/2011/HDTD-SAIDONG
In which: current portion
(ii)
01/2014-HDTDDA/NHCT106TANLIENPHAT
TOTAL
31 December 2014
Maturity date
Interest rate
VND
(% per annum)
1,095,000,000,000
Reference interest rate + 5,5% and does
not exceed the cap for lending rate
regulated by State Bank of Vietnam and
Vietinbank
10 November 2018
USD
(i)
(ii)
2,875,000,000,000
25 November 2021
272,507,336,900
In which: current portion
(60,000,000,000)
01/2010/HDTD/VCB-VPLDN dated
27 August 2010
(iii)
01/2014/HDTD/HGM.VCB-VPLPQ
dated 13 May 2014
TOTAL
Borrowings
3,970,000,000,000
In which: current portion
(195,000,000,000)
12,740,735,019
(200,000)
(4,274,000,000)
1,742,048,250,646
Current portion
Vingroup Joint Stock Company | Annual Report 2014
Interest rate
(% per annum)
17 September 2020
12-month VCB
saving rate + 4,0%
17 September 2020
12-month VCB
saving rate + 3,2%
30 May 2029
From first day of
disbursement to
the end of 2014:
fixed rate 10,5%.
From 1 Jan 2015:
12-month VCB
saving rate + 3,5%
1,963,022,322,565
In which:
Long-term loans
132
596,197
3,775,000,000,000
In which:
Maturity date
VND
01/2010/HDTD/VCB-VPLDN dated
27 August 2010
In which: current portion
(195,000,000,000)
Reference interest rate + 3,5% and does
not exceed the cap for lending rate
regulated by State Bank of Vietnam and
Vietinbank
31 December 2014
2,027,296,322,565
(64,274,000,000)
Vingroup Joint Stock Company | Annual Report 2014
133
VAS consolidated financial statements
Notes to the consolidated financial statements
27.1.6 Convertible loan with VIAC No.1 Limited Liability
Company (“VIAC No. 1”)
The loans contract No.01/2010/HDTD/VCB-VPLDN are secured by the land use right and the assets on the land of the Vinpearl
Da Nang project owned by Vinpearl Da Nang LLC.
As at 31 December 2014, the Group has the following domestic
This represents a convertible loan of US$25 million from VIAC bonds:
No. 1 Limited Liability Company (“VIAC No. 1). This loan has a
term of 4 years, with maturity date at 30 June 2016, bearing an
• The first bond has a book value of VND2,000 billion
initial interest rate of 6% per annum. This convertible loan had
consisting of 2,000 bonds, (of which 1,000 bonds issued
been early settled in the year.
on 28 August 2012 with 4.5 years to maturity date and
1,000 bonds issued on 18 October 2012 with 3.5 years
27.1.7 Convertible loan with Credit Suisse and Warburg
to maturity date) with floating interest rate, equal to the
Pincus
highest paid-in-arrears saving account in VND rates of
Vietinbank (+) other cost of capital (+) 6% per annum.
These are loans from Credit Suisse and Warburg Pincus under
Convertible loans Agreement between Vincom Retail JSC, a
This type of bond is secured by assets owned by subsidiaries,
subsidiary and these counterparties in 2013 and 2014 with
including (i) all apartments of 2 towers T12, T15; (ii) 2 office
the amount of US$17.5 million and US$2.5 million, equivalent
towers T13, T26; (iii) 2 schools at T35, T36 at the Vinhomes
to VND368,987,500,000 and VND58,512,500,000 respectively.
Times City Project; (iv) 384 apartments at the Vinhomes
These convertible loans bear an interest rate of 8.75% per annum
Royal City Project along with upgrade projects associated
and have collaterals as presented in Note 1 which can be fully
with these apartments at the present time or in the future;
or partially converted into preference shares of Vincom Retail
(v) Land lot No. 02 under the map No. 96 with area of
JSC during the period beginning three months after the earlier
108,070m2, land lot No. 02 under the map No. 95 with
to occur of (i) the completion date of issuing preference shares
area of 45,002m2 at Hoa Hai ward, Ngu Hanh Son district,
of Vincom Retail JSC to Credit Suisse and Warburg Pincus; and
Da Nang city, all assets formed and to be formed on and
(ii) 31 March 2014.
related to these lands; (vi) Land lot No. 01 under the map
No. 171/2014/TD.BD with area of 4,302m2, land lot No. 01
27.1.8 International syndicated loan
under the map No. 172/2014/TD.BD with area of 6,949m2,
land lot No. 01 under the map No. 173/2014/TD.BD with
area of 2,137.7m2 at An Vien project, Vinh Nguyen ward,
In October 2013, the Company entered into an international
Nha Trang city, all assets formed and to be formed on and
syndicated loan contract with the amount of US$150 million,
bearing an interest rate of LIBOR + 5.5% per annum. Payment
related to these lands; (vii) Land lot with area of 151,362.5m2
for principal of this loan divided into 7 instalments, starting from
at Area 7, Hon Tre Island, Vinh Nguyen ward, Nha Trang city,
18th month to 36th month from date of disbursement. Collaterals
all assets formed and to be formed on and related to these
for these loans include: (i) shares of Vincom Retail JSC owned
lands including construction work for 6-star Luxury hotel,
by the Group and (ii) 24,926,673 shares of the Company held
Spa Luxury complex, other supporting components, and
by other entities (Note 28.4). A part of this loan with the value
other rights, benefit related to the land and its associated
of VND721 billion is presented in short-term loans;
assets; and (viii) Land lots from No. 01 to No. 29 under the
map No. 00 at Phuoc Hai Unit, Cua Dai ward, Hoi An city with
total area of 69,455m2, all assets formed and to be formed
27.2 Corporate bonds
including 5-star hotel area and 18 villas, and other rights,
Currency: VND
benefit related to these lands and their associated assets.
The loans under contract 01/2014/HDTD/HGM.VCB-VPLPQ are secured by:
• The right, ownership and benefits of an owner in the
relation to its charter capital contribution in Vinpearl Phu
Quoc LLC;
• Any dividends announced by Vinpearl Phu Quoc LLC but
not yet paid to an owner;
• The construction works of Project Stage 1 of the Vinpearl
Phu Quoc project (“Project Stage 1”), including but not
limited to the villa, the hotel, golf course and other areas
with other real estate properties which are built, upgraded,
bought, associated or permanently located in or with the
villa, the hotel, golf course, other areas and/or in the land
at present and in the future;
• Pledged assets under loan contract No 01/2010/HDTC/
VCB-VPLDN (“Primary contract”) dated 6 September 2010
and appendix PL01-01/2014/HDTC/VCB.HGM-VPLDN after
releasing from all liabilities associated to the Primary
contract.
• The mortgage contracts (i.e. contracts, agreements or
contracts, the villa rental contracts, management contracts
which have binding effect of Vinpearl Phu Quoc LLC on
and after the date of the Credit agreement), along with
the entire accounts receivable and contract rights arising
from the mortgage contracts;
• The entire rental and other fees that customers or users of
services in the components of Stage 1 Project have to pay;
• Insurance contracts and proceeds from insurance contracts;
• The entire bank accounts and their balances;
• All approvals are issued now or in the future for the benefit
of Vinpearl Phu Quoc LLC;
• Machineries and equipment owned by Vinpearl Phu Quoc
LLC;
• Intellectual property rights, and all other intangible
assets of Vinpearl Phu Quoc LLC not belong to intellectual
property rights.
documents relating to the design, execution, purchase,
supply, construction, installation, testing, maintenance,
technology transfer, marketing, management and
operation of the Project Stage 1, including the reservation
27.1.5 Saigon Thuong Tin Joint Stock Commercial Bank (“Sacombank”)
Details of loans from Saigon Thuong Tin Joint Stock Commercial Bank are as follows:
Contract number
LD1413500066 dated 15 May 2014
TOTAL
Ending balance Beginning balance
Maturity date
Interest rate
VND
(% per annum)
1,771,617,555,000
23 May 2019
In the first 12 months from disbursement:
11,5% per annum. From the 13th month:
Interest rate + 4% per annum.
31 December 2014
1,771,617,555,000
Collateral for the loan includes property rights arising from the sales contracts of 156 villas at Vinhomes Riverside owned by
Vinhomes LLC and conveyance instruments of the sales contract of villas.
Domestic
corporate bonds
issued
In which:
current
portion (Note
21)
International
corporate bonds
issued
In which:
current
portion
International
convertible
bonds
13,300,000,000,000
10,300,000,000,000
-
(2,250,000,000,000)
4,245,424,713,709
4,179,709,421,637
-
-
3,488,400,000,000
6,283,330,000,000
Vingroup Joint Stock Company | Annual Report 2014
• The second bonds has a book value of VND2,000 billion
consisting of 2,000 bonds, issued on 2 April 2013 (of which
1,000 bonds with 3 years to maturity date and 1,000 bonds
with 5 years to maturity date) with floating interest rate,
equal to the average individual 12-month savings account
rate of BIDV, Vietinbank, Vietcombank, and Vietnam Bank
for Agriculture and Rural Development (“Agribank”) (+)
5.5% per annum.
This type of bond is secured by: (i) the asset on the land of
Vincom Mega Mall Royal City including parking areas; (ii)
Vincom Mega Mall Royal City’s revenue account and (iii)
incomes and benefits arising from employing the assets
on the land;
• The third bonds has a book value of VND2,300 billion
21,033,824,713,709
134
Domestic corporate bonds
27.1.4 Joint stock commercial Bank for Foreign Trade of Vietnam (continued)
18,513,039,421,637
consisting of 23,000 bonds, issued on 27 September 2013
with a maturity term of 3 years. Interest rate applied in the
Vingroup Joint Stock Company | Annual Report 2014
135
VAS consolidated financial statements
first and second interest-bearing periods is 13% per annum
These bonds are unsecured, bearing fixed interest rate of
and in subsequent periods, interest rate is determined by
11.625% per annum and the interest is paid twice a year.
the average paid-in-arrears 12-month saving interest in
VND announced by BIDV (No. 1 Center Transaction branch), International convertible bonds
Agribank (Transaction Center), Vietinbank (Hanoi branch)
and Vietcombank (Transaction Center) (+) 5% per annum.
• Convertible bonds with the face value of US$300 million
are issued in April and July 2012 with a term of 5 years.
These bonds are secured by land use right and the asset
This type of bonds is unsecured, bearing fixed interest rate
on the land of retail component of Vincom Ba Trieu –
of 5% per annum. Under the terms of these convertible
Tower A and B including parking areas, Vincom Center
bonds, the bondholders have the right to convert the bonds
Ba Trieu – Tower C including parking areas and Vincom
into ordinary shares of the Company in accordance with
the rates may be adjusted annually on 3 October, from 3
Center Long Bien.
October 2012 to 3 October 2016.
• The fourth bond has a book value of VND 4,000 billion
consisting of 400,000 bonds, issued on 11 February 2014
In 2014, bondholders converted US$134.8 million of these
with a maturity term of 5 years. Interest rate applied in the
bonds to 72,220,196 ordinary shares of the Company with
first and second interest-bearing periods is 11% per annum
the conversion price of VND60,000 per share up to 29
and in subsequent periods, interest rate is determined by
August 2014 and of VND39,000 from thereon. The balance
the average paid-in-arrears 6-month saving interest in
of these bonds as at 31 December 2014 is US$163.2 million.
VND announced by 4 reference banks including Agribank,
Vietinbank, BIDV and Vietcombank (+) 4% per annum.
The Group issued these type of bonds to meet the demand
for working capital as well as investment capital in real
This type of bond is secured by trading center, service and
estate projects and other projects.
underground parking of Vincom Center Dong Khoi Tower.
• The fifth bond has a book value of VND 3,000 billion
So sánh Kết quả hoạt động kinh doanh giữa VAS và IFRS
As a leading private group that successfully
balances sustainable and dynamic development
in Vietnam, Vingroup has the potential to
achieve leadership at the regional and
international levels.
consisting of 300,000 bonds, issued on 8 September 2014
with a maturity term of 5 years. Interest rate applied in the
first and second interest-bearing periods is 11% per annum
and in subsequent periods, interest rate is determined by
the average paid-in-arrears 6-month saving interest in
VND announced by 4 reference banks including Agribank,
Vietinbank, BIDV and Vietcombank (+) 4% per annum.
This type of bond is secured by assets owned by subsidiaries,
including (i) land lot No. 00 CC-1 and CC-2 (KT-A Area) at
the An Vien project, Vinh Nguyen – Vinh Truong ward, Nha
Trang city, Khanh Hoa province with total area of 3,997m2;
(ii) land lot No. 01 under the map No. 673/2011/TD.BD at
Hon Tre Island, Vinh Nguyen ward, Nha Trang city, Khanh
Hoa province with area of 1,327,037m2; (iii) other land lots
with total area of 138,795.5m2 at Bai Tru, Vung Me, Hon
Tre Island, Vinh Nguyen ward, Nha Trang city, Khanh Hoa
province; (iv) all associated assets on land of VAP Project
and 5-star hotel Project (including montaged land) which
are not exclusively reserved for Vinpearl Luxury Nha Trang
and Villas area at Hon Tre island, Nha Trang city, Khanh
Hoa province; (v) all asset rights (excluding assets right
related to Vinpearl Luxury Nha Trang Project and Villas
area), trade receivables account, intellectual property and
other intangible assets, benefit on warranty and related
assets right, machines and equipment, and all other rights,
benefit, reimbursement right on other payments granted
to these subsidiaries.
International corporate bonds
• International bonds with face value of US$200 million were
issued in November 2013 for a maturity term of 4.5 years.
136
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
137
VAS consolidated financial statements
Notes to the consolidated financial statements
28. Owners’ equity
28.1 Increase and decrease in owners’ equity
Currency: VND
Contributed chartered
capital
Share premium
Treasury shares
Other funds
Undistributed earnings
Total
Beginning balance
7,004,620,550,000
3,974,286,534,624
(1,397,646,730,489)
12,845,114,930
962,463,719,641
10,556,569,188,706
Increase in the year
-
-
-
Previous year
2,276,481,600,000
(2,276,481,600,000)
-
Profit for the year
-
-
-
-
6,779,512,147,953
6,779,512,147,953
Financial reserve fund
-
-
-
5,000,000,000
(5,000,000,000)
-
Increase from convertible bonds
6,966,640,000
34,833,360,000
-
-
-
41,800,000,000
Issue share to merge with PFV JSC
7,968,000,000
49,003,200,000
-
-
-
56,971,200,000
Purchase treasury shares
-
-
(2,953,978,284,083)
-
-
(2,953,978,284,083)
Acquisition of subsidiaries
-
-
-
-
(9,037,054,312)
(9,037,054,312)
9,296,036,790,000
1,781,641,494,624
(4,351,625,014,572)
17,845,114,930
7,727,938,813,282
14,471,837,198,264
17,845,114,930
7,727,938,813,282
14,471,837,198,264
Ending balance
Current year
Beginning balance
9,296,036,790,000
1,781,641,494,624
(4,351,625,014,572)
Profit for the year
-
-
-
-
3,158,582,676,074
3,158,582,676,074
Financial reserve fund
-
-
-
5,000,000,000
(5,000,000,000)
2,817,320,000,000
Increase from conversion of convertible bonds (i)
722,201,960,000
2,095,118,040,000
-
-
-
Stock dividend declared by the Company (ii)
4,527,312,230,000
-
-
-
(4,527,312,230,000)
-
Cash dividend declared by the Company (ii)
-
-
-
-
(1,844,966,743,620)
(1,844,966,743,620)
Reissuance of treasury shares (iii)
-
29,926,107,875
1,376,700,940,088
-
-
1,406,627,047,963
Partial disposal of subsidiaries
-
675,848,507,568
-
-
-
675,848,507,568
Dividends advanced to minority interests in previous year (Note 29)
-
-
-
-
(288,851,000,000)
(288,851,000,000)
Other decrease
-
-
-
-
(356,390,149)
(356,390,149)
Ending balance
14,545,550,980,000
4,582,534,150,067
(2,974,924,074,484)
22,845,114,930
4,220,035,125,587
20,396,041,296,100
(i) In the year, the bondholders converted US$134,800,000 of bonds into
72,220,196 ordinary shares of the Company (at par value VND10,000/
share). Consequently, charter capital of the Company increased
by VND722,201,960,000 (equivalent to 72,220,196 ordinary shares
at par value of VND10,000/share) and share premium increased by
VND2,095,118,040,000.
(ii) On 24 July 2014, the General Meeting of Shareholders of the Company
passed the Resolution No. 02/2014/NQ-DHDCD-VINGROUP on the
declaration of dividend to its existing shareholders from the retained
earnings accumulated to 31 December 2013. Specifically:
•
•
Payment of cash dividend to shareholders from the retained
earnings accumulated to 31 December 2013 at VND2,149 per share.
Payment of stock dividend to existing shareholders at the ratio
of 1,000:487. Accordingly, each shareholder owning 1,000 shares
will receive dividend by 487 shares.
(iii) On 10 April 2014, the Group completed the re-issuance of 21.6
million treasury shares. Consequently, treasury share of the Group
decreased by VND1,376,700,940,088 (equivalent to 21,600,000 treasury
shares at share value VND63,736/share) and share premium increased
by VND29,926,107,875, after deduction of re-issuance cost and related
tax incurred.
28.2 Financial reserve fund
Financial reserve fund
Total
Currency: VND
Ending balance
Beginning balance
22,845,114,930
17,845,114,930
22,845,114,930
17,845,114,930
28.3 Ordinary and preference shares
Currency: VND
Ending balance
Beginning balance
Number of shares registered to issue
1,454,555,098
929,603,679
Number of shares issued to public
1,454,555,098
929,603,679
1,454,555,098
929,603,679
-
-
1,348,806,899
836,888,541
1,348,806,899
836,888,541
-
-
Ordinary shares
Preference shares
Number of outstanding shares
Ordinary shares
Preference shares
Par value of the outstanding ordinary share is VND 10,000 per share.
138
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
139
VAS consolidated financial statements
Notes to the consolidated financial statements
28.4 Treasury shares
30. Revenues
As at 31 December 2014, the number of shares held by the subsidiaries and associates is as follows:
30.1 Revenues from sale of goods and rendering of services
• Vinpearl JSC held 52,636,985 shares, of which 15,760,918
in which 2,813,430 shares used for pledge for international
syndicated loan of the Company (Note 27.1.8) and 8,031,080
shares used for pledge for a bank loan of Vinpearl Nha
Trang LLC (Note 27.1.2).
shares are being used as a pledge for a loan of Vinpearlland
LLC, a subsidiary (Note 27.1.2); 2,974,000 shares used as a
pledge for a bank credit limit contract of Company; and
9,305,144 shares being used as a collateral for international
syndicated loan of the Company (Note 27.1.8).
• Xavinco JSC, a subsidiary, held 6,941,121 shares; in which
• Royal City JSC, a subsidiary, held 35,325,583 shares; in
3,521,216 shares is being used as pledge for a contractual
obligation of Tan Lien Phat JSC.
Gross revenue
Revenue from sale of inventory property
which 20,096,805 shares are being used as a pledge for the
loan from Vietinbank of Sai Dong JSC, a subsidiary (Note
27.1.3); 12,808,099 shares were being used as a collateral for
international syndicated loan of the Company (Note 27.1.8).
Current year
Previous year
27,726,701,600,235
18,379,268,633,216
21,771,825,649,847
14,657,846,833,066
Revenue from leasing activities and rendering related services
2,129,488,233,032
1,798,711,062,674
Revenue from rendering hotel, amusement park and related services
2,115,560,587,606
1,600,165,486,836
Revenue from rendering hospital and related services
656,565,516,769
286,917,398,734
Revenue from sale of goods in supermarkets and retail outlets
422,544,558,414
1,676,808,280
Revenue from rendering education and related services
229,548,890,248
3,837,671,011
Other revenue
401,168,164,319
30,113,372,615
(3,068,229,199)
(1,629,787,510)
Less
• Vinpearl Hoi An LLC, a subsidiary, held 10,844,510 shares
Currency: VND
Sales allowance
Revenue deduction
29. Minority interests
Currency: VND
Beginning balance
Current year
Previous year
4,144,705,643,024
317,062,071,475
Capital contribution by minority interests
2,948,518,325,753
3,256,960,309,647
Minority interests arising from acquisition of subsidiaries
1,771,122,364,556
559,429,843,522
-
(1,800,000,000)
Decrease in minority interests due to withdrawal of capital
Share of premium from re-issue treasury by subsidiaries
1,110,846,866
Share of post-acquisition profit
-
617,463,065,409
369,775,972,604
-
(17,958,042,408)
(1,683,527,470,290)
(8,503,623,485)
Changes in minority interest due to disposal of equity interest in existing subsidiaries
(453,311,293,506)
-
Dividends declared to minority interests
(743,116,612,431)
(310,235,706,583)
Share in consideration for acquiring subsidiaries
Changes in minority interests due to acquisitions of additional equity interest in existing
subsidiaries
Decrease in minority interests of PFV being merged to Vingroup JSC
Decrease due to the disposal of a subsidiary
Dividends advanced to minority interests in previous year (Note 28.1)
Ending balance (i)
(i) Including capital contributions of VND3,685 billion (after deduction
of issuance costs) from Warburg Pincus and Credit Suisse to Vincom
Retail JSC, a subsidiary in accordance with the agreements signed
between the Company, Vincom Retail JSC and other companies within
the Group with Warburg Pincus and Credit Suisse on 28 May 2013 and
12 July 2013 together with later amendments, Vincom Retail JSC issued
-
(20,025,181,748)
(3,223,906,441)
-
288,851,000,000
-
6,888,591,962,940
4,144,705,643,024
preference shares and ordinary shares to Warburg Pincus and Credit
Suisse. Preference shares issued by Vincom Retail JSC are dividend
preference shares, having the right to convert to ordinary shares of
Vingroup JSC and enjoying other privileges.
Net revenue
Revenue from sale of inventory property
-
-
(3,068,229,199)
(1,629,787,510)
27,723,633,371,036
18,377,638,845,706
21,771,825,649,847
14,657,846,833,066
Revenue from leasing activities and rendering related services
2,129,488,233,032
1,798,711,062,674
Revenue from rendering hotel, amusement park and related services
2,113,985,422,722
1,598,573,038,093
Revenue from rendering hospital and related services
656,565,516,769
286,917,398,734
Revenue from sale of goods in supermarkets and retail outlets
421,051,494,099
1,639,469,513
Revenue from rendering education and related services
229,548,890,248
3,837,671,011
Other revenue
401,168,164,319
30,113,372,615
30.2 Finance income
Currency: VND
Current year
Previous year
1,135,822,131,296
752,642,642,323
Reversal of provision for diminution in value of investments
-
3,589,920,000
Unrealised foreign exchange gain
-
2,027,295,446
25,073,872,348
618,980,867
Interest income
Realised foreign exchange gain
Dividend income
6,283,198,881
3,831,666,761
Gain from acquisition of additional equity interest in an existing
subsidiary (Note 4)
18,399,002,185
-
Gain on re-measurement of previously held equity interest in an
associate (i)
49,000,000,000
-
111,050,324,885
5,671,793,229,484
393,561,441
1,545,020,340
1,346,022,091,036
6,436,048,755,221
Gain from disposal of the equity interest in other entities
Other financial income
TOTAL
(i) This gain arose from the acquisition of business from Eight Lions JSC as presented in Note 17.1.
140
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
141
VAS consolidated financial statements
Notes to the consolidated financial statements
30.3 Revenue and cost related to investment properties
Rental income from investment properties
Currency: VND
Current year
Previous year
2,129,488,233,032
1,798,711,062,674
Direct operating expenses of investment properties that generated
rental income during the year
889,995,220,304
697,314,853,019
Income from investment property trading
298,601,954,166
257,618,620,910
31. Shares in net (loss)/profit of associates
Currency: VND
Current year
Previous year
665,585,470
(259,466,899)
Eight Lions JSC
(36,911,617,846)
(12,088,382,154)
Green City JSC
27,197,650,951
39,545,238,336
-
656,642,443
Foreign Trade Concrete JSC
Vietnam Tourism JSC
Dai An JSC
-
26,057,774,293
108,844,987
-
Hanoi Breed JSC
(675,832,963)
-
Thang Long JSC
844,710,147
788,381,766
Vien Dong Pearl LLC
TOTAL
(8,770,659,254)
32. Cost of goods sold and services rendered
Cost of inventory property sold
Cost relating to the leasing activities and rendering related services
54,700,187,785
Currency: VND
Current year
Previous year
13,719,454,965,743
9,399,121,627,814
34. Other income and other expenses
Other income
Income from disposal of fixed assets
Income from contract penalty
Other income
Other expenses
Costs of fixed assets disposed
Contract penalties and other fines
Other expenses
NET
Current year
Previous year
261,925,884,973
135,646,492,056
24,328,372,540
23,607,815,985
191,673,717,485
83,444,336,888
45,923,794,948
28,594,339,183
227,116,582,678
56,842,117,086
21,224,154,155
26,621,331,041
171,778,694,069
27,345,113,358
34,113,734,454
2,875,672,687
34,809,302,295
78,804,374,970
35. Production and operating costs
Currency: VND
Cost of developing inventory property
Other inventories
Current year
Previous year
10,082,169,661,584
10,456,897,194,237
879,029,080,377
271,936,593,267
Labour costs
1,694,145,663,642
923,072,762,364
Depreciation and amortisation
1,577,833,100,022
1,197,531,118,187
Expenses for external services
1,561,742,854,969
1,059,335,337,045
Other expenses (including finance expenses)
4,431,289,148,523
2,426,978,775,627
20,226,209,509,117
16,335,751,780,727
TOTAL
889,995,220,304
697,314,853,019
1,275,315,373,836
870,311,335,455
Cost of rendering hospital and related services
490,626,247,256
346,922,315,219
Cost of goods sold in supermarkets and retail outlets
428,567,949,879
1,123,130,720
Cost of rendering education and related services
143,803,619,760
2,607,100,540
Others
337,148,103,138
29,583,765,540
The statutory corporate income tax (“CIT”) rate applicable to the
Company and its subsidiaries for the year ended 31 December
2014 is 22%, except for the following entities:
TOTAL
17,284,911,479,916
11,346,984,128,307
• Vinpearl JSC, Vinpearl Nha Trang LLC and Vinpearlland LLC
Cost of rendering hotel, amusement park and related services
Currency: VND
36. Corporate income tax
36.1 CIT expenses
apply the tax rate of 5% ;
• Vinpearl Da Nang LLC applies the tax rate of 15% applied for
Current corporate
income tax
expenses
Deferred corporate
income tax income
TOTAL
Currency: VND
Current year
Previous year
1,653,273,503,894
2,594,314,637,696
(19,638,606,879)
(3,516,776,375)
1,633,634,897,015
2,590,797,861,321
the taxable income from rendering the hospitality service;
33. Finance expenses
Loan interest
Unrealised foreign exchange losses
Realised foreign exchange losses
Provision for diminution in value of investments
Current year
Previous year
2,711,269,664,974
1,459,922,785,660
153,521,258,290
93,428,725,363
3,958,699,850
9,893,469,274
25,260,645,258
39,003,948,221
Allocation of bond issuance fees
205,141,970,088
248,875,921,649
Loss on disposal/sale of investments
256,429,191,919
34,308,006,726
Early settlement discount
124,052,174,708
-
11,418,981,973
58,194,475,668
3,491,052,587,060
1,943,627,332,561
Other finance expenses
TOTAL
142
Currency: VND
Vingroup Joint Stock Company | Annual Report 2014
• Vinmec JSC, Vinpearl Phu Quoc LLC, Vinpearl Ha Long LLC
and Vinschool LLC are in the tax exemption period;
• A number of entities in the Group whose turnover of less
than VND20 billion are applying tax rate of 20%.
The current tax payable is based on taxable profit for the year. Taxable
profit differs from profit as reported in the income statement because
it excludes items of income or expense that are taxable or deductible
in other years and it further excludes items that are never taxable or
deductible. The Group’s liability for current tax is calculated using tax
rates that have been enacted by the balance sheet date.
The tax returns filed by the Company and subsidiaries are subject
to examination by the tax authorities. As the application of tax
laws and regulations is susceptible to varying interpretations,
the amounts reported in the consolidated financial statements
could change at a later date upon final determination by the
tax authorities.
Vingroup Joint Stock Company | Annual Report 2014
143
VAS consolidated financial statements
Notes to the consolidated financial statements
36.1 CIT expenses (continued)
36.1 CIT expenses (continued)
A reconciliation between the profit before tax and taxable profit is presented below:
Currency: VND
Profit before tax
Current year
Previous year
5,409,680,638,498
9,740,085,981,878
Adjustments to increase/(decrease)
Donations
Cost of inventory property sold without sufficient supporting
documents
Difference in loss/(profit) from disposal of equity interest in
subsidiaries and associates between consolidated and separate
financial statements
Gain from disposal a subsidiary and loss of control
285,865,183,534
41,553,544,826
2,604,620,000
7,450,232,144
291,421,328,258
787,985,225
(40,067,546,158)
Currency: VND
Current year
Previous year
896,557,840,180
250,047,955,686
Adjustment for CIT from re-issue of treasury shares by subsidiaries
3,271,878,027
-
Adjustment for CIT obligation for disposing Future Investment and
Trading Services One Member Limited Liability Company
-
(13,228,615,094)
CIT payables at the beginning of the year
CIT obligation arisen from acquisition of new subsidiaries
4,315,419,967
-
Other adjustments
7,745,990,053
324,488,224
43,836,133,922
79,553,231,620
Provisional CIT for down payment from customers
-
Adjustment for reduction of estimated CIT in previous years
Reversion of provision for the investment in subsidiary
(74,376,020,041)
-
CIT paid during the year
Gain from re-measurement of previously held equity interest in
associate
(49,000,000,000)
-
CIT payable at the end of the year
Amortisation of goodwill
649,042,000,805
589,083,963,573
Loss from transfer of investment properties among subsidiaries
(99,305,922,543)
-
Amortisation of land development right
84,087,059,015
9,217,901,051
Dividend income
(6,283,198,881)
(3,831,666,761)
8,770,659,254
(54,700,187,785)
Profit from re-issuing treasury shares held by subsidiaries
14,872,172,856
-
Revaluation of land use right for villa sold at Vinpearl Da Nang LLC
15,768,734,961
5,256,244,987
-
61,610,000,000
Shares in loss/(profit) of associates
Expenses to support counterpart not eligible for deductibility
Adjustment for last year administration penalty
Costs of properties transferred temporarily not deductible
Taxable income from merger between the Company and PFV
-
(94,335,212,640)
57,921,754,743
68,790,979,201
163,090,875,120
-
Profit/(loss) from rendering services not recognized in
consolidated financial statements
59,261,993,154
(65,040,362,979)
Others
(2,768,215,830)
(54,067,002,087)
Adjusted net profit before loss carry forward and tax
6,811,441,648,128
10,211,006,869,250
Losses of subsidiaries
1,186,581,865,797
201,237,243,607
Tax loss carried forward
(215,557,714,205)
(5,684,854,451)
7,782,465,799,720
10,406,559,258,406
Taxable profit subject to prevailing tax rate (normal business
activities) (*)
1,558,013,085,116
5,773,748,384,522
Taxable profit subject to prevailing tax rate (real estate activities)
(*)
5,766,957,895,424
4,523,852,465,503
Estimated current taxable profit
(194,473,147,303)
(210,934,878,408)
(1,910,568,513,664)
(1,803,518,979,544)
503,959,105,076
896,557,840,180
(*)Prevailing tax rate applied for the year 2014 and 2013 is 22% and 25%, respectively.
In which:
Taxable profit subject to 20% tax rate
Taxable profit subject to 5% tax rate (hospitality activities)
Taxable profit subject to 0% tax rate (education activities)
Losses ineligible for offsetting against taxable income
Estimated current Corporate Income Tax
Adjustment for CIT from re-issue of treasury shares by subsidiaries
Net estimated current Corporate Income Tax charged to the
consolidated income statement
Adjustment for under/(over) accrual of tax from previous years
Adjusted net estimated current Corporate Income Tax charged to
the consolidated income statement
144
Vingroup Joint Stock Company | Annual Report 2014
14,888,632,771
22,951,582,336
451,531,057,425
306,482,174,460
14,360,822,188
-
(23,285,693,204)
(220,475,348,415)
1,637,047,895,144
2,594,314,637,696
(3,271,878,027)
-
1,633,776,017,117
2,594,314,637,696
19,497,486,777
-
1,653,273,503,894
2,594,314,637,696
Vingroup Joint Stock Company | Annual Report 2014
145
VAS consolidated financial statements
Notes to the consolidated financial statements
36.2 Deferred CIT
37. Transactions with related parties
The following are the deferred tax assets and liabilities recognised by the Group, and the movements thereon, during the current and previous year
Significant transactions with related parties during the year were as follows:
Currency: VND
Credit/(charge) to consolidated
income statement
Consolidated balance sheet
31 December
2014
31 December
2013
Current year
Previous year
Accrued advertising expenses and sold
investment properties
-
12,755,197,365
(12,755,197,365)
(973,975,316)
Capitalization of general management
costs
420,993,344
420,993,344
-
(533,871,525)
Provision for severance allowance
302,543,434
302,543,434
-
-
Unrealised losses on revaluation of foreign
currency denominated balances
108,436,413
204,932,136
(96,495,723)
(32,924,293)
28,080,276,384
28,940,232,402
(859,956,018)
(977,222,748)
-
(18,667,899,251)
18,667,899,251
1,266,097,314
4,635,648,138
-
4,635,648,138
-
Temporary difference from assets used as
capital contribution to subsidiaries
Differences on internal capital contribution
to Vincom Megamall Times City
(24,496,832,647)
-
(24,496,832,647)
-
Differences on fair value at acquisition of
Khanh Gia JSC
(77,223,969,220)
-
-
-
Differences on revaluation of subsidiaries’
assets at acquisition date
(49,106,901,690)
(53,000,662,787)
3,893,761,097
Temporary difference from revaluation
of project development right of Hon Mot
Resort
(16,563,124,040)
-
Deferred tax liabilities, net
Under common
owners
Receivable from transfer of properties
15,840,000,000
Management fee received
(15,840,000,000)
Securities fee occurred
14,852,992,000
Securities fee received
(14,651,648,000)
Rental fee and meals expenses occurred
(37,113,839,559)
Other payment/ receivables
Other receipts/ payables
Associate
Advance for business cooperation contract
Borrowings
23,036,514,474
(24,176,389,712)
(978,752,000)
(978,752,000)
(111,785,167,410)
(54,199,805,069)
7,613,265,672
-
19,638,606,879
-
Eight Lions JSC
56,584,412,187
42,623,898,681
(168,369,579,597)
(96,823,703,750)
(111,785,167,410)
(54,199,805,069)
Associate (up to 24
May 2014)
266,500,000,000
Interest payable
(13,605,741,736)
13,605,741,736
Dividend payable
(285,000,000,000)
285,200,000,000
20,813,602,182
(32,044,286,982)
(200,000,000,000)
Loans principal received
(240,000,000,000)
Payable for share acquisition
(564,144,000,000)
Settlement of share acquisition fee
564,144,000,000
Supporting fee payable
(21,000,000,000)
Settlement of supporting fee
3,516,776,375
(9,076,673,697)
300,000,000,000
Collection of deposits for purchasing share
3,029,972,291
9,375,599,448
Principal paid
Interest receivable
-
35,638,271,797
(300,000,000,000)
Interest paid
Major shareholder of
subsidiary (up to 18
August 2014)
163,028,002,628
Management fee occurred
Rental fee and meals expenses paid
1,738,700,652
Reflected in the consolidated financial statements as follows:
Deferred tax liabilities
Vietnam Investment Group JSC
Interest received
Deferred tax income
Deferred tax assets
Amount (VND)
Dividend settled (Note 8)
23,036,514,474
Net deferred tax liabilities
Transactions
Hanoi Electronics Corporation
Temporary difference from margin of
Vincom Construction charged to related
parties
Others
Relationship
Green City Development JSC
Temporary difference related to Vincom
Center Ba Trieu – Tower C
Differences on internal capital contribution
to Vincom Long Bien LLC
Related parties
Rental fee receivable
26,760,821,966
5,059,354,052
Rental fee received
(4,333,575,318)
Lending
39,000,000,000
Interest receivables
1,120,383,561
36.3 Unrecognised deferred tax
Tax losses carried forward
The Company and its subsidiaries are entitled to carry each
individual tax loss forward to offset against taxable profits
arising within five years subsequent to the year in which the
loss was incurred. At 31 December 2014, the Company and
some subsidiaries have aggregated accumulated tax losses
of VND2,010,683,338,011 available for offset against future
taxable profits.
146
Vingroup Joint Stock Company | Annual Report 2014
These are estimated tax loss as per the subsidiaries’ corporate
income tax declarations which have not been audited by the
local tax authorities as of the date of these consolidated financial
statements. No deferred income tax assets were recognised in
respect of the aforementioned accumulated tax losses because
future taxable profit of these subsidiaries cannot be ascertained
at this stage.
Vingroup Joint Stock Company | Annual Report 2014
147
VAS consolidated financial statements
Notes to the consolidated financial statements
37. Transactions with related parties (continued)
Amounts due to and due from related parties as at 31 December 2014 were as follows:
Related parties
Relationship
Transactions
Amount (VND)
Tan Lien Phat JSC
Associate (up to 24
February 2014)
Advance for business co-operation contract
1,300,000,000,000
Interest receivable
Thang Long JSC
Associate
Lending
16,106,000,000
Interest receivable
Vien Dong Pearl LLC
Key members of management
Associate
Key members of
management
Borrowing
178,755,961
Interest payable
(301,388,889)
Handover of apartments
4,468,893,810
666,902,943
Services fee received
(600,766,569)
Rental fee payable
(359,087,520)
Amount (VND)
Vietnam Investment Group JSC
Under common
owners
Receivable from transfer of properties
Key members of management
Key members of
management
Services fee receivables
68,442,054
Services fee receivables
33,633,078
Trade receivables (Note 7)
Family members
Family members of key members
of key members of
of management
management
163,028,002,628
163,130,077,760
361,393,200
Vietnam Investment Group JSC
Common owners
Services fees receivables
546,429,751
Thang Long JSC
Associate
Interest receivables
179,534,749
725,964,500
Advance from customers (Note 22)
Key members of management
Handover of apartments
Services fee receivable
14,078,206,401
525,948,720
Services fee received
(493,575,642)
Rental fee payable
(334,273,858)
Rental fee paid
190,536,466
Terms and conditions of transactions with related parties:
During the year, the Group provided unsecured loans to related
parties at interest rates ranging from 7% to 10% per annum, and
received unsecured loans from related parties at interest rates of
7% per annum. During the year the Group also sold/purchased
goods and rendering/purchased services to/from related parties
based on market price.
Vingroup Joint Stock Company | Annual Report 2014
Transactions
Other receivables (Note 8)
Rental fee paid
148
Relationship
(10,000,000,000)
Services fee receivable
Family members
Family members of key members
of key members of
of management
management
3,791,666,667
Related parties
During the year, the Group has not made provision for doubtful
debts relating to amounts due from related parties (31 December
2013: nil). This assessment is undertaken each financial period
through the examination of the financial position of the related
party and the market in which the related party operates.
Key members of
management
Family members
Family members of key members
of key members of
of management
management
Progress payment for apartments in Times City and Royal
City project
246,729,833
Progress payment for apartments in Times City and Royal
City project
5,058,972,283
5,305,702,116
Other payables (Note 25)
Vietnam Investment Group JSC
Under common
owners
Office rental and meals expense payables
Vien Dong Pearl LLC
Associate
Interest payables
1,621,709,461
301,388,889
1,923,098,350
Vingroup Joint Stock Company | Annual Report 2014
149
VAS consolidated financial statements
Notes to the consolidated financial statements
37. Transactions with related parties (continued)
The following reflects the income and share data used in the basic and diluted earnings per share computations:
Details on loans and interest rate from/to related parties are as follows:
Related parties
Relationship
Currency: VND
Interest rate
% per annum
Maturity date
Collateral
Balance of loans
VND
7%
30 March 2015
None
10,000,000,000
Short-term loans (Note 21)
Vien Dong Pearl LLC
Associate
Net profit after tax attributable to ordinary equity holders for basic
earnings
Current year
Previous year (restated)
3,158,582,676,074
6,779,512,147,953
192,708,633,502
247,554,304,660
Dilution effect
Interest on convertible bonds
10,000,000,000
Net profit attributable to ordinary equity holders adjusted for
the effect of dilution
3,351,291,309,576
7,027,066,452,613
Weighted average number of ordinary shares (excluding treasury
shares) for basic earnings per share
872,698,394
643,955,322
Short-term investment (Note 6)
Thang Long JSC
Associate
7%
1 December 2015
None
1,204,181,818
Thang Long JSC
Associate
7%
2 December 2015
None
15,000,000,000
Effect of bonus issues in January 2013
16,204,181,818
214,658,691
418,098,151
1,290,796,545
1,276,712,164
139,146,136
104,097,461
1,429,942,681
1,380,809,625
Basic earnings per share
2,447
5,310
Diluted earnings per share
2,344
5,089
Restated weighted average number of ordinary shares
(excluding treasury shares) for basic earnings per share
Transactions with other related parties
Effect of dilution:
Remuneration to members of the Board of Directors and Management:
Salaries and bonus
418,098,151
Effect of bonus issues in July 2014
Convertible bonds
Current year (VND)
Previous year (VND)
67,396,164,685
38,109,127,559
67,396,164,685
38,109,127,559
Weighted average number of ordinary shares (excluding
treasury shares) adjusted for the effect of dilution
38. Earnings per share
Basic earnings per share amounts are calculated by dividing net
profit after tax for the year attributable to ordinary shareholders
of the Group by the weighted average number of ordinary shares
outstanding during the year.
Diluted earnings per share amounts are calculated by dividing
the net profit after tax attributable to ordinary equity holders of
the Group (after adjusting for interest on the convertible bonds)
by the weighted average number of ordinary shares outstanding
during the year plus the weighted average number of ordinary
shares that would be issued on conversion of all the dilutive
potential ordinary shares into ordinary shares.
Preference shares (Note 29) and convertible loans (Note 27.1.7) issued by Vincom Retail JSC, a subsidiary, could potentially dilute
basic earnings per share in the future, but were not included in the calculation of diluted earnings per share because they are
anti-dilutive for the years presented.
39. Segment information
For the management purpose, the operating businesses are
organised and managed separately according to the nature
of the products and services provided, and consist of seven
business segments as following:
• Health care and related services: including provision of
• Sales of inventory property: including developing and
education and related services at Vinschool system of
the Group.
trading apartments and villas at real estate projects of
the Group as well as other investment activities in real
estate sector.
• Leasing investment properties and related services:
including leasing of office and retail areas and rendering
related services at investment properties owned by
the Group.
health care and related services at Vinmec International
General Hospital.
• Education and related services: including provision of
• Retail services: including provision of retailing and
supermarket services.
• Others: including provision of management, security and
other services.
The Group manages operating results separately for each
• Hospitality, entertainment and other services: including business segment for the purpose of making resources allocation
provision of hotel and related services at the hotels and decision and result assessment. Result of each segment will be
resorts owned by the Group.
150
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
151
VAS consolidated financial statements
Notes to the consolidated financial statements
assessed based on profit/loss and determined consistently with
profit/loss of the Group in the consolidated financial statements.
However, financial activities of the Group (including finance
income and finance expenses) is managed centrally and not
allocated for each business segment.
include transfers between business segments. Those transfers
are eliminated in preparation of the consolidated financial
statements and reflected in the “adjustment and elimination”
column.
The following tables present revenue and profit and certain assets
Transfer prices between business segments are set on an arm’s and liability information regarding the Group’s business segment.
length basis in a manner similar to transactions with third
parties. Segment revenue, segment expense and segment result
Currency: VND
Sales of inventory
property
Leasing investment
properties and
related services
Hospitality,
entertainment and
other services
Health care and
related services
Education and related services
Retail
21,771,825,649,847
2,129,488,233,032
2,113,985,422,722
656,565,516,769
229,548,890,248
421,051,494,099
-
778,696,934,945
140,427,399,343
13,829,514,224
1,012,350,000
33,237,828,095
21,771,825,649,847
2,908,185,167,977
2,254,412,822,065
670,395,030,993
230,561,240,248
454,289,322,194
Fixed assets depreciation
33,861,787,629
499,559,630,229
250,609,520,696
127,129,037,014
465,525,772
Share in profit/(loss) of
associates
28,151,206,086
-
-
-
6,217,539,280,539
1,022,889,336,250
489,651,791,617
121,650,399,311
Others
Adjustment and
elimination
Total
401,168,164,319
-
27,723,633,371,036
2,720,931,430,969
(3,688,135,457,576)
-
3,122,099,595,288
(3,688,135,457,576)
27,723,633,371,036
15,027,677,554
7,261,606,505
-
933,914,785,399
-
(36,911,617,847)
(10,247,493)
-
(8,770,659,254)
9,088,794,530
(264,903,585,578)
(41,204,882,146)
(2,145,030,496,025)
5,409,680,638,498
Revenue
Sales to external customers
Inter-segment sales (1)
Total revenue
Results
Segment profit/(loss) (2)
Assets
Investments into associates
969,790,690,811
-
-
-
-
-
60,704,040,559
-
1,030,494,731,370
5,357,291,594,402
8,134,749,001,327
3,427,470,280,653
133,060,636,629
2,104,188,059
74,290,974,225
311,634,614,363
-
17,440,601,289,658
Total assets (3)
36,601,175,856,466
19,863,459,553,895
9,769,853,979,365
1,806,462,156,155
511,016,126,089
1,820,448,090,717
3,755,028,498,500
16,357,862,938,673
90,485,307,199,860
Total liabilities (4)
10,894,810,218,793
12,158,692,320,971
1,847,769,303,370
96,884,073,978
628,706,951,062
323,223,295,392
1,337,482,396,566
35,913,105,380,688
63,200,673,940,820
Capital expenditure
(1) Inter-segment sales are eliminated in consolidation.
(2) Segment profit does not include finance income
(VND1,346,022,091,036) and finance expense (VND3,491,052,587,060)
because the underlying instruments are managed on a group basis.
(4) Segment liabilities do not include long-term loans
(VND32,014,819,167,101), statutory obligations (VND1,037,104,329,754),
short-term loans (VND1,321,194,605,718), accrued interest expenses
(VND1,371,617,698,518) and deferred tax liabilities (VND168,369,579,597)
because these liabilities are managed on a group basis.
(3) Segment assets do not include goodwill (VND6,214,457,676,679),
deferred tax assets (VND56,584,412,187), short-term investments
(VND6,168,171,238,968) and other long-term investments (VND
3,918,649,610,843) because these assets are managed on a
group basis.
152
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Vingroup Joint Stock Company | Annual Report 2014
153
VAS consolidated financial statements
Notes to the consolidated financial statements
40. Notes to cash flow movement
40. Notes to cash flow movement (continued)
Currency: VND
Current year
Previous year
Code 02 – Fixed asset depreciation and amortisation (including goodwill amorisation)
933,914,785,399
589,659,772,264
Goodwill amortisation (Note 20)
649,042,000,805
589,083,963,573
1,582,956,786,204
1,178,743,735,837
Code 05 – (Profit)/loss from investing activities
(Gain)/loss on disposal of fixed assets (Note
34)
Gain on disposal of investment properties
Loss/(gain) on disposal of equity investments
in other entities (Note 30.2 and 33)
Share of loss/(profit) of associate (Note 31)
Interest and dividend income (Note 30.2)
Total
(3,104,218,385)
3,013,515,056
(274,729,598,999)
-
77,979,864,849
(5,637,485,222,758)
8,770,659,254
(54,700,187,785)
(1,142,105,330,177)
(756,474,309,084)
(1,333,188,623,458)
(6,445,646,204,571)
Code 21 – Purchase, construction of fixed assets and other long-term assets
Purchase, construction of fixed assets and
other long-term assets
Deposit for potential real estate projects
Total
Disbursement of loans
Total
(11,378,574,548,052)
(8,589,796,722,908)
(700,000,000,000)
(1,900,000,000,000)
(12,078,574,548,052)
(10,489,796,722,908)
(885,106,000,000)
(3,528,200,635,090)
(3,509,011,030,716)
(4,541,578,166,950)
(4,394,117,030,716)
(8,069,778,802,040)
Code 24 – Collections of loans, withdrawal from debt investment in other entities
Collection of loans
1,711,688,675,151
730,888,896,482
Withdrawal of short-term deposits
2,232,617,805,005
4,049,451,412,100
3,944,306,480,156
4,780,340,308,582
Acquisition of subsidiaries, net of cash
balance at subsidiaries at acquisition date
(2,359,415,821,372)
(2,866,077,367,641)
Acquisition of additional shares in existing
subsidiaries
(3,025,235,910,444)
(251,000,000,000)
Payments for equity investments in other
entities
(1,529,685,000,000)
(2,766,589,691,339)
Advance for business co-operation contracts
(5,800,000,000,000)
(266,500,000,000)
(12,714,336,731,816)
(6,150,167,058,980)
Total
Code 25 – Payments for equity investments in other entities
Total
154
Vingroup Joint Stock Company | Annual Report 2014
Previous year
Collection of advance for business
cooperation contract
266,500,000,000
-
Proceeds from disposals of subsidiaries, net
of cash disposed
354,099,660,000
9,697,723,681,183
Proceeds from disposals of equity
investments in other entities
465,000,000,000
760,299,910,908
Collection of deposit for transfer of equity
investments
232,200,000,000
-
Proceeds from deposit of counterparties for
transfer of equity investments
474,312,091,675
-
Collection of deposit in real-estate
investment project
800,000,000,000
-
2,592,111,751,675
10,458,023,592,091
1,411,009,772,856
-
1,411,009,772,856
-
Total
Code 31 – Capital contribution and issuance of shares
Proceeds from re-issue of treasury shares
Total
Code 23 – Loans to other entities and payments for purchase of debt instruments of other entities
Short-term deposits
Current year
Code 26 – Proceeds from disposals of equity investments in other entities
Depreciation and amortization
(Note 12, 13 and 15)
Total
Currency: VND
41. Financial risk management objectives and
policies
The Group’s financial liabilities comprise loans and borrowings,
corporate bonds, convertible bonds and loans, accruals, trade
and other payables. The main purpose of these financial liabilities
is to finance the Group’s operations. The Group also has various
financial assets such as trade and other receivables, loans
receivables, quoted and unquoted securities, cash and shortterm deposits, which arise directly from its operations.
Market risk
Market risk is the risk that the fair value of future cash flows of a
financial instrument will fluctuate because of changes in market
prices. Market prices comprise four types of risk: interest rate risk,
currency risk, commodity price risk and other price risk, such as
equity price risk. Financial instruments affected by market risk
include loans and borrowings, corporate bonds, convertible
bonds and financial investments.
The sensitivity analyses in the following sections relate to the
The Group is exposed to market risk, credit risk and financial position as at 31 December 2014 and 31 December 2013.
liquidity risk.
The sensitivity analyses have been prepared on the basis that
Risk management is integral to the whole business of the the amount of net debt, the ratio of fixed to floating interest
Group. The Group has a system of controls in place to create rates of the debt and derivatives and the proportion of financial
an acceptable balance between the cost of risks occurring and instruments in foreign currencies are all constant.
the cost of managing the risks. The management continually
monitors the Group’s risk management process to ensure that In calculating the sensitivity analyses, management assumed
an appropriate balance between risk and control is achieved. that the sensitivity of the relevant income statement item is the
effect of the assumed changes in respective market risks. This
Management reviews and agrees policies for managing each is based on the financial assets and financial liabilities held at
31 December 2014 and 31 December 2013.
of these risks which are summarized below:
Vingroup Joint Stock Company | Annual Report 2014
155
VAS consolidated financial statements
Notes to the consolidated financial statements
Interest rate risk
adapt its leverage level as well as financing strategies to the
prevailing situation.
Interest rate risk is the risk that the fair value or future cash
flows of a financial instrument will fluctuate because of
changes in market interest rates. The Group’s exposure to
the risk of changes in market interest rates relates primarily
to the Group’s long-term debt obligations with floating interest
rates.
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably
possible change in interest rates expected over the following
financial year. With all other variables held constant, the Group’s
profit after tax is affected through the impact on floating rate
The Group manages its interest rate risk by keeping close watch on borrowings as follows (impact to its equity is not significant):
relevant market situation, including domestic and international
money market and economic, in order to contemplate and
Currency: VND
Increase/decrease
in basis points
Effect on
profit before tax
Short
Medium
Long
VND
+375
+325
+325
(265,771,835,509)
VND
-375
-325
-325
265,771,835,509
VND
+165
+130
+130
(64,058,723,820)
VND
-165
-130
-130
64,058,723,820
USD
+100
+138
+138
(35,931,466,184)
USD
-100
-138
-138
35,931,466,184
For the year ended 31 December 2013
For the year ended 31 December 2014
Foreign currency risk is the risk that the fair value of future cash
flows of a financial instrument will fluctuate because of changes
in foreign exchange rates. The Group’s exposure to the risk of
changes in foreign currency rates relate primarily to the Group’s
operating activities such as term deposit, capital mobilization
and other routine operating activities in foreign currency.
The Group has not entered into hedge derivatives to eliminate
its currency exposures.
Other receivables
The Group’s listed and unlisted equity securities are susceptible to
market price risk arising from uncertainty about future values of
the investment securities. The Group manages equity price risk by
placing a limit on equity investments. The Group’s management
reviews and approves all equity investment decisions. At the
reporting date, the exposure to listed equity securities was
insignificant.
As presented in Note 8, the Group has other receivables from
other entities and individuals. The Group manages this credit
risk by regularly monitoring the collection progress from
these customers and assess if there is any impairment on
the outstanding balance to set up provision, which, as at 31
December 2014, is VND18,765,801,355.
Loans to others
Commodities price risk
The Group exposes to commodity price risk in relation to purchase
of certain commodities that are used for the construction of its
real estate projects. The Group manages its commodity price risk
by keeping close watch on relevant information and situation
of commodity market in order to properly manage timing of
purchases, construction plans and inventories level. The Group
does not employ any derivative financial instruments to hedge
its commodity price risk.
Credit risk
Credit risk is the risk that a counterparty will not meet its
obligations under a financial instrument or a customer contract,
leading to a financial loss. The Group is exposed to credit risk
from its operating activities (primarily trade receivable) and
from its financing activities, including deposits with banks and
loans to other parties.
As presented in Note 6 and Note 17.2, the Group has provided
certain loans to other entities. These balances are not secured,
or secured by unquoted securities. The Group manages this
credit risk by regularly monitoring the collection progress from
these counterparties and assess if there is any impairment on
the outstanding balance to set up provision, which, as at 31
December 2014, is VND45,908,601,100.
Deposits with banks
The Group’s bank balances are mainly maintained with wellknown banks in Vietnam. Credit risk from balances with banks
and financial institutions is managed by Group’s treasury in
accordance with the Group’s policy, which is to place deposits
with reputable banks and financial institutions. The maximum
lending credit risk faced by the Group as to the items in the
balance sheet as at report date is carrying amount as presented
in Note 5 and Note 6. The Group evaluates the concentration of
credit risk in respect to bank deposit is low.
Trade receivables from rendering hospitality services and
leasing activities
The assumed movement in basis points for interest rate
sensitivity analysis is based on the currently observable market
environment.
Foreign currency risk
Equity price risk
Currency: VND
Change in
VND/USD rate
Effect on profit
before tax
For the year ended 31 December 2013
+2%
(290,441,815,494)
-2%
290,441,815,494
For the year ended 31 December 2014
+2%
(221,182,496,185)
-2%
221,182,496,185
Except for those financial assets for which provisions have been
made as disclosed in Note 6 and Note 7, the Group’s management
For office and retail tenants, customer credit risk is managed evaluates all financial assets are neither past due nor impaired
when the Group generally requires customers to make deposits as they related to recognised and creditworthy counterparties
for leasing of office and retail areas.
except for the following receivable and loan balances which are
past due but not impaired:
The Group regularly monitors outstanding trade receivables
and closely monitors long outstanding balances. The Group
assessed if there is any impairment on the outstanding balance
at each reporting date on an individual basis to set up provision
properly. On the fundamental basis, the provision for receivables
from rendering hospitality services and leasing activities at 31
December 2014 was VND 21,083,486,835.
Trade receivables from sale of real estate properties
As presented in Note 7, the Group has outstanding receivables
from transfer of real estate properties to corporate and individual
customers. The Group manages this credit risk by regularly
monitoring the collection progress from these customers and
assess if there is any impairment on the outstanding balance
to set up provision properly. On the fundamental basis, the
provision for receivables from sale of real estate properties at
31 December 2014 was nil.
156
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
157
VAS consolidated financial statements
So sánh Kết quả hoạt động kinh doanh giữa VAS và IFRS
Credit risk (continued)
Currency: VND
Past due but not impaired
Total
Neither past
due nor
impaired
< 30 days
31–90 days
91–120 days
> 120 days
31
December
2014
4,408,212,739,624
4,258,078,226,982
2,664,162,703
36,094,745,316
25,868,497,758
85,507,106,865
31
December
2013
6,308,414,525,888
6,145,646,830,179
6,695,247,052
15,175,299,153
6,719,207,643
134,177,941,861
Liquidity risk
The liquidity risk is the risk that the Group will encounter
difficulty in meeting financial obligation due to shortage of
funds. The Group’s exposure to liquidity risk arises primarily from
mismatches of maturities of financial assets and liabilities. The
Group monitors its liquidity risk by arranging long-term credit
facilities from the banks and long-term corporate bonds so that
these loans/bonds will be settled once the Group completes
the development of its properties and put these properties into
commercial operations.
The table below summarizes the maturity profile of the Group’s
financial liabilities based on contractual discounted payments:
Currency: VND
On demand
Less than 1 year
From 1 to 5 years
Over 5 years
Total
Loans and
borrowings
-
1,321,194,605,718
26,797,388,873,123
1,301,530,293,978
29,420,113,772,819
Convertible
loans and
bonds
-
-
3,915,900,000,000
-
3,915,900,000,000
Trade payables
1,628,746,222,883
-
-
-
1,628,746,222,883
Other payables
and accrued
expenses
2,873,442,651,944
2,608,948,981,003
215,355,579,422
72,994,970,362
5,770,742,182,731
4,502,188,874,827
3,930,143,586,721
30,928,644,452,545
1,374,525,264,340
40,735,502,178,433
Loans and
borrowings
-
2,654,483,285,606
17,479,991,547,123
107,008,525,648
20,241,483,358,377
Convertible
loans and
bonds
-
368,987,500,000
6,773,164,421,637
-
7,142,151,921,637
Trade payables
1,158,828,828,873
-
-
-
1,158,828,828,873
Other payables
and accrued
expenses
1,855,896,260,143
1,541,679,325,380
356,957,789,258
5,610,250,800
3,760,143,625,581
24,610,113,758,018
112,618,776,448
32,302,607,734,468
In 2015, Vingroup is determined to achieve a
breakthrough year with strong growth in all
six core businesses: Property, Hospitality AND
entertainment, Retail, Healthcare, Education, and
Agriculture – a new sector with a lot of potential
and social significance.
31 December 2014
31 December 2013
3,014,725,089,016
4,565,150,110,986
The Group evaluates the concentration of liquidity risk is on the
repayment of loans and borrowings that will fall due in 2015 and
the obligations to the contractors engaged for the development
158
Vingroup Joint Stock Company | Annual Report 2014
of its real estate projects. The Group is evaluating alternative
financing sources to ensure that these obligations will be met.
Vingroup Joint Stock Company | Annual Report 2014
159
VAS consolidated financial statements
Notes to the consolidated financial statements
42. Financial assets and financial liabilities
Set out below is a comparison by class of the carrying amounts and fair value of the Group’s financial instruments that are carried
in the consolidated financial statements.
Currency: VND
Carrying amount
31 December 2014
Fair value
31 December 2013
31 December 2014
Cost
Provision
Cost
Provision
31 December 2013
Financial assets
Listed and unlisted shares
1,921,362,857,445
(34,336,416,600)
1,540,194,074,888
(10,359,336,000)
1,887,026,440,845
1,529,834,738,888
Trade receivables
833,001,466,347
(21,083,486,835)
906,583,310,596
(16,078,974,616)
811,917,979,512
890,504,335,980
Other receivables
526,001,983,465
(18,765,801,355)
1,445,143,029,590
(14,368,255,762)
507,236,182,110
1,430,774,773,828
Other current financial assets
6,139,634,843,168
(45,908,601,100)
6,375,856,295,070
(44,625,036,442)
6,093,726,242,068
6,331,231,258,628
Other non-current financial
assets
2,106,068,166,896
-
1,181,532,495,236
-
2,106,068,166,896
1,181,532,495,236
Cash and cash equivalents
7,607,513,719,673
-
7,534,048,703,295
-
7,607,513,719,673
7,534,048,703,295
19,133,583,036,994
(120,094,305,890)
18,983,357,908,675
(85,431,602,820)
19,013,488,731,104
18,897,926,305,855
Total
Currency: VND
Cost
31 December 2014
Fair value
31 December 2013
31 December 2014
31 December 2013
43. Commitments and contingencies
Commitments relating to investing activities
Currency: VND
Financial liabilities
Loans and borrowings
Convertible bonds/loans
29,420,113,772,819
20,241,483,358,377
29,420,113,772,819
20,241,483,358,377
3,915,900,000,000
7,142,151,921,637
3,915,900,000,000
7,142,151,921,637
Trade payables
1,628,746,222,883
1,158,828,828,873
1,628,746,222,883
1,158,828,828,873
Other current liabilities
5,482,391,632,947
3,397,575,585,523
5,482,391,632,947
3,397,575,585,523
288,350,549,784
362,568,040,058
288,350,549,784
362,568,040,058
40,735,502,178,433
32,302,607,734,468
40,735,502,178,433
32,302,607,734,468
Other non-current
liabilities
Total
• Cash and short-term deposits, trade and other receivables,
trade payables and other current liabilities approximate
their carrying amounts largely due to the short-term
maturities of these instruments.
• Fair value of quoted securities and debt instruments is
based on market value at the reporting date.
160
Vingroup Joint Stock Company | Annual Report 2014
Actual
contributed
capital
Committed
un-contributed
capital
Name of investee
Investee’s
chartered capital
Amount
%
Amount
Amount
Vien Dong Pearl LLC
1,153,850,000,000
519,232,500,000
45
6,000,000,000
513,232,500,000
1,153,850,000,000
519,232,500,000
6,000,000,000
513,232,500,000
Capital expenditure commitments relating to on-going real
estate projects
The fair value of the financial assets and liabilities are included
at the amount at which the instrument could be exchanged in
a current transaction between willing parties, other than in a
forced or liquidation sale.
The following method and assumption were used to estimate
the fair values:
The Company’s capital
contribution commitment
• For financial instruments and other investments whose fair
value cannot be reliably determined due to the absence
of an active market for these instruments, the fair value is
assumed to be the carrying value of these instruments.
• For loans/borrowings from banks and other financial
liabilities whose fair value cannot be reliably determined
due to the absence of an active market for these
instruments, the fair value is assumed to be the carrying
value of these instruments.
Hanoi South JSC, a subsidiary, has entered into a number of
contracts relating to the development of the Vinhomes Times City
project at No. 458, Minh Khai street, Hai Ba Trung district, Hanoi
and at No. 25, Lane 13, Linh Nam street, Hoang Mai district, Hanoi.
The outstanding commitment on these contracts amounted to
approximately VND934 billion as at 31 December 2014.
Vincom Construction LLC, a subsidiary, has entered into a number
of contracts relating to the development of the Vinhomes Nguyen
Chi Thanh project at 56 Nguyen Chi Thanh, Dong Da, Hanoi.
The outstanding commitment on these contracts amounted to
approximately VND159 billion as at 31 December 2014.
Vinpearl LLC, a subsidiary, has entered into the in-principle
agreement with Da Nang People Committee in implementing
Royal City JSC, a subsidiary, has entered into a number of Lang Van project in Hoa Hiep Bac Ward, Lien Chieu District, Hanoi.
contracts relating to the development of the Vinhomes Royal Accordingly, Vinpearl LLC has commitment to pay VND785 billion
City project at 72A Nguyen Trai street, Thuong Dinh Ward, Thanh for the project’s land use fee.
Xuan district, Hanoi. The outstanding commitment on these
contracts amounted to approximately VND369 billion as at 31 Hong Ngan JSC, a subsidiary, has entered into the BT agreement
December 2014.
with Hanoi People Committee in implementing Eco-Lake project
in Cau Giay District, Hanoi. Accordingly, Hong Ngan JSC has
Vingroup Joint Stock Company | Annual Report 2014
161
VAS consolidated financial statements
commitment to pay VND815 billion for the BT agreement.
Notes to the consolidated financial statements
Riverside and Royal City project. The co-operation agreement
with Thien Huong Investment JSC (“Thien Huong”) dated
February 2012 said that the Group is entitled to the share of
revenue from Thien Huong which is equal to 15% of revenue (VAT
payable included) and this ratio may change. The duration of the
co-operation agreement is from February 2012 to August 2043.
Viettronics Land JSC, a subsidiary, has entered into a number
of contracts relating to the development of the Vinhomes
Nguyen Chi Thanh project at 56 Nguyen Chi Thanh street,
Dong Da district, Hanoi. The outstanding commitment on these
contracts amounted to approximately VND557 billion in which
commitments related to land use right is VND398 billion as at Commitment under operating leases where the Group is
31 December 2014.
a lessee
Tan Lien Phat JSC, a subsidiary, has entered into a number of The Group, as a lessee, entered into certain land rental agreements
contracts relating to the development of the Vinhomes Central with duration of 50 years. The minimum lease payments under
Park project at No. 722 Dien Bien Phu, ward 22, Binh Thanh these agreements at 31 December 2014 are as follow:
district, Hochiminh city. The outstanding commitment on these
contracts amounted to approximately VND3,585 billion in which
Currency: VND
commitments related to land use right is VND3,400 billion as at
31 December 2014.
31 December 2014
31 December 2013
Vinpearl Phu Quoc LLC, a subsidiary, has entered into a number
of contracts relating to the development of the Vinpearl Phu
Quoc project at Bai Dai Area, Ganh Dau Commune, Phu Quoc
District, Kien Giang province. The outstanding commitment on
these contracts amounted to approximately VND126 billion as
at 31 December 2014.
Due within
one year
351,658,622,267
16,840,834,532
Due in two to
five years
655,215,574,220
200,546,014,905
3,797,111,323,359
1,787,459,871,017
Due in more
than five
years
As at 31 December 2014, the Group has commitments, which
TOTAL
4,803,985,519,846
2,004,846,720,454
amounted to approximately VND1,136 billion, mainly relating
to contracts with contractors for the development of other real
estate projects, in which the commitment for land rental fee is Other commitments
VND12 billion.
Commitments related to the real estate project at 235
Commitment under operating leases where the Group is Nguyen Trai, Thanh Xuan, Hanoi
a lessor
In accordance with the Business Co-operation Contract
The Group, as lessor, leases office, retail and mixed use spaces signed on 4 August 2008 between the Company and
under operating lease agreements. The minimum lease payments corporate counterparties, the Company committed to
under these agreements at 31 December 2014 are as follow:
transfer a deposit of VND105 billion to develop a real estate
project at 235 Nguyen Trai street, Thanh Xuan district,
Hanoi as well as to support these corporate counterparties
with an amount of VND105 billion. These commitments will
Currency: VND be converted to capital contribution in Thang Long
Real Estate JSC, a company established to develop this real
31 December 2014
31 December 2013
estate project.
Due within
one year
1,213,400,118,896
1,694,194,857,642
Due in two to
five years
1,930,482,028,651
3,163,831,042,880
Due in more
than five
years
1,360,077,632,919
1,513,388,271,708
TOTAL
4,503,959,780,466
6,371,414,172,230
Commitments related to the real estate project at 69B Thuy
Khue, Tay Ho, Hanoi
In accordance with agreement on compensation signed between
the Company and corporate counterparties on 30 July 2010,
the Company agreed to compensate VND128 billion for site
clearance for the real estate project located at 69B Thuy Khue, Tay
Ho, Hanoi. As at 31 December 2014, the remaining committed
amount under this agreement is VND86.7 billion.
The Group, as lessor, have leased schools in accordance with the
co-operation agreement in exploiting school part of Vinhomes Commitment for transfer a certain parts of Vincom City
Towers
Riverside and Royal City project.
The Group, as lessor, have leased schools in accordance with the On 31 July 2006, the Company had transferred certain parts of
co-operation agreement in exploiting school part of Vinhomes the Vincom City Center to a corporate counterparty. According
162
Vingroup Joint Stock Company | Annual Report 2014
to the Transfer Agreement, the Group has committed to transfer capital of VND6 billion, in which the Group owns 100% equity
the ownership of the following investment properties to this interest. The principle activities of this subsidiary are real estate
corporate counterparty on 20 July 2052:
leasing & management. This subsidiary’s head office is registered
at No. 7, Bang Lang 1 street, Vinhomes Riverside Eco-urban Area,
(i) The ownership of half of the commercial center (from 1st Viet Hung ward, Long Bien district, Hanoi, Vietnam.
floor to 6th floor of Vincom City Center (the “Towers”), except
for the reception and elevator waiting area of 160m2 on the Vinhomes Real Estate Management Limited Liability Company,
1st floor); and
a subsidiary, was established on 5 January 2015 with a charter
capital of VND16 billion, in which the Group owns 100% equity
(ii) The ownership of 31.156% of the basement 1 and basement interest. The principle activities of this subsidiary are to supply
2 of the towers.
services of real estate management, consultancy, advertisement
and brokerage. This subsidiary’s head office is registered at No.
7, Bang Lang 1 street, Vinhomes Riverside Eco-urban Area, Viet
Commitment with Hanoi People’s Committee (“HPC”)
Hung ward, Long Bien district, Hanoi, Vietnam.
In accordance with Decision No.1853/QD-UBND dated 22
April 2011 issued by the HPC, Sai Dong JSC is obliged to
On 6 January 2015, Vincom Retail JSC, a subsidiary, signed
return land lot No. G4-HH16 (with an estimated area of
contracts to acquire 90% equity interest of Suoi Hoa Urban
43,542m2) and land lot No. G4-NT (with an estimated area of
Development and Investment Limited Liability Company (“Suoi
5,293m2) in the Vinhomes Riverside project to the HPC.
Hoa LLC”) from individual counterparties. Suoi Hoa LLC was
established on 22 January 2014 with a charter capital of VND6
Commitment under contracts for interest expenses
billion. The principle activities of Suoi Hoa LLC are real estate
support to buyers of apartments at Royal City and Times
trading, brokerage, consultancy and auction.
City projects
VinPro Trading & Services Limited Liability Company, a subsidiary,
was established on 9 January 2015 with a charter capital of
VND50 billion, in which the Company and Hanoi Southern JSC,
an existing subsidiary are founding shareholders with 94% and
6% equity interest, respectively. The principle activities of this
subsidiary are to retail computers, software, telecommunication
devices and audio-visual devices. This subsidiary’s head office
• The banks will provide loans to the customers to finance for is registered at No. 72, Le Thanh Ton street and No. 45A, Ly Tu
the purchase of the apartments at Royal City and Times City; Trong street, Ben Nghe ward, district 1, Hochiminh city, Vietnam.
Royal City JSC and Hanoi South JSC have entered into certain
three party agreements with the buyers of the apartments at
Royal City, Times City project and certain banks who provide
loans to these customers to finance for their apartment
purchase. The key terms and conditions of these agreements
are as follows:
• Hanoi South JSC will support the customers by paying on Vincom Thu Duc Limited Liability Company, a subsidiary, was
behalf of the customers the interest payable to the bank,
at the rate ranging from 0.5% to 4% per annum during a
period not exceeding 12 to 24 months from the signing
date of loan agreement; and
established on 9 January 2015 with a charter capital of VND6
billion, in which Vincom Retail, a subsidiary is the founding
member with 100% equity interest. The principle activities of this
subsidiary are real estate trading. This subsidiary’s head office
is registered at No. 72, Le Thanh Ton, Ben Nghe ward, district 1,
• In case the customers breach the terms and conditions Hochiminh city, Vietnam.
of the loan agreement signed with the banks, Royal City
JSC might be required by the banks to buy back the VinDS Trading and Service Limited Liability Company, a
apartments at a price of at least 80% of the amount of subsidiary, was established on 30 January 2015 with a charter
down payments received by Royal City JSC under the capital of VND6 billion, in which the Group owns 70% equity
apartment sale agreement.
interest. The principle activities of this subsidiary are retailing in
shopping malls/convenient stores. This subsidiary’s head office is
registered at No. 7, Bang Lang 1 street, Vinhomes Riverside EcoCommitment under Share transfer Contract with a
cooperate counterparty
urban Area, Viet Hung ward, Long Bien district, Hanoi, Vietnam.
On 31 December 2014, in accordance with Share transfer Contract
with a cooperate counterparty, the Company committed to
purchase 15,000,000 irrevocable shares which equivalents to 5%
charter capital of a company which is the owner of a potential real
estate project in Hanoi with total consideration of VND180 billion.
44. Events after the balance sheet date
VME Marketing Limited Liability Company, a subsidiary, was
established on 2 February 2015 with a charter capital of VND6
billion, in which the Company and Hanoi Southern JSC, a
subsidiary are founding shareholders with 94% and 6% equity
interest, respectively. The principle activities of this subsidiary
are rendering marketing service. This subsidiary’s head office is
registered at No. 7, Bang Lang 1 street, Vinhomes Riverside Ecourban Area, Viet Hung ward, Long Bien district, Hanoi, Vietnam.
Vinhomes Real Estate Leasing Limited Liability Company, a
subsidiary, was established on 5 January 2015 with a charter Vinpearl Hotel Management Limited Liability Company, a
Vingroup Joint Stock Company | Annual Report 2014
163
VAS consolidated financial statements
subsidiary, was established on 5 February 2015 with a charter
capital of VND50 billion, in which Vinpearl JSC, an existing
subsidiary are founding shareholders with 100% equity interest.
The principle activities of this subsidiary are management
consultancy, real estate brokage, auction, tourism support
and promotion, short-stay services. This subsidiary’s head office
is registered at No. 72, Le Thanh Ton, Ben Nghe ward, district 1,
Hochiminh city, Vietnam.
Notes to the consolidated financial statements
Contract dated 22 January 2014 with the aim of purchasing
94% equity interest (equal to 19,932,933 shares) in a company
which is the owner of a potential real estate project in Nha Be
district, Hochiminh city, Vietnam.
There are no other events occurring after the balance sheet
date that have significant impact or can impact materially to
the Group’s operation and consolidated income of the Group
after the balance sheet date.
On 6 February 2015, the Company has deposited VND1,000
billion to two individual counterparties pursuant to Deposit
Ngo Nguyet Hang
Preparer
Nguyen Thi Thu Hien
Chief Accountant
Duong Thi Mai Hoa
General Director
Appendix 1 – The group structure as of 31 december 2014
No.
Full name
Short name
1
Hai Phong Land Development and
Investment One Member Limited
Liability Company
2
Royal City Real Estate Development
Royal City JSC
& Investment JSC
3
Sai Dong Urban Development &
Investment JSC
Hai Phong Land LLC
Sai Dong JSC
Voting
right
(%)
Equity
interest
(%)
98.09
No. 5 Le Thanh Tong
street, May To ward,
Ngo Quyen district,
Hai Phong
Investing, developing
and trading real
estate properties
98.36
98.36
No. 72A Nguyen Trai
street, Thuong Dinh
ward, Thanh Xuan
district, Hanoi
Investing, developing
and trading real
estate properties
94.00
94.00
Vinhomes Riverside1
Investing, developing
and trading real
estate properties
Investing, developing
and trading real
estate properties
Providing hospital
services
Investing, developing
and trading real
estate properties
100.00
4
Hanoi Southern City Development
JSC
Hanoi Southern JSC
97.90
95.21
No. 458, Minh Khai
street, Vinh Tuy ward,
Hai Ba Trung district,
Hanoi
5
Ho Tay Real Estate Development
and Investment Joint Stock
Company
Ho Tay Real Estate JSC
70.00
70.00
No. 69B Thuy Khue
street, Tay Ho district,
Hanoi
6
Vinpearl Joint Stock Company
92.86
Hon Tre Island, Vinh
Investing, developing
Nguyen ward, Nha
and trading
Trang City, Khanh Hoa
hospitality services
province
7
Tay Tang Long Real Estate Limited
Liability Company
55.50
No. 72, Le Thanh
Ton, Ben Nghe ward,
district 1, Hochiminh
City
77.66
Hon Tre Island, Vinh
Investing, developing
Nguyen ward, Nha
and trading
Trang City, Khanh Hoa
hospitality services
province
Investing, developing
and trading
hospitality services
2
Vinpearl JSC
100.00
16 March 2015
164
Vingroup Joint Stock Company | Annual Report 2014
Registered office’s Principal activities
address
Tay Tang Long LLC
Hon Mot JSC
59.00
Investing, developing
and trading real
estate properties
8
Hon Mot Tourism JSC
9
Vinpearl Da Nang One Member
Limited Liability Company
Vinpearl Da Nang LLC
100.00
92.86
Hoang Sa road, Hoa
Hai ward, Ngu Hanh
Son district, Da Nang
city
10
Vinpearl Hoi An One Member
Limited Liability Company
Vinpearl Hoi An LLC
100.00
92.86
Phuoc Hai Block, Cua
Dai ward, Hoi An city,
Quang Nam province
Investing, developing
and trading
hospitality services
11
VinGS General Services Trading One
VinGS LLC
Member Limited Liability Company
100.00
100.00
Vinhomes Riverside1
Providing beauty care,
food and beverage
services
12
Tay Ho View Hotel and Tourism
Limited Liabilities Company
70.00
65.00
No. 58 Tay Ho Street,
Quang An ward, Tay
Ho district, Hanoi
Investing, developing
and trading
hospitality services
13
Future Property Invest Limited
Company
100.00
92.86
Truong Sa Road, Hoa
Hai ward, Ngu Hanh
Son district, Da Nang
city
Investing, developing
and trading
hospitality services
14
Vincom Retail Joint Stock Company Vincom Retail JSC
99.99
98.09
Vinhomes Riverside1
Investing, developing
and trading real
estate properties
15
Vinpearl Bai Dai Limited Liability
Company
83.57
No. 17A Bach Dang
Street, Phuoc Tien
ward, Nha Trang city,
Khanh Hoa province
Providing hospitality
services
Ho Tay View LLC
FPI LLC
Vinpearl Bai Dai LLC
83.63
90.00
Vingroup Joint Stock Company | Annual Report 2014
165
VAS consolidated financial statements
No.
Full name
16
Cam Ranh Investment Limited
Liability Company
17
Hon Tre Investment and
Development Limited Liability
Company
18
Times Trading Investment and
Development One Member Limited Times Trading LLC
Liability Company
19
Vinmec International General
Hospital Joint Stock Company
20
21
22
23
24
25
Cam Ranh LLC
Hon Tre LLC
Vinmec JSC
Vincom Center B
HCMC LLC
90.00
90.00
100.00
100.00
100.00
Equity
interest
(%)
Registered office’s Principal activities
address
83.57
No. 16, Mac Dinh Chi,
Phuoc Tien ward, Nha Providing hospitality
Trang city, Khanh Hoa services
province
83.57
No. 42/2 Dong
Nai,Phuoc Hai ward,
Providing hospitality
Nha Trang city, Khanh services
Hoa province
100.00
No. 72, Le Thanh
Ton, Ben Nghe ward,
district 1, Hochiminh
City
Investing, developing
and trading real
estate properties
95.25
No. 458, Minh Khai
street, Vinh Tuy ward,
Hai Ba Trung district,
Hanoi
Health care, medical
and related services
98.09
No. 72, Le Thanh Ton
and 45A Ly Tu Trong,
Ben Nghe ward,
district 1, Hochiminh
City
Investing, developing
and trading real
estate properties
Investing, developing
and trading real
estate properties
Investing, developing
and trading real
estate properties
100.00
98.09
Vincom Center Long Bien One
Vincom Center Long
Member Limited Liability Company Bien LLC
100.00
98.09
Vinhomes Riverside1
Vinschool One Member Limited
Liability Company
100.00
100.00
Vinhomes Riverside1
Xavinco Land JSC
Vinhomes 1 Real Estate Trading
Limited Liability Company
Vincom Center Ba
Trieu LLC
Vinschool LLC
Xavinco JSC
Vinhomes 1 LLC
26
27
Vincom Mega Mall Royal City One
VMM Royal City LLC
Member Limited Liability Company
ISADO Business Cooperation and
Development Limited Liability
Company
Vinhomes 2 LLC
ISADO LLC
29
Vinpearl Quy Nhon Joint Stock
Company
30
BFF Commercial trading investment
BFF LLC
LLC3
31
Voting
right
(%)
No. 191 Ba Trieu
street, Le Dai Hanh
ward, Hai Ba Trung
district, Hanoi
Vincom Center Ba Trieu Limited
Liability Company
Vinhomes 2 Real Estate Trading
Limited Liability Company
28
166
Vincom Center B Ho Chi Minh City
One Member Limited Liability
Company
Short name
Notes to the consolidated financial statements
Vincom Security Services Limited
Liability Company
Vinpearl Quy Nhon
JSC
Vincom Security LLC
Vingroup Joint Stock Company | Annual Report 2014
96.44
100.00
94.00
100.00
70.00
98.00
86.96
100.00
96.42
100.00
Education services,
kindergarten service
at the early stage.
No. 191, Ba Trieu
street, Le Dai Hanh
ward, Hai Ba Trung
district, Hanoi
Investing, developing
and trading real
estate properties
Vinhomes Riverside1
Trading real estate
properties and
rendering general
supporting services
94.00
Vinhomes Riverside
1
Trading real estate
properties
98.09
No. 72A, Nguyen Trai
street, Thuong Dinh
ward, Thanh Xuan
district, Hanoi
Trading real estate
properties
65.80
Vinhomes Riverside1
Trading real estate
properties
91.00
Hai Giang Village,
Nhon Hai Commune,
Quy Nhon city, Binh
Dinh province
Ecotourism and other
services
86.96
No. 72, Le Thanh Ton
Street, Ben Nghe
ward, District 1, HCM
city
Sale of goods in retail
outlets
Vinhomes Riverside1
Security services
100.00
No.
Full name
Short name
Voting
right
(%)
Equity
interest
(%)
32
Ha Thanh Real Estate Investment
And Urban Infrastructure
Development Limited Liability
Company
Ha Thanh LLC
100.00
100.00
33
Viettronics Land Joint Stock
Company
Viettronics Land JSC
34
Vinpearl Phu Quoc One Member
Limited Liability Company
Vinpearl Phu Quoc
LLC
35
Vincom Office Limited Liability
Company
Vincom Office LLC
36
Vincom Center Ha Long Limited
Liability Company
Vincom Center Ha
Long LLC
37
Vincom Mega Mall Times City
Limited Liability Company
VMM Times City LLC
38
Vinlandscape Design Construction
And Landscape Management
Limited Liability Company
Vinlandscape LLC
39
Vinpearlland Limited Liability
Company
40
Vinpearl Nha Trang Limited Liability Vinpearl Nha Trang
Company
LLC
100.00
92.86
Hon Tre Island, Vinh
Nguyen ward, Nha
Providing short – stay
Trang City, Khanh Hoa services
province
41
Vinpearl Ha Long Limited Liability
Company
100.00
92.86
Reu Island, Bai Chay
ward, Ha Long City,
Quang Ninh province
Providing short – stay
services
74.38
No. 72, Le Thanh Ton
Street, Ben Nghe
ward, District 1, HCM
city
Trading real estate
properties and
freehold and
leasehold right for
land
100.00
Vinhomes Riverside1
Residential and civil
constructions
Architecture activities
and technical
consultancy
Trading real estate
properties
70.00
Tower 2, Times City
urban area, No. 458
Minh Khai, Hai Ba
Trung ward, Hanoi
Retail sale via phone
and internet
IT activities and
related services
Vinhomes Riverside1
Residential and civil
constructions
Architecture activities
and technical
consultancy
Trading real estate
properties
42
43
44
45
Tan Lien Phat Construction
Investment Joint stock Company
Vincom Construction Limited
Liability Company
Vipearlland LLC
Vinpearl Ha Long LLC
Tan Lien Phat JSC
Vincom Construction
LLC
Vinecom Limited Liability Company Vinecom LLC
Vincom 2 Construction Limited
Liability Company
Vincom 2
Construction LLC
Registered office’s Principal activities
address
Vinhomes Riverside1
Transportation
roads and railway
constructions
98.08
No. 191, Ba Trieu
street, Le Dai Hanh
ward, Hai Ba Trung
district, Hanoi
Trading real estate
properties
100.00
51.07
Bai Dai Area, Ganh
Dau Commune, Phu
Quoc District, Kien
Giang province
Short – stay services
100.00
100.00
Vinhomes Riverside1
Trading real estate
properties
98.09
Cot Dong Ho Area,
Bach Dang ward, Ha
Long City, Quang
Ninh
Trading real estate
properties
100.00
98.09
No 458, Minh Khai
street, Vinh Tuy
ward,Hai Ba Trung
district, Hanoi
Trading real estate
properties
100.00
100.00
Vinhomes Riverside1
Landscape
maintenance services
100.00
Hon Tre Island, Vinh
Nguyen ward, Nha
Trang City, Khanh Hoa
province
Amusement park
and theme park
entertainment
services
99.97
100.00
100.00
75.00
100.00
70.00
100.00
99.71
Vingroup Joint Stock Company | Annual Report 2014
167
VAS consolidated financial statements
No.
Full name
46
Vinfashion Joint Stock Company
47
Golf resort and entertainment
construction Limited Liability
Company
Short name
Vinfashion JSC
Golf resort LLC
48
Vinmart Construction Limited
Liability Company
Vinmart Construction
LLC
49
VinMart Supermarket Joint Stock
Company
VinMart Supermarket
JSC
50
Metropolis Limited Liability
Company
Metropolis LLC
51
Riverview Complex DaNang
Limited Liability Company
Reverview Da Nang
LLC
52
Phu Quoc tourism Development
and Investment Joint Stock
Company
Phu Quoc Tourism
JSC
53
Hong Ngan Real Estate Joint Stock
Company
54
Khanh Gia Investment Trading
Services Joint Stock Company
Khanh Gia JSC
55
Ocean Mart Express Joint Stock
Company
Ocean Mart Express
JSC
Hong Ngan JSC
(1) Full registered office address: No. 7, Bang Lang 1 street, Vinhomes
Reverside Eco-urban Area, Viet Hung ward, Long Bien district, Hanoi.
(2) Previously known as Vinpearl One Member Limited
Liability Company
(3) Previously known as VinGT Global Investment Trading and
Services Limited Liability Company
168
Vingroup Joint Stock Company | Annual Report 2014
So sánh Kết quả hoạt động kinh doanh giữa VAS và IFRS
Voting
right
(%)
Equity
interest
(%)
Registered office’s Principal activities
address
Vinhomes Riverside1
Manufacturing
clothes
Fabrics wholesaler,
readymade garment
and shoes
Vinhomes Riverside1
Residential and civil
constructions
Architecture activities
and technical
consultancy
99.71
Vinhomes Riverside1
Residential and civil
constructions
Architecture activities
and technical
consultancy
70.00
No. 72, Le Thanh Ton
Street, Ben Nghe
ward, District 1, HCM
city
Sale of goods in retail
outlets
100.00
98.09
No. 72, Le Thanh Ton
Street, Ben Nghe
ward, District 1, HCM
city
Investing, developing
and trading real
estate properties
97.11
95.26
Ngo Quyen street, An
Bac Hai ward, Son Tra
district, Da nang city
Investing, developing
and trading real
estate properties
51.07
Bai Dai Area, Ganh
Dau Commune, Phu
Quoc District, Kien
Giang province
Providing short – stay
services
93.06
No. 31, Ngo Gieng,
Dong Cac street, O
Cho Dua, Dong Da,
Hanoi
Investing, developing
and trading real
estate properties
94.00
No. 216, Vo Van Ngan
Developing and
Street, Binh Tho ward,
leasing space in
Thu Duc district,
commercial centers
Hochiminh City
56.00
No. 19, Nguyen Trai
Road, Khuong Trung
ward, Thanh Xuan
district, Hanoi
70.00
100.00
100.00
70.00
55.00
99.00
94.00
80.00
70.00
99.71
We believe that through our carefully chosen
strategies, Vingroup will achieve our goals in 2015
and the years to come, maintaining our marketleading position as one of the premier companies
in the region, while protecting and enhancing the
long-term interests of shareholders and making
even greater contributions to society.
Sale of goods in retail
outlets
In 2014, the Group has completed the dissolution of the following
subsidiaries in accordance with the Board’s decisions issued on 25
April 2013:
•
•
•
Bai Dai Tourism and Investment Company Joint Stock Company;
Cam Ranh Tourism and Trading Joint Stock Company; and
Hon Tre Tourism and Service Joint Stock Company.
Vingroup Joint Stock Company | Annual Report 2014
169
Summary IFRS consolidated financial statements
Consolidated income statement/ Consolidated statement of other comprehensive income
Consolidated income statement
Currency: VND
for the year ended 31 December 2014
Current year
Previous year
Continuing operations
2,081,148,806,516
1,797,773,534,810
21,737,531,428,617
14,657,846,833,066
Rendering of hospitality and related
services
2,113,985,422,722
1,598,573,038,093
Rendering of health care and related
services
656,565,516,769
286,917,398,734
Rendering of education and related
services
229,548,890,247
3,837,671,011
Rendering of retail services
421,051,494,099
1,639,469,513
Other revenue
Sale of inventory properties
401,168,164,320
30,113,372,615
27,640,999,723,290
18,376,701,317,842
Cost of sales
(16,814,230,632,632)
(11,116,976,385,050)
Gross profit
10,826,769,090,658
7,259,724,932,792
Valuation gain/(loss) from completed
investment property
16
259,311,520,016
2,037,512,148,200
Valuation gain on investment property
under construction
17
1,174,571,478,490
405,215,622,825
11.1
385,932,246,890
385,371,606,413
(953,173,773,051)
(266,576,899,386)
(1,622,752,319,824)
(877,338,303,488)
Selling and distribution costs
Administrative expenses
11.2
Operating profit
(46,622,671,289)
(91,150,123,812)
10,024,035,571,890
8,852,758,983,544
Finance income
11.3
1,170,043,347,806
806,935,622,676
Finance costs
11.4
(4,156,307,002,024)
(2,021,038,822,912)
Net gain/(loss) on financial liability at fair
value through profit or loss
35.2
102,776,671,940
(280,287,425,521)
8
(12,723,839,340)
53,304,805,480
7,127,824,750,272
7,411,673,163,267
(1,740,891,441,047)
(1,299,223,897,379)
5,386,933,309,225
6,112,449,265,888
-
-
5,386,933,309,225
6,112,449,265,888
4,759,962,662,932
5,697,867,501,585
626,970,646,293
414,581,764,303
Profit before tax from continuing
operations
Income tax expense
Current year
Previous year
Basic, profit for the year attributable to
equity holders of the parent
3,688
4,463
Diluted, profit for the year attributable
to equity holders of the parent
3,688
4,463
Basic, profit from continuing operations
attributable to equity holders of the
parent
3,688
4,463
Diluted, profit from continuing
operations attributable to equity
holders of the parent
3,688
4,463
5,386,933,309,225
6,112,449,265,888
-
-
5,386,933,309,225
6,112,449,265,888
4,759,962,662,932
5,697,867,501,585
626,970,646,293
414,581,764,303
5,386,933,309,225
6,112,449,265,888
Earnings per share for continuing operations:
Revenue
Share of (loss)/profit of associates
Notes
Earnings per share:
Rental income
Other operating expenses
Currency: VND
for the year ended 31 December 2014
Notes
Other operating income
Consolidated income statement (continued)
12
Profit for the year from continuing
operations
13
13
Consolidated statement of other comprehensive income
Profit for the year
Other comprehensive income/ (loss) for the year, net
of tax
Total comprehensive income for the year, net of tax
Attributable to:
Equity holders of the parent
Non-controlling interests
Discontinued operation
Profit after tax for the year from
discontinued operation
29
Profit for the year
Attributable to:
Equity holders of the parent
Non-controlling interests
170
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
171
Summary IFRS consolidated financial statements
Consolidated statement of financial position
Consolidated statement of financial position
Currency: VND
as at 31 December 2014
Consolidated statement of financial position (continued)
Currency: VND
as at 31 December 2014
Notes
Ending balance
Begining balance
ASSETS
Notes
Ending balance
Begining balance
NON-CURRENT LIABILITIES
NON-CURRENT ASSETS
Interest-bearing loans and borrowings
36
31,179,434,165,219
22,371,382,981,205
Property and equipment
14
Long-term customers’ deposits
32
216,875,262,722
260,414,760,285
Intangible assets
15
1,651,620,986,606
737,699,004,761
Completed investment property
16
24,304,938,854,727
22,537,114,631,445
Long-term deferred revenue and
advance from customers
34
6,162,446,924,111
5,762,805,429,665
Investment property under
construction
17
5,171,274,324,760
1,429,622,554,779
12.2
3,048,012,813,066
2,644,690,782,102
37,924,129,355
976,054,354
Construction in progress
19
7,469,813,212,015
4,737,377,119,889
Investment in associates
8
927,622,881,676
1,826,147,782,589
40,644,693,294,473
31,040,270,007,611
12.2
322,441,863,345
83,961,738,754
Long-term prepayments
22
910,685,302,139
361,689,518,290
Other non-current assets
21
8,713,603,748,186
2,871,561,785,694
Deferred tax assets
Total non-current assets
11,548,606,990,518
61,020,608,163,972
5,965,140,394,995
40,550,314,531,196
Deferred tax liabilities
Other long-term liabilities
CURRENT LIABILITIES
Short-term loans and borrowings
35.1
1,258,304,056,555
2,977,135,851,043
Financial liability at fair value through
profit or loss
35.2
683,358,563,520
1,460,790,946,925
1,628,746,222,883
1,158,828,828,875
CURRENT ASSETS
Trade payables
Inventories
24
19,130,609,723,994
24,146,597,202,075
33
14,714,504,156,437
16,288,155,299,073
Trade receivables
25
615,510,006,047
857,717,852,346
Deposits and down payment from
customers
1,459,215,551,022
1,067,203,605,764
Borrowing from and payables to related
parties
41
17,228,800,466
43,826,637,724
74,444,996,900
25,009,776,000
Short-term deferred revenue
34
550,965,893,268
339,435,312,812
Accruals
30
3,995,743,374,512
6,222,740,600,068
Advances to suppliers
Financial assets at fair value through
profit or loss
23
Loans to and receivables from related
parties
41
180,050,829,064
424,511,439,552
Short-term prepayment and other
receivables
26
2,235,390,885,310
5,615,222,407,651
Short-term investments
27
6,077,802,744,475
5,495,405,882,770
Cash and cash equivalents
28
7,607,402,590,552
7,534,048,703,295
37,380,427,327,364
45,165,716,869,453
173,475,990,356
-
98,574,511,481,692
85,716,031,400,649
14,545,550,980,000
9,296,036,790,000
Total current assets
Assets classified as held for sale
10
TOTAL ASSETS
Corporate income tax payable
Other current liabilities
12.1
503,949,795,404
896,557,840,180
31
2,064,176,770,898
1,974,485,101,648
25,416,977,633,943
31,361,956,418,348
66,061,670,928,416
62,402,226,425,959
9,309,670
-
98,574,511,481,692
85,716,031,400,649
Total liabilities
Liabilities directly associated with assets
classified as held for sale
TOTAL EQUITY AND LIABILITIES
10
EQUITY AND LIABILITIES
EQUITY
Issued capital
37.1
Share premium
Treasury shares
37.2
Other reserves
Retained earnings
Equity attributable to equity holders
of the parent
Non-controlling interests
Total equity
172
Vingroup Joint Stock Company | Annual Report 2014
6,184,733,954,154
2,991,318,776,167
(3,707,383,275,263)
(4,985,884,215,349)
22,845,114,930
17,845,114,930
9,180,738,208,390
12,021,869,785,338
26,226,484,982,211
19,341,186,251,086
6,286,346,261,395
3,972,618,723,604
32,512,831,243,606
23,313,804,974,690
Vingroup Joint Stock Company | Annual Report 2014
173
Summary IFRS consolidated financial statements
Consolidated statement of cash flows
Consolidated statements of cash flows
Currency: VND
for the year ended 31 December 2014
Current year
Previous year
OPERATING ACTIVITIES
Profit before tax from continuing
operations
29
Profit before tax
7,127,824,750,272
7,411,673,163,267
-
-
7,127,824,750,272
7,411,673,163,267
Adjustments to reconcile profit before tax
to net cash flows
Depreciation and amortisation
14,15
Provision
Foreign exchange loss/(gain)
(Gain)/loss on disposal of property and
equipment
Profit from disposal of investments in
subsidiaries and other entities
Decrease/(increase) in fair value of
financial assets at fair value through
profit or loss
(Gain)/loss on financial liabilities at fair
value through profit or loss
(1,900,000,000,000)
Redemption of deposit for potential real
estate projects
800,000,000,000
-
Acquisition of new subsidiaries, net of cash
balance at subsidiaries at acquisition date
(2,359,415,821,372)
(2,866,077,367,641)
Short-term deposits for interest gain
(3,509,011,030,716)
(4,541,578,166,950)
Redemption of short-term deposit for
interest gain
2,232,617,805,005
4,049,451,412,100
(885,106,000,000)
(3,528,200,635,090)
178,192,392,574
77,182,459,436
Collection of loans
(3,104,218,385)
3,013,515,056
(137,667,866,676)
(211,585,440,869)
(3,589,920,000)
(106,064,104)
Changes in amortized cost of payables
other than nominal interest
1,013,418,866,496
69,232,228,159
(1,142,105,330,177)
(756,474,309,084)
2,771,297,326,323
1,459,922,785,661
8
12,723,839,340
(53,304,805,480)
17,18
(1,433,882,998,506)
(2,442,727,771,025)
1,711,688,675,151
730,888,896,482
Proceeds from disposals of equity
investments in subsidiaries, net of cash
disposed
167,000,000,000
9,697,723,681,183
Proceeds from disposals of equity
investments in other entities
465,000,000,000
760,299,910,908
Proceeds from deposit of counterparties for
acquiring investments
199,312,091,675
-
Redemption of deposit to counterparties
for acquiring investments
232,200,000,000
-
1,017,729,795,067
539,692,018,943
(18,740,792,790,825)
(5,772,764,388,856)
-
(2,953,978,284,083)
Proceeds from sale of treasury shares
1,411,009,772,856
-
Capital contribution from non-controlling
interest
2,948,518,325,757
3,256,960,309,647
(3,025,235,910,441)
(251,000,000,000)
187,099,660,000
-
Proceeds from borrowings
17,264,986,730,202
16,614,545,541,480
Repayment of borrowings
(8,682,400,989,547)
(11,103,071,677,430)
Interest paid
(3,191,276,794,957)
(2,550,652,028,899)
Interest and dividend received
Net cash flows used in
investing activities
FINANCING ACTIVITIES
Payment for acquisition of treasury shares
Working capital adjustments:
(Increase)/decrease in trade and other
receivables
(215,818,430,208)
1,506,465,991,329
Decrease/(increase) in inventories
8,717,442,970,739
(972,723,339,123)
(Decrease)/increase in trade and other
payables
(324,285,341,587)
3,811,823,118,488
(Increase)/decrease in prepayments
(848,564,488,639)
184,758,895,784
Other cash (outflows)/inflows from
operating activities
(19,749,436,780)
6,453,281,065
(1,910,568,513,664)
(1,803,518,979,544)
Dividend paid to non-controlling interests
(521,509,281,485)
-
8,965,998,946,615
Dividends paid to equity holders of the
parent
(1,844,966,743,620)
(288,850,999,997)
Net cash flows from financing activities
4,546,224,768,765
2,723,952,860,718
72,970,266,553
5,917,187,418,477
7,534,048,703,295
1,616,855,174,935
383,620,704
6,109,883
7,607,402,590,552
7,534,048,703,295
Income tax paid
12.1
Net cash flows from operating activities
14,267,538,288,613
INVESTING ACTIVITIES
Proceeds from sale of property and
equipment
23,987,643,862
39,220,197,524
(11,348,610,949,497)
(5,721,094,644,976)
Payment for equity investment in other
entities
(1,254,685,000,000)
(2,766,589,691,339)
Advance for business co-operation
contracts
(5,800,000,000,000)
(266,500,000,000)
Purchase of property and equipment
Redemption of advance for business
co-operation contracts
174
(700,000,000,000)
Disbursement of loans
(19,812,218,325)
Valuation gains on investment property
and investment property under
construction
Deposits for investment in potential real
estate projects
56,933,739,373
Changes in amortized cost of loans and
receivables other than nominal interest
Interest expense
Previous year
71,609,018,302
280,287,425,521
Interest and dividend income
Current year
342,282,972,705
23,977,080,600
35.2
Note
509,387,558,854
(102,776,671,940)
Share of profit/(loss) of associates
Currency: VND
for the year ended 31 December 2014
Note
Profit before tax from discontinued
operations
Consolidated statements of cash flows (continued)
Vingroup Joint Stock Company | Annual Report 2014
266,500,000,000
-
Payment for acquisition of additional
interest in existing subsidiaries
Proceeds from partial disposals of equity
investments
Net increase in cash and cash
equivalents
Cash and cash equivalents at 1 January
Impact of exchange rate fluctuation
Cash and cash equivalents at 31
December
28
Vingroup Joint Stock Company | Annual Report 2014
175
Reconciliation between VAS and IFRS consolidated income statements
Báo cáo lưu chuyển tiền tệ hợp nhất
Currency: VND
No
Items
I
Profit after tax of VAS
II
Adjustment for IFRS
1
Valuation gain on investment properties, investment properties under construction at fair
value
2
Net loss on financial liability at fair value through profit or loss
3
Finance income/expenses arising from measurement of loans/customers' deposits/AR at
amortised cost
4
Adjustment for gain/loss from investment activities
5
Finance expenses arising from measurement of convertible bond at amortised cost
6
Adjustment for profit shared from associates
7
Deferred tax expenses
7.1
Deferred tax expenses/income incurred from measurement of investment properties,
investment properties under constructionat fair value and adjustment for tax rate
7.2
Other deferred tax income incurred this year
8
3,776,045,741,483
1,433,882,998,504
102,776,671,940
(3,409,185,808)
215,647,731,524
(830,841,799,057)
(3,953,180,089)
(371,961,073,384)
264,704,529,351
Other adjustments
8.1
Adjustments for prepayments which should be expenses under IFRS
8.2
Revert depreciation of investment properties and amortisation of prepaid land rental fees as
being measured at fair value
403,574,610,174
8.3
Reversal of goodwill amotisaton expenses
649,042,000,804
8.4
III
176
Amount
Other expenses adjustment
Profit after tax of IFRS
Vingroup Joint Stock Company | Annual Report 2014
(175,175,659,746)
(73,400,076,470)
5,386,933,309,225
The consolidated financial statements give a
true and fair view, in all material respects, of the
consolidated financial position of the Group as at
31 December 2014, and of the consolidated results of
its operations and its consolidated cash flows for
the year then ended in accordance with Vietnamese
Accounting Standards, Vietnamese Enterprise
Accounting System and the statutory requirements
relevant to preparation and presentation of
consolidated financial statements.
Vingroup Joint Stock Company | Annual Report 2014
177
TRANSCEND
OVERVIEW
009
Key figures for 2014
010
Message from the Chairman of the
Board of Management
012
2014 Titles and Awards
PIONEERING
CORPORATE PROFILE
018
Vision, Mission and Core Values
020
Corporate Milestones
024
Organizational Structure
026
Board of Management
028
Supervisory Committee
028
Executive Committee
032 Businesses
GROWTH
OPERATIONs IN 2014
042
Operational Highlights
044
Financial Summary
046
About Vingroup’s shares in 2014
048
Shareholder Information
050
Investor Relations
FORWARD-LOOKING
MANAGEMENT AND GOVERNANCE
056
Report of the Board of Management
060
Report of the Supervisory Committee
061
Report of the Executive Committee
065
Corporate Governance Report
066
Development Strategy
068
Risk Management
070
Human Resource Management
074
Corporate Culture
TIMELESSNESS
SUSTAINABLE DEVELOPMENT
080
Sustainable Development Strategy
081
Economic Growth
082
Social Responsibility
083
Environmental Programs
TRANSPARENCY
CONSOLIDATED FINANCIAL STATEMENTS
090
VAS Consolidated Financial Statements
170
Summary of IFRS Consolidated Financial Statements
176
Reconciliation between VAS and
IFRS Consolidated Income Statements
Vinhomes Central Park
The Landmark81 is an 81-floor tower,
the tallest building in Vietnam
Tập đoàn Vingroup | Báo cáo thường niên 2014
Tập đoàn Vingroup | Báo cáo thường niên 2014
“It always seems impossible until it’s done.” – Nelson Mandela
overview
009
Key figures for 2014
010
Message from the Chairman of the
Board of Management
012
2014 Titles and Awards
Overview
Overview
Key figures
for 2014
visitors a year to
Vinpearl Land
NET REVENUE
vnd BILLION
Vingroup Joint Stock Company (“Vingroup” or the “Group”)
is one of the largest listed companies by market capitalization
in Vietnam. Vingroup focuses on long-term sustainable growth
by targeting high-quality real-estate development and hospitality. The Company has two principal brands: Vincom and
Vinpearl.
and villas, Vinpearl Golf Club. Retail: VinMart – Supermarkets,
VinMart+ – Convenience stores, VinFashion, VinDS – Chain of
speciality retail stores, VinPro – Electronics and appliances, and
Adayroi – Comprehensive E-commerce.
In addition to these three business segments, Vingroup
participates in other segments aimed at improving the quality
of life for the Vietnamese people. Among these segments are
Healthcare: Vinmec – Quality healthcare services, Education:
Vinschool – Quality education, and Agriculture: VinEco – Trusted
quality source of food and Vingroup’s newest business sector.
After more than a decade of development, Vincom is Vietnam’s
leading real estate brand with high-end shopping, office and
apartment developments in Vietnam’s largest cities. Vincom
is also leading the trend towards sustainable, luxury urban
townships in Vietnam. Vinpearl is the largest and most recognized Vietnamese hospitality and tourism brand featuring Vingroup continues to pioneer and lead consumer trends
amusement parks, golf courses hotels, resorts, and beachfront in all its businesses through offering quality products and
villas rated five or more stars.
introducing a modern life-style experience to the Vietnamese
consumers.
In January 2012, Vinpearl JSC merged with Vincom JSC to form
Vingroup Joint Stock Company.
The Group is proud to set the standard for private enterprises, built by Vietnamese people and marked by traditional
The Group has developed a diversified portfolio across six busi- Vietnamese characteristics of intelligence, daring and
ness segments: Property: Vinhomes – Luxury Apartments & ambition.
Villas, Vincom and Vincom Mega Mall – Vincom shopping malls,
Vincom Office – offices for lease, Hospitality and entertain- As a leading private group that successfully balances sustainment: Vinpearl Resort and Vinpearl Luxury – five-star resorts and able and dynamic development in Vietnam, Vingroup has the
upscale resorts, Vinpearl Land – amusement parks and family potential to achieve leadership at the regional and internationentertainment centers, Vinpearl Premium – premium resorts al levels.
TOTAL ASSETS
MARKET CAPITALIZATION
vnd BILLION
vnd BILLION
PROFIT BEFORE TAX
vnd BILLION
students attended
Vinschool in the first
academic year
TOTAL
OWNERS’ EQUITY
Over
employees
008
Vingroup Joint Stock Company | Annual Report 2014
vnd BILLION
Overview
Message from the Chairman of the Board of Management
Our key tasks in 2015 are to leverage
all of our resources to accelerate
the development of new projects,
to keep to our schedule for new
openings, and to effectively manage
our operating businesses.
Message From
the Chairman of
the Board of
Management
Simultaneously, Vingroup launched supermarket chain VinMart
and convenience store chain VinMart+ on a nationwide basis.
The Group also introduced other key businesses including
VinFashion (fast fashion for Vietnamese), VinPro (electronics
and appliances), VinDS (a chain of specialty retail stores), and
Adayroi (comprehensive e-commerce).
Dear Valued Shareholders,
On behalf of the Board of Management (BOM) and Executive
Committee, I would like to extend our warmest greetings and
wish you health, happiness and success!
Ladies and Gentlemen,
In the past few years, the global and domestic economies
encountered a series of challenges. Thousands of enterprises
have struggled with the possibility of business closure while
hundreds of thousands of workers lost their jobs. It certainly
has been a tough time for business.
Despite the economic downturn, Vingroup has met and
overcome these challenges. At the end of 2013, foreseeing
the economic fluctuations and aiming to strengthen the
internal organization of the company, the Group’s Board of
Management and management team made the decision to
restructure our management system following the theme
“Transform to Succeed.” In 2014, Vingroup successfully
010
Vingroup Joint Stock Company | Annual Report 2014
completed the decentralization of its operational model into living in Vinhomes urban communities, a new standard in
shopping and entertainment at Vincom shopping malls, new
management by business sector P&Ls.
opportunities to enjoy Vinpearl’s 5-star-and-above upscale
The watershed transformation has helped Vingroup overcome resorts, world-class healthcare services at Vinmec, and
the difficulties and challenges to expand into new areas. The high-quality education at Vinschool.
Group has established five core business sectors: Property,
Hospitality and Entertainment, Retail, Healthcare, and In 2015, Vingroup will enter the agriculture business under the
VinEco brand. VinEco will provide customers with a trusted
Education.
quality source of food for current and future generations of
Our core business sectors together create an ecosystem of Vietnamese while leveraging Vietnam’s advantages in agriculcomplementary and synergistic operations. This business tural products for export to the global market.
ecosystem sets a new standard in the market with the mission
Economic indicators point to progressive stabilization and
“to create a better life for the Vietnamese people.”
recovery, and the ASEAN Economic Community (AEC) will
In 2014, after reorganizing the company structure, Vingroup be established in 2015. Vingroup’s key tasks this year are to
also executed its aggressive growth plan to expand its opera- effectively manage the P&Ls of our operating businesses, to
leverage all of our resources to accelerate the development of
tions into key cities nationwide.
new projects and to keep to our schedule for new openings.
In Ho Chi Minh City, Vingroup broke ground on Vinhomes Vingroup is determined to achieve a breakthrough year with
Central Park, one of the most advanced luxury urban commu- major projects now being developed in Hanoi, Ho Chi Minh
nities in Vietnam and the largest mixed-use project Vingroup City, Nha Trang, Can Tho, and Ha Tinh.
has created to date.
The Group will continue to expand the coverage of its
In Phu Quoc, Vingroup’s new resort complex, Vinpearl Phu ecosystem of Vingroup products and services throughout
Vietnam with six core businesses: Property, Hospitality and
Quoc, has become a growth engine for local tourism.
Entertainment, Retail, Education, Healthcare, and Agriculture.
In Quang Ninh, the Vincom Ha Long mall commenced oper- Key goals for 2015 are to have a breakthrough year, to
ations in late 2014 and has become the shopping and enter- maintain the leading position in our core business sectors,
tainment destination for Ha Long and surrounding areas. This and to continue identifying new and promising businesses
project marked the launch of Vingroup’s national retail mall to enter. All of Vingroup’s efforts are to realize the mission “to
create a better life for the Vietnamese people.”
expansion strategy.
Vinmec high quality healthcare services and Vinschool high
quality education also recorded impressive growth with the
start of construction on four new hospitals and the opening of
Vinschool with enrollment of 6,300 K-12 students.
In addition, Vingroup will continue to strengthen operations
by implementing a major overhaul of management systems to
increase operational efficiencies in order to ensure sustainable
development in the coming years.
On behalf of the Board of Management, I would like to express
our gratitude to you for your trust, support and partnership.
We believe that through our carefully chosen strategies,
Vingroup will achieve our goals in 2015 and the years to come,
maintaining our market-leading position as one of the premier
companies in the region, while protecting and enhancing the
long-term interests of shareholders and making even greater
contributions to society.
With pioneering yet practical steps towards sustainable development, Vingroup in 2014 achieved record revenue of VND27.7
trillion, a 51% increase over 2013. This was the highest revenue Sincerely yours,
in the Group’s history and puts Vingroup in the exclusive ranks
of Vietnamese companies with revenues over a billion USD.
Also in 2014, Vingroup created more than 8,500 new jobs,
increasing the total number of employees to 17,000. Vingroup
is now ranked the best place to work in the property, architecture, and design sectors, and similarly tops the list in the investment, accounting, auditing, pharmacy, healthcare service and
biotechnology sectors. Vingroup has the confidence to lead
the changes now taking place in its business sectors.
Chairman of the Board of Management
The company is proud to have pioneered a new standard of Pham Nhat Vuong
Vingroup Joint Stock Company | Annual Report 2014
011
Overview
2014 Titles and Awards
2014 Titles and Awards
012
“Vietnam Excellent
Brand” – 7th consecutive year
“Best Retail
Development in
Vietnam” for Vincom
Mega Mall Royal City
“Best Developer in
Vietnam”
“Top 100 ASEAN
Companies 2014”
“Region’s Best
Borrower – Vietnam”
“Best Retail Developer
in Vietnam”
“Top Ten Five-star
Hotels 2014” for
Vinpearl Resort
Nha Trang – 6th
consecutive year
“Largest Private Sector
Corporate Taxpayer”
by Vietnam Economic
Times in collaboration with
Vietnam Trade Promotion
Agency (Ministry of Trade).
by Asia Pacific Property
Awards 2014.
by South East Asia
Property Awards 2014.
by Standard and Poor’s
(S&P), one of the world’s
three most respected
independent credit rating
firms.
by FinanceAsia.
by Euromoney, for the
second time.
by Vietnam Tourism
Awards 2013, Vietnam
National Administration
of Tourism, Ministry
of Culture, Sports and
Tourism and Vietnam
Tourism Association.
by the V1000 list, which
honors outstanding
enterprises making major
contributions to the
State Budget of Vietnam,
released by Vietnam
Report JSC in collaboration with the Tax Review
Magazine, the General
Department of Taxation,
and online newspaper
VietNamNet.
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
013
Vinpearl Premium Da Nang
Located at the most prime location
of Non Nuoc beach
Tập đoàn Vingroup | Báo cáo thường niên 2014
Tập đoàn Vingroup | Báo cáo thường niên 2014
A great location still needs vision to be a prime destination.
corporate identity
018
Vision, Mission and Core Values
020
Corporate Milestones
024
Organizational Structure
026
Board of Management
028
Supervisory Committee
028
Executive Committee
032 Businesses
Corporate Identity
Vision, Mission and Core Values
Vision, Mission
and Core Values
VISION
MISSION
True to its pioneering ambition, Vingroup aims to consolidate
and extend its lead among private, multi-sector businesses in
Vietnam and the region, and to establish its reputation as an
international brand.
Market: To provide unique, creative, premium products and
services of outstanding quality that meet international standards and exceed customer expectations while reflecting local
tastes and upholding Vietnamese cultural values.
Vingroup also aspires to build a brand that projects Vietnam’s Shareholders and Partners: To uphold the cooperative spirit
national pride to the international community.
of mutual development and to commit to becoming the
“Number One Companion” of our partners and shareholders
by creating sustainable value over the long-term.
Employees: To build a professional, creative, dynamic, and
humane work environment, providing all employees opportunities for career advancement based on their skills and
contributions.
Society: To demonstrate corporate social responsibility and
national pride by harmonizing corporate benefits with community contributions.
CORE VALUES:
CREDIBILITY – INTEGRITY – CREATIVITY
– SPEED – QUALITY – HUMANITY
Credibility: Vingroup vigorously protects its Credibility as one
would protect one’s own honor. The Company is always fully
prepared to execute its plans and spares no effort towards
meeting its goals.
Integrity: Vingroup considers Integrity a foundation of its business. We comply fully with the law and maintain the highest
level of professional and social ethics. Customers come first.
Creativity: We value creativity highly as a source of leverage in
our development, and uphold the spirit “dare to think, dare to
do” aimed at building an organization eager to learn.
Speed: Vingroup considers speed and efficiency in every
activity as a guiding principle. We practice “fast decision – fast
investment – fast deployment – fast sales – fast change and
quick adaptation.”
SLOGAN
Vingroup – Where the Best Gather and Grow
• Vingroup is where talented people meet and work
together to achieve the common goals of success and
social development.
• Vingroup’s people are ambitious, highly talented and
qualified in their respective fields.
• All members of the Vingroup family are treated equally,
given opportunities and placed in the most favorable
conditions to maximize their individual talents.
• The Group aims to build the Best People, the
Best Products and Services, the Best Life, and the
Best Society.
LOGO
The Vingroup logo shows a bird flying towards the sun,
Quality: The Group operates under the principle – Best People representing our strong desire to reach new heights and our
– Best Products and Services – Best Life – Best Society.
determination to achieve great success.
Humanity: Vingroup develops the human spirit by valuing The bird’s wings are in the shape of the letter V to stand for
employees as our most important resource, creating the basis Vietnam and Vingroup’s national pride, as well as for victory – a
for fairness, integrity, unity and strength.
goal that Vingroup continuously strives to achieve.
The five stars below the bird represent Vingroup’s five-star
standard criteria and principles.
The two colors red and yellow are from Vietnam’s national flag,
expressing Vingroup’s pride in Vietnamese identity, spirit and
intelligence.
018
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
019
Corporate Identity
Corporate Milestones
Corporate Milestones
2001
2002
2003
July
May
Hon Tre Tourism and Trading
Limited Liability Company (since
renamed Vinpearl JSC) was established in the coastal city of Nha
Trang, Khanh Hoa province.
Vietnam General Commercial
JSC (since renamed Vincom JSC)
was founded with initial charter
capital of VND196 billion.
2004
2006
November
The five-star Vinpearl Resort Nha
Trang commenced operation.
Vincom Ba Trieu (Towers A and B)
was launched to introduce the
modern shopping experience to
the Capital.
Vinpearl Land was opened,
turning formerly arid Hon Tre
Island into a luxury tourist
destination – a symbol of the
rapid growth of tourism in Nha
Trang, Khanh Hoa in particular and
Vietnam in general.
The Company successfully
organized and hosted the Miss
Vietnam 2006 at Vinpearl Land.
History
2007
March
July
The Vinpearl cable car linking Phu
Quy Pier and Hon Tre Island (3,320
meters in length) was launched.
Vingroup officially listed its shares on
the Ho Chi Minh City Stock Exchange
under the ticker “VIC.”
The Company also opened
Vinpearl Resort Nha Trang, raising
the total number of five-star guest
rooms to 485.
In addition, Vingroup successfully
organized the first Miss Vietnam
World at Vinpearl Nha Trang,
thus establishing its reputation
as a major destination for beauty
contests and events.
Vingroup Joint Stock Company (JSC) was established through Ha Long, Khanh Hoa – Nha Trang, Da Nang, Binh Dinh and
the merger of two companies: Vincom JSC and Vinpearl JSC in Phu Quoc.
January 2012.
Vincom JSC, formerly known as the Vietnam General
Vinpearl JSC, formerly known as Hon Tre Tourism and Trading Commercial JSC, was founded in Hanoi on 3 May 2002. Its
Investment and Development Limited Liability Company, was operations are focused on large-scale mixed-use development,
established on 25 July 2001 in Nha Trang, Khanh Hoa province sales and management and include shopping malls, offices,
and primarily engaged in the resort, tourism, hospitality and and luxury apartments and villas. The Company has developed
recreation sectors. The Company’s portfolio includes projects large-scale shopping complexes in major cities across the
in popular tourism destinations throughout Vietnam such as country, including Hanoi, Ho Chi Minh City, and Ha Long.
020
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
021
Corporate Identity
Corporate Milestones
Corporate Milestones (cont.)
2009
2010
2011
2012
2013
August
April
May
January
January
Vingroup opened the retail
component of Vincom Ba Trieu
Tower C.
Vingroup opened Vincom Dong
Khoi in Ho Chi Minh City
(Vincom B).
Vingroup successfully hosted the
second Miss Vietnam World and
Miss Earth at Vinpearl Resort
Nha Trang.
The merger with Vinpearl JSC
raised total charter capital to
approximately VND5.5 trillion
and a development strategy was
approved for the Group to be
operated under the new entity:
Vingroup JSC.
Vingroup became a
foundation member of
the World Economic Forum
(WEF).
Fourth quarter
The five-star Vinpearl Luxury
Nha Trang and Vietnam’s first
island golf course Vinpearl Golf
Club – Nha Trang were opened
simultaneously, marking the
completion of the key
components of Vinpearl Nha
Trang, the Company’s first
hospitality complex, in
development and operation for
over a decade.
Vingroup completed construction
and handed over luxury apartments at Vincom Ba Trieu.
It became the first Vietnamese
company to successfully issue
USD100 million of convertible
bonds on the Singapore Exchange
(SGX).
Vingroup officially launched
the Vinmec brand and put into
operation Vinmec International
Hospital.
July
Vacation resort Vinpearl
Premium Da Nang opened as
Vinpearl’s new resort.
December
Vincom Long Bien commenced
operation at Vinhomes Riverside.
At the same time, Vingroup
relocated its Head Office
to the Vinhomes Riverside
ecological area, located in
Long Bien district, Hanoi.
April – July
A successful issuance of
USD300 million of international
convertible bonds listed on the
Singapore Exchange. FinanceAsia
recognized this as the
“Best Vietnam Deal 2012.”
October
Vincom A Ho Chi Minh City – a
luxury retail, food and beverages
complex, commenced operation.
Subsequently, Vingroup’s full
interest in the project was sold
and recognized in 2013.
Vingroup was honored as “Best
Developer – Vietnam” by Euromoney and Vinhomes Riverside
was honored with “Best Villa
Development – Vietnam” at the
Southeast Asia Property Awards
2012 in Singapore.
022
Vingroup Joint Stock Company | Annual Report 2014
November
Vingroup successfully issued
a USD200 million international bond. FinanceAsia
named this transaction “Best
Vietnam Deal 2013,” whilst
April
IFRS Asia called it “Vietnam
Vingroup entered the
Capital Markets Deal of the
Vietnamese education sector Year 2013.”
with Vinschool, a school
system extending from
December
kindergarten to high school. Vingroup opened Vincom
Mega Mall Times City, new
May
Vinschool facilities, and
A consortium led by
Vinmec International HospiWarburg Pincus, a leading
tal at Times City.
global private equity firm
focused on growth capital,
During 2013, Vingroup
invested USD200 million in
delivered thousands of
a strategic partnership with apartments at Vinhomes
Vincom Retail, a subsidiary
Royal City and Vinhomes
of Vingroup, to substantially Times City.
expand the group’s commercial property business.
Acquisition International
recognized this investment
as “Real Estate Deal of the
Year 2013.”
July
November
2014
Vingroup opened Vincom
Mega Mall Royal City,
Asia’s largest underground
combined entertainment
and shopping complex.
July
November
Vingroup broke ground for one of
the most modern and luxurious
urban areas in Vietnam –
Vinhomes Central Park in Ho
Chi Minh City. Vingroup also
announced its strategy to expand
Vinmec into a network of ten
hospitals throughout the country
over the next five years and to
establish the Vinmec Medical
University in 2015.
Vinpearl Phu Quoc, a five-star hospitality
complex was officially opened after only
over ten months of construction – a
record performance for a property of
this size and complexity.
September
Vingroup was honored with four
prestigious awards:
VinMart and VinMart+ opened their
first nine supermarkets and
convenience stores.
Vingroup opened for sale Vinhomes
Nguyen Chi Thanh – Ha Noi, a new
mixed-use project in the heart of
the Capital.
December
“Best Retail Developer in Vietnam”
from Euromoney
Vingroup was ranked as the Largest
Private Sector Corporate Taxpayer in
Vietnam based on 2013 financial results.
“Top 100 ASEAN Companies 2014”
from Standard and Poor’s (S&P)
Vingroup broke ground for the 81-floor
Landmark81 in the urban area Vinhomes
“Region’s Best Borrower – Vietnam” Central Park. The Landmark81 is expectfrom FinanceAsia
ed to be over 380 meters tall, setting
a new record for the tallest building in
“Vinpearl Resort Nha Trang – One
Vietnam.
of the Top 10 Five-star Hotels
2014” from Vietnam Tourism
Vingroup opened Almaz, a luxurious
Awards 2013.
convention, restaurant, shopping and
entertainment center in Vinhomes
Vinschool K-12 school opened at
Riverside.
Times City with 6,300 students
from kindergarten to high school.
End of December 2014: Vingroup
announced a new premium resorts and
October
villas brand, Vinpearl Premium, with
Vingroup launched the VinMart
locations at Nha Trang, Phu Quoc and Da
and VinMart+ brand.
Nang, and also announced the sales of
hundreds of Vinpearl Premium villas.
Vincom Ha Long opened, increasing the number of shopping malls
under the Vincom brand to a total
of six.
Vingroup Joint Stock Company | Annual Report 2014
023
Corporate Identity
Organizational Structure
Organizational
Structure
ANNUAL
GENERAL MEETING
Board of Management
Chairman
PHAM NHAT VUONG
SUPERVISORY COMMITTEE
CEO
SPECIALIZED
COMMITTEES
COUNCILS
DUONG THI MAI HOA
FINANCE DEPARTMENT
LEGAL DEPARTMENT
PROPERTY
HOSPITALITY
& ENTERTAINMENT
RETAIL
HEALTHCARE
EDUCATION
HUMAN RESOURCE
DEPARTMENT
AGRICULTURE
INVESTMENT DEPARTMENT
Vinhomes
Vinpearl JSC
Vinhomes 1 Real Estate
Trading LLC
Vinpearl Hotel
Management Company
Vinhomes 2 Real Estate
Trading LLC
Vinpearl Golf
Course Management
VinMart
Supermarket JSC
Vinmec International
General Hospital JSC
Vinschool
Kindergarten System
VinFashion JSC
Vinmec Medical
University
Vinschool Multi-Level
Education System
VinEco Agricultural
Investment Development
and Production LLC
Vincom Construction LLCs
DEPARTMENT OF
PUBLIC RELATIONS
Vincom Security LLC
SHAREHOLDER &
INVESTOR RELATIONS
MARKETING DEPARTMENT
VinEcom LLC
INFORMATION TECHNOLOGY
DEPARTMENT
VinPro LLC
Vinhomes Property
Leasing LLC
Vinhomes Property
Management LLC
PLANNING DEPARTMENT
Vinpearl Land
Amusement LLC
VinDS LLC
VinGS General Services
Trading LLC
Vincom Retail JSC
Vincom Office LLC
RISK MANAGEMENT
DEPARTMENT
PROJECT SUPERVISORY &
CONSTRUCTION DEPARTMENT
INTERNAL SUPERVISORY
DEPARTMENT
BUSINESS SUPERVISORY
DEPARTMENT
TENDERING & PROCUREMENT
DEPARTMENT
SUPPLY CHAIN DEPARTMENT
INTERNAL SECURITY &
FIRE DEPARTMENT
024
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
025
Corporate Identity
Board of Management
Board of Management
Chairman of the
Board of Management
The Board of Management (BOM) is appointed at the Annual Current Members of the BOM
General Meeting (AGM) and entrusted with the full power to
exercise all rights and responsibilities on the Group’s behalf 01. Mr. Pham Nhat Vuong – Chairman of the BOM
except those under the jurisdiction of the AGM. The BOM
comprises ten members with the following rights and duties:
02. Ms. Pham Thuy Hang – Vice Chairwoman of the BOM
Mr. Pham Nhat Vuong
• Deciding the Group’s development and business plans 03. Ms. Pham Thu Huong – Vice Chairwoman of the BOM
and finalizing the annual budget.
• Establishing operational goals pursuant to the strategic
goals approved by the AGM.
04. Ms. Nguyen Dieu Linh – Vice Chairwoman of the BOM
05. Ms. Vu Tuyet Hang – Vice Chairwoman of the BOM
• Reporting to the AGM on the Group’s business perfor- 06. Mr. Le Khac Hiep – Vice Chairman of the BOM
mance, planned dividends, financial statements, business
strategies and general business conditions.
07. Ms. Mai Huong Noi – Member of the BOM
• Developing the Group’s organizational structure and oper- 08. Mr. Ling Chung Yee Roy – Member of the BOM
ational rules.
• Other rights and duties in accordance with statutory regulations, the Group Charter and resolutions of
the AGM.
09. Mr. Marc Villiers Townsend – Member of the BOM
10. Mr. Joseph Raymond Gagnon – Member of the BOM
Leading the development of high
quality products and services system
of Vingroup with the mission “to create
a better life for THE Vietnamese people.”
Mr. Pham Nhat Vuong was appointed to the BOM in May 2002
and elected Chairman in November 2011. He has a long track
record as an entrepreneur both inside and outside Vietnam,
reflected in his establishment and development of the Group’s
core businesses, including two initial brands Vincom (the leading
brand in real estate) and Vinpearl (the leading brand in tourism,
hospitality and recreation). He continues to develop an ecosystem including quality products and services of Vingroup with
the mission “to create a better life for the Vietnamese people.”
degree in Geological Economic Engineering from Moscow
Geology University in Russia in 1992.
In 2012, he was recognized as Vietnam’s first billionaire by
Forbes Magazine, and continues to maintain this sole position
in 2013 and 2014.
The Group believes its growth and development have benefited significantly from Mr. Pham Nhat Vuong’s leadership and
influence.
Prior to the Group’s establishment in 2002, he was the founder
and honorable Chairman of Technocom Limited Company
(Ukraine) from 1993 to 2009. He graduated with a bachelor’s
026
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
027
Corporate Identity
Supervisory Committee/ Executive Committee
Supervisory Committee
CEO
The Supervisory Committee (SC) is elected by the Group’s Current Members of the Supervisory Committee
AGM. The SC has five members with five-year terms. Key tasks
of the SC include:
01. Mr. Nguyen The Anh – Head of the SC
• Monitoring BOM and Executive Committee management
and administration practices.
• Inspecting the validity, legality, transparency, corporate governance and prudence of business operations,
important business transactions, accounting and statistical practices, as well as financial reporting.
Ms. Duong Thi Mai Hoa
02. Mr. Dinh Ngoc Lan – Member of the SC
03. Ms. Nguyen Thi Van Trinh – Member of the SC
04. Ms. Do Thi Hong Van – Member of the SC
05. Ms. Hoang Thuy Mai – Member of the SC
• Evaluating the business reports, annual and semi-annual
Financial Statements of the Group, reporting on evaluations by the BOM and submitting the evaluation report of
the above issues to the shareholders at the AGM.
• Conducting other rights and obligations of the SC as
described in the law, the Group Charter and resolutions
of the AGM.
Executive Committee
The Executive Committee is appointed and dissolved by the Current Members of the Executive Committee
BOM. As of 31 December 2014, the Executive Committee
consisted of a Chief Executive Officer (CEO), six Deputy CEOs
01. Ms. Duong Thi Mai Hoa – CEO
and one Chief Accountant. The Deputy CEOs and the Chief
Accountant support the CEO by fulfilling the tasks entrusted to
02. Ms. Mai Huong Noi – Deputy CEO
them. The Executive Committee’s key responsibilities include:
03. Ms. Nguyen Dieu Linh – Deputy CEO
• Organizing the implementation of the AGM and BOM
resolutions, especially those related to the Group’s annual
04. Ms. Vu Tuyet Hang – Deputy CEO
business and investment plans.
05. Mr. Pham Van Khuong – Deputy CEO
• Deciding day-to-day matters related to the Group’s business activities that do not require resolutions from the
06. Mr. Dang Thanh Thuy – Deputy CEO
AGM or the BOM.
07. Ms. Nguyen Thi Diu – Deputy CEO
The CEO also has the following responsibilities:
08. Ms. Nguyen Thi Thu Hien – Chief Accountant
• Managing and supervising the Group’s day-to-day
operations.
There were clear signs of national and
global economic recovery in 2014, and
Vingroup enjoyed outstanding growth
led by completion of some major
projects and continued expansion and
impressive gains in new business areas.
Ms. Duong Thi Mai Hoa was appointed CEO as of 11 February
2014. Before joining the Group, she had 20 years of experience
and held senior leadership positions at multi-national corporations and commercial banks in Vietnam where she acquired
deep experience in finance and banking. She was Corporate
Banking General Director at Maritime Bank, General Director
of Vietnam International Bank (VIB), Deputy General Director
and Head of Retail Banking of VIB, CFO of VIB, CFO of Oracle
Vietnam – the global firm’s local branch, Chief Accountant
at Credit Lyonnais Bank’s Vietnam operation and Head of
Financial Planning Group of VMEP, one of Chinfon’s Vietnam
subsidiaries.
• Executing contracts and other obligations on the Group’s
behalf.
028
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
029
Corporate Identity
Executive Committee
Ms. Nguyen Dieu Linh
Vice Chairwoman of the BOM
cum Deputy CEO
Ms. Mai Huong Noi
Member of the BOM
cum Deputy CEO
Mr. Pham Van Khuong
Deputy CEO
030
Vingroup Joint Stock Company | Annual Report 2014
Ms. Nguyen Thi Diu
Deputy CEO
Ms. Vu Tuyet Hang
Vice Chairwoman of the BOM
cum Deputy CEO
Ms. Duong Thi Mai Hoa
CEO
Ms. Nguyen Thi Thu Hien
Chief Accountant
Mr. Dang Thanh Thuy
Deputy CEO
Vingroup Joint Stock Company | Annual Report 2014
031
Corporate Identity
Businesses
Quality shopping malls – Vincom Retail
Businesses
Vingroup’s Vincom Retail subsidiary is the leading shopping center operator in Vietnam. Vincom Retail employs two brands,
Vincom and Vincom Mega Mall, in order to differentiate between the two classes of shopping centers. Vincom uses the advantage of large scale to achieve an ideal combination of shopping and entertainment. Through the quality of space and the
style of architecture, Vincom provides the advantages of luxury, broad selection, and comfort in shopping and entertainment
destinations. In just a few short years, the business unit has set a new standard in shopping and entertainment for Vietnam.
real estate
Vincom shopping malls:
Luxury apartments and
villas – Vinhomes
Vinhomes is Vingroup’s brand for high-quality, luxury, serviced
apartments and villas. The Vinhomes brand has set a new standard of superior value, which has contributed to the reputation
of Vingroup’s urban areas as being the most livable in Vietnam,
due to their location, convenience and amenities.
All Vinhomes urban areas are located in prime locations
in Hanoi and Ho Chi Minh City. All of Vinhomes residential
developments are built with the following features: luxurious
accommodations, professional and personalized services,
environmentally-sensitive construction, community-building
activities, emphasis on security and safety, and co-location of
a comprehensive set of facilities.
Unit: VND billion
30,000
2%
R :6
25,000
CAG
20,000
*
Vinhomes properties include:
(*) Compound Annual Growth Rate
• Vinhomes Riverside (Hanoi)
• Vinhomes Nguyen Chi Thanh – Hanoi
• Vinhomes Dong Khoi (Ho Chi Minh City)
• Vinhomes Central Park (Ho Chi Minh City)
21,772
2014 was a pivotal year for Vincom Retail as it participated in the Group’s transformation initiatives to ready itself for future
growth. In 2015, Vincom Retail aims to reach 30 shopping malls throughout Vietnam encompassing more than 1 million square
meters of modern retail space.
14,658
15,000
• Vinhomes Times City (Hanoi)
Vincom’s world-class shopping malls are located in prime loca- Vincom Mega Malls are all-in-one shopping malls that provide
tions of major cities throughout Vietnam, including:
customers with a wide selection of high-quality retail and
entertainment experiences such as waterparks, ice rinks,
aquariums. At present, there are two Vincom Mega Malls
• Vincom Ba Trieu (Hanoi)
located in the Hanoi area:
• Vincom Long Bien (Hanoi)
• Vincom Mega Mall Royal City
• Vincom Ha Long (Quang Ninh)
• Vincom Mega Mall Times City
• Vincom Dong Khoi (Ho Chi Minh City)
REVENUE FROM SALE OF PROPERTIES
(2010 – 2014)
With a great effort and a transformation initiative in terms of
strategy, tactics, personnel, business systems, operations and
supporting departments, Vinhomes has decisively addressed
the residential market through rapid growth and the achievement of dominant market share in many key cities throughout
the country. This market position provides a platform for
breakthrough growth in the future.
• Vinhomes Royal City (Hanoi)
Vincom Mega Malls:
Year
10,000
5,333
5,000
3,128
Total number of
shopping malls
1,371
0
2010
2011
2012
2013
2014
Total area
GFA (sqm)
2004
2009
2010
2012
2013
2014
1
1*
2
3
5
6
27,103
42,489
93,273
131,333
482,913
513,690
2015
Target
30
1,000,000
(*) Vincom Ba Trieu (Tower C) commenced operation.
Offices for lease – Vincom Office
Vincom office buildings are located in major financial and economic centers and are designed to maximize natural light, save
energy and create a modern, professional and efficient working environment. The properties have been selected as the headquarters of financial institutions and embassies and also home to several Vietnamese and foreign organizations and companies.
Vincom Office properties include:
• Vincom Office Royal City
• Vincom Office Times City
032
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
033
Corporate Identity
Businesses
hospitality – entertainment
healthcare
education
Hospitality – Vinpearl
Entertainment – Vinpearl Land
Quality education – Vinschool
Vinpearl is the market-leading hospitality and tourism brand of
Vingroup. Beginning from Vinpearl Nha Trang and after more
than a decade of development, Vinpearl now owns a chain of
luxury hotels and resorts throughout Vietnam. These include
Vinpearl Resort (five-star resorts), Vinpearl Luxury (upscale
resorts), Vinpearl Premium (premium resorts and villas) and
Vinpearl Golf Club.
Vinpearl Land is the entertainment brand of Vingroup, offering high-quality amusement parks and family entertainment
centers. Located in Vingroup’s resorts and mixed-use developments nationwide, Vinpearl Land has the same large-scale and
high quality as other regional and global recreational theme
parks.
High quality healthcare
services – Vinmec
• Vinpearl Land Ha Long
The leading healthcare system in Vietnam carries the Vinmec
brand, owned by Vingroup. Vinmec, with a team of highly skilled
experts and doctors together with advanced modern medical
equipment and international-standard inpatient rooms and
comprehensive, professional, world-class services, has made
many great contributions to Vietnam’s healthcare industry.
Thus, Vinmec serves as a prestigious medical facility trusted by
many customers. Pro-activeness, discipline, determination and
result-orientation are priority qualities at Vinmec, just as they are
at all of Vingroup’s other units. That has led to positive, sustainable results. The secret to success for Vinmec moving forward
is the solid momentum in 2015 with the expected opening of
new Vinmec International Hospitals in Phu Quoc, Ho Chi Minh
City, and Nha Trang. In addition, construction of Vinmec Ha Long
International Hospital is currently underway.
• Vinpearl Land Phu Quoc
Vinmec properties include:
• Vinpearl Land Nha Trang
• Vinpearl Land Royal City
• Vinpearl Land Times City
Vinpearl Golf Clubs include:
• Vinpearl Golf Club – Nha Trang
• Vinpearl Golf Club – Phu Quoc
During 2014, Vinpearl Land developed a human resource
system populated with a staff of young, enthusiastic and
passionate employees who share the goal of attracting and
entertaining visitors. Vinpearl Land further expanded with
Vinpearl had a productive 2014. Vinpearl Phu Quoc was the opening of Vinpearl Land Ha Long and Vinpearl Land Phu
completed and put into operation on schedule after only ten Quoc. Peak visitors reached tens of thousands per day.
months of construction, and the Vinpearl Premium brand was
launched late in the year. In 2015, three Vinpearl projects will In 2015, Vinpearl Land aims to spread the brand throughbe finished, including Vinpearl Premium in Nha Trang and Phu out key cities nationwide to build trust and credibility with
Quoc, and the first resort in North Vietnam, Vinpearl Resort customers.
Ha Long.
160,000
R:
CAG
*
140,000
90%
116,639
120,000
150,242
31,288
80,000
83,423
44,304
70,122
11,639
5,379
6,260
2010
• Vinschool Kindergarten – Vinhomes Riverside
• Vinmec International Clinic (Royal City)
• Vinschool Elementary School – Times City
• Vinmec International Clinic (Ho Chi Minh City)
• Vinschool Secondary and High School – Times City
56,782
66,819
TOTAL NUMBER OF VISITS TO VINMEC
(2012 – 2014)
3,257,627
250,000
TOTAL NUMBER OF STUDENTS
(2013 - 2014)
CAG
2,500,000
1,000,000
1,210,772
200,076
13,499
150,000
1,768,953
988,707
7,000
%
13
R :1
*
100,000
1,237,171
86,525
7,733
43,987
2,570
50,000
500,000
2011
2012
2013
186,577
Domestic visitors
Vingroup Joint Stock Company | Annual Report 2014
2014
2011
2012
(*) Compound Annual Growth Rate
2013
2014
6,000
5,000
3,000
2,000
78,792
1,059
1,000
41,417
2010
6,300
4,000
0
International visitors
034
72,335
35%
• Vinschool Kindergarten – Royal City
200,000
1,500,000
40,000
0
*
2,000,000
67,958
60,000
20,000
R:
CAG
3,000,000
124,740
101,410
100,000
3,500,000
• Vinschool Kindergarten – Times City
• Vinmec International Hospital (Times City)
NUMBER OF VISITS TO VINPEARL LAND
(2010 – 2014)
NUMBER OF VISITS TO VINPEARL
(2010 – 2014)
Vinschool facilities include:
5%
Vinpearl premium resorts and villas include:
• Vinpearl Premium Da Nang
• Vinpearl Premium Nha Trang Bay (under construction)
• Vinpearl Premium Phu Quoc (under construction)
• Vinpearl Premium Golf Land (under construction)
CA
GR *
: 49
Vinpearl Land properties include:
Vinpearl five-star and upscale resorts include:
• Vinpearl Resort Nha Trang
• Vinpearl Luxury Nha Trang
• Vinpearl Resort Phu Quoc (Phase 1)
As a high-quality K-12 school system, Vinschool benefited from
its development strategy, infrastructure and the investment
focus of Vingroup. Vinschool aims to create a generation of
young Vietnamese whose education is dynamic and well-rounded
so that students will be fully equipped with knowledge and skills
for international integration while still grounded by Vietnamese
tradition and culture. In 2014, Vinschool expanded its scale to
a total of 6,300 students. With its educational philosophy of
“comprehensive development of future generations,” Vinschool
has gained the trust of students and parents. In the next few
years, the Vinschool business unit plans to expand to a total of
22 schools nationwide.
0
2010
2011
Inpatient services
2012
2013
Outpatient services
2014
2012
2013
2014
(*) Compound Annual Growth Rate
Vingroup Joint Stock Company | Annual Report 2014
035
Corporate Identity
Businesses
Consumer Retail
(VinMart, VinDS, VinPro,
VinFashion, and Adayroi)
In 2014, Vingroup built on its retail brand equity to expand its
footprint in a number of new sectors of the retail marketplace.
Chain of specialty retail stores
VinMart – Supermarkets and
VinMart+ – Convenience stores
VinMart and VinMart+ are Vingroup’s consumer
and retail brands that provide customers with
exceptional shopping experience and value.
VinMart supermarkets and VinMart+ convenience
stores have wide coverage across the country
and are located in densely populated areas with
convenient transportation.
VINDS
VinDS is a new retail segment within Vingroup with a chain
of specialty retail stores offering a wide range of products
including cosmetics, shoes, sportswear, furniture and household appliances. With this unique model, VinDS’s targets are to
dominate the retail market of these product categories and to
offer Vietnamese consumers both a broad range of products as
well as a newer shopping style.
VINMART
& VINMART+
VinMart’s mission is to earn customers’ trust with
the slogan “Quality of life for every household.”
VinMart has proven to Vietnamese customers
that its stores are reliable shopping destinations
in terms of product origin and quality, service
and prices, and VinMart can provide customers
with a completely new shopping style and
satisfaction.
Electronics and appliances
VINPRO
VinPro is an entirely new brand within
Vingroup’s Retail business segment.
VinPro was launched in early 2015 with
a set of product offerings that includes
smartphones, laptops, tablets, electronics, and home appliances.
Fast fashion for the Vietnamese
VinFashion’s EMIGO brand’s slogan is “Dressing
up Vietnam.” By the end of 2014, after 6 months
of operations, EMIGO has six stores in Hanoi
and Ho Chi Minh City. In 2015, EMIGO plans
to build on this base to reach even more
fashion lovers.
VINFASHION
Comprehensive E-commerce
ADAYROI
036
Vingroup Joint Stock Company | Annual Report 2014
In 2014, Adayroi took the very first steps in its journey to
conquer Vietnam’s e-commerce market. The firm has been
building a solid foundation for launching and promises to
break new grounds in the coming years. By bringing the
unprecedented convenience of ecommerce to all customers,
Adayroi aims to gradually change Vietnamese shopping
culture to fit the pace of modern life.
Vingroup Joint Stock Company | Annual Report 2014
037
Vincom Ha Long
Commenced operation in October 2014
Tập đoàn Vingroup | Báo cáo thường niên 2014
Tập đoàn Vingroup | Báo cáo thường niên 2014
Maintain leadership with continuous growth.
operations
in 2014
042
Operational Highlights
044
Financial Summary
046
About Vingroup’s shares in 2014
048
Shareholder Information
050
Investor Relations
Operations in 2014
Operational Highlights
10 Operational
highlights in 2014
1
Vinhomes Central Park Groundbreaking and
Vinhomes Nguyen Chi Thanh – Ha Noi Sales Launch
During 2014, Vingroup began construction and sales of
two major luxury projects in Hanoi and Ho Chi Minh City. In
July, construction started on Vinhomes Central Park in the
Binh Thanh District of Ho Chi Minh City. The project has a
total planned investment of VND37.7 trillion on land area of
42.2 hectares. Vinhomes Central Park is Vingroup’s first megascale mixed-use project in the Southern market. The project
features a distinctive component: Vietnam’s tallest building,
The Landmark81 over 380m, which began construction in
December 2014.
In Hanoi, Vingroup began sales of Vinhomes Nguyen Chi Thanh
– Hanoi in November. This project is located in one of the most
desirable areas in Hanoi and features an advanced, modern
design with private gardens for apartments, a luxurious touch
that is rare in Vietnam. These features make Vinhomes Nguyen
Chi Thanh – Hanoi one of the leading high-end projects
announced in Hanoi during 2014.
3
Vingroup Announces Two New Retail Chains,
VinMart and VinMart+
In October, Vingroup launched a new brand in the retail
sector. The brand will be carried by two chains of stores:
supermarkets network VinMart and convenience stores
network VinMart+. Both chains will operate nationwide.
VinMart supermarkets ranging from 3,000 to 15,000 square
meters, while VinMart+ convenience stores range from 150
to 300 square meters. In November, VinMart and VinMart+
commenced operation and both chains have expanded their
store count at a rapid rate and plans call for networks of 100
supermarkets and 1,000 convenience stores nationwide
by 2017.
4
Grand Opening of Vincom Ha Long
In October, Vincom Ha Long commenced operations, increasing the total number of shopping malls under the Vincom
brand to six. Vincom Ha Long is Vingroup’s first project in
Quang Ninh Province and the first shopping mall developed by
Vincom Retail that is not located in one of Vietnam’s two major
Together, Vinhomes Central Park and Vinhomes Nguyen Chi cities, Hanoi and Ho Chi Minh City. This project represented
Thanh – Hanoi have become the center of attention in the major progress in expanding Vingroup’s retail real-estate offermarket with sales exceeding projections.
ing on a nationwide basis. Notably, Vincom Ha Long led to the
establishment of many other major projects in Quang Ninh.
2 Grand Opening of Vinpearl Phu Quoc
Vingroup Launches Vinpearl Premium – Premium
5 Resorts and Villas Brand
In November, after just over ten months of construction,
Vingroup opened the five-star premium resort and hospitality
complex, Vinpearl Phu Quoc. As the largest and most luxurious In December, Vingroup announced a new vacation prophospitality project on the island, Vinpearl Phu Quoc represents a erty brand, Vinpearl Premium, a brand dedicated to fivetransformation for the hospitality market in Phu Quoc.
star resorts and vacation villas. Throughout the system,
Vinpearl Premium has a total of 1,500 hotel rooms and 830
Furthermore, in 2014, Vingroup also commenced and villas in four projects located in Nha Trang, Phu Quoc and
accelerated the development of many other Vinpearl projects Da Nang.
across the country.
042
Vingroup Joint Stock Company | Annual Report 2014
6
Vingroup Updates Healthcare Strategy
In July, Vingroup began construction of Vinmec International
Hospital in Phu Quoc and announced a five-year development strategy for its entire healthcare system. Vinmec will
develop ten high-quality hospitals nationwide and establish
the Vinmec Medical University in Hung Yen. These plans form
the foundation of Vingroup’s long-term vision in the premium
healthcare services sector.
7
9
Vingroup Honored
International Awards
with
National
and
During 2014 Vingroup and its business units received many
prestigious national and international awards. Vincom Mega
Mall Royal City won the “Best Retail Development Vietnam” at
the Annual Asia Pacific Property Awards.
In September, Vingroup received the highest score for “providing the best real estate products and services” and was chosen
Vinschool Becomes the Education Phenomenon “Best Retail Developer in Vietnam” by the world’s leading
financial magazine, Euromoney.
of 2014
In September, Vinschool in Times City welcomed the inaugural
batch of K-12 students and instantly became an admissions phenomenon by enrolling a total of 6,300 students.
Vinschool’s success in enrolling students and the quality
of its education offerings are evident in these enrollment
figures, confirming Vingroup’s commitment to education and
demonstrating the trust placed in Vinschool by students and
their parents.
In the financial community, Vingroup was voted “Region’s Best
Borrower – Vietnam” by FinanceAsia.
In the hospitality sector, Vinpearl Resort Nha Trang was ranked
one of the “Top 10 Best five-star Hotels” in Vietnam for the sixth
consecutive year.
10
Group’s revenue over 1 billion USD
Vingroup Leads the Private Sector as 2014’s
Largest Taxpayer and Is Named Among “Top 100
ASEAN Companies” by Standard & Poor’s Credit
Rating Agency
For 2014, Vingroup’s consolidated net revenue reached
VND27.7 trillion, and the Group contributed VND4.2 trillion
to the State Budget, 60% increase compared to 2013. Net
revenue of approximately USD1.3 billion puts Vingroup in the
exclusive ranks of Asia-Pacific companies with revenues over a
In May, Vingroup topped the list of private-enterprise taxpayers billion USD and helped to raise the Group’s regional and global
for the State Budget of Vietnam and was the first private enter- economic profile.
prise to earn a place among the top ten corporate taxpayers.
This ranking recognizes Vingroup’s significant contribution to With more than 17,000 employees, Vingroup has demonthe State Budget of Vietnam and reflects the Group’s continu- strated a leading role in all business sectors and continues to
create new trends by providing the market with innovative
ing growth in revenues and profitability during 2014.
quality products and services “to create a better life for the
Vingroup was the only Vietnamese real estate company Vietnamese people.”
named among the “Top 100 ASEAN Companies” by Standard
and Poor’s (S&P), a leading international credit rating agency,
and is one of only two Vietnamese enterprises to meet the
criteria in credit ratings, market capitalization, transparency of
information and market leadership, necessary to make the list.
Credit ratings given by S&P are considered a reliable indicator
used by sovereigns, fixed-income issuers and investors.
8
Vingroup Joint Stock Company | Annual Report 2014
043
Operations in 2014
Financial Summary
TOTAL ASSETS (2012 – 2014)
TOTAL OWNERS’ EQUITY (2012 – 2014)
Unit: VND billion
30,000
Financial Summary
R:
CAG
25,000
2013
2012
Indicator (VND)
Unit: VND billion
27,285
90,000
27,723,633,371,036
18,377,638,845,706
7,904,472,849,072
Cost of goods sold
17,284,911,479,916
11,346,984,128,307
4,092,056,174,334
Gross profit
10,438,721,891,120
7,030,654,717,399
3,812,416,674,738
5,383,641,995,457
9,606,581,419,123
2,563,499,467,407
111,050,324,885
5,671,793,229,484
393,757,169,880
5,272,591,670,572
3,934,788,189,639
2,169,742,297,527
3,776,045,741,483
7,149,288,120,557
1,846,667,924,525
86,619,253,410
4,253,844,922,113
295,317,877,410
3,689,426,488,073
2,895,443,198,444
1,551,350,047,115
8,568,084,958,380
11,626,109,861,052
3,906,553,356,182
Total assets
90,485,307,199,860
75,772,648,425,795
55,824,875,804,676
Total liabilities 2
63,200,673,940,820
57,156,105,584,507
44,951,244,544,495
Loans and borrowings 3
33,336,013,772,819
27,383,635,280,014
21,828,665,659,871
Total owners’ Equity
27,284,633,259,040
18,616,542,841,288
10,873,631,260,181
Operating profit
Profit from divestitures of equity stakes
Operating profit from core businesses
Profit after tax
Profit after tax from divestitures
of equity stakes
Profit after tax from core businesses
EBITDA
1
Indicator
Gross profit margin (%)
37.65
2013
38.26
2012
19.42
52.27
32.43
Net profit margin (%)
13.62
38.90
23.36
Net revenue growth (%)
50.86
132.50
241.63
Profit after tax from
core businesses growth (%)
27.42
86.64
270.17
Total liabilities 4/ Total Owners’ Equity (times)
1.55
1.88
2.50
Profit after tax/ Total Owners’ Equity (ROE) (%)
13.84
38.40
16.98
Earnings per share (EPS) (VND/ share)
2,447
5,310
1,819
(1) EBITDA = (Profit before tax + Interest expense + Depreciation and amortization) – Other income and interest on deposits.
(2) Including Advance of VND6,581,278,862,138 from customer, Deferred revenue of VND6,586,084,426,957 and Payment of
VND7,847,174,664,786 from customer under deposit, loan and other agreements.
20,000
5,000
10,000
0
0
2012
2013
Unit: VND billion
R* :
CAG
25,000
87%
27,724
5,000
5,333
0
R:
CAG
*
2014
48%
11,626
10,000
21,772
7,904
14,000
12,000
18,378
20,000
10,000
2013
EBITDA (2012 – 2014)
Unit: VND billion
30,000
8,568
8,000
6,000
14,658
3,907
4,000
2,000
2,571
3,720
2012
2013
Sale of properties revenue
5,952
0
2012
2014
Unit: VND billion
2014
ROE AND ROA (2012 – 2014)
70
12,000
2013
(*) Compound Annual Growth Rate
Recurring revenue
GROSS PROFIT AND NET PROFIT (2012 – 2014)
10,439
Unit: %
60
50
8,000
7,031
7,149
4,000
38.40
40
6,000
30
3,812
3,776
1,847
20
16.98
9.44
10
3.31
2012
2013
Net profit after tax
2012
2014
ROE
13.84
4.17
0
0
Gross profit
Vingroup Joint Stock Company | Annual Report 2014
2012
2014
TOTAL NET REVENUE (2012 – 2014)
(4) Excluding Advance from customer, Deferred revenue and Payment from customer under deposit, loan and other agreements.
044
55,825
30,000
2,000
(3) Loans and Borrowings from credit agencies and other organizations, Loans and Borrowings = Short-term loans and borrowings + Longterm loans & borrowings.
90,485
40,000
10,000
10,000
Source: VAS Consolidated Financial Statements for 2012, 2013, 2014
27%
50,000
48.23
Operating profit margin (%)
*
75,773
60,000
15,000
15,000
2014
R:
CAG
70,000
18,617
10,874
Net revenue
100,000
80,000
20,000
2014
*
58%
2013
2014
ROA
Vingroup Joint Stock Company | Annual Report 2014
045
Operations in 2014
About Vingroup’s shares in 2014
About Vingroup’s shares
in 2014
Shareholder structure
SHAREHOLDER OWNERSHIP STRUCTURE
As of 31 December 2014
Unit: %
0.4%
Ticker: VIC
Outstanding shares:
1,454,555,098 shares
As of 31 December 2014
No
28.66%
Founding
shareholders
Closing price (as of 31 December 2014):
VND47,700/ share
1
Market capitalization (as of 31 December 2014):
VND64.3 trillion
Other shareholders
– Foreign
Other shareholders
– Domestic
15.95%
Founding shareholders
Domestic
Major shareholders (Holding above 5%)
2
Domestic
Other shareholders
2014 SHARE PRICE MOVEMENT
0.40
1
5,861,058
0.40
1
0
0
0
799,885,941
54.99
4
799,885,941
54.99
4
0
0
0
44.61
10,137
416,875,836
28.66
9,577
Foreign
231,932,263
15.95
560
1,454,555,098
100
10,142
1,222,622,835
84.05
9,582
231,932,263
15.95
560
Foreign
Volume
(million shares)
60,000
5,861,058
648,808,099
Domestic
Vingroup share price
Number of
shareholders
Domestic
Total
Vingroup share volume
Ownership
Percentage
(%)
Foreign
3
Share
price
(VND)
Number of
shares held
Foreign
Major shareholders
54.99%
Catergory
9
8
7
55,000
Charter capital increase history (2010 – 2014)
6
5
50,000
Time of
issuance
4
3
45,000
Recipients
Capital before
the issuance
(VND)
Capital
mobilized from
the issuance
(VND)
Capital after the
issuance (VND)
Share dividend
Rights offering
Existing shareholders
1,996,272,380,000
1,199,747,240,000
3,196,019,620,000
Existing shareholders
3,196,019,620,000
402,875,740,000
3,598,895,360,000
Conversion of bonds
Convertible bondholders
3,598,895,360,000
127,357,010,000
3,726,252,370,000
2011
Conversion of bonds
Convertible bondholders
3,726,252,370,000
185,246,560,000
3,911,498,930,000
2012
Vinpearl JSC merger
(stock swap)
Existing shareholders
3,911,498,930,000
1,582,334,120,000
5,493,833,050,000
Share dividend
Existing shareholders
5,493,833,050,000
1,510,787,500,000
7,004,620,550,000
Bonus shares
Existing shareholders
7,004,620,550,000
2,276,481,600,000
9,281,102,150,000
Conversion of bonds
Convertible bondholders
9,281,102,150,000
6,966,640,000
9,288,068,790,000
PFV Co. merger
(stock swap)
Existing shareholders
9,288,068,790,000
7,968,000,000
9,296,036,790,000
Conversion of bonds
Convertible bondholders
9,296,036,790,000
722,201,960,000
10,018,238,750,000
Share dividend
Existing shareholders
10,018,238,750,000
4,527,312,230,000
14,545,550,980,000
2
1
40,000
0
Jan
2014
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
2010
Dec
Dividend payment history (2009 – 2013)
Dividend year
(%)
Form of payment
Time of payment
2009
60.10
Share
2010
2010
58.80
Cash (VND5,880/ share)
2011
2011
12.40
Share
2012
2012
15.10
Share
2012
21.49
Cash (VND2,149/ share)
2014
48.70
Share
2014
2013
046
Transaction
Vingroup Joint Stock Company | Annual Report 2014
2013
2014
Vingroup Joint Stock Company | Annual Report 2014
047
Operations in 2014
Shareholder Information
Shareholder
Information
Major shareholders holding over 5%
Insider holdings
As of 31 December 2014
As of 31 December 2014
No
Name
1
Mr. Pham Nhat Vuong
2
Ms. Pham Thu Huong
72,981,753
5.02
3
Vietnam Investment Group JSC
180,145,441
12.38
4
Ecology Investment and Development JSC
123,524,946
8.49
799,885,941
54.99
Total
Number of
shares held
Ownership
percentage (%)
423,233,801
29.10
Tittle
Transactions by key executives and related parties in 2014
Name
Relationship
with internal
shareholders
Number of shares held
prior to the transaction
Shares
1
Vinpearl JSC
Ms. Vu Tuyet Hang
is Chairwoman cum
CEO of Vinpearl JSC
Mr. Dang Thanh Thuy
is Member of Board
cum Deputy CEO of
Vinpearl JSC.
Mr. Nguyen The Anh
is Head of Supervisory
Committee of
Vinpearl JSC.
Mr. Dinh Ngoc
Lan is Member
of Supervisory
Committee of
Vinpearl JSC.
(%)
Number of shares held
after the transaction
Shares
Rationale
(%)
Executive
Committee
0
0
35,398,107
1
2.43
Receive transfer
of shares
Supervisory
Committee
2
Nguyen Khac Cuong
Ms. Nguyen Dieu
Linh’s father
3
Mai Tat To
Ms. Mai Huong Noi’s
father
499,598
0.03
4
Be Thi Thuan
Ms. Mai Huong Noi’s
mother
151,709
5
Mai Huong Noi
Member of Board
cum Deputy CEO
6
Nguyen Tat Thang
7
8
0
Transfer of shares
0
0
Change in ownership
0.01
26,435
0.002
Change in ownership
87,004
0.006
0
0
Change in ownership
Ms. Mai Huong Noi’s
husband
20,926
0.001
0
0
Change in ownership
Mai Thu Thuy
Ms. Mai Huong Noi’s
sister
167,471
0.01
9,391
0.0006
Change in ownership
Pham Van Khuong
Deputy CEO
3,137,964
0.21
611,580 2
0.04
217,362
0.01
0
Number of shares held
(share)
Ownership
Percentage (%)
423,233,801
29.10
Ms. Pham Thuy Hang – Vice chairwoman
48,740,005
3.35
Ms. Pham Thu Huong – Vice chairwoman
72,981,753
5.02
Ms. Nguyen Dieu Linh –
Vice chairwoman, Deputy CEO
111,966
0.01
Ms. Vu Tuyet Hang –
Vice chairwoman, Deputy CEO
15,502
0.00
Mr. Le Khac Hiep – Vice Chairman
0
0
Ms. Mai Huong Noi – Member, Deputy CEO
0
0
Mr. Ling Chung Yee Roy – Member
0
0
Mr. Marc Villiers Townsend – Member
0
0
Mr. Joseph Raymond Gagnon – Member
0
0
Ms. Duong Thi Mai Hoa – CEO
0
0
Mr. Pham Van Khuong – Deputy CEO
909,419
0.06
Mr. Dang Thanh Thuy – Deputy CEO
141,483
0.01
Ms. Nguyen Dieu Linh –
Vice chairwoman, Deputy CEO
111,966
0.01
Ms. Vu Tuyet Hang –
Vice chairwoman, Deputy CEO
15,502
0.00
Ms. Mai Huong Noi – Member of BOM, Deputy CEO
0
0
Ms. Nguyen Thi Diu – Deputy CEO
0
0
Mr. Nguyen The Anh – Head of SC
5,955
0.00
839
0.00
Ms. Nguyen Thi Van Trinh – Member
0
0
Ms. Do Thi Hong Van – Member
0
0
Ms. Hoang Thuy Mai – Member
0
0
87
0.00
111,966
0.01
546,140,810
37.55
Mr. Pham Nhat Vuong – Chairman
Board of
Management
No
Name – Position
Mr. Dinh Ngoc Lan – Member
Chief Accountant
Ms. Nguyen Thi Thu Hien – Chief Accountant
Authorized
spokesperson
Ms. Nguyen Dieu Linh –
Vice chairwoman, Deputy CEO
Total
Transfer of shares
(1) Number of shares has increased to 52,636,985 shares as Vinpearl JSC received dividend by shares.
(2) Number of shares has increased to 909,419 shares as Mr. Pham Van Khuong received dividend by shares.
048
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
049
Operations in 2014
Investor Relations
Investor Relations
The Group maintains an active investor relations program to
handle inquiries, disclose Group information, and manage relations with shareholders, investors, analysts and other interested
parties. Vingroup is committed to equitable treatment of all
shareholders, including minority and foreign shareholders. The
company encourages all shareholders to exercise their voting
rights regularly. Minority shareholders are given the right to
propose the holding of a meeting as well as the right to propose
items in the agenda of the meeting, provided that the items are
for legitimate business purposes and in accordance with the law,
jurisprudence and best practices.
Disclosure and Transparency
Vingroup is committed to providing its shareholders and the
public timely and accurate information on the Company and its
businesses. Information is prepared and disclosed in accordance
with the highest quality standards of accounting and financial
and non-financial disclosure. Investor presentation materials as
well as news and financial releases of the Group may be viewed
and downloaded from its website www.vingroup.net.
the participation of more than 40 investment funds and securities firms. Via prior appointment, investors and analysts are also
able to visit project sites in Hanoi, Ho Chi Minh City, Da Nang,
Phu Quoc and Nha Trang to see the developments firsthand.
Investor relations executives and senior management also
participate in a number of third party events in multiple countries to further ensure access for all investors. During 2014,
the Group was represented and gave presentations at several
conferences organized by leading financial institutions and
bulge-bracket investment banks. In addition, the Group also
attended the World Economic Forum in Davos, Switzerland,
and the WEF Annual Meeting of the New Champions 2014
in China.
Vingroup is committed to providing its
shareholders and the public timely and accurate
information on the Company and its businesses on
its official website www.vingroup.net.
Vingroup’s Investor Relations department will continue to
uphold the best practices in the future. We strive to steadily
increase the number of appearances and investor contact
opportunities as well as even more prompt responses to investor and analyst inquiries. The Investor Relations department can
be reached via email at [email protected].
In addition to quarterly conference calls following the release
of financial results, Vingroup also hosts regular briefings and
meetings with investors and analysts to keep them updated on
the Group’s various projects, financial and operational results.
Many of these events feature access to senior management to
answer questions regarding strategy and operational focus. The
third annual Vingroup Tour took place in November 2014 with
050
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
051
Vinpearl Phu Quoc
Five-star resort with the first international-standard
27-hole golf course in Phu Quoc
Tập đoàn Vingroup | Báo cáo thường niên 2014
Tập đoàn Vingroup | Báo cáo thường niên 2014
Today’s foundation is tomorrow’s success.
Management and
GOVERNANCE
056
Report of the Board of Management
060
Report of the Supervisory Committee
061
Report of the Executive Committee
065
Corporate Governance Report
066
Development Strategy
068
Risk Management
070
Human Resource Management
074
Corporate Culture
Management and Governance
Report of the Board of Management
SUCCESSFUL RESIDENTIAL TRANSACTIONS IN HANOI (2012 – 2014)
Unit: number of apartments
4,500
High-end
4,000
Report of the
Board of Management
3,500
Mid-end
3,000
Low-end
2,500
2,000
1,500
1,000
In 2014, Vingroup completed a record number of landmark
projects and ended the year with impressive achievements
across all business segments including property, retail, hospitality and entertainment, healthcare, and education.
The Macro-Economy in 2014
During Vietnam’s 5-year socio-economic development plan
(2011 to 2015), 2014 marked the first year that the nation
achieved nearly all (13 out of 14) of its macroeconomic targets.
This progress provided the foundation for improved growth in
the years to come.
Specifically, GDP grew 5.98% in 2014, the highest growth rate
since 2012. The agriculture, forestry and aquaculture sector
grew 3.49% against 2.64% in 2013; the industrial and construction sector had breakthrough growth of 7.14% compared with
5.43% in 2013; and the service sector increased 5.96% over the
previous year. In 2014, foreign trade turnover rose to USD150
billion in exports, an increase of 13.6%, with imports reaching
USD148 billion, an increase of 12.1% over 2013. Vietnam’s trade
surplus was USD2 billion, the highest since 2012, contributing
to the continued stability of the exchange rate and the liquidity of the foreign exchange market.
The inflow of foreign direct investment (FDI) also contributed to an outstanding year with total registered capital of
USD20.23 billion, exceeding plan by 19%. Vietnam’s real estate
sector attracted FDI of more than USD2.5 billion, accounting
for 12.6% of Vietnam’s total registered capital.
The consumer price index (CPI) increased by 1.84% in 2014
compared to 2013, the lowest increase of the last thirteen
years. The government continues control inflation successfully, stabilizing input costs and commodity prices, stimulating
consumption, and promoting economic growth.
500
GDP GROWTH OF VIETNAM (2010 – 2014)
0
Q1
2012
Along with growth in the economy, 2014 saw the property
market turn a page, encouraging the return of both domestic
056
Vingroup Joint Stock Company | Annual Report 2014
Q3
Q4
Q1
2013
Q2
Q3
Q4
Q1
2014
Q2
Q3
Q4
Source: CBRE
Unit: %
8.00
SUCCESSFUL RESIDENTIAL TRANSACTIONS IN HO CHI MINH CITY (2012 – 2014)
6.78
5.89
6.00
5.03
5.42
5.98
Unit: number of apartments
8,000
7,000
4.00
High-end
6,000
Mid-end
5,000
2.00
Low-end
4,000
3,000
2,000
0.00
2010
2011
2012
2013
2014
1,000
0
Source: General Statistics Office of Vietnam
Q1
2012
Q2
Q3
Q4
Q1
2013
Q2
Q3
Q4
Q1
2014
Q2
Q3
Q4
Source: CBRE
DISBURSED FDI IN VIETNAM (2010 - 2014)
Unit: USD billion
12.5
12.35
12
11.51
11.5
11
11
11
10.46
10.5
10
Recovery in the Property Market
Q2
9.5
2010
2011
2012
2013
2014
Source: Foreign Investment Agency – Ministry of Planning and Investment
and foreign investors. The number of successful real estate
transactions increased, especially in the Southern market.
Ministry of Construction statistics indicate a significant upward
trend in the real estate market. The total number of completed
transactions in Hanoi and Ho Chi Minh City doubled over the
previous year. Real estate mergers and acquisitions also grew
significantly in terms of both volume and transaction value,
marking a strong return of the secondary market. According
to the Ho Chi Minh City Real Estate Association, new investors
have restarted struggling projects. The real estate market
was helped by this trend, since it helped to clear inventories,
improved debt collection and supplied products that met
customers’ needs and financial capabilities. According to real
estate experts, the property market bottomed out in 2014 and
is now on an upward trend. In the overall picture of recovery,
the strongest parts of the property market appear to be the
middle and high-end segments, especially properties in prime
locations with many amenities and from developers with
strong reputations.
Vingroup Operations in 2014
The national economy experienced clear signs of recovery in
2014, and Vingroup enjoyed outstanding growth thanks to the
efforts its management and employees. Vingroup achieved
impressive business results in 2014: consolidated net revenue
reached VND27.7 trillion and gross profit recorded VND10.4 trillion, increases of 51% and 48%, respectively, compared to 2013.
Profit after tax from core businesses contributed VND3.7 trillion,
an increase of 27% over the previous year.
Residential property sector
Vingroup handed over to buyers thousands of apartments
with comprehensive facilities. The Company achieved the
highest sales of properties in its history, VND21.8 trillion or a
49% increase over 2013, due largely to handing over units at
Vinhomes Times City, Vinhomes Royal City, and final payments
for Vinhomes Riverside. The Group is now beginning the pre-sale
of two new projects, Vinhomes Central Park in Ho Chi Minh City
Overall, property markets benefited from macro-economic and Vinhomes Nguyen Chi Thanh in Hanoi, while simultaneously
trends, government policy support, improvements in product developing Phase 2 of Vinhomes Times City – Park Hill.
quality and more effective promotion programs.
Vingroup Joint Stock Company | Annual Report 2014
057
Management and Governance
Report of the Board of Management
Shopping malls
tens of thousands of patients and thousands of surgeries. As
part of the expansion of its international-standard healthcare
Vincom expanded its chain to sites outside Hanoi and Ho Chi system, Vingroup started construction of Vinmec Phu Quoc
Minh City with the grand opening of Vincom Ha Long in the Hospital and announced plans to develop ten hospitals and a
province of Quang Ninh. This expansion raised the total number medical university within the next five years.
of shopping malls to six and increased Vincom’s total retail
space to 513,690sqm. The occupancy rate for all of Vincom’s Education Sector
shopping malls remained high, due to superior amenities such
as shopping areas, food courts, cinemas and amusement parks. During 2014, Vinschool opened its K-12 school and increased
The high occupancy rate strengthened Vingroup’s reputation in the total number of students in its schools to 6,300. In only two
the retail market.
years, Vinschool already has achieved remarkable progress and
strengthened its reputation with an educational philosophy
Vincom Retail was also active in preparing for further expansion that stresses comprehensive skills development for future
in the retail market, with plans to grow the Vincom mall chain generations.
nationwide. Construction has begun on six new shopping malls:
Vincom Le Thanh Tong – Hai Phong, Vincom Nguyen Chi Thanh Management System
– Hanoi, Vincom Xuan Khanh – Can Tho, Vincom Ngo Quyen – Da
Nang, Vincom Hung Vuong – Hue, Vincom Thu Duc, and Vincom To achieve its results in 2014, Vingroup emphasized its inherent
Mega Mall Thao Dien – Ho Chi Minh City.
strengths, especially its management system framework of
processes and procedures to ensure the company can fulfill all
Retail sector
tasks required to achieve its objectives. Perhaps 2014 should
be remembered as the year of “Vingroup Transformation”
Vingroup’s retail market expansion also included the launch as the company successfully decentralized decision making
of the VinMart supermarket and VinMart+ convenience store while maintaining proper controls throughout. After twelve
chains. At the end of 2014, VinMart and VinMart+ had a total consecutive months, the new “Bottom-line Focus” has spread
of 23 supermarkets and convenience stores in major cities and throughout the Group to all of the business units, which have
provinces across the country. As part of its expansion strategy, grown in both scale and management sophistication.
Vingroup also rolled out a series of new retail store brands such
as VinFashion (fast fashion for Vietnamese), VinDS (chain of All of the Group’s functional departments and divisions have
specialty retail stores), and VinPro (electronics and appliances). gained a full understanding of their responsibility for controlling
Vingroup is also preparing to launch its e-commerce brand, profit and loss, ensuring consistency and efficiency throughout
Adayroi, together with other consumer retail brands to grab the the entire system. Vingroup is implementing a governance
system that is in line with international practices and will enable
dominant market share.
the Company to effectively manage its growth and profitability
as its scale and complexity continue to increase.
Hospitality and Entertainment Sector
Vingroup opened a new resort complex, Vinpearl Resort Phu Challenges and Opportunities in 2015
Quoc, in 2014 after just over ten months of construction. This
opening more than doubled the total number of hotel rooms in According to World Bank (WB), 2014 will be the platform for
Vinpearl Resorts to 1,600 at the end of 2014.
economic growth in 2015 for developing countries such as
Vietnam. Due to the low price of oil and global interest rates,
Vinpearl welcomed 150,242 guests, an increase of 20% over global economic growth is forecasted to reach 3% in 2015 and
2013. Foreign tourists accounted for 56% of the total. Revenue1 3.3% in 2016.
totaled VND1.35 trillion, up 29% over 2013. Vinpearl launched
a new brand, Vinpearl Premium, offering premium resorts and The stabilizing global economy will support Vietnam’s economy
villas, to differentiate its highest-end hotels and vacation prop- and maintain current growth momentum in 2015. The World
erties. The business unit is now accelerating construction of its Bank forecasts Vietnam GDP growth to be 5.6 % and 5.8% in 2015
and 2016, respectively.
projects in Nha Trang, Da Nang and Phu Quoc.
Vinpearl Land (theme parks) also had a successful year with
total revenue1 of VND905 billion, a 59% of increase over 2013.
Vinpearl Land opened two new properties in 2014, Vinpearl
Land Phu Quoc and Vinpearl Land Ha Long.
Healthcare Services
In 2015, the Vietnamese government will concentrate on enhancing macroeconomic stability, resolving difficulties in production,
restructuring the economy, transforming the national economic
growth model, improving efficiency and competitiveness, and
striving for higher growth. In addition, the Government also aims
to accelerate the restructuring of State-owned enterprises and
the stock market as previously planned. These changes should
Vinmec achieved revenue1 of VND670 billion, an increase of
133% over 2013. Vinmec recorded growth both in the number (1) Gross segment revenue includes contributions from Vingroup
of patients served and the number of surgeries performed, with subsidiaries prior to intercompany eliminations.
058
Vingroup Joint Stock Company | Annual Report 2014
attract diversified domestic and international investment, while Vincom Retail will continue to launch new shopping malls,
supporting the equitization of State-owned enterprises and increasing the number of shopping malls to 30 throughout the
resolving bad debts.
country. Vingroup will start construction of five new Vinpearl
Land recreation facilities and four Vinmec hospitals in Quang
During 2015, the property market is expected to receive Ninh, Nha Trang, Phu Quoc and Ho Chi Minh City.
wide-ranging support from policies, laws, and regulations recently approved by the National Assembly and the Government. In the retail sector, the e-commerce brand Adayroi will be
Among these changes, the Amended Housing Law and the launched and is expected to be a leader in the e-commerce
Amended Real Estate Business Law are the two most anticipated area. Other business brands in the retail segment (VinMart,
laws, which take effect on 1 July 2015. These changes will ease VinPro, VinDS, and VinFashion) will also accelerate the pace of
conditions for foreigners to purchase and own property in store openings to increase their coverage and take the lead in
Vietnam, further attracting investment into the property market. their respective segments.
In addition, Circular 36/2014 issued by the State Bank of Vietnam,
which took effect on 2 January 2015, reduces the risk factor for In 2015, Vingroup will enter the agriculture business with
real estate business loans from 250% to 150% and allows greater VinEco. Rising income and increased awareness have created
use of short-term capital for long-term loans by doubling the rate great demand for a source of trusted quality food that the
from 30% to 60%, thus increasing the Bank’s ability to lend. These Group is in a unique position to offer.
changes are expected to be positive factors for the property
market.
Management System
According to BMI research, Vietnam’s population now exceeds
90 million, 35% of which is in the youngest age groups. These
younger groups demonstrate the highest demand for housing,
hospitality and retail. Since the average person requires 15sqm
of living area, demand for living space will be approximately 500
million sqm. The total of residential space in Vietnam is currently
about 100 million sqm. Given such favorable conditions as stable
politics, a recovering economy, and rich natural resources, there
should be strong growth in demand for the property and hospitality sectors in the years ahead.
During 2015, Vingroup will implement a major project to
further improve its management systems. The main objective
will be to incorporate international best practices while retaining Vingroup’s culture and core values. Further decentralization, clearly defined delegation of authority and empowered
compliance and risk departments aim to improve operational
efficiency and increase overall productivity.
Fund raising
Vingroup will continue to consider and mobilize attractive
According to Savills Vietnam, the nation’s property market is now sources of capital in both domestic and international markets.
at the bottom of its cycle. It is expected that in 2015, increased
foreign direct investment in real estate will help to clear unsold Human resource and corporate culture
inventory and restart some stalled projects.
The Group will continue to promote training in all departments
to enhance staff performance, introduce new policies to attract
Blueprint for 2015
and retain talent and emphasize discipline and individual
The Group believes that 2015 will be a “Breakthrough Year” on responsibility to reinforce the corporate culture of “Vingroup
every front. Vingroup’s principal mission is to concentrate on – Where the Best Gather and Grow.”
achieving growth in all business sectors. The Group will also
focus on developing human resources, strengthening governance, with the aim of maintaining its position as one of the
leading private enterprises in Vietnam.
Recurring revenue
The Group continues to maintain steady revenue growth from
Vinhomes residential projects such as Vinhomes Times City,
Vinhomes Royal City, the Vincom shopping malls, Vinpearl
hotels and resorts, Vinpearl Land entertainment services,
Vinschool education system, Vinmec healthcare and medical
service as well as the other retail brands of the Group.
In 2015, Vingroup will start new Vinhomes projects in Hanoi,
Ho Chi Minh City, Bac Ninh, Ha Tinh, and Can Tho. The Group
will complete three Vinpearl Premium hospitality complexes in
Nha Trang and Phu Quoc and begin Vinpearl Resort Ha Long,
the Group’s first resort in the North.
Vingroup Joint Stock Company | Annual Report 2014
059
Management and Governance
Report of the Supervisory Committee/ Report of the Executive Committee
Report of the
Supervisory Committee
Report of the
Executive Committee
2014 Activities
2015 Plan of Action
Business performance
Members of the Supervisory Committee (SC) are elected by the
Group’s Annual General Meeting (AGM). The SC consists of five
members and has not changed since 2013. During 2014, the SC
performed the following duties:
The SC has established the programs outlined below to achieve
the goals set for 2015, evolve the Group’s development strategy to adapt to business conditions, raise economic efficiency,
improve competitive capabilities, and maintain sustainable
development:
For 2014, consolidated net revenue reached VND27.7 trillion,
and gross profit reached VND10.4 trillion, increases of 51%
and 48%, respectively, over 2013. Profit after tax from core
businesses reached VND3.7 trillion, a 27% increase over the
previous year. All of the Group’s core businesses contributed
significantly to the strong revenue growth.
• Supervised implementation of 2013 AGM’s resolutions
covering dividends, increasing charter capital, and
issuing resolutions
• Monitor the suitability and legality of management and
• Supervised the execution of business plans and progress
• Examine the implementation of the AGM and BOM’s
toward goals in order to achieve revenue targets
• Supervised financial investments and advising the BOM
on ways to lower risk and raise returns on investments
operation of the Group’s business activities
resolutions
• Review quarterly and annual financial statements for
• Advise the BOM in order to increase capital efficiency,
statements in accordance with Vietnamese Accounting
Standards and current fiscal policies in Vietnam
improve asset utilization, and minimize the risks in
managing the Group’s business activities
• Ensured the Group’s compliance with the laws and
• Implement improved inspection programs for certain
• Reviewed and evaluated related-party transactions
The SC has not reported any unusual changes in business,
investment, or finance during 2014. The SC did not perform
any unscheduled inspections during 2014, due to the stability
and transparency of activities.
Net revenue from hospitality, including Vinpearl resorts and
Vinpearl Land amusement parks, reached VND2.11 trillion, up
32% over 2013.
Net revenue from other business segments, including healthcare and education, reached VND1.71 trillion.
Net revenue from leasing activities reached VND2.13 trillion,
accuracy
• Ensured accuracy of the quarterly and annual financial
regulations on information disclosure
Net revenue from sale of properties reached VND21.8 trillion,
an increase of 49% over 2013, primarily from projects launched
in prior years, Vinhomes Royal City, Vinhomes Times City, and
Vinhomes Riverside.
up 18% from 2013. The increase came from continued revenue
growth in stabilized shopping centers, as well as contributions
from a full year of the Vincom Mega Malls at Royal City and
Times City. Vincom Ha Long also began operation during the
fourth quarter of 2014.
new sectors and based on requests from shareholders
• Coordinate activities between the SC, BOM, Executive
Committee and shareholders to eliminate overlap and
remove duplications of effort
Evaluation of the Group’s financial condition
Indicator
2014
2013
2012
Long-term assets/ Total assets (%)
61.46
47.42
48.42
Short-term assets/ Total assets (%)
38.54
52.58
51.58
Liabilities/ Total Owner’s Equity (%)
69.85
75.43
80.52
(Total Debt)/ Total Liabilities and
owner’s equity(%)
36.84
36.14
39.10
Total Owner’s Equity/ Total Liabilities and
owner’s equity (%)
30.15
24.57
19.48
Current Ratio (times)
0.74
0.78
0.43
Quick Ratio (times)
1.42
1.49
1.12
4.17
9.44
3.31
Profit after tax/ Net Revenue (%)
13.62
38.90
23.36
Profit from core business/ Net Revenue (%)
13.31
15.76
19.63
Profit after tax/ Total Owner’s Equity (%)
13.84
38.40
16.98
Profit from core business/ Total Owner’s Equity (%)
13.52
15.55
14.27
Asset Ratios
Capital structure
Liquidity Ratios
Profitability Ratios
Profit after tax/ Total assets (%)
060
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
061
Management and Governance
Report of the Executive Committee
Net revenue by sector for 2014
Net revenue
NET REVENUE BY SECTOR FOR 2014
Amount
(VND billion)
Weight
(%)
Sale of properties
21,772
78.53
Leasing activities
2,129
7.68
Amusement park and related
services
2,114
7.63
Hospital and related services
657
2.37%
7.63%
1.52%
0.83% 1.44%
Performance of current business segments
7.68%
Sale of Residential Properties
2.37
78.53%
Education and related services
230
0.83
Retail activities
421
1.52
Other services
401
1.44
27,724
100
Total
Gross profit by sector for 2014
Gross Profit
Sale of properties
Leasing activities
Sale of properties
Hospital and
related services
Leasing activities
Education and
related services
Amusement park
and related services
Retail activities
Other services
GROSS PROFIT BY SECTOR FOR 2014
Amount
(VND billion)
Weight
(%)
8,052
77.13
1,239
11.87
Hotel, amusement park and
related services
839
8.04
Hospital and related services
166
1.59
Education and related services
86
0.83
Retail activities
(7)
-0.07
1.59%
8.04%
0.83%
-0.07%
0.61%
11.87%
77.13%
Other services
Total
062
Sale of properties
Hospital and
related services
64
0.61
Leasing activities
Education and
related services
10,439
100
Hotel, amusement
park and related
services
Retail activities
Vingroup Joint Stock Company | Annual Report 2014
doubling the 2013 number. The Group’s first resort project
in the North, Vinpearl Resort Ha Long, has already begun
construction and is expected to open in 2015.
For the year, revenue from sale of residential properties was Education, healthcare
up 49% in comparison with 2013 and reached VND21.8 trillion,
Vinschool K-12 school at Times City opened for its first school
accounting for 78.5% of total net revenue.
year, increasing the total number of K-12 students to 6,300. In
Vinhomes launched the presale of two new key projects, addition, Vinmec achieved strong revenue growth which was
Vinhomes Central Park in Ho Chi Minh City and Vinhomes 133% higher than 2013.
Nguyen Chi Thanh – Hanoi, while simultaneously developing
Vinhomes Times City – Park Hill. With its prime location in the New businesses and projects
heart of the Capital, Vinhomes Nguyen Chi Thanh – Hanoi
presold nearly 70% after only two sales events. Vinhomes Supermarkets and convenience stores
Central Park, Vingroup’s first mega-scale mixed-use project in
Ho Chi Minh City, has quickly become center of attention in In 2014, Vingroup entered the retail market with a chain of 23
the real estate market with its environmentally friendly design VinMart supermarkets and VinMart+ convenient stores nationand The Landmark81. This tower will set a new record for the wide, including cities such as Hanoi, Ha Tinh, and Hai Duong.
tallest in Vietnam.
The chain is expected to continue to expand in 2015.
Design, accessibility, affordable luxury, and comprehensive
amenities are known trademarks of Vingroup projects. Each
project offers customers various facilities such as all-season
pools, lounges, tennis, badminton, and basketball courts, or
a garden for practicing tai chi. By combining prime location,
convenience, well-crafted amenities and excellent services,
Vingroup aims to provide customers with five-star living
experience. In addition, attractive value bundles and good
support packages make ownership a very pleasant experience
for customers.
Fashion
VinFashion introduced its EMIGO brand to the market and
opened six stores in 2014.
Financial summary
Total Assets
As at 31 December 2014, Vingroup’s total assets were VND90.5
trillion, representing year on year growth of VND14.7 trillion.
Leasing activities
The increase is largely attributable to a growth in fixed assets
which was up by 90% compare to 2013. Other long-terms
In 2014, net revenue from leasing activities reached VND2.13 assets increased 5.4 times due to deposit of potential projects
trillion, accounting for approximately 8% of total net revenue. under development.
Vincom Retail currently operates shopping centers with nearly
513,690sqm or 43% of the available space of 1,190,000sqm Total Debt
nationwide. In Hanoi, Vincom Retail has 65% market share with
422,500sqm of mall space. The Group has a number of pipeline As at 31 December 2014, Vingroup’s total liabilities to bank
projects that will significantly increase its current 10% Ho Chi and other credit institutions were VND33.3 trillion, of which
Minh market share in 2015 and beyond.
short-term and long-term loans and borrowings were
VND1.32 trillion and VND32.01 trillion, respectively. Total loans
Hospitality and entertainment
and borrowings increased by VND5.9 trillion compared to end
of 2013.
Nationwide, Vinpearl and Vinpearl Land are first choices for
both foreign and domestic customers, helping Vinpearl to Tax Payments
achieve a high occupancy rate. At the end of 2014, Vingroup
opened Vinpearl Phu Quoc (Phase 1), increasing the total Through 31 December 2014, the Group paid total tax obliganumber of 2014 Vinpearl hotel rooms to more than 1,600, tions of VND4.2 trillion to the State Budget.
Other services
Vingroup Joint Stock Company | Annual Report 2014
063
Management and Governance
Corporate Governance Report
Corporate
Governance Report
Changes in shareholders’ equity and
dividend distributions
During the year, bondholders converted USD134.8 million
face value of bonds into 72.2 million ordinary shares of the
Company. Consequently, share capital of the Company
increased by VND722.2 billion (equivalent to 72.2 million
ordinary shares at par value of VND10,000/share) and share
premium increased by VND2.10 trillion.
On 10 April 2014, the Group completed the re-issuance of 21.6
million treasury shares. Consequently, the value of treasury
shares decreased by VND1.38 trillion (21.6 million shares worth
VND63,736/share), increasing share premium by VND29.9
billion, after deduction of re-issuance costs and related taxes
incurred.
On 24 July 2014, the shareholders of the Company passed
Resolution No. 02/2014/NQ-DHDCDVINGROUP authorizing
cash and stock dividends to its existing shareholders from
retained earnings as at 31 December 2013. Specifically:
• Payment of cash dividends of VND2,149 per share
• Payment of stock dividends to existing shareholders at
the ratio of 1,000:487
As at 31 December 2014, the Group’s share Capital was
VND14.5 trillion.
Action plan for 2015
• Continue to expand the Vinhomes brand as the largest
and most trusted property brand in Vietnam
• Complete sales and handover of remaining units in
Vinhomes Royal City and Times City Phase 1
• Progress on the development schedule for recently
launched projects: Vinhomes Central Park, Vinhomes
Nguyen Chi Thanh – Hanoi and Phase 2 of Vinhomes
Times City – Park Hill. Launch additional new projects to
add to the future pipeline
• On-schedule completion of Vinpearl projects’ expansion:
Vinpearl Premium Nha Trang Bay, Vinpearl Premium Golf
Land, Vinpearl Resort Ha Long, and Vinpearl Premium
Phu Quoc
064
Vingroup Joint Stock Company | Annual Report 2014
During 2014, the Supervisory Committee (SC) carried out the
following duties:
• Evaluating the management and business operations of
• Maintain the leadership position in shopping centers by
reaching a total of 30 malls by the end of the year, with a
true nationwide footprint
• Build on the existing base of stores towards a goal of 100
VinMart Supermarkets and 1,000 VinMart+ convenient
stores throughout Vietnam within 3 years and become
the leader in the market
• Expand complementary consumer businesses:
VinFashion, Adayroi, VinPro, VinDS, and VinEco to continue to enhance the long-term recurring revenue and profit
profile of the Group
• Realize synergies between different business units
through leveraging the strength of the Vingroup brands
by connecting them through business processes and
cross-pollination of the best management and most
innovative ideas
• Continue to maintain the high performance of regular
business operations. Enhance management information
systems by building on the successful implementation
of a world-class ERP system to give senior management
clear, timely updates on the health of each business unit
and improve operational efficiency
• Attract and retain talented managers and employees to
ensure uninterrupted future growth
In 2015, Vingroup will focus on the following goals:
Supervisory Committee Activities
• Maintain market leadership position and further leverage
advantages of the Group to keep pace with regional and
international standards
• Affirm the Group’s sustainable business development
strategy in parallel with positive contributions to the
community and social activities
• Amplify and implement effective domestic and international fund raising plans to finance the Group’s projects
Board of Management Performance
During 2014, the Board of Management (BOM) held meetings
with 100% of members in attendance and issued 93 resolutions to ratify important policies and amendments regarding
the Group’s business activities. These actions covered the
following matters:
• Strengthening and reorganizing the structure and operations of the Group and its subsidiaries, and assigning
management staff at the Group and P&L levels
• Approving the issuance of corporate bonds
• Approving the dividend payment for shareholders by
the BOM and the Executive Committee
• Reviewing the quarterly and annual financial statements
of the Group and its subsidiaries and the audit report
and the list of audited adjustment entries made by the
Group’s independent auditors
• Reviewing the business performance report of the BOM
to submit to the AGM
• Holding a monthly review and appraisal of any of the
Group’s major transactions with related parties
After conducting the reviews for 2014, the SC did not find any
activities that would lead to unscheduled inspections.
Coordinating Activities of the Board of
Management, Supervisory Committee, and
• Approving the increase of share capital related to the Executive Committee
cash and shares from the retained earnings of 2013
issuance of more shares to pay stock dividends and the
conversion of international bonds into shares
The BOM organizes regular meetings to determine effective
policies, assess risk management and ensure focused management to promptly identify problems and improve the efficienBoard of Management Supervision of
cy of the Group’s operations. Any decision or announcement
Executive Committee Activities
of the BOM is disseminated to managers of all departments.
The BOM’s supervision of the activities of the Executive The Executive Committee oversees operations to ensure they
Committee is required to comply with provisions set forth in follow the policies and decisions of the BOM.
the charter of the Vingroup Joint Stock Company (“Vingroup”),
corporate governance code, internal management rules and The SC coordinates closely with the BOM and the Executive
Committee. The SC tracks resolutions from the BOM and the
applicable statutory laws. Supervision covers the following:
Executive Committee as well as internal control policies, ensuring that resolutions are implemented in accordance with the
• Monitoring execution of all Vingroup’s projects
law and the internal governance code of the Group.
• Directing the 2014 Annual General Meeting of
Shareholders (AGM) on 18 April 2014
Changes to the Membership of the BOM, SC
• Supervising the implementation of resolutions issued
and Executive Committee
by the BOM and the AGM, and reviewing the Executive
Committee management of all business activities.
• Ms. Le Thi Thu Thuy resigned as CEO of Vingroup on 11
• Supervising and directing the timely and transparent
• Ms. Duong Thi Mai Hoa was appointed CEO on 11
disclosure of information per current regulations.
• Supervising the Executive Committee’s management
activities to improve business efficiency and to achieve
all 2014 targets.
During 2014, remuneration paid to members of the
Executive Committee and the Board of Management totaled
VND67,396,164,685.
February 2014.
February 2014.
• Ms. Le Thi Thu Thuy resigned as Vice Chairwoman of
Vingroup on 23 May 2014.
• Ms. Nguyen Thi Diu was appointed Deputy CEO on 24
July 2014.
Vingroup Joint Stock Company | Annual Report 2014
065
Management and Governance
Development
Strategy
Principles of
Management
Blueprint
for 2015
Industry
strategy
Product
strategy
Capital
strategy
Roles of the Group
• Utilize brand advantages
• Levergae the advantage
• Generate predictable cash
Orientation
• Strategy Orientation
• Development Orientation
and reputation in existing
business sectors
• Build solid foundation in
Property, Hospitality and
Entertainment, Retail,
Healthcare, Education,
and Agriculture to support
long-term development
• Develop and expand
high-potential businesses
using decades-long time
horizon
• Take advantage of links
among businesses to
create an ecosystem of
complementary products with comprehensive
value to customers
of skill and experience
to acquire prime locations for development of
housing and hospitality
projects.
• Continually seek novel
products and methods
for development of highend mixed-use projects
that combine residential,
retail, entertainment, and
outdoor components to
satisfy customer living
requirements and offer
exceptional value
• Develop amenity-rich
resorts to meet growing
demand of medium
and high-end market
segments
• Increase the products’
value to consumers
through a combination of
ecosystem links, complementary product brands,
and quality services to
realize the Group’s vission
“to create a better life for
the Vietnamese people.”
flows by emphasizing
businesses with recurring
revenue
Expand business opportunities and grow
revenue through regular
cycle of new product
introductions
Studied development
plans:
Develop residential properties for sale
Develop and operate properties with a stable source
of recurring revenues.
Schedule sales of properties to match capital
funding cycles
Utilize pre-sale proceeds
and advances from
customers to reduce
capital needs.
Balance alternative forms
of fund raising to manage
cost of capital
Support
• Optimize financial and
managerial resources
• Develop additional
brands
• Take advantage of specialized skills
Control and Evaluation
• Control business practices and compliance
with good governance
principles
• Analyze business efficiency and results
• Evaluate progress in
building Group’s culture
and core values
Roles of Business Units
(P&Ls)
• Promote
leadership
roles for all levels of
management
• Instill responsibility for
business efficiency and
results, customer service,
reputation and brand
• Build Group’s culture and
core values
066
2015 Development Orientation
Vingroup Joint Stock Company | Annual Report 2014
•
•
•
•
•
•
•
Increase the products’value to consumers
through a combination of ecosystem links,
complementary product brands, and quality
services to realize the group’s mission “to create a
better life for the vietnamese people.”
Vingroup Joint Stock Company | Annual Report 2014
067
Management and Governance
Risk Management
Using the established process, major risks of the Group are Material Price Risks
effectively identified and managed. Some of the Group’s
specific risks are described in the following sections.
The fluctuation in the cost of construction materials can significantly impact the project costs and the Group’s profit.
Risk Management
Liquidity Risks of the Real Estate Market
Liquidity risks inherent in the real estate market arise from the
fluctuation of the economy, changes in government policies
and supply-demand imbalances in the markets for the Group’s
properties. In 2014, the Group established a Real Estate
Strategy Department. This department prepares comprehensive research reports covering all market segments. These
reports have provided useful market information and attempt
to predict future trends. Each Group project is carefully evaluated based on a feasibility study and SWOT analysis in order
to develop pricing options and to plan alternative phases for
the project. This is Vingroup’s own unique approach to the real
estate market.
Risk
measurement
Risk
identification
Risk Management
Process
Risk
resolution
Transformation
of risk into
opportunity
During 2014 the Group undertook a major upgrade of its risk
management processes. Risks are meticulously managed from
the Group level down to the level of individual P&Ls in order
to maximize opportunities, minimize risks, and optimize the
benefit to business partners, investors, and employees of the
Group in particular and Vietnamese society at large.
One year after its inception, the Risk Management Department
of the Group has established a risk management program in
accordance with standards.
• Risk identification: Given the rapid growth of the Group,
risks are inherent in all activities. The task of risk identification is to recognize even the smallest potential risk.
• Risk measurement: Risk measurement is the task of effectively managing risks and quickly resolving problems, if
any.
• Risk resolution: A highly skilled and professional team is
assigned to quickly resolve the risk and minimize possible
consequences.
• Transformation of risk into opportunity: Vingroup goes
beyond risk management by transforming certain risks
into an opportunity to increase value and efficiency.
068
Vingroup Joint Stock Company | Annual Report 2014
The Group manages its material price risk by closely monitoring the purchasing and inventory management process. In
addition, the Group has conducted analyses of price trends
and has maintained close links with a network of reputable
suppliers to minimize the consequences of unfavorable
changes in materials markets, further ensuring stable inputs
into its projects.
Key Manager Risks
The Group’s rapid growth has increased demand for key
and experienced managers. Vingroup constantly focuses on
human resource management and undertakes improvements
in recruitment, training, salary, bonus, and other incentives to
maintain a stable pool of management talent. During 2014,
Macro-economic Risks
Vingroup established a Training and Talent Development
The Group has employed economic studies and regression Department and launched a systematic program to develop
models to study the relationships among macroeconomic talent by training key staff members who demonstrate the
factors such as GDP, the consumer price index, savings ratio, potential to assume increased responsibility.
investment ratio, and unemployment rate. Through such
studies, forecasts of macroeconomic change in the short term, Operational Risks
medium term and long term are made, and used to build financial management tools for use throughout the Group.
Operational risks are potential adverse effects on the Group
due to systems, processes, human factors, and external events.
In 2014, Vingroup successfully implemented tools to collect
Interest Rate and Credit Risks
and report data loss and established a system of operational
Risks related to interest rates arise mostly from floating-rate regulations, policies and processes throughout the Group.
long-term financing. The Group manages interest rate risks Using these tools, Vingroup has focused on training and
through a system of qualitative models (analysis of domestic improving the quality of human resources to minimize operand international currency markets) and quantitative models ational risks due to human factors, as well as implementing
(regression analysis based on historical variables). Depending operational risk assessment. These steps have contributed to
on the sensitivity analysis of each borrowing, with the volatility an improved risk management culture in the Group.
of interest rates, the Group will adjust its capital structure to
maintain a reasonable ratio between fixed-rate and floating-rate debt.
Credit risk arises when partners fall into insolvency. The Group
manages credit risk by analyzing the risk profile of each
partner, thereby creating different business policies for different partner categories.
Exchange Rate Risks
The exchange rate risk is the risk that the future value of cash
flows is reduced due to unfavorable changes of the exchange
rate. Understanding the importance of foreign exchange
risk management, the Group performs analysis and makes
forecasts of exchange rate volatility based on domestic and
international macro models in order to prepare appropriate
action plans and to forecast foreign currency policies.
Vingroup Joint Stock Company | Annual Report 2014
069
Management and Governance
Human Resource Management
2014 EMPLOYEE DISTRIBUTION BY EDUCATION
Human Resource
Management
2.3%
Salary and Insurance
Human Resources
Number of Employees and Average Income
Number of Employees
Average Income
VND million
per month
2010
2011
2012
2013
2014
Growth
936
2,150
5,562
8,731
17,312
98%
8.5
9.1
7.8
9.1
10.0
10%
Vingroup salaries are higher than the average for other businesses in the real estate sector. In 2014, the Company raised
salaries based on results and contributions to the Group. The
Company has a very competitive salary policy for outstanding
staff with extensive experience in their fields. This policy helps
to retain current employees and to attract new talent over the
long-term.
Vingroup’s work schedule
Recruitment
To reinforce the idea, “Vingroup – Where the Best Gather and
Grow,” the Group has recruited a skilled, progressive, highly
capable team with tremendous ability in numerous fields.
Vingroup aims to attract highly competent, qualified candidates who are interested in a dynamic work environment that
is focused on speed, creativity and efficiency. At Vingroup,
every individual can bring his or her full creativity and experAll employees are entitled to public holidays, vacation, and tise to bear.
paid personal days as stipulated by the National Labor Law.
Every job has specific selection criteria, but all workers share
the same basic requirements: appropriate qualifications, desire
Work environment
for career advancement, a strong sense of responsibility, and
Vingroup is committed to creating a professional work self-discipline. Managers must be committed to the Group’s
environment so that employees can realize their potential. core values, be willing to acquire new skills, have a creative
White-collar employees are provided comfortable, modern, spirit, and possess solid teamwork, management and leadairy offices and regular health checks. Blue-collar workers are ership skills. The requirements for senior positions are more
supplied with uniforms and all safety and sanitation equip- stringent, including relevant work experience, good judgment,
ment needed for their jobs. The Group strictly adheres to all flexibility, and decisiveness as well as excellent analytical and
problem-solving skills.
labor safety regulations.
Vingroup’s work schedule is eight hours per day with 5.5
days per week required of white-collar and six days per week
required of blue-collar employees. In the case of tight deadlines, the Company may require employees to work overtime.
Vingroup offers overtime compensation and upholds the
lawful rights of employees.
Labor Regulations
The Group and its subsidiaries keep abreast of labor regulations in accordance with the law. The Group’s labor standards
have been registered and approved by the Hanoi Department
of Labor – Invalids and Social Affairs.
Remuneration, bonuses and benefit policies
The Group has designed compensation and reward policies
commensurate with workers’ positions, skills and qualifications
that accurately assess their competence and performance and
rewards them appropriately. Vingroup motivates employees
to do their best work and improve productivity, quality and
Allowances include: mobile phone service, meals, gasoline, efficiency.
and employee shuttle buses to and from work.
070
Vingroup Joint Stock Company | Annual Report 2014
37%
Bachelor’s Degree
Below
Bachelor ‘s Degree
60.7%
Social insurance, health insurance and unemployment insurance are provided in accordance with the law, and the Group
also purchases additional life insurance and personal accident
coverage for all employees.
Bonus policies
Working Conditions
Ph.D. or
Master’s Degree
2014 EMPLOYEE DISTRIBUTION BY AGE
The Group has bonus policies to recognize and reward staff
achievements and contributions to departments and groups.
The details of bonus policies are circulated to all managers and
employees.
Types of Commendations
Extraordinary achievement awards, commendations and
rewards given to staff members and teams who make significant contributions to the successful completion of projects and
campaigns, “Good People, Good Deeds Awards,” and periodic
commendations and rewards.
4%
12.3%
Under 25
35.8%
From 25 to 35
From 35 to 45
Over 45
47.9%
Forms of Commendations
Certificates at P&L and Group levels, cash rewards, travel
rewards (domestic or foreign), promotion, and salary increase.
Benefits
2014 EMPLOYEE DISTRIBUTION BY GENDER
Benefit policies have been well developed and updated regularly by the Group’s management to maintain a high level of
benefits for employees.
Vingroup has built a multifunction sports complex where
employees can exercise regularly.
The Group has also established a “Staff Assistance Fund”
to assist employees and their family members if they face
extreme hardship. Additionally, employees are entitled to preferential treatment when using the Group’s services such as the
Vinpearl Resort, Vinpearl Luxury as well as medical services at
Vinmec International Hospital and education for their children
at Vinschool.
Male
46.7%
53.3%
Female
Vingroup Joint Stock Company | Annual Report 2014
071
Management and Governance
Staff Training
Union
Vingroup has training programs for all Group employees. These
programs include orientation programs for new employees, skills
training for staff members and management training programs for
supervisors.
Vingroup has established a Trade Union and a Communist
Party cell (founded in 2014) to improve communications, solidarity, and motivation, and to uphold the Group’s culture and
prestige. The Group’s Party cell was evaluated as an outstanding unit, and its Trade Union was recognized as a leading unit
The mandatory training program for new employees includes: of Long Bien District and Hanoi.
Orientation on corporate culture, rules, and regulations;
General knowledge of the group’s products and services; Vingroup has an Activities Committee to cultivate teamwork
Training program prescribed by the State; Training on standard and fitness among the Group’s employees. The Activities
work processes by sector; Skills training that is unique to each Committee works with employees to plan sports events such
business segment.
as football, tennis, badminton, Game show, Monthly and
Quarterly Festivals, Team Building, the Vingroup Marathon,
Vingroup also has a soft-skills training program which and many other events. Vingroup believes that its support of
covers time management and planning, positive thinking, tele- these events is helpful to strengthening its corporate culture.
phone communications, motivated communication, conscientious services, quality control, mentoring, and complaint In addition to internal activities, the Group also encourages
resolution.
employees to participate in charity activities. Employees
together participate in volunteer activities, collection drives
The management training program emphasizes subordinate for food aid, warm clothes and books to give to orphans and
development, communication skills, critical thinking, and the poor in remote areas throughout the country.
preparation for leadership. In each business segment, there is a
management training program for senior managers. Mid-level
managers participate in the Crestcom training program. The
management training program for potential managers will
focus on managers who are chosen to be the key management
resources.
In addition to general professional development and skills
training programs described above, several specific campaigns
were implemented during 2014. These include: 12H programs,
known as “Transform to Succeed,” Momentum Transfer program
and the Core Values program, the “60 Training Days” Campaign,
which has been implemented across all business units, the
“Work Culture” training program for all employees. Business
units implement various specialized programs such as “Initiative
Star” at Vincom Construction, “90-Day Transformation,” “First
Impressions” Campaign to prepare for grand opening events
at Vinpearl Resort Phu Quoc, Vincom Ha Long, and other new
facilities, “Friendly Impressions” Campaigns and “5 Things To
Do And Not Do,” “Smiling” Campaign at the hotels and other
facilities, “The Leader in Me” Program by Franklin Covey for 367
teachers, staff and parents of Vinschool students, staff training
for former Ocean Mart staff to facilitate transferring the brand
to VinMart, and the “Skill Contest” which identifies individual
employees’ skills and matches them with appropriate training
programs.
072
Vingroup Joint Stock Company | Annual Report 2014
073
Management and Governance
Corporate Culture
Corporate Culture
On Society
• Put country and national pride first.
• Respect the rule of law.
Spanning more than a decade of development and growth,
Vingroup team members have combined their skills, experience, and values to form a unique corporate culture that is the
foundation for the Group’s success today.
Vingroup brings together the most capable Vietnamese and
international professionals. Members of the Vingroup team
are chosen for their intellect, discipline, talent, work ethic, and
determination to contribute to the development of Vietnam.
On Job Duties and Responsibilities
• Believe in the Vingroup system, and dedicate all
efforts to achieving the goals of the nation and the
Group.
• Demonstrate optimism and enthusiasm for one’s
products and services.
• Help those less fortunate.
• Demonstrate a spirit of optimism.
• Conserve natural resources and protect
the environment.
assigned work.
Every Vingroup employee must demonstrate initiative, eagerness to learn, commitment to self-improvement and passion
for the Group’s culture as expressed in its six core values.
Vingroup’s working culture includes speed, efficiency and
discipline. This working culture contributes to the strength that
helps Vingroup excel in every sector.
• Maintain the highest standards for quality and
ways to achieve goals.
• Demonstrate personal acceptance of responsibility
without blame or excuse.
• Adapt to business and working conditions with
creativity.
• Build the Group’s brand and reputation while
protecting its intellectual property.
• Care for your Company as if it were your home.
074
Vingroup Joint Stock Company | Annual Report 2014
• Lend colleagues a helping hand when needed.
• Share knowledge and experience by giving and
On Partners
• Demonstrate mutual respect to achieve
mutual benefits.
On Customers
• Build sustainable partnerships with credibility,
reliability and trust.
• Remember that customers pay the bills.
efficiency.
• Plan carefully and demonstrate creativity in finding
misconduct of others.
opportunities for them to advance.
• Listen, learn and improve one’s skills.
quality of service to customers, colleagues, and
partners.
• Uphold company principles to prevent the
• Train and develop subordinates while creating
• Be humble in victory and gracious in defeat.
• Place the customer first by providing the highest
• Work together toward common goals.
receiving constructive feedback.
• Take initiative and stay dedicated.
• Be daring, take risks and seize opportunities.
On Colleagues
• Lift Vietnam’s international image through quality
On Competition
• Follow the principle that good competition
makes the best better.
• Learn from competitors’ strengths and
weaknesses.
• Encourage quality competition in each market
to raise the standards of performance throughout Vingroup’s businesses, leading to faster
development and a better society.
• Be friendly, respectful and professional while
doing the utmost to deliver support to customers.
• Keep promises to customers.
• Balance the interests of customers with those of
the Group.
• Continuously improve service quality to satisfy
customer needs.
• Anticipate trends to lead the market with the right
products and services for customers.
Vingroup Joint Stock Company | Annual Report 2014
075
Vincom Mega Mall Royal City
The first underground shopping mall in Vietnam
and the largest such mall in Southeast Asia.
Tập đoàn Vingroup | Báo cáo thường niên 2014
Tập đoàn Vingroup | Báo cáo thường niên 2014
“Leave the world a bit better” – Ralph Waldo Emerson
SUSTAINABLE
DEVELOPMENT
080
Sustainable Development Strategy
081
Economic Growth
082
Social Responsibility
083
Environmental Programs
Sustainable Development
Sustainable Development Strategy/ Economic Growth
A Strategy for
Sustainable Development
Vingroup is one of the leading private
companies in Vietnam. The Company has
multiple brands in five business sectors.
These sectors are: properties, hospitality
and entertainment, consumer retail,
healthcare and education. Vingroup has
built a strong market position and business reputation. The Group’s strategy
for sustainable development is based
on three factors: economic growth,
social contribution, and environmental
protection. In accordance with this
strategy, Vingroup has been building a
diverse ecosystem of premium products
and services that mutually reinforce
each other to realize the Group’s mission
“to create a better life for the Vietnamese
people.”
ECONOMIC GROWTH
Contribute to the State Budget
Develop innovative products
for the community
Enhance Vietnam’s image as
an attractive investment among
developing economies
SOCIAL
RESPONSIBILITY
ENVIRONMENTAL
PROTECTION
Economic growth
As a result of its growth in revenue and profits, Vingroup
continues to be a major taxpayer and is therefore one of the
leading contributors to the State budget. In 2014, Vingroup
was the leading taxpayer in the private enterprise category
and ranked seventh among the top ten largest corporate
taxpayers in Vietnam.
As a leading real estate developer, Vingroup has been a pioneer
in creating models of modern and sustainable urban communities, contributing to Vietnam’s image as a dynamic and
flourishing nation. In Hanoi, Vinhomes Times City, Vinhomes
Royal City, and Vinhomes Riverside are the first projects which
offer modern and eco-friendly urban services. These services
increase the quality of life and improve the living environment
for the community. As a result of this leadership, these projects
have become the gold standard and are considered the most
livable urban areas in Vietnam. They inspired further development in the Capital.
During 2014, Vingroup continued to develop new projects
throughout the country. These projects not only improve the
quality of life at these communities but also serve as a catalyst
for further local development. Vingroup has always recognized
its missions to bring quality services to customers throughout the nation, provide jobs for thousands of people and
contribute to social stability and economic growth.
Summary of Vingroup’s Contribution to the
State Budget (2010 – 2014)
Year
Contribution to
State Budget
(VND billion)
Increase/
Decrease
(%)
2010
537
N/A
2011
1,708
218.06
2012
1,593
-6.75
2013
2,604
63.49
2014
4,166
59.97
Top 10 Largest Corporate Taxpayers in Vietnam
No
Corporate
1
VIETNAM OIL AND GAS GROUP
2
PETRO VIETNAM EXPLORATION AND
PRODUCTION CORPORATION
3
VIETTEL GROUP
4
VIETNAM POSTS AND
TELECOMMUNICATIONS GROUP
5
PETRO VIETNAM GAS JOINT STOCK CORPORATION
6
VIETNAM MOBILE TELECOM SERVICES COMPANY
7
VINGROUP JOINT STOCK COMPANY
Balance the rights of employees,
customers and shareholders
Uphold “Small Actions Produce
Great Results” mindset
8
VIETNAM JOINT STOCK COMMERCIAL BANK FOR
INDUSTRY AND TRADE
Improve social welfare
Promote environmentally friendly products
9
VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY
Create social community
Create a better life for future generations
in harmony with nature
10
HONDA VIETNAM CO., LTD.
Source: Vietnam Report (Total corporate income tax of Top 10 in
V1000 list of 2014 based on 2013 financials: VND64 trillion).
080
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
081
Sustainable Development
Social Responsibility
THE CHARITABLE TRADITION OF VIETNAMESE CULTURE IS NOT ONLY ABOUT TAKING CARE
OF EMPLOYEES BUT ALSO ABOUT RESPONSIBILITY TO THE COMMUNITY, SOCIETY, AND
THE ENVIRONMENT.
Vingroup also sponsors the Promotion Fund for Vietnamese
Football Talent (PVF), which was set up in 2010 to develop
an effective system for training young footballers, something
then lacking in Vietnam. Since 2010, the Fund has held six
PVF courses with 176 participants who then repeatedly go
on to win important tournaments, including the Vietnam
National Youth Championship, the South East Asia, plus the
Pan – Asia Youth tournaments. In 2014, the Fund continued its
impressive achievements by winning a National U-17 Football
Tournament, the Thai Son Nam Cup. This victory confirms PVF’s
During 2014, Vingroup continued its practice of making national reputation in Vietnam and contributes to the longcontributions to social programs by donating to charitable term goal of earning a place for Vietnam on the regional and
social activities. Among the programs supported by the global football map.
Group are those which aid the poor, wounded veterans,
the families of martyrs, recipients of Vietnamese Heroic Collectively, these programs demonstrate Vingroup’s commitMothers Award, orphans, and other social beneficiaries. The ment to keeping its business development in line with humancompany also supported the healthcare sector, built cultural itarian, social and charitable goals. The Group has committed
facilities, promoted education and funded incentives for to maintain its involvement in such programs.
higher learning.
Another of Vingroup’s initiatives is to contribute to the develAmong the specific programs Vingroup supported in 2014 is opment of management talent so that the Group will build
Bac Ninh’s Phat Tich Custodian Care and Talent Development a pool of management talent possessing the skills, attitudes,
and leadership capabilities needed to enable the Company
Facility (Phat Tich Center):
to achieve its goals. At the beginning of 2015, Vingroup
announced the USD10 million “Future Vietnamese Manager
• Established by Vingroup’s Kind Heart Fund
Scholarship Fund” that will be used to strengthen the training
• Now home to more than 100 orphans and elderly citizens and development of promising young future general managers to make them qualified to manage and operate premium
• Provides housing while also caring for the mental health service businesses in the hotel, resort, shopping mall,
of the elderly and supporting the comprehensive devel- entertainment, education, and healthcare sectors that meet
demanding international standards.
opment of children
Social Responsibility/ Environmental Programs
Environmental
Programs
Vingroup understands that effective and efficient resource usage
is important to the sustainable development of the company. As
a pioneer enterprise in real estate and hospitality committed to
sustainable development, the Group is determined to build a
green, innovative, and eco-friendly environment not only for
employees but also for customers.
082
Vingroup Joint Stock Company | Annual Report 2014
One of the Group’s slogans is “Small Actions Produce Great
Results.” The concept behind this slogan is that all Vingroup
members can work together to build a green, clean and
well-organized work environment.
Many Vingroup buildings include green areas to remind people
to strive for efficiency in the use of limited resources. The
Group believes that raising employee awareness of the need to
protect our environment will promote the many small actions
that will produce significant results for the entire society.
Vingroup’s corporate philosophy places a high value on
maintaining a pioneering spirit that is based on the intelligence, courage, patriotism and humanity of the Vietnamese
people. As part of this philosophy, Vingroup has always been
concerned with the well-being of its employees. The Group is
actively engaged in community-building and environmental
protection programs. These programs are the hallmark of
companies that are concerned with maintaining a reputation
for socially responsible management.
These are typical of the Group’s charitable activities with
meaningful and lasting results by providing education, training, and foster care to support disadvantaged children to
become productive, capable citizens, which helps to alleviate
the State’s social work burden.
Building a Green Work Environment
Creating Green Products
and Nature-Friendly Living
Environment
Vingroup believes in the need to protect
the environment in the design, construction and operation of all of its properties:
resort complexes, shopping malls, urban
areas, offices and apartments. The development and architectural teams dedicate
themselves to this goal in every project,
aiming to build upscale complexes that
are well planned and organized, comprehensive, and sustainably developed. Such
projects can protect the natural environment by efficiently utilizing space to
create a modern living or resort complex
that exists in harmony with nature. All of
Vingroup’s projects are built according to
the standards appropriate for such structures. They are energy-saving buildings
following green architecture design
principles. Among the Group’s green
projects are its very first developments
Vinpearl Resort Nha Trang and Vincom
Ba Trieu, along with recently completed
urban communities including Vinhomes
Royal City, Vinhomes Times City, Vinhomes
Riverside, Vinhomes Central Park, Vinpearl
Premium Da Nang, and Vinpearl Phu Quoc.
Vingroup Joint Stock Company | Annual Report 2014
083
Sustainable Development
Environmental Programs
Vincom Ba Trieu
Vincom Ba Trieu is designed so that
it makes full use of natural light and
artificial energy. This complex received
the Energy Efficient Buildings Award.
The three towers of this complex
are equipped with a comprehensive
Vinhomes Nguyen Chi Thanh
– Hanoi
air-conditioning system controlled by
computer, minimizing energy use. The
roof-top ventilation system continuously
circulates air through the towers to stabilize the temperature and humidity in all
parts of the complex.
Vincom DOng Khoi
Vincom Dong Khoi was the first green
building in Vietnam and was built in
accordance with energy-saving design
standards. These standards have since
become one of the criteria used to evaluate world-class property developments.
In 2013, Vincom Dong Khoi’s
energy-efficient technology solutions
won the Energy Efficient Architecture
Award from the Vietnamese
Government’s Department of Science,
Technology and Environment in the
Ministry of Construction and the Energy
Conservation Center of Ho Chi Minh City.
Vinmec International Hospital has been
highly praised for being environmentally friendly. The rooms are designed
and equipped to meet World Health
Organization standards. The Central
Sterilizing Department operates to stop
cross-infection from unsterilized equipment and supplies. The hospital’s water
is filtered through activated charcoal and
vinhomes Royal City
Vinhomes Riverside
Vinhomes Royal City features botanical including an area devoted to Tai Chi, a
parks, a large plaza and a unique sky promenade, a pavilion, a lounge, and
garden. Gardens are modern in design flower gardens.
but incorporate Vietnamese traditions,
Vinhomes Riverside – the Peaceful
Land was based on a unique design
that includes a system of canals, botanical gardens and a low-density space
Vinhomes Times City is designed as
a modern, eco-friendly urban area
inspired by Singapore. It includes green
spaces and a lake that cover nearly
100,000 square meters. Times City has
made a profound impact by creating
Vingroup Joint Stock Company | Annual Report 2014
disinfected by ozone and UV systems to
ensure patient safety and to minimize
the spread of water-borne diseases.
Vinmec also employs an advanced
waste-treatment system and has built
high-quality medical and other waste
dumps that comply with the medical
sector’s most stringent standards.
utilization ratio. The complex also
brought in a large number of fish and
bird species to enhance the environment
and enrich the area’s ecosystem.
Vinpearl Phu Quoc
a clean, green and eco-friendly living
space, helping to change the face of the
landscape in Southern Hanoi. Vinpearlland
Aquarium Times City gathers thousands of
various sea creatures, offering a phenomenal experience in Ha Noi.
Vinhomes Central Park
Vinhomes Central Park is a green,
modern and luxurious urban community
in Vietnam. Inspired by the world-famous
Central Park in New York City, Vinhomes
Central Park has a construction density
of only 16% and devotes 14 hectares
to parks, the city’s largest green space
provides natural lighting and fresh air for
each apartment. It is also among one of
the few apartment complexes with private
gardens. With an open design in a green
space, Vinhomes Nguyen Chi Thanh –
Hanoi is able to provide an exceptional
quality of life to its residents.
Vinmec International Hospital
vinhomes Times City
084
Vinhomes Nguyen Chi Thanh – Hanoi
has a total area of 13,043 square meters
spread over two towers, one for luxury
apartments and the other a 30-story
Grade-A office and retail building. The
focal point of Vinhomes Nguyen Chi
Thanh – Hanoi is the atrium space, which
Vinpearl Phu Quoc has 750 rooms in the
hotel and villas, a Vinpearl Land amusement park, and an international-standard
27-hole golf course. The area is not just
the new destination for tourism and
recreation but also a place to experience
natural conservation and development
of biological diversity in Phu Quoc, with
the large-scale Aquarium housing tens of
thousands of sea creatures. Vinpearl Land
Phu Quoc’s designation as the host site for
the Miss Vietnam Pageant 2014 attracted
many tourists to the island and contributed to Phu Quoc’s strong growth in tourism
revenue. In 2014, Phu Quoc’s revenue from
tourism surpassed VND2.2 trillion, 84%
higher than in 2013.
Vinpearl Premium
vacation properties
along the Saigon River. With river frontage stretching more than 1 kilometer,
Vinhomes Central Park offers a green
living area in the heart of Ho Chi Minh
City and helps to clean the air for the
rest of the City.
Vinpearl Premium resorts and villas have
been one of the highlights of Vingroup’s
achievements in 2014. These include the
coastal hotels and five-star villas along
the world’s most beautiful beaches in
Da Nang, Nha Trang, and Phu Quoc. With
innovative programs to help owners
lease out unused time in their vacation
properties, Vinpearl Premium offers
buyers an opportunity to own and enjoy
a resort set on a piece of a beautiful,
green nature, while earning an attractive
return on investment.
Vingroup Joint Stock Company | Annual Report 2014
085
Vinschool
Vinschool became an admissions
phenomenon by enrolling a total of 6,300 students.
Tập đoàn Vingroup | Báo cáo thường niên 2014
Tập đoàn Vingroup | Báo cáo thường niên 2014
Transparency is the basis for trust and confidence.
CONSOLIDATED
FINANCIAL STATEMENTS
090
VAS Consolidated Financial Statements
170
Summary of IFRS Consolidated Financial Statements
176
Reconciliation between VAS and
IFRS Consolidated Income Statements
VAS consolidated financial statements
General information/ Report of Management
General information
Report of
Management
The company
Vingroup Joint Stock Company (“the Company”) is a joint stock
company established in Vietnam in accordance with the Business
Registration Certificate No. 0103001016 issued by the Hanoi
Department of Planning and Investment on 3 May 2002 and
the Business Registration Certificate No. 0101245486 re-issued
on 12 May 2010. The Company also subsequently received
the 55th amended Business Registration Certificate dated 18
November 2014.
The current principal activities of the Company in this year are
to carry out investment activities and to provide the general
administrative services.
The Company’s head office is registered at No. 7, Bang Lang
1 street, Vinhomes Riverside Eco-urban Area, Viet Hung ward,
Long Bien district, Hanoi, Vietnam. Its branch is located at No. 72,
Le Thanh Ton and No. 45A, Ly Tu Trong street, Ben Nghe ward,
district 1, Hochiminh city, Vietnam.
The Company’s shares were officially listed on the Hochiminh City
Stock Exchange (“HOSE”) from 19 September 2007 in pursuant to
Decision No.106/QD-TTGDHCM issued by the Director of HOSE
on 7 September 2007.
Board of directors
Management
Management of Vingroup Joint Stock Company (“the Company”) Management confirmed that it has complied with the above
is pleased to present its report and the consolidated financial requirements in preparing the accompanying consolidated
statements of the Company and its subsidiaries (collectively financial statements for the year ended 31 December 2014.
referred to as “the Group”) for the year ended 31 December 2014.
Management’s responsibility in respect of the
consolidated financial statements
The management is responsible for the consolidated financial
statements of each financial year which give a true and fair view
of the consolidated financial position of the Group and of the
consolidated results of its operations and its consolidated cash
flows for the year. In preparing those consolidated financial
statements, management is required to:
• Select suitable accounting policies and then apply them
Statement by Management
Management does hereby state that, in its opinion, the
accompanying consolidated financial statements give a true
and fair view of the consolidated financial position of the Group
as at 31 December 2014 and of the consolidated results of its
operations and its consolidated cash flows for the year then
ended in accordance with Vietnamese Accounting Standards,
Vietnamese Enterprise Accounting System and the statutory
requirements relevant to preparation and presentation of
consolidated financial statements.
consistently;
Members of the Board of Directors during the year and at the Members of the Management during the year and at the date
date of this report are:
of this report are:
• Make judgements and estimates that are reasonable and
prudent;
General Director
Le Thi Thu Thuy
(Resigned on 11 February 2014)
General Director
Pham Nhat Vuong
Chairman
Le Khac Hiep
Deputy Chairman
Pham Thuy Hang
Deputy Chairwoman
Pham Thu Huong
Deputy Chairwoman
Mai Huong Noi
Deputy General Director
Nguyen Dieu Linh
Deputy Chairwoman
Pham Van Khuong
Deputy General Director
Le Thi Thu Thuy
(Resigned on 23 May 2014)
Deputy Chairwoman
Nguyen Dieu Linh
Deputy General Director
Vu Tuyet Hang
Deputy Chairwoman
Dang Thanh Thuy
Deputy General Director
Ling Chung Yee Roy
Member
Vu Tuyet Hang
Deputy General Director
Mai Huong Noi
Member
Nguyen Thi Diu
(Appointed on 24 July 2014)
Deputy General Director
Marc Villiers Townsend
Member
Joseph Raymond Gagnon
Member
Board of Supervision
Members of the Board of Supervision during the year and at
the date of this report are:
090
Duong Thi Mai Hoa
(Appointed on 11 February 2014)
Legal representative
The legal representative of the Company during the period from
1 January 2014 to 10 February 2014 is Ms Le Thi Thu Thuy and
from 11 February 2014 to the date of these financial statements
is Ms Duong Thi Mai Hoa.
Nguyen The Anh
Head of Board
of Supervision
Auditors
Dinh Ngoc Lan
Member
The auditor of the Company is Ernst & Young Vietnam Limited.
Do Thi Hong Van
Member
Hoang Thuy Mai
Member
Nguyen Thi Van Trinh
Member
Vingroup Joint Stock Company | Annual Report 2014
For and on behalf of management:
• State whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the consolidated financial statements; and
• Prepare the consolidated financial statements on the going
concern basis unless it is inappropriate to presume that
the Group will continue its business.
Management is responsible for ensuring that proper accounting
records are kept which disclose, with reasonable accuracy at
any time, the consolidated financial position of the Group and
to ensure that the accounting records comply with the applied Duong Thi Mai Hoa
accounting system. It is also responsible for safeguarding the General Director
assets of the Group and hence for taking reasonable steps for
the prevention and detection of fraud and other irregularities. Hanoi, Vietnam
16 March 2015
Vingroup Joint Stock Company | Annual Report 2014
091
VAS consolidated financial statements
Independent auditors’ report/ Consolidated balance sheet
Consolidated balance sheet
Independent
auditors’ report
To: The Shareholders of Vingroup Joint Stock Company
We have audited the consolidated financial statements of
Vingroup Joint Stock Company (“the Company”) and its
subsidiaries (collectively referred to as the “Group”) as prepared
on 16 March 2015 and set out on pages 6 to 88, which comprise
the consolidated balance sheet as at 31 December 2014, the
consolidated income statement and consolidated cash flow
statement for the year then ended and the notes thereto.
Management’s responsibility
as at 31 December 2014
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the
auditors’ judgment, including the assessment of the risks of
material misstatement of the consolidated financial statements,
whether due to fraud or error. In making those risk assessments,
the auditors consider internal control relevant to the entity’s
preparation and fair presentation of the consolidated financial
statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal
control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the
overall presentation of the consolidated financial statements.
Management is responsible for the preparation and fair
presentation of these consolidated financial statements
in accordance with Vietnamese Accounting Standards,
Vietnamese Enterprise Accounting System and the statutory
requirements relevant to preparation and presentation of We believe that the audit evidence we have obtained is sufficient
consolidated financial statements, and for such internal control as and appropriate to provide a basis for our audit opinion.
management determines is necessary to enable the preparation
and presentation of consolidated financial statements that are Opinion
free from material misstatement, whether due to fraud or error.
In our opinion, the consolidated financial statements give a
Auditors’ responsibility
true and fair view, in all material respects, of the consolidated
financial position of the Group as at 31 December 2014, and of the
Our responsibility is to express an opinion on these consolidated consolidated results of its operations and its consolidated cash
financial statements based on our audit. We conducted our audit flows for the year then ended in accordance with Vietnamese
in accordance with Vietnamese Standards on Auditing. Those Accounting Standards, Vietnamese Enterprise Accounting System
standards require that we comply with ethical requirements and the statutory requirements relevant to preparation and
and plan and perform the audit to obtain reasonable assurance presentation of consolidated financial statements.
about whether the consolidated financial statements are free
from material misstatement.
Code
ASSETS
100
A. CURRENT ASSETS
110
I. Cash and cash equivalents
111
1. Cash
112
2. Cash equivalents
120
II. Short-term investments
121
1. Short-term investments
129
2. Provision for diminution in value of short-term
investments
130
III. Current accounts receivable
131
1. Trade receivables
132
2. Advances to suppliers
135
3. Other receivables
139
4. Provision for doubtful debts
140
IV. Inventories
141
1. Inventories
149
2. Provision for obsolete inventories
150
V. Other current assets
151
1. Short-term prepaid expenses
152
2. Value-added tax deductible
154
3. Tax and other receivables from the State
158
4. Other current assets
200
B. NON-CURRENT ASSETS
220
I. Fixed assets
221
1. Tangible fixed assets
Tran Phu Son
Deputy General Director
Audit Practising Registration Certificate:
0637-2013-004-1
Hanoi, Vietnam
18 March 2015
092
Vingroup Joint Stock Company | Annual Report 2014
Nguyen Quang Trung
Auditor
Audit Practising Registration Certificate No.:
1938-2013-004-1
Notes
5
6
7
8
9
10
11
12
Ending balance
Beginning balance
34,875,607,760,407
39,844,677,687,769
7,607,513,719,673
7,534,048,703,295
1,709,677,822,085
830,198,384,281
5,897,835,897,588
6,703,850,319,014
6,168,171,238,968
5,512,841,034,628
6,245,416,256,668
5,564,825,407,070
(77,245,017,700)
(51,984,372,442)
2,863,604,538,747
3,791,905,544,739
833,001,466,347
906,583,310,596
1,459,215,551,015
1,067,203,605,764
626,203,073,987
1,848,565,858,757
(54,815,552,602)
(30,447,230,378)
16,598,350,983,526
18,913,717,422,013
16,653,246,649,293
18,922,655,956,360
(54,895,665,767)
(8,938,534,347)
1,637,967,279,493
4,092,164,983,094
175,767,407,122
112,995,880,636
549,937,309,384
235,932,586,540
29,443,682,396
20,328,613,273
882,818,880,591
3,722,907,902,645
55,609,699,439,453
35,927,970,738,026
22,319,696,291,092
11,724,114,750,744
10,526,340,741,649
5,645,716,640,220
222
Cost
12,125,926,443,789
6,707,573,344,357
223
Accumulated depreciation
(1,599,585,702,140)
(1,061,856,704,137)
520,367,279,711
504,491,185,676
227
Ernst & Young Vietnam Limited
Currency: VND
2. Intangible fixed assets
13
228
Cost
613,140,927,890
576,932,515,265
229
Accumulated amortisation
(92,773,648,179)
(72,441,329,589)
230
3. Construction in progress
14
11,272,988,269,732
5,573,906,924,848
240
II. Investment properties
15
15,399,141,224,526
13,628,734,369,628
16,337,225,559,687
14,148,672,844,583
(938,084,335,161)
(519,938,474,955)
241
1. Cost
242
2. Accumulated depreciation
250
III. Long-term investments
4,949,144,342,213
4,532,383,326,606
252
1. Investments in associates
1,030,494,731,370
1,829,738,207,290
258
2. Other long-term investments
3,921,649,610,843
2,705,645,119,316
259
3. Provision for diminution in value
of long-term investments
(3,000,000,000)
(3,000,000,000)
260
IV. Other long-term assets
6,727,259,904,943
1,238,826,097,403
1,770,073,401,504
1,195,471,414,505
56,584,412,187
42,623,898,681
261
1. Long-term prepaid expenses
262
2. Deferred tax assets
17
18
36.2
268
3. Other long-term assets
19
4,900,602,091,252
730,784,217
269
V. Goodwill
20
6,214,457,676,679
4,803,912,193,645
270
TOTAL ASSETS
90,485,307,199,860
75,772,648,425,795
Vingroup Joint Stock Company | Annual Report 2014
093
VAS consolidated financial statements
Consolidated balance sheet
Consolidated balance sheet (continued)
as at 31 December 2014
Code
RESOURCES
300
Currency: VND
Notes
Ending balance
Beginning balance
A. LIABILITIES
63,200,673,940,820
57,156,105,584,507
310
I. Current liabilities
24,603,801,398,740
26,675,265,408,188
311
1. Short-term loans and borrowings
1,321,194,605,718
3,023,470,785,606
312
2. Trade payables
1,628,746,222,883
1,158,828,828,873
313
3. Advances from customers
6,581,278,862,138
16,150,044,422,734
3,299,807,295,074
11,686,251,139,746
21
22
Down payment from customers for purchase of
inventory properties
Advances from other customers
314
315
5. Payables to employees
316
6. Accrued expenses
319
094
4. Statutory obligations
23
24
Euro
Singapore dollar
-
British pound
150
-
Canadian dollar
41,416,688,481
1,254,563,464,393
864,555,492,034
1,019,478,498,366
959,682,490,193
10,333,943,140,608
1,101,799,359,637
Payment from customers under deposit, loan and
other agreements
7,847,174,664,786
88,740,877,355
Other payables
2,486,768,475,822
1,013,058,482,282
330
II. Non-current liabilities
38,596,872,542,080
30,480,840,176,319
333
1. Other long-term liabilities
26
6,413,683,795,382
6,023,851,978,161
334
2. Long-term loans and debts
27
32,014,819,167,101
24,360,164,494,408
335
3. Deferred tax liabilities
36.2
168,369,579,597
96,823,703,750
400
B. OWNERS’ EQUITY
20,396,041,296,100
14,471,837,198,264
410
I. Capital
28.1
20,396,041,296,100
14,471,837,198,264
411
1. Share capital
28.1
14,545,550,980,000
9,296,036,790,000
412
2. Share premium
28.1
4,582,534,150,067
1,781,641,494,624
414
3. Treasury shares
28.4
(2,974,924,074,484)
(4,351,625,014,572)
418
4. Financial reserve fund
28.2
22,845,114,930
17,845,114,930
420
5. Undistributed earnings
28.1
4,220,035,125,587
7,727,938,813,282
439
C. MINORITY INTERESTS
29
6,888,591,962,940
4,144,705,643,024
440
TOTAL LIABILITIES AND OWNERS’ EQUITY
90,485,307,199,860
75,772,648,425,795
100
63,000
55,874,576,362
Accrual for construction costs
1,346,262
300
20
Australian dollar
Other accrued expenses
1,322,830
70,000
4,463,793,282,988
1,267,702,309,535
Beginning balance
Japanese yen
2,107,765,031,095
3,091,940,291,762
Vingroup Joint Stock Company | Annual Report 2014
United States dollar
3,281,471,567,064
1,371,617,698,518
Ending balance
Foreign currencies
1,037,104,329,754
3,645,659,661,277
25
ITEMS
Hong Kong dollar
Accrual for bond and loan interests
7. Other payables
Off balance sheet items
Ngo Nguyet Hang
Preparer
Nguyen Thi Thu Hien
Chief Accountant
15
-
300
1,000
-
1,000
Duong Thi Mai Hoa
General Director
16 March 2015
Vingroup Joint Stock Company | Annual Report 2014
095
VAS consolidated financial statements
Consolidated income statement/ Consolidated cash flow statement
Consolidated income statement
Consolidated cash flow statement
for the year ended 31 December 2014
Currency: VND
Code
ITEMS
Notes
01
1. Revenue from sale of goods and rendering of services
30.1
Current year
Previous year
27,726,701,600,235
18,379,268,633,216
02
2. Deductions
30.1
(3,068,229,199)
(1,629,787,510)
10
3. Net revenue from sale of goods and rendering
of services
30.1
27,723,633,371,036
18,377,638,845,706
11
4. Cost of goods sold and services rendered
32
(17,284,911,479,916)
(11,346,984,128,307)
20
5. Gross profit from sale of goods and rendering
of services
10,438,721,891,120
7,030,654,717,399
21
6. Finance income
22
7. Finance expenses
23
30.2
1,346,022,091,036
6,436,048,755,221
33
(3,491,052,587,060)
(1,943,627,332,561)
(2,711,269,664,974)
(1,459,922,785,660)
(739,332,476,177)
(450,072,453,875)
(2,170,716,923,462)
(1,466,422,267,061)
5,383,641,995,457
In which: Interest expense
24
8. Selling expenses
25
9. General and administrative expenses
30
10. Operating profit
for the year ended 31 December 2014
Code
ITEMS
Currency: VND
Notes
Current year
Previous year
5,409,680,638,498
9,740,085,981,878
1,582,956,786,204
1,178,743,735,837
95,586,098,902
53,343,819,374
I. CASH FLOWS FROM OPERATING ACTIVITIES
01
Profit before tax
Adjustments for:
02
Depreciation and amortisation
03
Changes in provisions
40
04
Unrealised foreign exchange losses
33
153,521,258,290
91,401,429,917
05
Profits from investing activities
40
(1,333,188,623,458)
(6,445,646,204,571)
06
Interest expenses
2,711,269,664,974
1,459,922,785,660
08
Operating income before changes in working capital
8,619,825,823,410
6,077,851,548,095
(Increase)/decrease in receivables
(236,771,046,585)
1,506,465,991,329
10
Decrease/(increase) in inventories
7,828,554,877,896
(53,674,323,727)
9,606,581,419,123
11
(Decrease)/increase in payables (other than interest,
corporate income tax payables)
(435,168,123,808)
5,739,159,477,741
12
(Increase)/decrease in prepaid expenses
(774,696,243,771)
367,776,128,547
09
31
11. Other income
34
261,925,884,973
135,646,492,056
32
12. Other expenses
34
(227,116,582,678)
(56,842,117,086)
13
Interest paid
(3,191,276,794,957)
(2,550,652,028,899)
40
13. Other profit
34,809,302,295
78,804,374,970
14
Corporate income tax paid
(1,910,568,513,664)
(1,803,518,979,544)
45
14. Shares in net (loss)/profit of associates
(8,770,659,254)
54,700,187,785
15
Other cash inflows from operating activities
-
641,182,106
50
15. Profit before tax
5,409,680,638,498
9,740,085,981,878
16
51
16. Current corporate income tax expenses
36.1
(1,653,273,503,894)
(2,594,314,637,696)
20
52
17. Deferred income tax income
36.2
60
18. Net profit after tax
17.1, 31
(3,085,600,466)
-
9,896,814,378,055
9,284,048,995,648
(12,078,574,548,052)
(10,489,796,722,908)
1,233,509,487,141
39,220,197,524
19,638,606,879
3,516,776,375
3,776,045,741,483
7,149,288,120,557
21
Purchase, construction of fixed assets and other
long-term assets
617,463,065,409
369,775,972,604
22
Proceeds from disposals of fixed assets and other
long-term assets
3,158,582,676,074
6,779,512,147,953
23
Loans to other entities and payments for purchase
of debt instruments of other entities
40
(4,394,117,030,716)
(8,069,778,802,040)
Basic
2,447
5,310
24
Collections from borrowers and proceeds from sale
of debt instruments of other entities
40
3,944,306,480,156
4,780,340,308,582
Diluted
2,344
5,089
25
Payments for equity investments in other entities
40
(12,714,336,731,816)
(6,150,167,058,980)
26
Proceeds from disposals of equity investments in
other entities
40
2,592,111,751,675
10,458,023,592,091
27
Interest and dividends received
1,017,729,795,067
539,692,018,943
(20,399,370,796,545)
(8,892,466,466,788)
II. CASH FLOWS FROM INVESTING ACTIVITIES
Attributable to
61
18.1. Minority interests
62
18.2. Equity holders of the parent
70
Other cash outflows from operating activities
Net cash flows from operating activities
29
28.1
19. Earnings per share
38
30
Ngo Nguyet Hang
Preparer
Nguyen Thi Thu Hien
Chief Accountant
Net cash flows used in investing activities
40
Duong Thi Mai Hoa
General Director
16 March 2015
096
Vingroup Joint Stock Company | Annual Report 2014
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097
VAS consolidated financial statements
Consolidated cash flow statement/ Notes to the consolidated financial statements
Consolidated cash flow statement (continued)
for the year ended 31 December 2014
Code
Currency: VND
ITEMS
Notes
Current year
Previous year
1,411,009,772,856
-
2,948,518,325,753
3,256,960,309,647
-
(2,953,978,284,083)
III. CASH FLOWS FROM FINANCING ACTIVITIES
31
Capital contribution and issuance of shares
40
Capital contribution from minority interests
32
Payment for acquiring treasury shares
33
Drawndown of borrowings
17,264,986,730,202
16,614,545,541,480
34
Repayment of borrowings
(8,682,400,989,542)
(11,103,071,677,430)
36
Dividends paid to equity holders of the parent
(1,844,966,743,620)
(288,850,999,997)
Dividends paid to minority interests
(521,509,281,485)
-
40
Net cash flows from financing activities
10,575,637,814,164
5,525,604,889,617
50
Net increase in cash and cash equivalents
73,081,395,674
5,917,187,418,477
5
7,534,048,703,295
1,616,855,174,935
383,620,704
6,109,883
5
7,607,513,719,673
7,534,048,703,295
60
Cash and cash equivalents at the beginning of the year
61
Impact of exchange rate fluctuation
70
Cash and cash equivalents at the end of the year
Notes to the
consolidated financial statements
1. Corporate information
Vingroup Joint Stock Company (“the Company”) is a joint stock
company established in Vietnam pursuant to the Business
Registration Certificate No. 0103001016 issued by the Hanoi
Department of Planning and Investment on 3 May 2002 and
the Business Registration Certificate No. 0101245486 re-issued
on 12 May 2010. The Company also subsequently received
the 55th amended Business Registration Certificate dated 18
November 2014.
The Company’s shares were officially listed on the Hochiminh City
Stock Exchange (“HOSE”) from 19 September 2007 pursuant to
Decision No.106/QD-TTGDHCM issued by the Director of HOSE
on 7 September 2007.
The current principal activities of the Company in this year are
to carry out investment activities and to provide the general
administrative services.
As at 31 December 2014, the Company has 55 subsidiaries. The
information on these subsidiaries, along with the Company’s
voting rights and equity interest in each subsidiary are detailed
in the Appendix 1.
Pursuant to the Security Agreement among Vincom Retail JSC,
WP Investments III B.V. (“Warburg Pincus”) and Credit Suisse AG,
Singapore Branch (“Credit Suisse”) dated 12 July 2013 with later
amendments in relation to the convertible loans as presented
in Note 27.1.7 and the preference shares issued by Vincom
Retail JSC as presented in Note 29, the entire equity interest
of Vincom Retail JSC in Vincom Center Ba Trieu LLC, Vincom
Center Long Bien LLC, Vincom Center B HCMC LLC, Hai Phong
Land LLC and 50% equity interest of VMM Times City LLC have
been used as collaterals for irrevocably guaranteeing Vingroup’s
obligations under the transaction documents and for founders
and Vingroup’s obligations relating to put option for founders
signed with Warburg Pincus and Credit Suisse.
The Company’s head office is located at No. 7, Bang Lang 1 street,
Vinhomes Riverside Eco-urban Area, Viet Hung ward, Long Bien At 31 December 2014, the Company also holds investments in
district, Hanoi, Vietnam. Its branch is located at No. 72, Le Thanh a number of associates as disclosed in Note 17.1.
Ton street and No. 45A, Ly Tu Trong street, Ben Nghe ward, district
1, Hochiminh city, Vietnam.
Ngo Nguyet Hang
Preparer
Nguyen Thi Thu Hien
Chief Accountant
Duong Thi Mai Hoa
General Director
The number of the Company’s employees as at 31 December
2014 is 532 (31 December 2013: 219).
16 March 2015
098
Vingroup Joint Stock Company | Annual Report 2014
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099
VAS consolidated financial statements
Notes to the consolidated financial statements
2. Basis of preparation
2.1 Accounting standards and system
3. Summary of significant accounting policies
CDKT dated 4 May 2012 on supplementing details to the forms
of the financial statements.
The consolidated financial statements of the Group, which are
expressed in Vietnam dong (“VND”), are prepared in accordance 2.2 Applied accounting documentation system
with Vietnamese Enterprise Accounting System and Vietnamese
Accounting Standards issued by the Ministry of Finance as per: The Company’s applied accounting documentation system is
the General Journal system.
• Decision No. 149/2001/QD-BTC dated 31 December 2001
on the Issuance and Promulgation of Four Vietnamese 2.3 Fiscal year
Accounting Standards (Series 1);
The Group’s fiscal year applicable for the preparation of its
• Decision No. 165/2002/QD-BTC dated 31 December consolidated financial statements starts on 1 January and ends
2002 on the Issuance and Promulgation of Six Vietnamese on 31 December.
Accounting Standards (Series 2);
2.4 Accounting currency
• Decision No. 234/2003/QD-BTC dated 30 December
2003 on the Issuance and Promulgation of Six Vietnamese The consolidated financial statements are prepared in VND
Accounting Standards (Series 3);
which is also the Company’s accounting currency.
• Decision No. 12/2005/QD-BTC dated 15 February 2005 2.5 Basis of consolidation
on the Issuance and Promulgation of Six Vietnamese
Accounting Standards (Series 4); and
The consolidated financial statements comprise the financial
statements of the parent company and its subsidiaries for the
• Decision No. 100/2005/QD-BTC dated 28 December 2005 year ended 31 December 2014.
on the Issuance and Promulgation of Four Vietnamese
Accounting Standards (Series 5).
Subsidiaries are fully consolidated from the date of acquisition,
being the date on which the Group obtains control, and
Accordingly, the accompanying consolidated balance sheet, continued to be consolidated until the date that such control
consolidated income statement, consolidated cash flow ceases.
statement and related notes, including their utilisation are
not designed for those who are not informed about Vietnam’s The financial statements of subsidiaries are prepared for the
accounting principles, procedures and practices and furthermore same reporting year as the parent company, using consistent
are not intended to present the financial position and results accounting policies.
of operations and cash flows in accordance with accounting
principles and practices generally accepted in countries other All intra-company balances, income and expenses and unrealised
than Vietnam.
gains or losses result from intra-company transactions are
eliminated in full.
For the purpose of preparing the consolidated balance sheet,
the Group has also supplemented details of certain line items Minority interests represent the portion of profit or loss and
in the balance sheet, i.e. “Advances from customers” (Code net assets not held by the Group and are presented separately
313), “Accrued expenses” (Code 316) and “Other short-term in the consolidated income statement and within equity in the
payables” (Code 319). The purpose of presenting these additional consolidated balance sheet, separately from parent shareholders’
details in the consolidated balance sheet is to provide more equity.
relevant information to the users of these consolidated financial
statements. These changes were approved by the Ministry of
Finance in accordance with the Official Letter No. 5966/BTC/
3.1 Changes in accounting policies and disclosures
The perpetual method is used to record the costs of other
inventories, in which construction materials are valued at the
The accounting policies adopted by the Group in preparation of cost of purchase, on a first in first out basis.
the consolidated financial statements are consistent with those
followed in the preparation of the Group’s consolidated financial Provision for obsolete inventories
statements for the year ended 31 December 2013.
An inventories provision is created for the estimated loss arising
due to the impairment of value (through diminution, damage,
3.2 Cash and cash equivalents
obsolescence, etc.) of raw materials, finished goods, and other
Cash and cash equivalents comprise cash on hand, cash in inventories owned by the Group, based on appropriate evidence
banks and short-term, highly liquid investments with an of impairment available at the balance sheet date. Increases and
original maturity of less than three months that are readily decreases to the provision balance are recorded into the cost
convertible into known amounts of cash and that are subject of goods sold account in the consolidated income statement.
to an insignificant risk of change in value.
3.4 Receivables
3.3 Inventories
Receivables are presented in the consolidated financial
statements at the carrying amounts due from customers and
Inventory property
other debtors, after provision for doubtful debts.
Property acquired or being constructed for sale in the ordinary
course of business, rather than to be held for rental or capital The provision for doubtful debts represents amounts of
appreciation, is held as inventory and is measured at the lower outstanding receivables at the balance sheet date which are
of cost and net realisable value.
doubtful of being recovered. Increases and decreases to the
provision balance are recorded as general and administrative
expense in the consolidated income statement.
Cost includes:
• Freehold and leasehold rights for land;
3.5 Tangible fixed assets
• Amounts paid to contractors for construction;
Tangible fixed assets are stated at cost less accumulated
depreciation.
• Borrowing costs, planning and design costs, costs of
site preparation, professional fees for legal services, The cost of a tangible fixed asset comprises its purchase price
property transfer taxes, construction overheads and other and any directly attributable costs of bringing the tangible fixed
related costs.
asset to working condition for its intended use. Expenditures
for additions, improvements and renewals are added to the
Net realisable value is the estimated selling price in the ordinary carrying amount of the assets and expenditures for maintenance
course of the business, based on market prices at the reporting and repairs are charged to the consolidated income statement
date and less costs to completion and the estimated costs of sale. as incurred.
The cost of inventory recognised in profit or loss on disposal is
determined with reference to the specific costs incurred on the
property sold and an allocation of any non-specific costs based
on the relative size of the inventory property sold.
When tangible fixed assets are sold or retired, their costs and
accumulated depreciation are removed from the consolidated
balance sheet and any gain or loss resulting from their disposal
is included in the consolidated income statement.
Other inventories
Inventories are carried at the lower of cost incurred in bringing
each product to its present location and condition and net
realisable value.
Net realisable value represents the estimated selling price in the
ordinary course of business less the estimated costs to complete
and the estimated costs necessary to make the sale.
100
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
101
VAS consolidated financial statements
Notes to the consolidated financial statements
3.6 Intangible assets
Development costs capitalised as asset are stated at cost less
accumulated amortisation. Amortisation of the asset begins
Intangible assets are stated at cost less accumulated amortisation. when development is completed and the asset is available
for use.
The cost of an intangible asset comprises its purchase price
and any directly attributable costs of preparing the intangible 3.7 Depreciation and amortisation
fixed asset for its intended use. Expenditures for additions,
improvements are added to the carrying amount of the assets Depreciation and amortisation of tangible fixed assets and
and other expenditures are charged to the consolidated income intangible assets are calculated on a straight-line basis over the
estimated useful life of each asset as follows:
statement as incurred.
When intangible assets are sold or retired, their costs and
accumulated amortisation are removed from the consolidated
balance sheet and any gain or loss resulting from their disposal
is included in the consolidated income statement.
Land use rights
Land use rights with indefinite or definite term are recorded as
intangible assets based the land use right certificate issued by
the relevant authority.
Buildings and structures
10 – 50 years
Other structures
10 – 20 years
Machineries and equipment
3 – 15 years
Means of transportation
3 – 12 years
Office equipment
4 – 8 years
Computer software
3 – 8 years
Copy rights
4 – 8 years
Land use rights with definite terms
50 years
Land rental rights
20 years
The advance lump-sum payment for land rental, of which the
Others
8 – 15 years
land lease contracts have effectiveness prior to 2003 and the land
use right certificate being issued by the relevant authority, are
recorded as intangible asset according to Circular No. 45/2013/ No amortisation is charged on the land use rights with indefinite
TT-BTC issued by the Ministry of Finance on 25 April 2013 guiding terms and project development right.
the management, use and depreciation of fixed assets (“Circular
45”).
3.8 Investment properties
Research and development costs
Investment properties are stated at cost including transaction
costs less accumulated depreciation.
Research costs with significant value are initially recognized
as prepayment and expensed over a period of 3 years on a Subsequent expenditure relating to an investment property
straight-line basis.
that has already been recognized is added to the net book
value of the investment property when it is probable that future
Development expenditure on an individual project is recognized economic benefits, in excess of the originally assessed standard
as an intangible asset only if the Group can demonstrate all of of performance of the existing investment property, will flow
the following conditions:
to the Group.
• The technical feasibility study of completing the intangible Depreciation and amortisation of investment properties are
asset so that it will be available for use or sale;
• The intention to complete and use or sell the
intangible asset;
• The ability to use or sell the intangible asset;
• The
asset will
economic benefits;
generate
probable
calculated on a straight-line basis over the estimated useful life
of each asset as follows:
Land use rights with definite term
46 – 48 years
Buildings
30 – 50 years
Machinery and equipment
8 – 15 years
future
Amortisation of land use rights with definite terms presented as
a part of investment properties is calculated on a straight-line
• The availability of resources to complete the development basis over the definite term.
and to use or sell the intangible asset;
No amortization is charged on the land use rights with indefinite
• The ability to measure reliably the expenditure during the terms presented as a part of investment properties.
development; and
Investment properties are derecognised when either they
• They are estimated to meet all criteria for use duration and have been disposed of or when the investment properties
value prescribed for intangible fixed asset.
are permanently withdrawn from use and no future economic
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benefit is expected from its disposal. The difference between
the net disposal proceeds and the carrying amount of the assets
is recognised in the consolidated income statement in the year
of retirement or disposal.
Transfers are made to investment properties when, and only
when, there is a change in use, evidenced by ending of owneroccupation, commencement of an operating lease to another
party or ending of construction or development. Transfers are
made from investment properties when, and only when, there
is change in use, evidenced by commencement of owneroccupation or commencement of development with a view to
sale. The transfer from investment property to owner-occupied
property or inventories does not change the cost or the carrying
value of the property for subsequent accounting at the date of
change in use.
3.9 Borrowing costs
Borrowing costs consist of interest and other costs that an entity
incurs in connection with the borrowing of funds. Borrowing
costs are recorded as expense during the year in which they
are incurred, except to the extent that they are capitalized as
explained in the following paragraph.
Goodwill acquired in a business combination is initially measured
at cost being the excess of the cost the business combination
over the Group’s interest in the net fair value of the acquiree’s
identifiable assets, liabilities and contingent liabilities. If the cost
of a business combination is less than the fair value of the net
assets of the subsidiary acquired, the difference is recognized
directly in the consolidated income statement. After initial
recognition, goodwill is measured at cost less any accumulated
amortization. Goodwill is amortized over 10-year period on a
straight-line basis.
Property acquisitions and business combinations
The Group acquires subsidiaries that own real estate properties.
At the time of acquisition, the Group considers whether the
acquisition represents the acquisition of a business or not. The
Group accounts for an acquisition as a business combination
where an integrated set of business activities is acquired in
addition to the properties.
When the acquisition of subsidiaries does not represent an
acquisition of business, it is accounted for as an acquisition of
a group of assets and liabilities. The cost of the acquisition is
allocated to the assets and liabilities acquired based upon their
relative fair values, and no goodwill or deferred tax is recognised.
Borrowing costs that are directly attributable to the acquisition,
construction or production of an asset that necessarily take a Changes in ownership interest in subsidiaries without loss
substantial period of time to get ready for its intended use or of control
sale are capitalized as part of the cost of the respective asset.
When the Company acquires a minority interest in an existing
3.10 Prepaid expenses
subsidiary, the difference between the consideration paid and
the carrying value of net assets acquired is presented as goodwill
Prepaid expenses are reported as short-term or long-term prepaid in the consolidated balance sheet.
expenses on the consolidated balance sheet and allocated over
the period for which the amount are paid or the period in which Where there is a partial disposal of ownership interest in
economic benefits are generated in relation to these expenses. an existing subsidiary without loss of control, a gain or loss
is recognised in the consolidated income statement at the
Long-term prepaid expenses include long-term prepaid difference between the consideration received and the carrying
land rental, bond issuance costs and other long-term expenses value of net assets disposed.
that bring future economic benefits for more than one year
period.
Business combinations involving entities or businesses
under common control
The prepaid land rental represents the unamortised balance of
advance payment made in accordance with the lease contract Business combinations involving entities or businesses under
signed with the government authority. Such prepaid rental is common control are accounted for as follows:
recognised as a long-term prepaid expense for allocation to the
consolidated income statement over the remaining lease period
• The assets and liabilities of the two combined entities are
according to Circular 45.
reflected at their carrying amounts on the date of business
combination;
3.11 Business combinations and goodwill
• No goodwill is recognised from the business combination;
Business combinations are accounted for using the purchase
method. The cost of a business combination is measured as the
• The consolidated income statement reflects the results
fair value of assets given, equity instruments issued and liabilities
of the combined entities from the date of the business
incurred or assumed at the date of exchange plus any costs
combination;
directly attributable to the business combination. Identifiable
assets and liabilities and contingent liabilities assumed in a
• Any difference between the consideration paid and the
business combination are measured initially at fair values at
net assets of the “acquiree” is recorded in equity.
the date of business combination.
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3.12 Investments
Investment in associates
The Group’s investment in its associates is accounted for using the
equity method of accounting. An associate is an entity in which
the Group has significant influence that is neither subsidiaries nor
joint ventures. The Group generally deems they have significant
influence if they have over 20% of the voting rights.
Under the equity method, the investment is carried in the
consolidated balance sheet at cost plus post acquisition changes
in the Group’s share of net assets of the associates. Goodwill
arising on acquisition of the associate is included in the carrying
amount of the investment and is amortized over 10-year period.
The consolidated income statement reflects the share of the
post-acquisition results of operation of the associate.
Notes to the consolidated financial statements
the average monthly salary for each year of service up to the
31 December 2008 in accordance with the Labour Code, the
Law on Social Insurance and related implementing guidance.
Commencing 1 January 2009, the average monthly salary used in
this calculation will be revised at the end of each reporting year
following the average monthly salary of the 6-month period up
to the reporting date. Any changes to the accrued amount will
be taken to the consolidated income statement. This accrued
severance pay is used to settle the termination allowance to
be paid to employee upon termination of their labour contract
following Article 48 of the Labour Code.
3.15 Provisions
Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
The share of post-acquisition profit/(loss) of the associates is estimate can be made of the amount of the obligation.
presented on face of the consolidated income statement and its
share of post-acquisition movements in reserves is recognised When the Group expects some or all of a provision to be
in reserves. The cumulative post-acquisition movements are reimbursed, for example under an insurance contract, the
adjusted against the carrying amount of the investment. reimbursement is recognised as a separate asset but only when
Dividend/profit sharing received or receivable from associates the reimbursement is virtually certain. The expense relating to
reduces the carrying amount of the investment.
any provision is presented in the consolidated income statement
net of any reimbursement.
The financial statements of the associates are prepared for the
same reporting year as the Group. Where necessary, adjustments If the effect of the time value of money is material, provisions
are made to bring the accounting policies in line with those of are discounted using a current pre tax rate that reflects, where
the Group.
appropriate, the risks specific to the liability. Where discounting
is used, the increase in the provision due to the passage of time
Investments in securities and other investments
is recognised as a finance cost.
The Group maintains the financial reserve fund which is
appropriated from the Group’s net profit as proposed by the
Board of Directors and subject to approval by shareholders at
the annual general meeting. This fund is set aside to protect the
Group’s normal operations from business risks or losses, or to
prepare for unforeseen losses or damages for objective reasons
and force majeure, such as fire, economic and financial turmoil
of the country or elsewhere.
as the excess of selling prices against the cost of securities sold.
Such gain is recognised on the trading date when the relevant
contracts are executed.
3.19 Advances from customers
Dividends
3.14 Accrual for severance pay
Net profit after tax (excluding unrealised exchange gains as at the
balance sheet date) is available for appropriation to shareholders
The severance pay to employee is accrued at the end of each after approval in the annual general meeting, and after making
reporting year for all employees who have more than 12 months appropriation to reserve funds in accordance with the Company’s
in service up to the reporting date at the rate of one-half of Charter and the Vietnamese regulatory requirements.
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Revenue is recognised as the interest accrues (taking into account
the effective yield on the asset) unless collectability is in doubt.
Down payments from customers for the purchase of residential Income is recognised when the Group’s entitlement as an investor
properties in the future that do not meet the conditions for to receive the dividend is established.
revenue recognition, are recognized and presented as “Advances
from customers” in the liability section of the consolidated 3.21 Taxation
balance sheet.
Current income tax
Payments received from customers under deposit, loan and other
agreements are recognized and presented as “Other short-term Current income tax assets and liabilities for the current and prior
payables” in the liability section of the consolidated balance years are measured at the amount expected to be paid to (or
recovered from) the taxation authorities. The tax rates and tax
sheet.
laws used to compute the amount are those that are enacted
as at the consolidated balance sheet date.
3.20 Revenue recognition
Revenue is recognised to the extent that it is probable that
the economic benefits will flow to the Group and the revenue
can be reliably measured regardless of when payment is being
made. Revenue is measured at the fair value of the consideration
received, excluding discounts, rebates, and sales taxes or duty.
The following specific recognition criteria must also be met
before revenue is recognised:
Revenue from sale of inventory property
Investments in securities and other investments are stated at 3.16 Foreign currency transactions
their acquisition costs.
Transactions in currencies other than the Group’s reporting
currency of VND are recorded at the exchange rates ruling
Provision for diminution in value of investments
at the date of the transaction. At the end of the year, monetary
Provision is made for any diminution in value of the marketable assets and liabilities denominated in foreign currencies
investments at the balance sheet date in accordance with the are translated at buying exchange rate announced by the
guidance under the Circular No. 228/2009/TT-BTC dated 7 commercial bank where the Group maintains bank accounts
December 2009 and the Circular No. 89/2013/TT-BTC dated 28 at the balance sheet date. All realised and unrealised foreign
June 2013 issued by Ministry of Finance. Increases and decreases exchange differences are taken to the consolidated income
to the provision balance are recorded as finance expense in the statement.
consolidated income statement.
3.17 Treasury shares
3.13 Payables and accruals
Own equity instruments which are reacquired (treasury shares)
Payables and accruals are recognised for amounts to be paid are recognised at cost and deducted from equity. No gain or
in the future for goods and services received, whether or not loss is recognised in profit or loss upon purchase, sale, issue or
billed to the Group. Payables to contractors are recorded based cancellation of the Group’s own equity instruments.
on interim work certificates between two parties, regardless of
whether or not billed to the Group.
3.18 Appropriation of net profits
Interest
Current income tax is charged or credited to the consolidated
income statement, except when it relates to items recognised
directly to equity, in which case the current income tax is also
dealt with in equity.
Current income tax assets and liabilities are offset when there
is a legally enforceable right for the Group to set off current tax
assets against current tax liabilities and when the Group intends
to settle its current tax assets and liabilities on a net basis.
Revenue from sale of inventory property is recognised when Deferred income tax
the significant risks and rewards of ownership of the properties
have passed to the buyer.
Deferred tax is provided using the liability method on temporary
differences at the consolidated balance sheet date between the
tax base of assets and liabilities and their carrying amount for
Revenue from leasing of investment properties
financial reporting purposes.
Rental income arising from leased investment properties is
accounted for on a straight line basis over the lease terms of Deferred tax liabilities are recognised for all taxable temporary
differences, except:
ongoing leases.
Sale of goods
Revenue is recognised when the significant risks and rewards of
ownership of the goods have passed to the buyer, usually upon
the delivery of the goods.
Rendering of services
Revenue from hotel, amusement park, education, hospital,
beauty, property management and other related services is
recorded when the services are rendered.
• Where the deferred tax liability arises from the initial
recognition of an asset or liability in a transaction which
at the time of the related transaction affects neither the
accounting profit nor taxable profit or loss;
• In respect of taxable temporarily differences associated with
investments in subsidiaries and associates, and interests in
joint ventures where timing of the reversal of the temporary
difference can be controlled and it is probable that the
temporary difference will not reverse in the foreseeable
future.
Gains from securities trading/capital transfer
Deferred tax assets are recognised for all deductible temporary
differences, carried forward unused tax credit and unused tax
Gains from securities trading and capital transfer are determined losses, to the extent that it is probable that taxable profit will
Vingroup Joint Stock Company | Annual Report 2014
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VAS consolidated financial statements
be available against which deductible temporary differences, International Financial Reporting Standards on presentation
carried forward unused tax credit and unused tax losses can and disclosures of financial instruments (“Circular 210”) are
be utilised, except:
classified, for disclosures in the notes to the consolidated financial
statements, as financial assets at fair value through profit or loss,
• Where the deferred tax asset in respect of deductible held-to-maturity investments, loans and receivables or availabletemporary difference which arises from the initial for-sale financial assets as appropriate. The Group determines
recognition of an asset or liability which at the time of the classification of its financial assets at initial recognition.
the related transaction, affects neither the accounting
profit nor taxable profit or loss;
All financial assets are recognised initially at cost plus directly
attributable transaction costs.
• In respect of deductible temporarily differences associated
with investments in subsidiaries, associates, and interests The Group’s financial assets include cash, cash equivalents, shortin joint ventures, deferred tax assets are recognised only to term deposits, trade and other receivables, loan receivables,
the extent that it is probable that the temporary differences quoted and unquoted financial instruments.
will reverse in the foreseeable future and taxable profit
will be available against which the temporary differences Financial liabilities
can be utilised.
Financial liabilities within the scope of Circular 210 are classified,
The carrying amount of deferred income tax assets is reviewed for disclosures in the notes to the consolidated financial
at each balance sheet date and reduced to the extent that statements, as financial liabilities at fair value through profit
it is no longer probable that sufficient taxable profit will be or loss or financial liabilities measured at amortised cost as
available to allow all or part of the deferred income tax asset to appropriate. The Group determines the classification of its
be utilised. Previously unrecognised deferred income tax assets financial liabilities at initial recognition.
are re assessed at each balance sheet date and are recognised
to the extent that it has become probable that future taxable All financial liabilities are recognised initially at cost plus directly
profit will allow the deferred tax assets to be recovered.
attributable transaction costs.
Notes to the consolidated financial statements
convertible bonds. This amount is classified as a financial liability
measured at amortised cost (net of transaction costs) until it
is extinguished on conversion or redemption. The remainder
of the proceeds is allocated to the conversion option that is
recognised and included in shareholders’ equity. Transaction
costs are deducted from equity, net of associated income tax.
The carrying amount of the conversion option is not re-measured
in subsequent years.
Transaction costs are apportioned between the liability and
equity components of the convertible bond based on the
allocation of proceeds to the liability and equity components
when the instruments are initially recognised.
In 2012, the Group issued US$300 million convertible bonds with
a term of 5 years (Note 27.2). Management has assessed that
there is no equity component in these convertible bonds (since
there is no known fixed number of shares to be converted on
issue date) and as a result, has recognized the entire convertible
bonds as financial liabilities.
Deferred income tax assets and liabilities are measured at the The Group’s financial liabilities include trade and other payables,
tax rates that are expected to apply in the period when the asset accruals, corporate bonds, convertible bonds, convertible loans,
realised or the liability is settled based on tax rates and tax laws other loans and borrowings.
that have been enacted at the consolidated balance sheet date.
Financial instruments – subsequent re-measurement
Deferred tax is charged or credited to the consolidated income
statement, except when it relates to items recognised directly There is currently no guidance in relation to subsequent
to equity, in which case the deferred tax is also dealt with in re-measurement of financial instruments in Circular 210.
the equity account.
Accordingly, financial instruments are subsequently carried
at cost.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right for the Group to off-set current tax assets Offsetting of financial instruments
against current tax liabilities and when they relate to income
taxes levied by the same taxation authority on:
Financial assets and financial liabilities are offset and the net
amount reported in the consolidated balance sheet if, and only if,
• Either the same taxable entity; or
there is a currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis, or to
• When the Group intends either settle current tax liabilities realise the assets and settle the liabilities simultaneously.
and assets on a net basis or to realise the assets and settle
the liabilities simultaneously, in each future period in which 3.23 Convertible bonds
significant amounts of deferred tax liabilities or assets are
expected to be settled or recovered.
Bonds that are convertible by the holder into a fixed number of
ordinary shares of the entity are separated into financial liability
3.22 Financial instruments
(a contractual arrangement to deliver cash or another financial
asset) and equity instrument (a call option granting the holder
Financial instruments – initial recognition and presentation the right, for a specified period of time) based on the terms of
the contract. In cases where the numbers of ordinary shares
to be converted is not fixed, the entire convertible bonds are
Financial assets
classified as a financial liability.
Financial assets within the scope of the Circular No.210/2009/
TT-BTC issued by the Ministry of Finance on 6 November On issuance of the convertible bonds, the fair value of the liability
2009 providing guidance for the adoption in Vietnam of the component is determined using a market rate for equivalent non-
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107
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Notes to the consolidated financial statements
On 1 July 2014, the General Meeting of Shareholders of Tan Lien
Phat JSC, a subsidiary, has issued the Decision No. 05/2014/QDDHDCD-TLP approving the increase of its charter capital from
VND 500 billion to VND 5,800 billion through the issuance of
ordinary shares to existing shareholders in proportion to their
interest ownership.
4. Significant acquisitions and disposals
4.1 Significant acquisitions
Currency: VND
Acquisition of Vincom Construction LLC, a new subsidiary
On 8 January 2014, the Group acquired 100% equity interest
in Vincom Construction LLC and thereby, Vincom Construction
LLC became a subsidiary of the Group.
Vincom Construction was established in Vietnam in accordance
with the Business Registration Certificate No. 0103012410 issued
by the Hanoi Department of Planning and Investment on 31 May
2006 and the Business Registration Certificate No. 0101959829
re-issued on 16 September 2010. The principal activities of
Vincom Construction LLC are civil constructions, architecture and
related technical consultancy, supervision and quality inspection.
The Group has acquired Vincom Construction LLC in order to
enhance its capacity in managing and supervising real estate
projects of the Group.
The fair value of the identifiable net assets and liabilities of
Vincom Construction LLC as at the date of the acquisition is
presented as table beside:
Fair value
recognized on
acquisition date
Assets
Cash and cash equivalents
14,441,090,352
Inventories
34,952,847,681
Other current assets
696,494,538
Fixed assets
242,247,369
Other non-current assets
443,052,420
Short term investments
Liabilities
Trade payables
Other payables
Fair value of net assets
Minority interests
The profit before tax of Vincom Construction LLC for the period
from the date of acquisition to 31 December 2014 is VND 89.5
billion.
Acquisition of additional equity interest in Tan Lien Phat
JSC, a new subsidiary
On 25 February 2014, the Group completed the acquisition of an
additional 30% of the voting shares of Tan Lien Phat JSC with total
cash consideration of VND1,266 billion. In combination with 30%
of the voting shares of Tan Lien Phat JSC held by Vincom Retail
JSC, a subsidiary, whose carrying value at acquisition date was
VND1,266 billion, the Group took control over Tan Lien Phat JSC.
Management has reviewed and assessed that the acquisition of
Tan Lien Phat JSC is the acquisition of a group of assets, rather
than a business acquisition. Accordingly, the total consideration
paid was allocated to the assets acquired based on their fair
value on acquisition date, with the remaining consideration
being allocated to the land development right and recorded
in construction in progress. The minority interests were also
recognised at their relative proportion of the interest in the assets
acquired. These assets are presented in the same categories
as other similar assets held by the Group in the consolidated
statement of financial position.
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Vingroup Joint Stock Company | Annual Report 2014
81,500,000,000
133,090,602,393
Accrued expenses
Total consideration of the acquisition was VND 120 billion which
was fully paid in cash.
814,870,033
Receivables
Goodwill arising on combination
Total consideration paid
20,100,999,108
1,827,785,022
11,161,818,263
100,000,000,000
20,000,000,000
120,000,000,000
Cash flow on acquisition
Net cash acquired with the subsidiary
Cash paid
Net cash flow on acquisition
814,870,033
120,000,000,000
119,185,129,967
Management has reviewed and assessed that the acquisition
of Riverview Danang LLC is the acquisition of a group of
assets, rather than a business acquisition. Accordingly, the
total consideration for this acquisition was allocated to the
assets acquired based on their fair value on acquisition date,
with the remaining consideration being allocated to the
value of the land rental right and recorded in construction
in progress. The minority interests were also recognised at their
relative proportion of the interests in the assets acquired. These
assets are presented in the same categories as other similar
assets held by the Group in the consolidated balance sheet.
On 21 August 2014, the General Meeting of Shareholders of Tan
Lien Phat JSC, a subsidiary, has issued the Decision No. 09/2014/
QD-DHDCD-TLP approving the increase of its charter capital from
VND 5,800 billion to VND 6,550 billion through the issuance of
ordinary shares to existing shareholders in proportion to their
interest ownership.
Acquisition of additional voting shares of Sai Dong JSC, an
existing subsidiary
On 15 August 2014 and 27 November 2014, the Group completed
the acquisition of additional 5% and 10% of the voting shares
of Tan Lien Phat JSC with considerations of VND459 billion and
VND1,600 billion, respectively. Accordingly, the Group’s equity
interest in this entity increased to 74.38%. The total difference of
VND17.8 billion and VND498.6 billion between the considerations
paid and the value of the additional net assets acquired from
minority interests was recognised as finance income in the
consolidated income statement (see Note 30.2) and goodwill
in the consolidated balance sheet (see Note 20), respectively.
On 18 August 2014, the Group acquired an additional 20% of
voting shares of Sai Dong JSC from a corporate counterparty. This
transaction increased the equity interest of the Group in this Sai
Dong JSC to 94%. This transaction also indirectly increased the
equity interest of the Group in a number of other subsidiaries.
The cash consideration for this transaction is VND565 billion and
total carrying value of the equity interest acquired was VND603
billion. The difference of VND861 billion between the total of (i)
such consideration and (ii) VND899 billion being the adjustment
Acquisition of Metropolis LLC, a new subsidiary
for the share of consideration to minority interests when Sai
Dong JSC acquired 44.9% equity interest in Hanoi South JSC,
On 12 August 2014, the Group acquired 100% of the voting another subsidiary, in previous years and the carrying value of
shares of Metropolis LLC from a corporate counterparty and the equity interest acquired was recognised as goodwill in the
individuals with total consideration of VND1,622 billion and consolidated balance sheet (see Note 20).
thereby, Metropolis LLC became a subsidiary of the Group.
Metropolis LLC is in the progress of developing a potential real Acquisition of Hong Ngan JSC, a new subsidiary
estate project on a land plot of 31,072 sqm in Thao Dien ward,
district 2, Hochiminh city, Vietnam.
On 10 September 2014, the Group acquired 99% of the
voting shares of Hong Ngan JSC from individuals with total
Management has reviewed and assessed that the acquisition of consideration of VND2,316 billion and thereby, Hong Ngan
Metropolis LLC is the acquisition of a group of assets, rather than a JSC became a subsidiary of the Group. Hong Ngan JSC is in the
business acquisition. Accordingly, the total consideration for this progress of developing a potential real estate project on a land
acquisition was allocated to the assets acquired based on their plot of 151,569 sqm in Cau Dien ward, Nam Tu Liem district,
fair value on acquisition date, with the remaining consideration Hanoi, Vietnam.
being allocated to the value of the land use right with definite
term and recorded in construction in progress. The minority Management has reviewed and assessed that the acquisition
interests were also recognised at their relative proportion of of Hong Ngan JSC is the acquisition of a group of assets,
the interest in the assets acquired. These assets are presented rather than a business acquisition. Accordingly, the total
in the same categories as other similar assets held by the Group. consideration for this acquisition was allocated to the assets
acquired based on their fair value on acquisition date, with
Acquisition of Riverview Danang LLC, a new subsidiary
the remaining consideration being allocated to the value of
the land development right and recorded in construction
On 13 August 2014, the Group completed the acquisition of in progress. The minority interests were also recognised at their
90% of the voting shares of Riverview Danang LLC with total relative proportion of the interests in the assets acquired. These
consideration of VND182.2 billion. Accordingly, Riverview Danang assets are presented in the same categories as other similar
LLC became a subsidiary of the Group. Riverview Danang LLC assets held by the Group in the consolidated balance sheet.
is in the progress of developing a potential real estate project
on a land plot of 20,707 sqm in Ngo Quyen street, An Hai Bac Acquisition of Vinmart JSC, a new subsidiary
ward, Son Tra district, Da Nang, Vietnam.
On 7 October 2014, the Group acquired 70% of voting shares of
Ocean Retail & Assets Management Joint-stock Company (“ORC
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109
VAS consolidated financial statements
JSC”) from a corporate party with total consideration of VND 560 Total consideration of the acquisition was VND560 billion which
billion. Consequently, ORC JSC became a new subsidiary of the was fully paid in cash.
Group and was renamed to Vinmart JSC.
The loss before tax of Vinmart JSC for the period from the date
Principal activities of Vinmart JSC are to retail goods in of acquisition to 31 December 2014 is VND93 billion.
supermarkets and specialized stores. Vinmart JSC is currently
operating a chain of 13 supermarkets and convenience stores Acquisition of additional equity interest in Viettronics Land
located in Hanoi and other provinces in the North. The Group JSC, an existing subsidiary
has acquired Vinmart JSC as part of its strategy of penetrating
in the retail business.
On 4 November 2014, the Group acquired an additional 16%
of the voting shares of Viettronics Land JSC from individuals.
The fair value of the identifiable assets and liabilities of Vinmart This transaction increased the equity interest of the Group
JSC as at the date of acquisition were:
in Viettronics Land JSC to 98.08%. Total consideration for this
transaction was VND400.8 billion and total carrying value of the
equity interest acquired was VND401.4 billion. The difference of
Currency: VND VND0.6 billion between the consideration and the carrying value
of the equity interest acquired was recognised as finance income
Fair value
in the consolidated balance sheet (see Note 30.2).
recognized on
acquisition
Assets
Notes to the consolidated financial statements
Acquisition of Khanh Gia JSC, a new subsidiary
Total consideration of the acquisition was VND783.7 billion
which was fully paid in cash.
On 12 December 2014, the Group acquired 94% of the voting
shares of Khanh Gia JSC with total consideration of VND783 The loss before tax of Khanh Gia JSC for the period from the date
billion. Accordingly, Khanh Gia JSC became a subsidiary of the of acquisition to 31 December 2014 is VND222 million.
Group.
4.2 Significant disposals
The principal activities of Khanh Gia JSC are investing, developing
and leasing retail space. The Group has acquired Khanh Gia as Partial disposal of equity interest in Sai Dong JSC, an
existing subsidiary
part of its strategy of expanding property leasing activities.
The fair value of the identifiable assets and liabilities of Khanh In April 2014, the Group disposed of 5% of the voting shares of
Gia JSC as at the date of acquisition were:
Sai Dong JSC, an existing subsidiary and thereby, reduced its
equity interest in this subsidiary to 74%. This transaction also
indirectly reduced the equity interest of the Group in a number
Currency: VND of other subsidiaries.
Fair value
recognized on
acquisition
Assets
Cash and cash equivalents
77,976,795,197
Cash and cash equivalents
9,560,663,550
Trade and other receivables
144,875,930,227
Trade and other receivables
10,089,500,747
Inventories
119,846,573,783
Advance to suppliers
26,739,737,958
52,244,474,369
Other current assets
20,865,947,368
Other current assets
Fixed assets
Construction in progress
328,590,273,218
3,244,925,454
Other long-term investments
207,939,183,333
Other long-term assets
179,407,714,671
Fixed assets
34,747,626
Construction in progress
602,433,027,000
Investment properties
132,300,000,000
802,023,624,249
1,114,125,870,252
Liabilities
Short-term borrowings
92,400,000,000
264,623,916,786
Trade and other payables
11,830,967,250
2,785,833,180
Advance from customers
12,782,270,425
Liabilities
Trade and other payables
Other long-term payables
Long-term borrowings
Total identifiable net assets at fair value
838,000,000,000
8,716,120,286
Other payables
Deferred tax liabilities
Total identifiable net assets at fair value
Minority interests
Goodwill arising on acquisition
Purchase consideration transferred
The total consideration for this disposal was VND187 billion and
the carrying value of the disposed net asset of the Group in Sai
Dong JSC and a number of other subsidiaries as at disposal date
was VND384 billion. The difference of VND197 billion between
the consideration and the carrying value of the equity interest
disposed was recognised in the consolidated income statement.
Disposal of Viet Thanh – Sai Dong Limited Liability
Company (“Viet Thanh – Sai Dong LLC”)
On 9 July 2014, the Group disposed of the entire 73.51% equity
interest in Viet Thanh – Sai Dong LLC to individuals for the
consideration of VND167 billion. The difference of VND88 billion
between the consideration and the carrying value of the equity
interest disposed was recognised in the consolidated income
statement (Note 30.2).
7,728,664,927
77,223,969,218
600,057,752,429
2,614,836,086
553,898,715,800
560,000,000,000
Minority interests
Goodwill arising on acquisition
Purchase consideration transferred
36,003,465,146
219,657,806,517
783,712,093,800
Cash flow on acquisition
Net cash acquired with the subsidiary
Cash paid
Net cash flow on acquisition
77,976,795,197
560,000,000,000
482,023,204,803
Cash flow on acquisition
Net cash acquired with the subsidiary
Cash paid
Net cash flow on acquisition
110
Vingroup Joint Stock Company | Annual Report 2014
9,560,663,550
783,712,093,800
774,151,430,250
Vingroup Joint Stock Company | Annual Report 2014
111
VAS consolidated financial statements
5. Cash and cash equivalents
Notes to the consolidated financial statements
8. Other receivables
Currency: VND
Ending balance
Beginning balance
Cash on hand
9,220,874,607
3,734,876,934
Cash in banks
1,697,280,782,527
826,463,507,347
Cash equivalents
5,897,835,897,588
6,703,850,319,014
3,176,164,951
-
7,607,513,719,673
7,534,048,703,295
Cash in transit
TOTAL
Cash equivalents represent deposits at banks
in VND with terms of 1 month to 3 months and
earn interest at rates ranging from 4% to 7.5%
per annum.
Currency: VND
Ending balance
Beginning balance
-
360,000,000,000
(i) This is a dividend advanced to a related party
and was collected in the year (Note 37).
428,978,175,621
262,930,214,880
Dividend advanced to a related
party (i)
-
205,200,000,000
Receivables from State Budget
(ii)
(ii) The receivable from the State Budget as of
31 December 2013 is related to the cessation
of a potential project in Hochiminh City and
was fully collected in the year.
-
800,000,000,000
36,115,522,222
-
Others
161,109,376,144
220,435,643,877
TOTAL
626,203,073,987
1,848,565,858,757
625,477,109,487
1,632,135,173,957
725,964,500
216,430,684,800
Receivables from disposal of the
investment in an associate
Interest receivables
Dividend receivable
6. Short-term investments
Currency: VND
Ending balance
Beginning balance
3,516,847,342,390
3,929,051,166,950
497,621,378,611
-
2,026,383,376,327
1,454,775,074,182
Current portion of loans to
customers (Note 17.2)
82,578,564,022
148,531,872,120
Loans to related parties
(Note 37)
16,204,181,818
98,181,818
105,781,413,500
32,369,112,000
Short-term deposits (i)
Current portion of bank deposits
(Note 17.2)
Loans to others (ii)
(i) Short-term deposits as of 31 December 2014
include deposits at banks with terms of more
than 3 months which earn interest at rates
ranging from 4% to 7.5% per annum.
(ii) Loans to others as of 31 December 2014
represents unsecured loans to corporate
counterparties which earn interest at rates
ranging from 10% to 18% per annum.
In which:
Other receivables
Other receivables from related
parties (Note 37)
9. Inventories
Currency: VND
Ending balance Beginning balance
Short-term investments in listed
securities
Completed inventory properties
2,983,199,417,908
82,135,723,455
12,981,426,785,251
18,747,390,465,018
25,068,106,693
19,481,411,812
233,060,588,602
59,341,273,203
Tools and equipment
84,779,811,576
14,129,048,644
Goods in transit
14,404,215,653
178,034,228
331,307,723,610
-
16,653,246,649,293
18,922,655,956,360
(54,895,665,767)
(8,938,534,347)
16,598,350,983,526
18,913,717,422,013
Inventory properties under construction
Total short-term investments
6,245,416,256,668
Provision for diminution in
short-term investments
TOTAL
(77,245,017,700)
6,168,171,238,968
5,564,825,407,070
(51,984,372,442)
5,512,841,034,628
Materials for construction
Inventories for hospital, supermarket and
retail outlets
Others
7. Trade receivables
Currency: VND
Ending balance
Beginning balance
Receivables from sale of inventory
properties
454,239,396,887
406,263,089,905
Receivables from leasing activities and
rendering related services
222,450,897,154
391,312,752,468
Receivables from rendering hotel,
amusement park and related services
46,193,370,495
32,837,034,046
Receivables from rendering hospital and
related services
24,415,240,296
43,616,926,983
Receivables from sale of goods in
supermarkets and retail outlets
2,824,255,316
215,135,830
Receivables from rendering education and
related services
2,969,286,736
32,177,197
79,909,019,463
32,306,194,167
Other receivables
TOTAL
Net value of inventories
833,001,466,347
906,583,310,596
Trade receivables
669,871,388,587
898,600,737,662
Receivables from related parties (Note 37)
163,130,077,760
7,982,572,934
In which:
112
Provision for obsolete inventories
Vingroup Joint Stock Company | Annual Report 2014
10. Short-term prepaid expenses
See Note 25 and 27 for the details of
inventory property used as collaterals
for borrowings and corporate bonds of
the Group.
Currency: VND
Ending balance
Beginning balance
Bond issue costs
9,303,353,064
2,970,617,785
Selling expenses related to apartments not
yet handed over
1,645,051,805
16,498,231,735
Expenses for tools and equipment
92,926,354,559
48,579,300,709
Prepaid interest expense
20,667,325,201
19,965,840,294
Others
51,225,322,493
24,981,890,113
TOTAL
175,767,407,122
112,995,880,636
Vingroup Joint Stock Company | Annual Report 2014
113
VAS consolidated financial statements
Notes to the consolidated financial statements
11. Other current assets
Advances to employees
Deposits for investment purpose (i)
Currency: VND
Ending balance
Beginning balance
13,722,309,095
10,636,708,629
783,166,666,670
2,832,200,000,000
Short-term deposits (ii)
64,258,393,012
880,071,194,016
Others current assets
21,671,511,814
-
882,818,880,591
3,722,907,902,645
882,818,880,591
3,522,907,902,645
-
200,000,000,000
TOTAL
In which:
Other current assets
Current assets from related parties (Note 37)
(i) Deposits for investment purpose are for
acquiring shares in other entities. As at 31
December 2013, deposits for investment
purpose also comprised a deposit of VND1,100
billion for securing the right to participate in
a potential real estate in Hung Yen province
which were reclassified to other long-term
assets (Note 19)
(ii) As at 31 December 2013, short-term deposits
mainly comprised an escrow amount of US$40
million deposited at Credit Suisse AG, Singapore
Branch (“Credit Suisse”) and being used as a
security for Credit Suisse for certain equity
swap agreements that Credit Suisse has entered
into with certain holders of the convertible
bonds issued by the Company in July 2012. The
Company fully collected this escrow amount
in the year.
12. Tangible fixed asset
Currency: VND
Buildings & construction
Machinery & equipment
Motor vehicles
Office equipment
Others
Total
Beginning balance
4,155,350,273,457
2,038,258,860,738
278,817,951,977
74,705,585,423
160,440,672,762
6,707,573,344,357
Additions
3,652,750,991,892
1,435,644,969,003
101,567,627,249
224,478,632,429
47,146,964,536
5,461,589,185,109
134,868,671,202
306,799,804,727
36,008,467,458
141,887,630,980
8,083,838,520
627,648,412,887
Cost:
In which:
Newly purchased
2,401,018,889,735
813,977,927,716
47,388,164,894
10,787,736,189
39,063,126,016
3,312,235,844,550
Transfer from investment properties
Newly constructed
904,766,093,193
268,431,766,003
-
-
-
1,173,197,859,196
Acquisition of subsidiary
212,097,337,762
46,435,470,557
18,170,994,897
71,803,265,260
-
348,507,068,476
(1,552,011,922)
(28,712,158,488)
(6,241,661,323)
(3,861,532,704)
(2,868,721,240)
(43,236,085,677)
(1,552,011,922)
(21,533,068,491)
(5,695,211,605)
(3,037,926,115)
(2,804,235,304)
(34,622,453,437)
-
(7,179,089,997)
(546,449,718)
(823,606,589)
(64,485,936)
(8,613,632,240)
7,806,549,253,427
3,445,191,671,253
374,143,917,903
295,322,685,148
204,718,916,058
12,125,926,443,789
456,933,838
62,300,427,417
2,449,384,871
16,762,570,592
9,868,886,654
91,838,203,372
Beginning balance
357,427,839,275
525,501,233,125
84,023,346,967
43,277,952,981
51,626,331,789
1,061,856,704,137
Addition
173,501,116,186
295,221,630,250
37,297,138,360
25,743,490,150
21,494,213,751
553,257,588,697
500,519,874,509
Decreases
In which:
Sold, disposed
Other reductions
Ending balance
In which:
Fully depreciated
Accumulated depreciation:
In which:
151,422,776,935
275,376,977,743
34,735,280,394
17,490,625,686
21,494,213,751
Transfer from investment properties
Depreciation for the year
11,774,974,420
16,327,268,784
-
-
-
28,102,243,204
Acquisition of subsidiary
10,303,364,831
3,517,383,723
2,561,857,966
8,252,864,464
-
24,635,470,984
(1,246,974,349)
(9,796,988,243)
(2,293,132,776)
(1,408,738,073)
(782,757,253)
(15,528,590,694)
(1,246,974,349)
(9,056,304,475)
(2,056,504,302)
(663,365,240)
(748,185,864)
(13,771,334,230)
Decreases
In which:
Sold, disposed
Other reductions
-
(740,683,768)
(236,628,474)
(745,372,833)
(34,571,389)
(1,757,256,464)
529,681,981,112
810,925,875,132
119,027,352,551
67,612,705,058
72,337,788,287
1,599,585,702,140
Beginning balance
3,797,922,434,182
1,512,757,627,613
194,794,605,010
31,427,632,442
108,814,340,973
5,645,716,640,220
Ending balance
7,276,867,272,315
2,634,265,796,121
255,116,565,352
227,709,980,090
132,381,127,771
10,526,340,741,649
Ending balance
Net carrying amount:
114
Vingroup Joint Stock Company | Annual Report 2014
See Note 27 for the details of tangible
fixed assets used as collaterals for
borrowings and corporate bonds of
the Group.
Vingroup Joint Stock Company | Annual Report 2014
115
VAS consolidated financial statements
Notes to the consolidated financial statements
13. Intangible fixed assets
Currency: VND
Indefinite land
use right
Definite land
use right
Land rental right (i)
Project development
right (ii)
Copyrights
Computer software
Total
51,430,769,964
173,065,510,181
184,938,875,055
136,500,000,000
2,172,915,416
28,824,444,649
576,932,515,265
-
31,547,071,966
-
-
407,648,545
22,743,887,597
54,698,608,108
-
31,547,071,966
-
-
407,648,545
15,317,702,141
47,272,422,652
-
-
-
-
-
7,426,185,456
7,426,185,456
(14,302,800,000)
(3,450,784,900)
-
-
-
(736,610,583)
(18,490,195,483)
Cost:
Beginning balance
Additions
In which:
Newly purchased
Acquisition of subsidiary
Decreases
In which:
Sold, disposed
-
-
-
-
-
(736,610,583)
(736,610,583)
(14,302,800,000)
(3,450,784,900)
-
-
-
-
(17,753,584,900)
37,127,969,964
201,161,797,247
184,938,875,055
136,500,000,000
2,580,563,961
50,831,721,663
613,140,927,890
-
-
-
-
68,643,000
12,382,479,903
12,451,122,903
Beginning balance
-
12,679,496,345
40,887,073,429
-
1,706,280,517
17,168,479,298
72,441,329,589
Addition
-
4,674,087,681
9,217,901,051
-
359,510,828
9,209,914,495
23,461,414,055
Amortization for the year
-
4,674,087,681
9,217,901,051
-
359,510,828
7,845,223,769
22,096,723,329
Acquisition of subsidiary
-
-
-
-
-
1,364,690,726
1,364,690,726
-
(2,424,791,152)
-
-
-
(704,304,313)
(3,129,095,465)
Transfer to construction in progress
Ending balance
In which:
Fully depreciated
Accumulated amortization:
In which:
Decreases
In which:
Sold, disposed
-
-
-
-
-
(704,304,313)
(704,304,313)
Transfer to construction in progress
-
(2,424,791,152)
-
-
-
-
(2,424,791,152)
-
14,928,792,874
50,104,974,480
-
2,065,791,345
25,674,089,480
92,773,648,179
Beginning balance
51,430,769,964
160,386,013,836
144,051,801,626
136,500,000,000
466,634,899
11,655,965,351
504,491,185,676
Ending balance
37,127,969,964
186,233,004,373
134,833,900,575
136,500,000,000
514,772,616
25,157,632,183
520,367,279,711
Ending balance
Net carrying amount:
(i) This is land rental right incurred when the Group invested in Hai
Phong Land LLC in 2009.
(ii) This is project development right incurred when Vinpearl JSC invested
in Hon Mot JSC in 2010.
See Note 27 for the details of intangible fixed assets used as collaterals
for borrowings and corporate bonds of the Group.
116
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
117
VAS consolidated financial statements
Notes to the consolidated financial statements
14. Construction in progress
15. Investment properties
Currency: VND
Ending balance
Beginning balance
Vinhomes Central Park project
2,663,931,085,123
-
Vinhomes Nguyen Chi Thanh – Ha Noi project
1,315,763,194,052
2,753,337,185,551
Vincom Megamall Thao Dien project
1,623,262,808,291
-
Green City project
943,994,136,107
-
Vinhomes Times City project
784,581,629,027
939,734,920,148
Vincom Thu Duc project
602,433,027,000
-
Can Tho project
501,086,251,562
-
Xavinco project
442,467,019,372
441,076,325,736
Vinpearl Quy Nhon project
377,985,958,115
342,456,728,761
Lang Van project
232,705,632,840
105,544,108,578
Vinpearl Phu Quoc project
222,041,798,848
41,244,521,584
Vinhomes Riverside project
173,608,954,750
403,742,203,923
Land use right
Building and structures
Machinery and
equipment
Total
Beginning balance
2,454,317,955,619
9,606,573,191,831
2,087,781,697,133
14,148,672,844,583
Additions
2,580,784,033,702
1,562,412,159,950
188,547,987,934
4,331,744,181,586
Cost:
In which:
Newly purchased
2,430,156,177,446
380,267,626,406
4,116,837,145
2,814,540,640,997
Transfer from
construction in
progress
78,153,695,008
1,075,345,656,634
184,431,150,789
1,337,930,502,431
Acquisition of
subsidiary
72,474,161,248
106,798,876,910
-
179,273,038,158
(189,815,489,180)
(1,552,978,033,130)
(400,397,944,172)
(2,143,191,466,482)
(122,823,022,524)
(692,026,165,903)
(131,966,178,171)
(946,815,366,598)
(66,992,466,656)
(837,773,626,537)
(268,431,766,001)
(1,173,197,859,194)
-
(23,178,240,690)
-
(23,178,240,690)
4,845,286,500,141
9,616,007,318,651
1,875,931,740,895
16,337,225,559,687
Decreases
In which:
Disposals
Vinpearl Premium Nha Trang Bay project
168,844,771,919
-
Vincom Center Da Nang project
154,536,473,549
-
Tay Ho View project
136,450,339,308
117,428,351,772
An Giang project
101,750,000,000
-
E-commerce project
96,888,466,776
-
Future Property Invest project
85,922,322,766
84,767,670,050
Accumulated
amortization:
Vinpearl Hoi An project
77,195,990,564
72,919,202,464
Beginning balance
80,576,420,451
241,036,416,788
198,325,637,716
519,938,474,955
Ho Tay project
73,828,685,818
42,348,897,818
Addition
52,881,740,049
213,582,683,692
191,806,801,978
458,271,225,719
Reclassification to fixed
assets
Other decreases
Ending balance
Vinpearl Ha Long project
67,929,253,870
-
In which:
Vinmec project
65,900,291,896
-
23,203,364,160
196,288,021,423
191,806,801,978
411,298,187,561
Vinpearl Premium Golf Land and Vinpearl Spa
project
Amortization for the
year
62,659,288,859
-
29,678,375,889
17,294,662,269
-
46,973,038,158
Hon Mot project
57,259,570,979
27,694,769,417
Acquisition of
subsidiary
Vincom Hai Phong project
33,642,217,961
16,620,436,143
(5,271,853,461)
(16,603,309,217)
(18,250,202,835)
(40,125,365,513)
Vinpearl Cam Ranh project
16,793,310,727
-
-
(10,100,188,265)
(1,922,934,051)
(12,023,122,316)
(5,271,853,461)
(6,503,120,952)
(16,327,268,784)
(28,102,243,197)
128,186,307,039
438,015,791,263
371,882,236,859
938,084,335,161
Beginning balance
2,373,741,535,168
9,365,536,775,043
1,889,456,059,417
13,628,734,369,628
Ending balance
4,717,100,193,102
9,177,991,527,388
1,504,049,504,036
15,399,141,224,526
Vinpearl Nha Trang – Dolphin performance
area
-
25,410,059,929
Others
189,525,789,653
159,581,542,974
TOTAL
11,272,988,269,732
5,573,906,924,848
Construction in progress for inventory property is presented See Note 27 for details of construction in progress used as
in Note 9.
collaterals for borrowings and corporate bonds of the Group.
118
Currency: VND
Vingroup Joint Stock Company | Annual Report 2014
Decreases
In which:
Disposals
Reclassification to fixed
assets
Ending balance
Net carrying amount:
Vingroup Joint Stock Company | Annual Report 2014
119
VAS consolidated financial statements
So sánh Kết quả hoạt động kinh doanh giữa VAS và IFRS
15. Investment properties (continued)
As at 31 December 2014, the market value of the Group’s investment properties is determined as follows:
• By an independent valuer per its draft reports:
Investment properties
• Estimated by the Group:
VND Billion
Vincom Center Ba Trieu – Tower A & B
(retail component)
1,931
Vincom Center Ba Trieu – Tower C (retail
component)
1,210
Vincom Center Dong Khoi (office
component)
4,654
Vincom Center Dong Khoi (retail
component)
4,716
Vincom Center Long Bien
353
Vinhomes Riverside project (school
component)
245
Royal City project (school component)
132
Vinpearlland Amusement Park
Investment properties
VND Billion
Residential apartments at Royal City project
under long-term lease contract
2,234
Villas at Vinhomes Riverside Eco-urban Area
2,810
Land use right and assets on the land of residential apartments of
Vinhomes Royal City project under a long-term lease contract are
being used as collaterals for the loan of a corporate counterparty.
See Note 27 for details of remaining investment properties
used as collaterals for borrowings and corporate bonds of
the Group.
60
Vincom Mega Mall Royal City
5,299
Vincom Mega Mall Times City
2,420
Vincom Center Ha Long
343
307-309 Vo Van Ngan
132
The Group is proud to set the standard for private
enterprises, built by Vietnamese people and
marked by traditional Vietnamese characteristics
of intelligence, daring and ambition.
16. Capitalized borrowing costs
During the year, the Group capitalised borrowing costs amounting to VND617,501,738,772 (2013: VND1,495,120,954,681).These
costs related to borrowings made generally and specifically to finance the real estate projects of the Group.
The amount of borrowing costs of general borrowings eligible for capitalisation is determined by applying capitalisation rates
ranging from 7.00% to 15.55% (2013: from 13.00% to 19.78%) to the accumulated weighted average expenditure of the real estate
projects. The capitalization rates used are the weighted average of the borrowing costs applicable to the general borrowings of
the Group that are outstanding during the year.
17. Long-term investments
Currency: VND
Note
Ending balance
Opening balance
Investment in associates
17.1
1,030,494,731,370
1,829,738,207,290
Other long-term investments
17.2
Total long term investments
Provision for other long-term
investments
120
Vingroup Joint Stock Company | Annual Report 2014
3,921,649,610,843
2,705,645,119,316
4,952,144,342,213
4,535,383,326,606
(3,000,000,000)
(3,000,000,000)
4,949,144,342,213
4,532,383,326,606
Vingroup Joint Stock Company | Annual Report 2014
121
VAS consolidated financial statements
Notes to the consolidated financial statements
17.1 Investment in associates
Currency: VND
Hanoi Breed JSC
Foreign Trade JSC
Green City
JSC
Thang Long JSC
Eight Lions
JSC
Vien Dong Pearl LLC
Tan Lien Phat JSC
Total
-
12,687,104,718
669,324,368,968
19,815,115,758
27,911,617,846
-
1,100,000,000,000
1,829,738,207,290
48,027,183,334
-
246,500,000,000
-
9,000,000,000
6,000,000,000
166,666,666,665
476,193,849,999
-
665,585,470
27,197,650,951
844,710,147
(36,911,617,846)
108,844,987
-
(8,094,826,291)
(675,832,963)
-
-
-
-
-
-
(675,832,963)
-
-
-
-
-
-
(1,266,666,666,665)
(1,266,666,666,665)
47,351,350,371
13,352,690,188
943,022,019,919
20,659,825,905
-
6,108,844,987
-
1,030,494,731,370
As at 1 January 2014
Increase during the year
Share in profit/ (loss)
Amortisation of goodwill
Reclassify to investment into
subsidiaries (Note 4.1)
As at 31 December 2014
The information on these associates, along with the Company’s voting rights and equity interest in each associate are as follows:
17.2 Other long-term investment
No
1
Name
Foreign Trade Concrete JSC
(“Foreign Trade JSC”)
Voting
Equity
rights (%) interest (%)
30.00
Head office
Principal activities
30.00
Floor 1, 35 – 37 Chuong
Duong Port, Nguyen
Thai Binh Ward, District 1,
Hochiminh City
Manufacturing and trading
concrete
Green City Development JSC
(“Green City JSC”)
49.10
47.66
No. 72 Le Thanh Ton, Ben
Nghe Ward, District 1,
Hochiminh City
Real estate development
3
Thang Long Real Estate Trading
Investment JSC (“Thang Long
JSC”)
35.00
35.00
No. 191 Ba Trieu,Hai Ba Trung
District, Hanoi
Real estate development
4
Vien Dong Pearl Urban
Development Investment
Company Limited (“Vien Dong
Pearl LLC”)
45.00
No. 72 Le Thanh Ton, Ben
Nghe Ward, District 1,
Hochiminh City
26.32
No. 77 Le Hong Phong,
Nguyen Trai Ward, Ha Dong
District, Hanoi
Hanoi Breeds JSC
Loans to related parties
45.00
37.60
Number of shares
904,533,000,000
904,533,000,000
117,578,059,260
185,531,367,356
In which: current portion of loans to customers
(Note 6)
(82,578,564,022)
(148,531,872,120)
939,532,495,238
1,181,532,495,236
1,093,496,443,945
1,093,496,443,945
12,400,000,000
12,400,000,000
Thanh Nien Media JSC
8/3 Investment JSC
Breeding livestock
3,000,000,000
3,000,000,000
Bank for Investment and Development of Vietnam
-
73,412,301,500
Thanh Nien Real Estate JSC
-
56,016,217,443
3,000,000,000
3,000,000,000
Beginning balance
Value Number of shares
The Vietnam National Textile and Garment Group
551,685,000,000
-
Ocean Thang Long JSC
152,000,000,000
-
1,815,581,443,945
1,241,324,962,888
-
266,500,000,000
1,664,157,050,271
16,287,661,192
Value
Hanoi Breed JSC
676,800
47,351,350,371
-
-
Foreign Trade JSC
900,000
13,352,690,188
900,000
12,687,104,718
73,650,000
943,022,019,919
49,000,000
669,324,368,968
1,750,000
20,659,825,905
1,750,000
19,815,115,758
Long-term bank deposits
-
4,900,000
27,911,617,846
In which: current portion of bank deposits (Note 6)
(*)
6,108,844,987
-
-
-
-
15,000,000
1,100,000,000,000
76,976,800
1,030,494,731,370
71,550,000
1,829,738,207,290
Eight Lions JSC (i)
Vien Dong Pearl LLC
Tan Lien Phat JSC
(*) This is a limited liability company.
(i) On 24 May 2014, the Group disposed of its 49% equity interest in
Eight Lions JSC and together with the establishment of New Eight Lions
LLC on 19 May 2014 for the purpose of purchasing inventories, fixed
assets and operating rights from Eight Lions JSC, these transactions
have been assessed as the acquisition of a business. A goodwill of VND
122
240,000,000,000
Loans to individuals (i)
Ecology Developing Investment JSC
Real estate development
Currency: VND
TOTAL
-
Investment in unquoted shares
Ending balance
Thang Long JSC
Beginning balance
Loans to customers(ii)
Thuan Phong Energy Development JSC
Green City JSC
Ending balance
Long-term loans
2
5
Currency: VND
Vingroup Joint Stock Company | Annual Report 2014
100 billion arising from this transaction is recognized and presented in
Note 20. This amount of goodwill has been provisionally recognized in
the 2014 consolidated financial statement as the Group is in the process
of determining the fair value of net asset acquired.
Other long-term investments
Business Co-operation Contract with Green City
TOTAL
(i) Including loans provided to individuals for purchasing shares of Green
City JSC. These loans have a term of 3 years starting from 25 July 2013
and earn interest at rate based on the weighted average borrowing cost
of the Group. The collateral for these loans is the shares of Green City
JSC purchased by these individuals.
(497,621,378,611)
-
1,166,535,671,660
282,787,661,192
3,921,649,610,843
2,705,645,119,316
(ii) Long-term loans to others represent loans provided to tenants at trade
centers of the Group with original terms of 3 years and earn interest at
rates ranging from 10% to 25% per annum. These loans are pledged
either by the shares of the tenant held by its major shareholders or by
all assets and inventories in tenants’ stores.
Vingroup Joint Stock Company | Annual Report 2014
123
VAS consolidated financial statements
Notes to the consolidated financial statements
17.2 Other long-term investments (continued)
Investment in unquoted shares and other long-term investments
Details of the Group’s investments in other entities as at 31 December 2014 are as follows:
Ending balance
Number of
shares
18. Long-term prepaid expenses
Opening balance
Equity Value
interest (%)
Number of
shares
Equity Value
interest (%)
Ecology
Investment and
Development JSC
80,470,000
18.25
1,093,496,443,945
80,470,000
18.25
1,093,496,443,945
Thanh Nien Media
JSC
400,000
3.87
12,400,000,000
400,000
3.87
12,400,000,000
8/3 Investment
JSC
300,000
10.00
3,000,000,000
300,000
10.00
3,000,000,000
Bank for
Investment and
Development of
Vietnam
-
-
-
4,410,767
0.16
73,412,301,500
-
-
5,600,000
10.57
56,016,217,443
300,000
3.00
3,000,000,000
300,000
3.00
3,000,000,000
The Vietnam
National Textile
and Garment
Group
50,000,000
10.00
551,685,000,000
-
-
-
Ocean Thang
Long JSC
15,200,000
13.10
152,000,000,000
-
-
-
TOTAL
Ending balance
Beginning balance
Bonds issue costs and loan arrangement fees
595,884,775,537
611,948,422,558
Prepaid land rentals
193,397,545,649
174,253,985,665
Selling expenses for apartments not yet
handed over
124,072,317,512
89,515,586,247
13,927,460,074
12,322,441,075
Selling expenses related to leasing activities
Mock houses
Thanh Nien Land
JSC
Thuan Phong
Energy
Development JSC
Currency: VND
1,519,226,771
13,390,059,518
42,770,778,456
194,811,641,748
Tools and equipment
558,191,520,089
84,308,274,233
Pre-operating expenses
Corporate income tax prepayment
136,731,575,820
746,564,124
Prepaid rental fee for supermarket areas
34,668,669,724
-
Other long-term prepaid expenses
68,909,531,872
14,174,439,337
1,770,073,401,504
1,195,471,414,505
TOTAL
146,670,000
1,815,581,443,945
91,480,767
1,241,324,962,888
19. Other long-term assets
Currency: VND
Ending balance
Deposits for investment purpose (i)
4,800,000,000,000
-
99,679,218,417
-
922,872,835
730,784,217
4,900,602,091,252
730,784,217
Long-term deposits for rental of retail outlets
Other long-term assets
TOTAL
Beginning balance
(i) Including deposits for:
•
•
124
Vingroup Joint Stock Company | Annual Report 2014
Securing the right to participate in a potential real estate project
in Hung Yen province;
Investing in a potential real estate project in Long Bien district,
Hanoi; and
•
Purchasing retail space in a potential real estate project in Cau
Giay district, Hanoi.
Vingroup Joint Stock Company | Annual Report 2014
125
VAS consolidated financial statements
Notes to the consolidated financial statements
20. Goodwill
Currency: VND
Goodwill on
acquisition of
Hanoi South JSC
Goodwill on
acquisition of
PFV JSC
Goodwill on
acquisition of
Sai Dong JSC
(Note 4)
Goodwill on
acquisition of
Royal City JSC
Goodwill on
acquisition of
Vinpearl Da
Nang LLC
Goodwill on
acquisition of
Vincom
Long Bien LLC
Goodwill on
Goodwill on
acquisition of acquisition of
Tan Lien Phat JSC Eight Lions JSC
(Note 4)
(Note 17,1)
Goodwill on
acquisition
of Vincom
Construction
(Note 4)
Goodwill on
acquisition of
Vinmart JSC
(Note 4)
Beginning
balance
2,385,114,095,843
567,441,137,177
1,484,234,497,977
1,262,707,762,179
233,207,819,085
33,000,000,000
-
Additions
-
-
861,522,988,666
-
-
-
Disposed
(139,092,042,084)
-
(93,934,195,332)
-
(11,815,234,273)
Ending balance
2,246,022,053,759
567,441,137,177
2,251,823,291,311
1,262,707,762,179
Goodwill on
Goodwill on
acquisition of acquisition of
Khanh Gia JSC Ocean Express
(Note 4)
JSC
Total
-
-
-
-
-
5,965,705,312,261
498,584,453,672
100,000,000,000
20,000,000,000
553,898,715,800
219,657,806,517
4,532,698,829
2,258,196,663,484
-
-
-
-
-
-
-
(244,841,471,689)
221,392,584,812
33,000,000,000
498,584,453,672
100,000,000,000
20,000,000,000
553,898,715,800
219,657,806,517
4,532,698,829
7,979,060,504,056
Cost:
Accumulated amortisation:
Beginning
balance
479,832,254,464
129,344,976,352
199,227,295,472
286,018,188,090
65,170,404,238
2,200,000,000
-
-
-
-
-
-
1,161,793,118,616
Amortization
228,869,472,956
53,856,285,189
173,524,383,344
126,270,776,218
23,320,781,910
3,300,000,000
4,154,870,447
19,444,444,444
2,000,000,000
13,050,764,263
1,143,424,198
106,797,836
649,042,000,805
Disposed
(30,883,852,648)
-
(15,348,439,396)
-
-
-
-
-
-
-
-
-
(46,232,292,044)
Ending balance
677,817,874,772
183,201,261,541
357,403,239,420
412,288,964,308
88,491,186,148
5,500,000,000
4,154,870,447
19,444,444,444
2,000,000,000
13,050,764,263
1,143,424,198
106,797,836
1,764,602,827,377
Beginning
balance
1,905,281,841,379
438,096,160,825
1,285,007,202,505
976,689,574,089
168,037,414,847
30,800,000,000
-
-
-
-
-
-
4,803,912,193,645
Ending balance
1,568,204,178,987
384,239,875,636
1,894,420,051,891
850,418,797,871
132,901,398,664
27,500,000,000
494,429,583,225
80,555,555,556
18,000,000,000
540,847,951,537
218,514,382,319
4,425,900,993
6,214,457,676,679
Net carrying amount:
126
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
127
VAS consolidated financial statements
Notes to the consolidated financial statements
21. Short-term loans
Currency: VND
Ending balance
Current portion of long-term corporate
bonds (Note 27.2)
Current portion of long-term loans from
banks (Note 27.1)
Short-term convertible loans (i)
Others (ii)
TOTAL
23. Statutory obligations
Beginning balance
Ending balance
Beginning balance
Corporate income tax (Note 36.1)
503,959,105,076
896,557,840,180
Value added tax payable
128,974,462,211
162,109,926,290
25,209,166,721
9,760,917,781
371,099,590,034
1,036,404,229,407
Others
7,862,005,712
2,932,117,437
TOTAL
1,037,104,329,754
2,107,765,031,095
-
2,250,000,000,000
1,198,994,605,718
369,483,285,606
Personal income tax
Property tax, land use fees and land rental
fees payable
-
368,987,500,000
122,200,000,000
35,000,000,000
1,321,194,605,718
3,023,470,785,606
1,311,194,605,718
3,023,470,785,606
10,000,000,000
-
Currency: VND
In which
Short-term loans
Short-term loans from related parties (Note 37)
(i) These are convertible loans from Credit Suisse and Warburg Pincus
as presented in Note 27.1. On 11 July 2014, the Group has completed
necessary procedures to extend the term of these loans to 2019.
(ii) Including an unsecured loan from an individual who bought villas at
Phu Quy villas project with the amount of VND32 billion (interest rate
of 2% per annum), an unsecured short-term loan from an individual
with the amount of VND80.2 billion (interest rate of 7.5% per annum)
and from a related party with the amount of VND 10 billion (interest
rate of 7% per annum).
22. Advance from customers
Currency: VND
Ending balance
Beginning balance
Down payment from customers under real
estate sale and purchase agreements
3,299,807,295,074
11,686,251,139,746
Advance from customers under other
contracts
3,281,471,567,064
4,463,793,282,988
7,908,840,017
27,902,954,317
3,110,184,032,352
4,293,845,278,053
Advance from customers for purchase of
resettlement apartments
Advance from long-term lease contract for
apartments (i)
Advance from hospitality services
113,443,693,274
125,847,866,400
Advance from hospital services
17,150,880,830
15,286,940,003
Advance from education services and
others
32,784,120,591
910,244,215
TOTAL
6,581,278,862,138
16,150,044,422,734
24. Accrued expenses
Ending balance
Beginning balance
Accrual for bond and loan interests
1,371,617,698,518
1,267,702,309,535
Accrual for construction costs
1,254,563,464,393
864,555,492,034
709,720,429,437
869,496,711,976
Accrual for future costs of properties sold
Accrual for severance allowance
Accrual for warranty cost of inventories sold
Other accrued expenses
TOTAL
Advance from customers
Advance from related parties (Note 37)
(i) This represents an advance under the Apartment Long-term Lease
Contract signed between Royal City JSC and a corporate customer on
1 August 2013 with term of 50 years since the contract date. In case of
16,125,987,481,196
5,305,702,116
24,056,941,538
finding customers who have demand of purchasing apartments, this
contract will be amended or terminated.
9,675,868,647
-
200,769,427,750
80,509,909,570
3,645,659,661,277
3,091,940,291,762
Currency: VND
Ending balance
Beginning balance
Payment from customers under deposit, loan
and other agreements (i)
7,847,174,664,786
88,740,877,355
Other short – term payables
2,486,768,475,822
1,013,058,482,282
Deferred revenue to be realised within the
next 12 months (Note 26)
502,313,840,716
300,336,578,824
Deposits from tenants to be refunded
within the next 12 months (Note 26)
126,677,298,798
76,495,457,781
Payables for investment activities (ii)
494,312,091,675
92,592,000,000
Collection on behalf
150,466,699,390
197,481,558,063
38,062,015,345
21,328,124,997
6,572,609,862
5,542,117,918
Payable to customers due to cancelation of
contracts
104,206,086,965
6,729,628,926
Apartment maintenance fund hold on
behalf of customers
604,895,150,936
299,276,623,131
Payable to customer due to amendments of
the lease contract (Note 22)
271,317,937,777
-
Other payables
187,944,744,358
13,276,392,642
10,333,943,140,608
1,101,799,359,637
10,332,020,042,258
1,085,453,547,978
1,923,098,350
16,345,811,659
Social insurance payables
6,575,973,160,022
9,361,134,677
99,627,506,502
25. Other short-term payables
Dividends payable
In which:
Currency: VND
TOTAL
In which:
Other short-term payables
Other short-term payables to related parties
(Note 37)
128
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
129
VAS consolidated financial statements
Notes to the consolidated financial statements
27. Long-term loans and debts
25. Other short-term payables (continued)
Currency: VND
Notes
Ending balance
Beginning balance
Long-term loans
27.1
10,980,994,453,392
5,847,125,072,771
Corporate bonds
27.2
21,033,824,713,709
18,513,039,421,637
32,014,819,167,101
24,360,164,494,408
(i) Including:
•
•
A deposit of VND2,400 billion from a corporate customer which
bears interest at rate of 6% per annum. This deposit is secured by
assets legally owned by the Company (or owned by third parties
if having the agreement).
•
A number of land parcels of Vinpearl Premium Nha Trang
Bay Project and future assets attached to these land parcels;
• A number of apartments to be formed in the future of Vinhomes
Central Park Project with total ground floor area of 17,869.5 m2.
(ii) Including deposits from third parties for acquiring investments of
Deposits with total amount of VND4,916 billion from corporate the Group.
counterparties under Deposit Agreements for the purpose of signing
Investment Cooperation Contract in relation to the development
of the Group’s real estate projects. Following terms of Deposit
Agreements, the Group has used the following assets as collaterals
for borrowings of these counterparties from banks:
27.1 Long-term loans
Lender
Note
Bank for Investment and Development of
Vietnam – Quang Trung Branch
27.1.1
In which: current portion
Bank for Investment and Development of
Vietnam – Khanh Hoa Branch
26. Other long-term liabilities
Deferred revenue
In which: Deferred revenue to be realised within the next 12 months
(Note 25)
Deposits from tenants
Deposits from tenants to be refunded within the next 12 months (Note
25)
Currency: VND
Ending balance
Beginning balance
1,814,169,164,331
1,087,903,139,336
(401,487,780,110)
(199,510,518,218)
1,412,681,384,221
888,392,621,118
In which: current portion
Joint Stock Commercial Bank for Foreign
Trade of Vietnam
27.1.4
In which: current portion
(147,363,803,718)
(147,363,803,719)
187,869,966,672
271,050,790,168
(70,950,552,000)
(83,328,126,005)
3,970,000,000,000
1,095,000,000,000
(195,000,000,000)
-
2,027,296,322,565
423,863,549,615
(64,274,000,000)
(138,791,355,882)
Saigon Thuong Tin Joint Stock Commercial
Bank
27.1.5
1,771,617,555,000
-
-
527,125,000,000
(126,677,298,798)
(76,495,457,781)
Convertible loan
27.1.7
427,500,000,000
-
International syndicated loan
27.1.8
3,206,250,000,000
3,162,750,000,000
(721,406,250,000)
-
10,980,994,453,392
5,847,125,072,771
Long-term loans
12,179,989,059,110
6,216,608,358,377
Current portion (Note 21)
(1,198,994,605,718)
(369,483,285,606)
4,872,741,323,233
In which: Deferred revenue to be realised within the next 12 months
(Note 25)
(100,826,060,606)
(100,826,060,606)
41,562,659,358
976,054,358
6,413,683,795,382
6,023,851,978,161
In which: current portion
In which
27.1.1 Loan from Bank for Investment and Development of Vietnam – Quang Trung Branch
In which:
(i) Including deferred revenue and advance from a customer with the
amount of VND159 billion and VND4,612 billion, respectively under the
Office Lease Contract signed between Times Trading LLC and a corporate
27.1.3
736,819,018,594
27.1.6
4,771,915,262,626
Other long-term liabilities to related parties
Vietnam Joint Stock Commercial Bank for
Industry and Trade
589,455,214,873
VIAC No. 1 Limited
Payment under the office lease contract at Vincom Center Dong
Khoi (i)
Other long-term liabilities
In which: current portion
Beginning balance
439,063,497,839
362,568,040,058
TOTAL
27.1.2
Ending balance
415,027,848,581
288,350,549,783
Other long term liabilities
Currency: VND
6,413,683,795,382
6,020,428,093,634
-
3,423,884,527
customer on 5 July 2013 with a duration from the starting date (being
the date of completing prerequisites by parties as stated in the lease
contract) to 20 February 2058.
Details of loans Bank for Investment and Development of Vietnam – Quang Trung Branch are as follows:
Contract number
Maturity date
Interest rate
VND
(% per annum)
01/2012/2390074/HĐTD
589,455,214,873
18 January 2019
12-month VND saving rate (interest paid
in arrears) for individual customers
plus 4,5%
In which: current portion
(147,363,803,718)
Total
31 December 2014
442,091,411,155
This loan is secured by the land use right and the assets on the land, real estates, medical equipment of Vinmec International General Hospital
at No.458, Minh Khai street, Vinh Tuy ward, Hai Ba Trung district, Hanoi.
130
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
131
VAS consolidated financial statements
Notes to the consolidated financial statements
(i) This loan is secured by:
27.1.2 Bank for Investment and Development of Vietnam – Khanh Hoa Branch
• All properties of Vinhomes Riverside project developed and owned by Sai Dong JSC, a subsidiary, including all upgrades
and other assets already constructed, or to be formed in future, excluding the villa area, the E3, E6, G1, G2 and a part of G3
area, excluding Vincom Center Long Bien;
Details of loans from Bank for Investment and Development of Vietnam – Khanh Hoa Branch are as follows:
Contract number
(i)
02/2006/HDTD dated 17 April 2006
In which: current portion
(ii)
(iii)
31 December 2014
USD
VND
499,331
10,675,686,945
(200,400)
(4,284,552,000)
02/2006/HDTD dated 17 April 2006
133,267,851,466
In which: current portion
(53,166,000,000)
04/2007/HDTD dated 7 April 2007
43,926,428,261
In which: current portion
Maturity date
Interest rate
12 March 2017
Fixed rate 6.5%
12 March 2017
12-month VND
savings rate + 4%
15 August 2017
12-month VND
savings rate + 4%
(13,500,000,000)
TOTAL
• Assets on the land at E3 area of Vinhomes Riverside project owned by a company under common owner with the Company;
(% per annum)
• Land use right for the 145 ha of land at Vinhomes Riverside project (equivalent to the whole project area excluding the
villas) but do not include E3, E6, G1, G2 and a part of G3 areas. All assets formed by the expenditures of project, including
but are not limited to machineries and other assets;
• All asset rights, benefits, compensation and other payments in relation to Vinhomes Riverside project at present and in
the future;
• 20,096,805 shares of Vingroup JSC owned by a subsidiary (Note 28.4);
• Land use right and assets on the land at No.7 Tran Phu street, Nha Trang city, Khanh Hoa province in accordance with
116,919,414,672
Certificate of Land use right No. BA171887 owned by Hon Mot JSC; and
• All rights arising from the transfer agreement of land use rights with attached infrastructure between Sai Dong JSC and a
In which:
Long-term loans
187,869,966,672
Current portion
(70,950,552,000)
number of secondary investors.
(ii) This loan is secured by all asset rights, benefits, compensation and other payments in relation to Vinhomes Central Park project
at present and in the future, excluding those collateral assets presented in Note 25.
These loans are secured by 15,760,918 Vingroup shares owned by Vinpearl JSC and 8,031,080 Vingroup shares owned by Vinpearl
Hoi An LLC as disclosed in Note 28.4.
27.1.4 Joint Stock Commercial Bank for Foreign Trade of Vietnam
27.1.3 Vietnam Joint Stock Commercial Bank for Industry and Trade
Details of loans from Joint Stock Commercial Bank for Foreign Trade of Vietnam are as follows:
Details of loans from Vietnam Joint Stock Commercial Bank for Industry and Trade are as follows:
Contract number
Contract number
(i)
01/2011/HDTD-SAIDONG
In which: current portion
(ii)
01/2014-HDTDDA/NHCT106TANLIENPHAT
TOTAL
31 December 2014
Maturity date
Interest rate
VND
(% per annum)
1,095,000,000,000
Reference interest rate + 5,5% and does
not exceed the cap for lending rate
regulated by State Bank of Vietnam and
Vietinbank
10 November 2018
USD
(i)
(ii)
2,875,000,000,000
25 November 2021
272,507,336,900
In which: current portion
(60,000,000,000)
01/2010/HDTD/VCB-VPLDN dated
27 August 2010
(iii)
01/2014/HDTD/HGM.VCB-VPLPQ
dated 13 May 2014
TOTAL
Borrowings
3,970,000,000,000
In which: current portion
(195,000,000,000)
12,740,735,019
(200,000)
(4,274,000,000)
1,742,048,250,646
Current portion
Vingroup Joint Stock Company | Annual Report 2014
Interest rate
(% per annum)
17 September 2020
12-month VCB
saving rate + 4,0%
17 September 2020
12-month VCB
saving rate + 3,2%
30 May 2029
From first day of
disbursement to
the end of 2014:
fixed rate 10,5%.
From 1 Jan 2015:
12-month VCB
saving rate + 3,5%
1,963,022,322,565
In which:
Long-term loans
132
596,197
3,775,000,000,000
In which:
Maturity date
VND
01/2010/HDTD/VCB-VPLDN dated
27 August 2010
In which: current portion
(195,000,000,000)
Reference interest rate + 3,5% and does
not exceed the cap for lending rate
regulated by State Bank of Vietnam and
Vietinbank
31 December 2014
2,027,296,322,565
(64,274,000,000)
Vingroup Joint Stock Company | Annual Report 2014
133
VAS consolidated financial statements
Notes to the consolidated financial statements
27.1.6 Convertible loan with VIAC No.1 Limited Liability
Company (“VIAC No. 1”)
The loans contract No.01/2010/HDTD/VCB-VPLDN are secured by the land use right and the assets on the land of the Vinpearl
Da Nang project owned by Vinpearl Da Nang LLC.
As at 31 December 2014, the Group has the following domestic
This represents a convertible loan of US$25 million from VIAC bonds:
No. 1 Limited Liability Company (“VIAC No. 1). This loan has a
term of 4 years, with maturity date at 30 June 2016, bearing an
• The first bond has a book value of VND2,000 billion
initial interest rate of 6% per annum. This convertible loan had
consisting of 2,000 bonds, (of which 1,000 bonds issued
been early settled in the year.
on 28 August 2012 with 4.5 years to maturity date and
1,000 bonds issued on 18 October 2012 with 3.5 years
27.1.7 Convertible loan with Credit Suisse and Warburg
to maturity date) with floating interest rate, equal to the
Pincus
highest paid-in-arrears saving account in VND rates of
Vietinbank (+) other cost of capital (+) 6% per annum.
These are loans from Credit Suisse and Warburg Pincus under
Convertible loans Agreement between Vincom Retail JSC, a
This type of bond is secured by assets owned by subsidiaries,
subsidiary and these counterparties in 2013 and 2014 with
including (i) all apartments of 2 towers T12, T15; (ii) 2 office
the amount of US$17.5 million and US$2.5 million, equivalent
towers T13, T26; (iii) 2 schools at T35, T36 at the Vinhomes
to VND368,987,500,000 and VND58,512,500,000 respectively.
Times City Project; (iv) 384 apartments at the Vinhomes
These convertible loans bear an interest rate of 8.75% per annum
Royal City Project along with upgrade projects associated
and have collaterals as presented in Note 1 which can be fully
with these apartments at the present time or in the future;
or partially converted into preference shares of Vincom Retail
(v) Land lot No. 02 under the map No. 96 with area of
JSC during the period beginning three months after the earlier
108,070m2, land lot No. 02 under the map No. 95 with
to occur of (i) the completion date of issuing preference shares
area of 45,002m2 at Hoa Hai ward, Ngu Hanh Son district,
of Vincom Retail JSC to Credit Suisse and Warburg Pincus; and
Da Nang city, all assets formed and to be formed on and
(ii) 31 March 2014.
related to these lands; (vi) Land lot No. 01 under the map
No. 171/2014/TD.BD with area of 4,302m2, land lot No. 01
27.1.8 International syndicated loan
under the map No. 172/2014/TD.BD with area of 6,949m2,
land lot No. 01 under the map No. 173/2014/TD.BD with
area of 2,137.7m2 at An Vien project, Vinh Nguyen ward,
In October 2013, the Company entered into an international
Nha Trang city, all assets formed and to be formed on and
syndicated loan contract with the amount of US$150 million,
bearing an interest rate of LIBOR + 5.5% per annum. Payment
related to these lands; (vii) Land lot with area of 151,362.5m2
for principal of this loan divided into 7 instalments, starting from
at Area 7, Hon Tre Island, Vinh Nguyen ward, Nha Trang city,
18th month to 36th month from date of disbursement. Collaterals
all assets formed and to be formed on and related to these
for these loans include: (i) shares of Vincom Retail JSC owned
lands including construction work for 6-star Luxury hotel,
by the Group and (ii) 24,926,673 shares of the Company held
Spa Luxury complex, other supporting components, and
by other entities (Note 28.4). A part of this loan with the value
other rights, benefit related to the land and its associated
of VND721 billion is presented in short-term loans;
assets; and (viii) Land lots from No. 01 to No. 29 under the
map No. 00 at Phuoc Hai Unit, Cua Dai ward, Hoi An city with
total area of 69,455m2, all assets formed and to be formed
27.2 Corporate bonds
including 5-star hotel area and 18 villas, and other rights,
Currency: VND
benefit related to these lands and their associated assets.
The loans under contract 01/2014/HDTD/HGM.VCB-VPLPQ are secured by:
• The right, ownership and benefits of an owner in the
relation to its charter capital contribution in Vinpearl Phu
Quoc LLC;
• Any dividends announced by Vinpearl Phu Quoc LLC but
not yet paid to an owner;
• The construction works of Project Stage 1 of the Vinpearl
Phu Quoc project (“Project Stage 1”), including but not
limited to the villa, the hotel, golf course and other areas
with other real estate properties which are built, upgraded,
bought, associated or permanently located in or with the
villa, the hotel, golf course, other areas and/or in the land
at present and in the future;
• Pledged assets under loan contract No 01/2010/HDTC/
VCB-VPLDN (“Primary contract”) dated 6 September 2010
and appendix PL01-01/2014/HDTC/VCB.HGM-VPLDN after
releasing from all liabilities associated to the Primary
contract.
• The mortgage contracts (i.e. contracts, agreements or
contracts, the villa rental contracts, management contracts
which have binding effect of Vinpearl Phu Quoc LLC on
and after the date of the Credit agreement), along with
the entire accounts receivable and contract rights arising
from the mortgage contracts;
• The entire rental and other fees that customers or users of
services in the components of Stage 1 Project have to pay;
• Insurance contracts and proceeds from insurance contracts;
• The entire bank accounts and their balances;
• All approvals are issued now or in the future for the benefit
of Vinpearl Phu Quoc LLC;
• Machineries and equipment owned by Vinpearl Phu Quoc
LLC;
• Intellectual property rights, and all other intangible
assets of Vinpearl Phu Quoc LLC not belong to intellectual
property rights.
documents relating to the design, execution, purchase,
supply, construction, installation, testing, maintenance,
technology transfer, marketing, management and
operation of the Project Stage 1, including the reservation
27.1.5 Saigon Thuong Tin Joint Stock Commercial Bank (“Sacombank”)
Details of loans from Saigon Thuong Tin Joint Stock Commercial Bank are as follows:
Contract number
LD1413500066 dated 15 May 2014
TOTAL
Ending balance Beginning balance
Maturity date
Interest rate
VND
(% per annum)
1,771,617,555,000
23 May 2019
In the first 12 months from disbursement:
11,5% per annum. From the 13th month:
Interest rate + 4% per annum.
31 December 2014
1,771,617,555,000
Collateral for the loan includes property rights arising from the sales contracts of 156 villas at Vinhomes Riverside owned by
Vinhomes LLC and conveyance instruments of the sales contract of villas.
Domestic
corporate bonds
issued
In which:
current
portion (Note
21)
International
corporate bonds
issued
In which:
current
portion
International
convertible
bonds
13,300,000,000,000
10,300,000,000,000
-
(2,250,000,000,000)
4,245,424,713,709
4,179,709,421,637
-
-
3,488,400,000,000
6,283,330,000,000
Vingroup Joint Stock Company | Annual Report 2014
• The second bonds has a book value of VND2,000 billion
consisting of 2,000 bonds, issued on 2 April 2013 (of which
1,000 bonds with 3 years to maturity date and 1,000 bonds
with 5 years to maturity date) with floating interest rate,
equal to the average individual 12-month savings account
rate of BIDV, Vietinbank, Vietcombank, and Vietnam Bank
for Agriculture and Rural Development (“Agribank”) (+)
5.5% per annum.
This type of bond is secured by: (i) the asset on the land of
Vincom Mega Mall Royal City including parking areas; (ii)
Vincom Mega Mall Royal City’s revenue account and (iii)
incomes and benefits arising from employing the assets
on the land;
• The third bonds has a book value of VND2,300 billion
21,033,824,713,709
134
Domestic corporate bonds
27.1.4 Joint stock commercial Bank for Foreign Trade of Vietnam (continued)
18,513,039,421,637
consisting of 23,000 bonds, issued on 27 September 2013
with a maturity term of 3 years. Interest rate applied in the
Vingroup Joint Stock Company | Annual Report 2014
135
VAS consolidated financial statements
first and second interest-bearing periods is 13% per annum
These bonds are unsecured, bearing fixed interest rate of
and in subsequent periods, interest rate is determined by
11.625% per annum and the interest is paid twice a year.
the average paid-in-arrears 12-month saving interest in
VND announced by BIDV (No. 1 Center Transaction branch), International convertible bonds
Agribank (Transaction Center), Vietinbank (Hanoi branch)
and Vietcombank (Transaction Center) (+) 5% per annum.
• Convertible bonds with the face value of US$300 million
are issued in April and July 2012 with a term of 5 years.
These bonds are secured by land use right and the asset
This type of bonds is unsecured, bearing fixed interest rate
on the land of retail component of Vincom Ba Trieu –
of 5% per annum. Under the terms of these convertible
Tower A and B including parking areas, Vincom Center
bonds, the bondholders have the right to convert the bonds
Ba Trieu – Tower C including parking areas and Vincom
into ordinary shares of the Company in accordance with
the rates may be adjusted annually on 3 October, from 3
Center Long Bien.
October 2012 to 3 October 2016.
• The fourth bond has a book value of VND 4,000 billion
consisting of 400,000 bonds, issued on 11 February 2014
In 2014, bondholders converted US$134.8 million of these
with a maturity term of 5 years. Interest rate applied in the
bonds to 72,220,196 ordinary shares of the Company with
first and second interest-bearing periods is 11% per annum
the conversion price of VND60,000 per share up to 29
and in subsequent periods, interest rate is determined by
August 2014 and of VND39,000 from thereon. The balance
the average paid-in-arrears 6-month saving interest in
of these bonds as at 31 December 2014 is US$163.2 million.
VND announced by 4 reference banks including Agribank,
Vietinbank, BIDV and Vietcombank (+) 4% per annum.
The Group issued these type of bonds to meet the demand
for working capital as well as investment capital in real
This type of bond is secured by trading center, service and
estate projects and other projects.
underground parking of Vincom Center Dong Khoi Tower.
• The fifth bond has a book value of VND 3,000 billion
So sánh Kết quả hoạt động kinh doanh giữa VAS và IFRS
As a leading private group that successfully
balances sustainable and dynamic development
in Vietnam, Vingroup has the potential to
achieve leadership at the regional and
international levels.
consisting of 300,000 bonds, issued on 8 September 2014
with a maturity term of 5 years. Interest rate applied in the
first and second interest-bearing periods is 11% per annum
and in subsequent periods, interest rate is determined by
the average paid-in-arrears 6-month saving interest in
VND announced by 4 reference banks including Agribank,
Vietinbank, BIDV and Vietcombank (+) 4% per annum.
This type of bond is secured by assets owned by subsidiaries,
including (i) land lot No. 00 CC-1 and CC-2 (KT-A Area) at
the An Vien project, Vinh Nguyen – Vinh Truong ward, Nha
Trang city, Khanh Hoa province with total area of 3,997m2;
(ii) land lot No. 01 under the map No. 673/2011/TD.BD at
Hon Tre Island, Vinh Nguyen ward, Nha Trang city, Khanh
Hoa province with area of 1,327,037m2; (iii) other land lots
with total area of 138,795.5m2 at Bai Tru, Vung Me, Hon
Tre Island, Vinh Nguyen ward, Nha Trang city, Khanh Hoa
province; (iv) all associated assets on land of VAP Project
and 5-star hotel Project (including montaged land) which
are not exclusively reserved for Vinpearl Luxury Nha Trang
and Villas area at Hon Tre island, Nha Trang city, Khanh
Hoa province; (v) all asset rights (excluding assets right
related to Vinpearl Luxury Nha Trang Project and Villas
area), trade receivables account, intellectual property and
other intangible assets, benefit on warranty and related
assets right, machines and equipment, and all other rights,
benefit, reimbursement right on other payments granted
to these subsidiaries.
International corporate bonds
• International bonds with face value of US$200 million were
issued in November 2013 for a maturity term of 4.5 years.
136
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
137
VAS consolidated financial statements
Notes to the consolidated financial statements
28. Owners’ equity
28.1 Increase and decrease in owners’ equity
Currency: VND
Contributed chartered
capital
Share premium
Treasury shares
Other funds
Undistributed earnings
Total
Beginning balance
7,004,620,550,000
3,974,286,534,624
(1,397,646,730,489)
12,845,114,930
962,463,719,641
10,556,569,188,706
Increase in the year
-
-
-
Previous year
2,276,481,600,000
(2,276,481,600,000)
-
Profit for the year
-
-
-
-
6,779,512,147,953
6,779,512,147,953
Financial reserve fund
-
-
-
5,000,000,000
(5,000,000,000)
-
Increase from convertible bonds
6,966,640,000
34,833,360,000
-
-
-
41,800,000,000
Issue share to merge with PFV JSC
7,968,000,000
49,003,200,000
-
-
-
56,971,200,000
Purchase treasury shares
-
-
(2,953,978,284,083)
-
-
(2,953,978,284,083)
Acquisition of subsidiaries
-
-
-
-
(9,037,054,312)
(9,037,054,312)
9,296,036,790,000
1,781,641,494,624
(4,351,625,014,572)
17,845,114,930
7,727,938,813,282
14,471,837,198,264
17,845,114,930
7,727,938,813,282
14,471,837,198,264
Ending balance
Current year
Beginning balance
9,296,036,790,000
1,781,641,494,624
(4,351,625,014,572)
Profit for the year
-
-
-
-
3,158,582,676,074
3,158,582,676,074
Financial reserve fund
-
-
-
5,000,000,000
(5,000,000,000)
2,817,320,000,000
Increase from conversion of convertible bonds (i)
722,201,960,000
2,095,118,040,000
-
-
-
Stock dividend declared by the Company (ii)
4,527,312,230,000
-
-
-
(4,527,312,230,000)
-
Cash dividend declared by the Company (ii)
-
-
-
-
(1,844,966,743,620)
(1,844,966,743,620)
Reissuance of treasury shares (iii)
-
29,926,107,875
1,376,700,940,088
-
-
1,406,627,047,963
Partial disposal of subsidiaries
-
675,848,507,568
-
-
-
675,848,507,568
Dividends advanced to minority interests in previous year (Note 29)
-
-
-
-
(288,851,000,000)
(288,851,000,000)
Other decrease
-
-
-
-
(356,390,149)
(356,390,149)
Ending balance
14,545,550,980,000
4,582,534,150,067
(2,974,924,074,484)
22,845,114,930
4,220,035,125,587
20,396,041,296,100
(i) In the year, the bondholders converted US$134,800,000 of bonds into
72,220,196 ordinary shares of the Company (at par value VND10,000/
share). Consequently, charter capital of the Company increased
by VND722,201,960,000 (equivalent to 72,220,196 ordinary shares
at par value of VND10,000/share) and share premium increased by
VND2,095,118,040,000.
(ii) On 24 July 2014, the General Meeting of Shareholders of the Company
passed the Resolution No. 02/2014/NQ-DHDCD-VINGROUP on the
declaration of dividend to its existing shareholders from the retained
earnings accumulated to 31 December 2013. Specifically:
•
•
Payment of cash dividend to shareholders from the retained
earnings accumulated to 31 December 2013 at VND2,149 per share.
Payment of stock dividend to existing shareholders at the ratio
of 1,000:487. Accordingly, each shareholder owning 1,000 shares
will receive dividend by 487 shares.
(iii) On 10 April 2014, the Group completed the re-issuance of 21.6
million treasury shares. Consequently, treasury share of the Group
decreased by VND1,376,700,940,088 (equivalent to 21,600,000 treasury
shares at share value VND63,736/share) and share premium increased
by VND29,926,107,875, after deduction of re-issuance cost and related
tax incurred.
28.2 Financial reserve fund
Financial reserve fund
Total
Currency: VND
Ending balance
Beginning balance
22,845,114,930
17,845,114,930
22,845,114,930
17,845,114,930
28.3 Ordinary and preference shares
Currency: VND
Ending balance
Beginning balance
Number of shares registered to issue
1,454,555,098
929,603,679
Number of shares issued to public
1,454,555,098
929,603,679
1,454,555,098
929,603,679
-
-
1,348,806,899
836,888,541
1,348,806,899
836,888,541
-
-
Ordinary shares
Preference shares
Number of outstanding shares
Ordinary shares
Preference shares
Par value of the outstanding ordinary share is VND 10,000 per share.
138
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
139
VAS consolidated financial statements
Notes to the consolidated financial statements
28.4 Treasury shares
30. Revenues
As at 31 December 2014, the number of shares held by the subsidiaries and associates is as follows:
30.1 Revenues from sale of goods and rendering of services
• Vinpearl JSC held 52,636,985 shares, of which 15,760,918
in which 2,813,430 shares used for pledge for international
syndicated loan of the Company (Note 27.1.8) and 8,031,080
shares used for pledge for a bank loan of Vinpearl Nha
Trang LLC (Note 27.1.2).
shares are being used as a pledge for a loan of Vinpearlland
LLC, a subsidiary (Note 27.1.2); 2,974,000 shares used as a
pledge for a bank credit limit contract of Company; and
9,305,144 shares being used as a collateral for international
syndicated loan of the Company (Note 27.1.8).
• Xavinco JSC, a subsidiary, held 6,941,121 shares; in which
• Royal City JSC, a subsidiary, held 35,325,583 shares; in
3,521,216 shares is being used as pledge for a contractual
obligation of Tan Lien Phat JSC.
Gross revenue
Revenue from sale of inventory property
which 20,096,805 shares are being used as a pledge for the
loan from Vietinbank of Sai Dong JSC, a subsidiary (Note
27.1.3); 12,808,099 shares were being used as a collateral for
international syndicated loan of the Company (Note 27.1.8).
Current year
Previous year
27,726,701,600,235
18,379,268,633,216
21,771,825,649,847
14,657,846,833,066
Revenue from leasing activities and rendering related services
2,129,488,233,032
1,798,711,062,674
Revenue from rendering hotel, amusement park and related services
2,115,560,587,606
1,600,165,486,836
Revenue from rendering hospital and related services
656,565,516,769
286,917,398,734
Revenue from sale of goods in supermarkets and retail outlets
422,544,558,414
1,676,808,280
Revenue from rendering education and related services
229,548,890,248
3,837,671,011
Other revenue
401,168,164,319
30,113,372,615
(3,068,229,199)
(1,629,787,510)
Less
• Vinpearl Hoi An LLC, a subsidiary, held 10,844,510 shares
Currency: VND
Sales allowance
Revenue deduction
29. Minority interests
Currency: VND
Beginning balance
Current year
Previous year
4,144,705,643,024
317,062,071,475
Capital contribution by minority interests
2,948,518,325,753
3,256,960,309,647
Minority interests arising from acquisition of subsidiaries
1,771,122,364,556
559,429,843,522
-
(1,800,000,000)
Decrease in minority interests due to withdrawal of capital
Share of premium from re-issue treasury by subsidiaries
1,110,846,866
Share of post-acquisition profit
-
617,463,065,409
369,775,972,604
-
(17,958,042,408)
(1,683,527,470,290)
(8,503,623,485)
Changes in minority interest due to disposal of equity interest in existing subsidiaries
(453,311,293,506)
-
Dividends declared to minority interests
(743,116,612,431)
(310,235,706,583)
Share in consideration for acquiring subsidiaries
Changes in minority interests due to acquisitions of additional equity interest in existing
subsidiaries
Decrease in minority interests of PFV being merged to Vingroup JSC
Decrease due to the disposal of a subsidiary
Dividends advanced to minority interests in previous year (Note 28.1)
Ending balance (i)
(i) Including capital contributions of VND3,685 billion (after deduction
of issuance costs) from Warburg Pincus and Credit Suisse to Vincom
Retail JSC, a subsidiary in accordance with the agreements signed
between the Company, Vincom Retail JSC and other companies within
the Group with Warburg Pincus and Credit Suisse on 28 May 2013 and
12 July 2013 together with later amendments, Vincom Retail JSC issued
-
(20,025,181,748)
(3,223,906,441)
-
288,851,000,000
-
6,888,591,962,940
4,144,705,643,024
preference shares and ordinary shares to Warburg Pincus and Credit
Suisse. Preference shares issued by Vincom Retail JSC are dividend
preference shares, having the right to convert to ordinary shares of
Vingroup JSC and enjoying other privileges.
Net revenue
Revenue from sale of inventory property
-
-
(3,068,229,199)
(1,629,787,510)
27,723,633,371,036
18,377,638,845,706
21,771,825,649,847
14,657,846,833,066
Revenue from leasing activities and rendering related services
2,129,488,233,032
1,798,711,062,674
Revenue from rendering hotel, amusement park and related services
2,113,985,422,722
1,598,573,038,093
Revenue from rendering hospital and related services
656,565,516,769
286,917,398,734
Revenue from sale of goods in supermarkets and retail outlets
421,051,494,099
1,639,469,513
Revenue from rendering education and related services
229,548,890,248
3,837,671,011
Other revenue
401,168,164,319
30,113,372,615
30.2 Finance income
Currency: VND
Current year
Previous year
1,135,822,131,296
752,642,642,323
Reversal of provision for diminution in value of investments
-
3,589,920,000
Unrealised foreign exchange gain
-
2,027,295,446
25,073,872,348
618,980,867
Interest income
Realised foreign exchange gain
Dividend income
6,283,198,881
3,831,666,761
Gain from acquisition of additional equity interest in an existing
subsidiary (Note 4)
18,399,002,185
-
Gain on re-measurement of previously held equity interest in an
associate (i)
49,000,000,000
-
111,050,324,885
5,671,793,229,484
393,561,441
1,545,020,340
1,346,022,091,036
6,436,048,755,221
Gain from disposal of the equity interest in other entities
Other financial income
TOTAL
(i) This gain arose from the acquisition of business from Eight Lions JSC as presented in Note 17.1.
140
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
141
VAS consolidated financial statements
Notes to the consolidated financial statements
30.3 Revenue and cost related to investment properties
Rental income from investment properties
Currency: VND
Current year
Previous year
2,129,488,233,032
1,798,711,062,674
Direct operating expenses of investment properties that generated
rental income during the year
889,995,220,304
697,314,853,019
Income from investment property trading
298,601,954,166
257,618,620,910
31. Shares in net (loss)/profit of associates
Currency: VND
Current year
Previous year
665,585,470
(259,466,899)
Eight Lions JSC
(36,911,617,846)
(12,088,382,154)
Green City JSC
27,197,650,951
39,545,238,336
-
656,642,443
Foreign Trade Concrete JSC
Vietnam Tourism JSC
Dai An JSC
-
26,057,774,293
108,844,987
-
Hanoi Breed JSC
(675,832,963)
-
Thang Long JSC
844,710,147
788,381,766
Vien Dong Pearl LLC
TOTAL
(8,770,659,254)
32. Cost of goods sold and services rendered
Cost of inventory property sold
Cost relating to the leasing activities and rendering related services
54,700,187,785
Currency: VND
Current year
Previous year
13,719,454,965,743
9,399,121,627,814
34. Other income and other expenses
Other income
Income from disposal of fixed assets
Income from contract penalty
Other income
Other expenses
Costs of fixed assets disposed
Contract penalties and other fines
Other expenses
NET
Current year
Previous year
261,925,884,973
135,646,492,056
24,328,372,540
23,607,815,985
191,673,717,485
83,444,336,888
45,923,794,948
28,594,339,183
227,116,582,678
56,842,117,086
21,224,154,155
26,621,331,041
171,778,694,069
27,345,113,358
34,113,734,454
2,875,672,687
34,809,302,295
78,804,374,970
35. Production and operating costs
Currency: VND
Cost of developing inventory property
Other inventories
Current year
Previous year
10,082,169,661,584
10,456,897,194,237
879,029,080,377
271,936,593,267
Labour costs
1,694,145,663,642
923,072,762,364
Depreciation and amortisation
1,577,833,100,022
1,197,531,118,187
Expenses for external services
1,561,742,854,969
1,059,335,337,045
Other expenses (including finance expenses)
4,431,289,148,523
2,426,978,775,627
20,226,209,509,117
16,335,751,780,727
TOTAL
889,995,220,304
697,314,853,019
1,275,315,373,836
870,311,335,455
Cost of rendering hospital and related services
490,626,247,256
346,922,315,219
Cost of goods sold in supermarkets and retail outlets
428,567,949,879
1,123,130,720
Cost of rendering education and related services
143,803,619,760
2,607,100,540
Others
337,148,103,138
29,583,765,540
The statutory corporate income tax (“CIT”) rate applicable to the
Company and its subsidiaries for the year ended 31 December
2014 is 22%, except for the following entities:
TOTAL
17,284,911,479,916
11,346,984,128,307
• Vinpearl JSC, Vinpearl Nha Trang LLC and Vinpearlland LLC
Cost of rendering hotel, amusement park and related services
Currency: VND
36. Corporate income tax
36.1 CIT expenses
apply the tax rate of 5% ;
• Vinpearl Da Nang LLC applies the tax rate of 15% applied for
Current corporate
income tax
expenses
Deferred corporate
income tax income
TOTAL
Currency: VND
Current year
Previous year
1,653,273,503,894
2,594,314,637,696
(19,638,606,879)
(3,516,776,375)
1,633,634,897,015
2,590,797,861,321
the taxable income from rendering the hospitality service;
33. Finance expenses
Loan interest
Unrealised foreign exchange losses
Realised foreign exchange losses
Provision for diminution in value of investments
Current year
Previous year
2,711,269,664,974
1,459,922,785,660
153,521,258,290
93,428,725,363
3,958,699,850
9,893,469,274
25,260,645,258
39,003,948,221
Allocation of bond issuance fees
205,141,970,088
248,875,921,649
Loss on disposal/sale of investments
256,429,191,919
34,308,006,726
Early settlement discount
124,052,174,708
-
11,418,981,973
58,194,475,668
3,491,052,587,060
1,943,627,332,561
Other finance expenses
TOTAL
142
Currency: VND
Vingroup Joint Stock Company | Annual Report 2014
• Vinmec JSC, Vinpearl Phu Quoc LLC, Vinpearl Ha Long LLC
and Vinschool LLC are in the tax exemption period;
• A number of entities in the Group whose turnover of less
than VND20 billion are applying tax rate of 20%.
The current tax payable is based on taxable profit for the year. Taxable
profit differs from profit as reported in the income statement because
it excludes items of income or expense that are taxable or deductible
in other years and it further excludes items that are never taxable or
deductible. The Group’s liability for current tax is calculated using tax
rates that have been enacted by the balance sheet date.
The tax returns filed by the Company and subsidiaries are subject
to examination by the tax authorities. As the application of tax
laws and regulations is susceptible to varying interpretations,
the amounts reported in the consolidated financial statements
could change at a later date upon final determination by the
tax authorities.
Vingroup Joint Stock Company | Annual Report 2014
143
VAS consolidated financial statements
Notes to the consolidated financial statements
36.1 CIT expenses (continued)
36.1 CIT expenses (continued)
A reconciliation between the profit before tax and taxable profit is presented below:
Currency: VND
Profit before tax
Current year
Previous year
5,409,680,638,498
9,740,085,981,878
Adjustments to increase/(decrease)
Donations
Cost of inventory property sold without sufficient supporting
documents
Difference in loss/(profit) from disposal of equity interest in
subsidiaries and associates between consolidated and separate
financial statements
Gain from disposal a subsidiary and loss of control
285,865,183,534
41,553,544,826
2,604,620,000
7,450,232,144
291,421,328,258
787,985,225
(40,067,546,158)
Currency: VND
Current year
Previous year
896,557,840,180
250,047,955,686
Adjustment for CIT from re-issue of treasury shares by subsidiaries
3,271,878,027
-
Adjustment for CIT obligation for disposing Future Investment and
Trading Services One Member Limited Liability Company
-
(13,228,615,094)
CIT payables at the beginning of the year
CIT obligation arisen from acquisition of new subsidiaries
4,315,419,967
-
Other adjustments
7,745,990,053
324,488,224
43,836,133,922
79,553,231,620
Provisional CIT for down payment from customers
-
Adjustment for reduction of estimated CIT in previous years
Reversion of provision for the investment in subsidiary
(74,376,020,041)
-
CIT paid during the year
Gain from re-measurement of previously held equity interest in
associate
(49,000,000,000)
-
CIT payable at the end of the year
Amortisation of goodwill
649,042,000,805
589,083,963,573
Loss from transfer of investment properties among subsidiaries
(99,305,922,543)
-
Amortisation of land development right
84,087,059,015
9,217,901,051
Dividend income
(6,283,198,881)
(3,831,666,761)
8,770,659,254
(54,700,187,785)
Profit from re-issuing treasury shares held by subsidiaries
14,872,172,856
-
Revaluation of land use right for villa sold at Vinpearl Da Nang LLC
15,768,734,961
5,256,244,987
-
61,610,000,000
Shares in loss/(profit) of associates
Expenses to support counterpart not eligible for deductibility
Adjustment for last year administration penalty
Costs of properties transferred temporarily not deductible
Taxable income from merger between the Company and PFV
-
(94,335,212,640)
57,921,754,743
68,790,979,201
163,090,875,120
-
Profit/(loss) from rendering services not recognized in
consolidated financial statements
59,261,993,154
(65,040,362,979)
Others
(2,768,215,830)
(54,067,002,087)
Adjusted net profit before loss carry forward and tax
6,811,441,648,128
10,211,006,869,250
Losses of subsidiaries
1,186,581,865,797
201,237,243,607
Tax loss carried forward
(215,557,714,205)
(5,684,854,451)
7,782,465,799,720
10,406,559,258,406
Taxable profit subject to prevailing tax rate (normal business
activities) (*)
1,558,013,085,116
5,773,748,384,522
Taxable profit subject to prevailing tax rate (real estate activities)
(*)
5,766,957,895,424
4,523,852,465,503
Estimated current taxable profit
(194,473,147,303)
(210,934,878,408)
(1,910,568,513,664)
(1,803,518,979,544)
503,959,105,076
896,557,840,180
(*)Prevailing tax rate applied for the year 2014 and 2013 is 22% and 25%, respectively.
In which:
Taxable profit subject to 20% tax rate
Taxable profit subject to 5% tax rate (hospitality activities)
Taxable profit subject to 0% tax rate (education activities)
Losses ineligible for offsetting against taxable income
Estimated current Corporate Income Tax
Adjustment for CIT from re-issue of treasury shares by subsidiaries
Net estimated current Corporate Income Tax charged to the
consolidated income statement
Adjustment for under/(over) accrual of tax from previous years
Adjusted net estimated current Corporate Income Tax charged to
the consolidated income statement
144
Vingroup Joint Stock Company | Annual Report 2014
14,888,632,771
22,951,582,336
451,531,057,425
306,482,174,460
14,360,822,188
-
(23,285,693,204)
(220,475,348,415)
1,637,047,895,144
2,594,314,637,696
(3,271,878,027)
-
1,633,776,017,117
2,594,314,637,696
19,497,486,777
-
1,653,273,503,894
2,594,314,637,696
Vingroup Joint Stock Company | Annual Report 2014
145
VAS consolidated financial statements
Notes to the consolidated financial statements
36.2 Deferred CIT
37. Transactions with related parties
The following are the deferred tax assets and liabilities recognised by the Group, and the movements thereon, during the current and previous year
Significant transactions with related parties during the year were as follows:
Currency: VND
Credit/(charge) to consolidated
income statement
Consolidated balance sheet
31 December
2014
31 December
2013
Current year
Previous year
Accrued advertising expenses and sold
investment properties
-
12,755,197,365
(12,755,197,365)
(973,975,316)
Capitalization of general management
costs
420,993,344
420,993,344
-
(533,871,525)
Provision for severance allowance
302,543,434
302,543,434
-
-
Unrealised losses on revaluation of foreign
currency denominated balances
108,436,413
204,932,136
(96,495,723)
(32,924,293)
28,080,276,384
28,940,232,402
(859,956,018)
(977,222,748)
-
(18,667,899,251)
18,667,899,251
1,266,097,314
4,635,648,138
-
4,635,648,138
-
Temporary difference from assets used as
capital contribution to subsidiaries
Differences on internal capital contribution
to Vincom Megamall Times City
(24,496,832,647)
-
(24,496,832,647)
-
Differences on fair value at acquisition of
Khanh Gia JSC
(77,223,969,220)
-
-
-
Differences on revaluation of subsidiaries’
assets at acquisition date
(49,106,901,690)
(53,000,662,787)
3,893,761,097
Temporary difference from revaluation
of project development right of Hon Mot
Resort
(16,563,124,040)
-
Deferred tax liabilities, net
Under common
owners
Receivable from transfer of properties
15,840,000,000
Management fee received
(15,840,000,000)
Securities fee occurred
14,852,992,000
Securities fee received
(14,651,648,000)
Rental fee and meals expenses occurred
(37,113,839,559)
Other payment/ receivables
Other receipts/ payables
Associate
Advance for business cooperation contract
Borrowings
23,036,514,474
(24,176,389,712)
(978,752,000)
(978,752,000)
(111,785,167,410)
(54,199,805,069)
7,613,265,672
-
19,638,606,879
-
Eight Lions JSC
56,584,412,187
42,623,898,681
(168,369,579,597)
(96,823,703,750)
(111,785,167,410)
(54,199,805,069)
Associate (up to 24
May 2014)
266,500,000,000
Interest payable
(13,605,741,736)
13,605,741,736
Dividend payable
(285,000,000,000)
285,200,000,000
20,813,602,182
(32,044,286,982)
(200,000,000,000)
Loans principal received
(240,000,000,000)
Payable for share acquisition
(564,144,000,000)
Settlement of share acquisition fee
564,144,000,000
Supporting fee payable
(21,000,000,000)
Settlement of supporting fee
3,516,776,375
(9,076,673,697)
300,000,000,000
Collection of deposits for purchasing share
3,029,972,291
9,375,599,448
Principal paid
Interest receivable
-
35,638,271,797
(300,000,000,000)
Interest paid
Major shareholder of
subsidiary (up to 18
August 2014)
163,028,002,628
Management fee occurred
Rental fee and meals expenses paid
1,738,700,652
Reflected in the consolidated financial statements as follows:
Deferred tax liabilities
Vietnam Investment Group JSC
Interest received
Deferred tax income
Deferred tax assets
Amount (VND)
Dividend settled (Note 8)
23,036,514,474
Net deferred tax liabilities
Transactions
Hanoi Electronics Corporation
Temporary difference from margin of
Vincom Construction charged to related
parties
Others
Relationship
Green City Development JSC
Temporary difference related to Vincom
Center Ba Trieu – Tower C
Differences on internal capital contribution
to Vincom Long Bien LLC
Related parties
Rental fee receivable
26,760,821,966
5,059,354,052
Rental fee received
(4,333,575,318)
Lending
39,000,000,000
Interest receivables
1,120,383,561
36.3 Unrecognised deferred tax
Tax losses carried forward
The Company and its subsidiaries are entitled to carry each
individual tax loss forward to offset against taxable profits
arising within five years subsequent to the year in which the
loss was incurred. At 31 December 2014, the Company and
some subsidiaries have aggregated accumulated tax losses
of VND2,010,683,338,011 available for offset against future
taxable profits.
146
Vingroup Joint Stock Company | Annual Report 2014
These are estimated tax loss as per the subsidiaries’ corporate
income tax declarations which have not been audited by the
local tax authorities as of the date of these consolidated financial
statements. No deferred income tax assets were recognised in
respect of the aforementioned accumulated tax losses because
future taxable profit of these subsidiaries cannot be ascertained
at this stage.
Vingroup Joint Stock Company | Annual Report 2014
147
VAS consolidated financial statements
Notes to the consolidated financial statements
37. Transactions with related parties (continued)
Amounts due to and due from related parties as at 31 December 2014 were as follows:
Related parties
Relationship
Transactions
Amount (VND)
Tan Lien Phat JSC
Associate (up to 24
February 2014)
Advance for business co-operation contract
1,300,000,000,000
Interest receivable
Thang Long JSC
Associate
Lending
16,106,000,000
Interest receivable
Vien Dong Pearl LLC
Key members of management
Associate
Key members of
management
Borrowing
178,755,961
Interest payable
(301,388,889)
Handover of apartments
4,468,893,810
666,902,943
Services fee received
(600,766,569)
Rental fee payable
(359,087,520)
Amount (VND)
Vietnam Investment Group JSC
Under common
owners
Receivable from transfer of properties
Key members of management
Key members of
management
Services fee receivables
68,442,054
Services fee receivables
33,633,078
Trade receivables (Note 7)
Family members
Family members of key members
of key members of
of management
management
163,028,002,628
163,130,077,760
361,393,200
Vietnam Investment Group JSC
Common owners
Services fees receivables
546,429,751
Thang Long JSC
Associate
Interest receivables
179,534,749
725,964,500
Advance from customers (Note 22)
Key members of management
Handover of apartments
Services fee receivable
14,078,206,401
525,948,720
Services fee received
(493,575,642)
Rental fee payable
(334,273,858)
Rental fee paid
190,536,466
Terms and conditions of transactions with related parties:
During the year, the Group provided unsecured loans to related
parties at interest rates ranging from 7% to 10% per annum, and
received unsecured loans from related parties at interest rates of
7% per annum. During the year the Group also sold/purchased
goods and rendering/purchased services to/from related parties
based on market price.
Vingroup Joint Stock Company | Annual Report 2014
Transactions
Other receivables (Note 8)
Rental fee paid
148
Relationship
(10,000,000,000)
Services fee receivable
Family members
Family members of key members
of key members of
of management
management
3,791,666,667
Related parties
During the year, the Group has not made provision for doubtful
debts relating to amounts due from related parties (31 December
2013: nil). This assessment is undertaken each financial period
through the examination of the financial position of the related
party and the market in which the related party operates.
Key members of
management
Family members
Family members of key members
of key members of
of management
management
Progress payment for apartments in Times City and Royal
City project
246,729,833
Progress payment for apartments in Times City and Royal
City project
5,058,972,283
5,305,702,116
Other payables (Note 25)
Vietnam Investment Group JSC
Under common
owners
Office rental and meals expense payables
Vien Dong Pearl LLC
Associate
Interest payables
1,621,709,461
301,388,889
1,923,098,350
Vingroup Joint Stock Company | Annual Report 2014
149
VAS consolidated financial statements
Notes to the consolidated financial statements
37. Transactions with related parties (continued)
The following reflects the income and share data used in the basic and diluted earnings per share computations:
Details on loans and interest rate from/to related parties are as follows:
Related parties
Relationship
Currency: VND
Interest rate
% per annum
Maturity date
Collateral
Balance of loans
VND
7%
30 March 2015
None
10,000,000,000
Short-term loans (Note 21)
Vien Dong Pearl LLC
Associate
Net profit after tax attributable to ordinary equity holders for basic
earnings
Current year
Previous year (restated)
3,158,582,676,074
6,779,512,147,953
192,708,633,502
247,554,304,660
Dilution effect
Interest on convertible bonds
10,000,000,000
Net profit attributable to ordinary equity holders adjusted for
the effect of dilution
3,351,291,309,576
7,027,066,452,613
Weighted average number of ordinary shares (excluding treasury
shares) for basic earnings per share
872,698,394
643,955,322
Short-term investment (Note 6)
Thang Long JSC
Associate
7%
1 December 2015
None
1,204,181,818
Thang Long JSC
Associate
7%
2 December 2015
None
15,000,000,000
Effect of bonus issues in January 2013
16,204,181,818
214,658,691
418,098,151
1,290,796,545
1,276,712,164
139,146,136
104,097,461
1,429,942,681
1,380,809,625
Basic earnings per share
2,447
5,310
Diluted earnings per share
2,344
5,089
Restated weighted average number of ordinary shares
(excluding treasury shares) for basic earnings per share
Transactions with other related parties
Effect of dilution:
Remuneration to members of the Board of Directors and Management:
Salaries and bonus
418,098,151
Effect of bonus issues in July 2014
Convertible bonds
Current year (VND)
Previous year (VND)
67,396,164,685
38,109,127,559
67,396,164,685
38,109,127,559
Weighted average number of ordinary shares (excluding
treasury shares) adjusted for the effect of dilution
38. Earnings per share
Basic earnings per share amounts are calculated by dividing net
profit after tax for the year attributable to ordinary shareholders
of the Group by the weighted average number of ordinary shares
outstanding during the year.
Diluted earnings per share amounts are calculated by dividing
the net profit after tax attributable to ordinary equity holders of
the Group (after adjusting for interest on the convertible bonds)
by the weighted average number of ordinary shares outstanding
during the year plus the weighted average number of ordinary
shares that would be issued on conversion of all the dilutive
potential ordinary shares into ordinary shares.
Preference shares (Note 29) and convertible loans (Note 27.1.7) issued by Vincom Retail JSC, a subsidiary, could potentially dilute
basic earnings per share in the future, but were not included in the calculation of diluted earnings per share because they are
anti-dilutive for the years presented.
39. Segment information
For the management purpose, the operating businesses are
organised and managed separately according to the nature
of the products and services provided, and consist of seven
business segments as following:
• Health care and related services: including provision of
• Sales of inventory property: including developing and
education and related services at Vinschool system of
the Group.
trading apartments and villas at real estate projects of
the Group as well as other investment activities in real
estate sector.
• Leasing investment properties and related services:
including leasing of office and retail areas and rendering
related services at investment properties owned by
the Group.
health care and related services at Vinmec International
General Hospital.
• Education and related services: including provision of
• Retail services: including provision of retailing and
supermarket services.
• Others: including provision of management, security and
other services.
The Group manages operating results separately for each
• Hospitality, entertainment and other services: including business segment for the purpose of making resources allocation
provision of hotel and related services at the hotels and decision and result assessment. Result of each segment will be
resorts owned by the Group.
150
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
151
VAS consolidated financial statements
Notes to the consolidated financial statements
assessed based on profit/loss and determined consistently with
profit/loss of the Group in the consolidated financial statements.
However, financial activities of the Group (including finance
income and finance expenses) is managed centrally and not
allocated for each business segment.
include transfers between business segments. Those transfers
are eliminated in preparation of the consolidated financial
statements and reflected in the “adjustment and elimination”
column.
The following tables present revenue and profit and certain assets
Transfer prices between business segments are set on an arm’s and liability information regarding the Group’s business segment.
length basis in a manner similar to transactions with third
parties. Segment revenue, segment expense and segment result
Currency: VND
Sales of inventory
property
Leasing investment
properties and
related services
Hospitality,
entertainment and
other services
Health care and
related services
Education and related services
Retail
21,771,825,649,847
2,129,488,233,032
2,113,985,422,722
656,565,516,769
229,548,890,248
421,051,494,099
-
778,696,934,945
140,427,399,343
13,829,514,224
1,012,350,000
33,237,828,095
21,771,825,649,847
2,908,185,167,977
2,254,412,822,065
670,395,030,993
230,561,240,248
454,289,322,194
Fixed assets depreciation
33,861,787,629
499,559,630,229
250,609,520,696
127,129,037,014
465,525,772
Share in profit/(loss) of
associates
28,151,206,086
-
-
-
6,217,539,280,539
1,022,889,336,250
489,651,791,617
121,650,399,311
Others
Adjustment and
elimination
Total
401,168,164,319
-
27,723,633,371,036
2,720,931,430,969
(3,688,135,457,576)
-
3,122,099,595,288
(3,688,135,457,576)
27,723,633,371,036
15,027,677,554
7,261,606,505
-
933,914,785,399
-
(36,911,617,847)
(10,247,493)
-
(8,770,659,254)
9,088,794,530
(264,903,585,578)
(41,204,882,146)
(2,145,030,496,025)
5,409,680,638,498
Revenue
Sales to external customers
Inter-segment sales (1)
Total revenue
Results
Segment profit/(loss) (2)
Assets
Investments into associates
969,790,690,811
-
-
-
-
-
60,704,040,559
-
1,030,494,731,370
5,357,291,594,402
8,134,749,001,327
3,427,470,280,653
133,060,636,629
2,104,188,059
74,290,974,225
311,634,614,363
-
17,440,601,289,658
Total assets (3)
36,601,175,856,466
19,863,459,553,895
9,769,853,979,365
1,806,462,156,155
511,016,126,089
1,820,448,090,717
3,755,028,498,500
16,357,862,938,673
90,485,307,199,860
Total liabilities (4)
10,894,810,218,793
12,158,692,320,971
1,847,769,303,370
96,884,073,978
628,706,951,062
323,223,295,392
1,337,482,396,566
35,913,105,380,688
63,200,673,940,820
Capital expenditure
(1) Inter-segment sales are eliminated in consolidation.
(2) Segment profit does not include finance income
(VND1,346,022,091,036) and finance expense (VND3,491,052,587,060)
because the underlying instruments are managed on a group basis.
(4) Segment liabilities do not include long-term loans
(VND32,014,819,167,101), statutory obligations (VND1,037,104,329,754),
short-term loans (VND1,321,194,605,718), accrued interest expenses
(VND1,371,617,698,518) and deferred tax liabilities (VND168,369,579,597)
because these liabilities are managed on a group basis.
(3) Segment assets do not include goodwill (VND6,214,457,676,679),
deferred tax assets (VND56,584,412,187), short-term investments
(VND6,168,171,238,968) and other long-term investments (VND
3,918,649,610,843) because these assets are managed on a
group basis.
152
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Vingroup Joint Stock Company | Annual Report 2014
153
VAS consolidated financial statements
Notes to the consolidated financial statements
40. Notes to cash flow movement
40. Notes to cash flow movement (continued)
Currency: VND
Current year
Previous year
Code 02 – Fixed asset depreciation and amortisation (including goodwill amorisation)
933,914,785,399
589,659,772,264
Goodwill amortisation (Note 20)
649,042,000,805
589,083,963,573
1,582,956,786,204
1,178,743,735,837
Code 05 – (Profit)/loss from investing activities
(Gain)/loss on disposal of fixed assets (Note
34)
Gain on disposal of investment properties
Loss/(gain) on disposal of equity investments
in other entities (Note 30.2 and 33)
Share of loss/(profit) of associate (Note 31)
Interest and dividend income (Note 30.2)
Total
(3,104,218,385)
3,013,515,056
(274,729,598,999)
-
77,979,864,849
(5,637,485,222,758)
8,770,659,254
(54,700,187,785)
(1,142,105,330,177)
(756,474,309,084)
(1,333,188,623,458)
(6,445,646,204,571)
Code 21 – Purchase, construction of fixed assets and other long-term assets
Purchase, construction of fixed assets and
other long-term assets
Deposit for potential real estate projects
Total
Disbursement of loans
Total
(11,378,574,548,052)
(8,589,796,722,908)
(700,000,000,000)
(1,900,000,000,000)
(12,078,574,548,052)
(10,489,796,722,908)
(885,106,000,000)
(3,528,200,635,090)
(3,509,011,030,716)
(4,541,578,166,950)
(4,394,117,030,716)
(8,069,778,802,040)
Code 24 – Collections of loans, withdrawal from debt investment in other entities
Collection of loans
1,711,688,675,151
730,888,896,482
Withdrawal of short-term deposits
2,232,617,805,005
4,049,451,412,100
3,944,306,480,156
4,780,340,308,582
Acquisition of subsidiaries, net of cash
balance at subsidiaries at acquisition date
(2,359,415,821,372)
(2,866,077,367,641)
Acquisition of additional shares in existing
subsidiaries
(3,025,235,910,444)
(251,000,000,000)
Payments for equity investments in other
entities
(1,529,685,000,000)
(2,766,589,691,339)
Advance for business co-operation contracts
(5,800,000,000,000)
(266,500,000,000)
(12,714,336,731,816)
(6,150,167,058,980)
Total
Code 25 – Payments for equity investments in other entities
Total
154
Vingroup Joint Stock Company | Annual Report 2014
Previous year
Collection of advance for business
cooperation contract
266,500,000,000
-
Proceeds from disposals of subsidiaries, net
of cash disposed
354,099,660,000
9,697,723,681,183
Proceeds from disposals of equity
investments in other entities
465,000,000,000
760,299,910,908
Collection of deposit for transfer of equity
investments
232,200,000,000
-
Proceeds from deposit of counterparties for
transfer of equity investments
474,312,091,675
-
Collection of deposit in real-estate
investment project
800,000,000,000
-
2,592,111,751,675
10,458,023,592,091
1,411,009,772,856
-
1,411,009,772,856
-
Total
Code 31 – Capital contribution and issuance of shares
Proceeds from re-issue of treasury shares
Total
Code 23 – Loans to other entities and payments for purchase of debt instruments of other entities
Short-term deposits
Current year
Code 26 – Proceeds from disposals of equity investments in other entities
Depreciation and amortization
(Note 12, 13 and 15)
Total
Currency: VND
41. Financial risk management objectives and
policies
The Group’s financial liabilities comprise loans and borrowings,
corporate bonds, convertible bonds and loans, accruals, trade
and other payables. The main purpose of these financial liabilities
is to finance the Group’s operations. The Group also has various
financial assets such as trade and other receivables, loans
receivables, quoted and unquoted securities, cash and shortterm deposits, which arise directly from its operations.
Market risk
Market risk is the risk that the fair value of future cash flows of a
financial instrument will fluctuate because of changes in market
prices. Market prices comprise four types of risk: interest rate risk,
currency risk, commodity price risk and other price risk, such as
equity price risk. Financial instruments affected by market risk
include loans and borrowings, corporate bonds, convertible
bonds and financial investments.
The sensitivity analyses in the following sections relate to the
The Group is exposed to market risk, credit risk and financial position as at 31 December 2014 and 31 December 2013.
liquidity risk.
The sensitivity analyses have been prepared on the basis that
Risk management is integral to the whole business of the the amount of net debt, the ratio of fixed to floating interest
Group. The Group has a system of controls in place to create rates of the debt and derivatives and the proportion of financial
an acceptable balance between the cost of risks occurring and instruments in foreign currencies are all constant.
the cost of managing the risks. The management continually
monitors the Group’s risk management process to ensure that In calculating the sensitivity analyses, management assumed
an appropriate balance between risk and control is achieved. that the sensitivity of the relevant income statement item is the
effect of the assumed changes in respective market risks. This
Management reviews and agrees policies for managing each is based on the financial assets and financial liabilities held at
31 December 2014 and 31 December 2013.
of these risks which are summarized below:
Vingroup Joint Stock Company | Annual Report 2014
155
VAS consolidated financial statements
Notes to the consolidated financial statements
Interest rate risk
adapt its leverage level as well as financing strategies to the
prevailing situation.
Interest rate risk is the risk that the fair value or future cash
flows of a financial instrument will fluctuate because of
changes in market interest rates. The Group’s exposure to
the risk of changes in market interest rates relates primarily
to the Group’s long-term debt obligations with floating interest
rates.
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably
possible change in interest rates expected over the following
financial year. With all other variables held constant, the Group’s
profit after tax is affected through the impact on floating rate
The Group manages its interest rate risk by keeping close watch on borrowings as follows (impact to its equity is not significant):
relevant market situation, including domestic and international
money market and economic, in order to contemplate and
Currency: VND
Increase/decrease
in basis points
Effect on
profit before tax
Short
Medium
Long
VND
+375
+325
+325
(265,771,835,509)
VND
-375
-325
-325
265,771,835,509
VND
+165
+130
+130
(64,058,723,820)
VND
-165
-130
-130
64,058,723,820
USD
+100
+138
+138
(35,931,466,184)
USD
-100
-138
-138
35,931,466,184
For the year ended 31 December 2013
For the year ended 31 December 2014
Foreign currency risk is the risk that the fair value of future cash
flows of a financial instrument will fluctuate because of changes
in foreign exchange rates. The Group’s exposure to the risk of
changes in foreign currency rates relate primarily to the Group’s
operating activities such as term deposit, capital mobilization
and other routine operating activities in foreign currency.
The Group has not entered into hedge derivatives to eliminate
its currency exposures.
Other receivables
The Group’s listed and unlisted equity securities are susceptible to
market price risk arising from uncertainty about future values of
the investment securities. The Group manages equity price risk by
placing a limit on equity investments. The Group’s management
reviews and approves all equity investment decisions. At the
reporting date, the exposure to listed equity securities was
insignificant.
As presented in Note 8, the Group has other receivables from
other entities and individuals. The Group manages this credit
risk by regularly monitoring the collection progress from
these customers and assess if there is any impairment on
the outstanding balance to set up provision, which, as at 31
December 2014, is VND18,765,801,355.
Loans to others
Commodities price risk
The Group exposes to commodity price risk in relation to purchase
of certain commodities that are used for the construction of its
real estate projects. The Group manages its commodity price risk
by keeping close watch on relevant information and situation
of commodity market in order to properly manage timing of
purchases, construction plans and inventories level. The Group
does not employ any derivative financial instruments to hedge
its commodity price risk.
Credit risk
Credit risk is the risk that a counterparty will not meet its
obligations under a financial instrument or a customer contract,
leading to a financial loss. The Group is exposed to credit risk
from its operating activities (primarily trade receivable) and
from its financing activities, including deposits with banks and
loans to other parties.
As presented in Note 6 and Note 17.2, the Group has provided
certain loans to other entities. These balances are not secured,
or secured by unquoted securities. The Group manages this
credit risk by regularly monitoring the collection progress from
these counterparties and assess if there is any impairment on
the outstanding balance to set up provision, which, as at 31
December 2014, is VND45,908,601,100.
Deposits with banks
The Group’s bank balances are mainly maintained with wellknown banks in Vietnam. Credit risk from balances with banks
and financial institutions is managed by Group’s treasury in
accordance with the Group’s policy, which is to place deposits
with reputable banks and financial institutions. The maximum
lending credit risk faced by the Group as to the items in the
balance sheet as at report date is carrying amount as presented
in Note 5 and Note 6. The Group evaluates the concentration of
credit risk in respect to bank deposit is low.
Trade receivables from rendering hospitality services and
leasing activities
The assumed movement in basis points for interest rate
sensitivity analysis is based on the currently observable market
environment.
Foreign currency risk
Equity price risk
Currency: VND
Change in
VND/USD rate
Effect on profit
before tax
For the year ended 31 December 2013
+2%
(290,441,815,494)
-2%
290,441,815,494
For the year ended 31 December 2014
+2%
(221,182,496,185)
-2%
221,182,496,185
Except for those financial assets for which provisions have been
made as disclosed in Note 6 and Note 7, the Group’s management
For office and retail tenants, customer credit risk is managed evaluates all financial assets are neither past due nor impaired
when the Group generally requires customers to make deposits as they related to recognised and creditworthy counterparties
for leasing of office and retail areas.
except for the following receivable and loan balances which are
past due but not impaired:
The Group regularly monitors outstanding trade receivables
and closely monitors long outstanding balances. The Group
assessed if there is any impairment on the outstanding balance
at each reporting date on an individual basis to set up provision
properly. On the fundamental basis, the provision for receivables
from rendering hospitality services and leasing activities at 31
December 2014 was VND 21,083,486,835.
Trade receivables from sale of real estate properties
As presented in Note 7, the Group has outstanding receivables
from transfer of real estate properties to corporate and individual
customers. The Group manages this credit risk by regularly
monitoring the collection progress from these customers and
assess if there is any impairment on the outstanding balance
to set up provision properly. On the fundamental basis, the
provision for receivables from sale of real estate properties at
31 December 2014 was nil.
156
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Vingroup Joint Stock Company | Annual Report 2014
157
VAS consolidated financial statements
So sánh Kết quả hoạt động kinh doanh giữa VAS và IFRS
Credit risk (continued)
Currency: VND
Past due but not impaired
Total
Neither past
due nor
impaired
< 30 days
31–90 days
91–120 days
> 120 days
31
December
2014
4,408,212,739,624
4,258,078,226,982
2,664,162,703
36,094,745,316
25,868,497,758
85,507,106,865
31
December
2013
6,308,414,525,888
6,145,646,830,179
6,695,247,052
15,175,299,153
6,719,207,643
134,177,941,861
Liquidity risk
The liquidity risk is the risk that the Group will encounter
difficulty in meeting financial obligation due to shortage of
funds. The Group’s exposure to liquidity risk arises primarily from
mismatches of maturities of financial assets and liabilities. The
Group monitors its liquidity risk by arranging long-term credit
facilities from the banks and long-term corporate bonds so that
these loans/bonds will be settled once the Group completes
the development of its properties and put these properties into
commercial operations.
The table below summarizes the maturity profile of the Group’s
financial liabilities based on contractual discounted payments:
Currency: VND
On demand
Less than 1 year
From 1 to 5 years
Over 5 years
Total
Loans and
borrowings
-
1,321,194,605,718
26,797,388,873,123
1,301,530,293,978
29,420,113,772,819
Convertible
loans and
bonds
-
-
3,915,900,000,000
-
3,915,900,000,000
Trade payables
1,628,746,222,883
-
-
-
1,628,746,222,883
Other payables
and accrued
expenses
2,873,442,651,944
2,608,948,981,003
215,355,579,422
72,994,970,362
5,770,742,182,731
4,502,188,874,827
3,930,143,586,721
30,928,644,452,545
1,374,525,264,340
40,735,502,178,433
Loans and
borrowings
-
2,654,483,285,606
17,479,991,547,123
107,008,525,648
20,241,483,358,377
Convertible
loans and
bonds
-
368,987,500,000
6,773,164,421,637
-
7,142,151,921,637
Trade payables
1,158,828,828,873
-
-
-
1,158,828,828,873
Other payables
and accrued
expenses
1,855,896,260,143
1,541,679,325,380
356,957,789,258
5,610,250,800
3,760,143,625,581
24,610,113,758,018
112,618,776,448
32,302,607,734,468
In 2015, Vingroup is determined to achieve a
breakthrough year with strong growth in all
six core businesses: Property, Hospitality AND
entertainment, Retail, Healthcare, Education, and
Agriculture – a new sector with a lot of potential
and social significance.
31 December 2014
31 December 2013
3,014,725,089,016
4,565,150,110,986
The Group evaluates the concentration of liquidity risk is on the
repayment of loans and borrowings that will fall due in 2015 and
the obligations to the contractors engaged for the development
158
Vingroup Joint Stock Company | Annual Report 2014
of its real estate projects. The Group is evaluating alternative
financing sources to ensure that these obligations will be met.
Vingroup Joint Stock Company | Annual Report 2014
159
VAS consolidated financial statements
Notes to the consolidated financial statements
42. Financial assets and financial liabilities
Set out below is a comparison by class of the carrying amounts and fair value of the Group’s financial instruments that are carried
in the consolidated financial statements.
Currency: VND
Carrying amount
31 December 2014
Fair value
31 December 2013
31 December 2014
Cost
Provision
Cost
Provision
31 December 2013
Financial assets
Listed and unlisted shares
1,921,362,857,445
(34,336,416,600)
1,540,194,074,888
(10,359,336,000)
1,887,026,440,845
1,529,834,738,888
Trade receivables
833,001,466,347
(21,083,486,835)
906,583,310,596
(16,078,974,616)
811,917,979,512
890,504,335,980
Other receivables
526,001,983,465
(18,765,801,355)
1,445,143,029,590
(14,368,255,762)
507,236,182,110
1,430,774,773,828
Other current financial assets
6,139,634,843,168
(45,908,601,100)
6,375,856,295,070
(44,625,036,442)
6,093,726,242,068
6,331,231,258,628
Other non-current financial
assets
2,106,068,166,896
-
1,181,532,495,236
-
2,106,068,166,896
1,181,532,495,236
Cash and cash equivalents
7,607,513,719,673
-
7,534,048,703,295
-
7,607,513,719,673
7,534,048,703,295
19,133,583,036,994
(120,094,305,890)
18,983,357,908,675
(85,431,602,820)
19,013,488,731,104
18,897,926,305,855
Total
Currency: VND
Cost
31 December 2014
Fair value
31 December 2013
31 December 2014
31 December 2013
43. Commitments and contingencies
Commitments relating to investing activities
Currency: VND
Financial liabilities
Loans and borrowings
Convertible bonds/loans
29,420,113,772,819
20,241,483,358,377
29,420,113,772,819
20,241,483,358,377
3,915,900,000,000
7,142,151,921,637
3,915,900,000,000
7,142,151,921,637
Trade payables
1,628,746,222,883
1,158,828,828,873
1,628,746,222,883
1,158,828,828,873
Other current liabilities
5,482,391,632,947
3,397,575,585,523
5,482,391,632,947
3,397,575,585,523
288,350,549,784
362,568,040,058
288,350,549,784
362,568,040,058
40,735,502,178,433
32,302,607,734,468
40,735,502,178,433
32,302,607,734,468
Other non-current
liabilities
Total
• Cash and short-term deposits, trade and other receivables,
trade payables and other current liabilities approximate
their carrying amounts largely due to the short-term
maturities of these instruments.
• Fair value of quoted securities and debt instruments is
based on market value at the reporting date.
160
Vingroup Joint Stock Company | Annual Report 2014
Actual
contributed
capital
Committed
un-contributed
capital
Name of investee
Investee’s
chartered capital
Amount
%
Amount
Amount
Vien Dong Pearl LLC
1,153,850,000,000
519,232,500,000
45
6,000,000,000
513,232,500,000
1,153,850,000,000
519,232,500,000
6,000,000,000
513,232,500,000
Capital expenditure commitments relating to on-going real
estate projects
The fair value of the financial assets and liabilities are included
at the amount at which the instrument could be exchanged in
a current transaction between willing parties, other than in a
forced or liquidation sale.
The following method and assumption were used to estimate
the fair values:
The Company’s capital
contribution commitment
• For financial instruments and other investments whose fair
value cannot be reliably determined due to the absence
of an active market for these instruments, the fair value is
assumed to be the carrying value of these instruments.
• For loans/borrowings from banks and other financial
liabilities whose fair value cannot be reliably determined
due to the absence of an active market for these
instruments, the fair value is assumed to be the carrying
value of these instruments.
Hanoi South JSC, a subsidiary, has entered into a number of
contracts relating to the development of the Vinhomes Times City
project at No. 458, Minh Khai street, Hai Ba Trung district, Hanoi
and at No. 25, Lane 13, Linh Nam street, Hoang Mai district, Hanoi.
The outstanding commitment on these contracts amounted to
approximately VND934 billion as at 31 December 2014.
Vincom Construction LLC, a subsidiary, has entered into a number
of contracts relating to the development of the Vinhomes Nguyen
Chi Thanh project at 56 Nguyen Chi Thanh, Dong Da, Hanoi.
The outstanding commitment on these contracts amounted to
approximately VND159 billion as at 31 December 2014.
Vinpearl LLC, a subsidiary, has entered into the in-principle
agreement with Da Nang People Committee in implementing
Royal City JSC, a subsidiary, has entered into a number of Lang Van project in Hoa Hiep Bac Ward, Lien Chieu District, Hanoi.
contracts relating to the development of the Vinhomes Royal Accordingly, Vinpearl LLC has commitment to pay VND785 billion
City project at 72A Nguyen Trai street, Thuong Dinh Ward, Thanh for the project’s land use fee.
Xuan district, Hanoi. The outstanding commitment on these
contracts amounted to approximately VND369 billion as at 31 Hong Ngan JSC, a subsidiary, has entered into the BT agreement
December 2014.
with Hanoi People Committee in implementing Eco-Lake project
in Cau Giay District, Hanoi. Accordingly, Hong Ngan JSC has
Vingroup Joint Stock Company | Annual Report 2014
161
VAS consolidated financial statements
commitment to pay VND815 billion for the BT agreement.
Notes to the consolidated financial statements
Riverside and Royal City project. The co-operation agreement
with Thien Huong Investment JSC (“Thien Huong”) dated
February 2012 said that the Group is entitled to the share of
revenue from Thien Huong which is equal to 15% of revenue (VAT
payable included) and this ratio may change. The duration of the
co-operation agreement is from February 2012 to August 2043.
Viettronics Land JSC, a subsidiary, has entered into a number
of contracts relating to the development of the Vinhomes
Nguyen Chi Thanh project at 56 Nguyen Chi Thanh street,
Dong Da district, Hanoi. The outstanding commitment on these
contracts amounted to approximately VND557 billion in which
commitments related to land use right is VND398 billion as at Commitment under operating leases where the Group is
31 December 2014.
a lessee
Tan Lien Phat JSC, a subsidiary, has entered into a number of The Group, as a lessee, entered into certain land rental agreements
contracts relating to the development of the Vinhomes Central with duration of 50 years. The minimum lease payments under
Park project at No. 722 Dien Bien Phu, ward 22, Binh Thanh these agreements at 31 December 2014 are as follow:
district, Hochiminh city. The outstanding commitment on these
contracts amounted to approximately VND3,585 billion in which
Currency: VND
commitments related to land use right is VND3,400 billion as at
31 December 2014.
31 December 2014
31 December 2013
Vinpearl Phu Quoc LLC, a subsidiary, has entered into a number
of contracts relating to the development of the Vinpearl Phu
Quoc project at Bai Dai Area, Ganh Dau Commune, Phu Quoc
District, Kien Giang province. The outstanding commitment on
these contracts amounted to approximately VND126 billion as
at 31 December 2014.
Due within
one year
351,658,622,267
16,840,834,532
Due in two to
five years
655,215,574,220
200,546,014,905
3,797,111,323,359
1,787,459,871,017
Due in more
than five
years
As at 31 December 2014, the Group has commitments, which
TOTAL
4,803,985,519,846
2,004,846,720,454
amounted to approximately VND1,136 billion, mainly relating
to contracts with contractors for the development of other real
estate projects, in which the commitment for land rental fee is Other commitments
VND12 billion.
Commitments related to the real estate project at 235
Commitment under operating leases where the Group is Nguyen Trai, Thanh Xuan, Hanoi
a lessor
In accordance with the Business Co-operation Contract
The Group, as lessor, leases office, retail and mixed use spaces signed on 4 August 2008 between the Company and
under operating lease agreements. The minimum lease payments corporate counterparties, the Company committed to
under these agreements at 31 December 2014 are as follow:
transfer a deposit of VND105 billion to develop a real estate
project at 235 Nguyen Trai street, Thanh Xuan district,
Hanoi as well as to support these corporate counterparties
with an amount of VND105 billion. These commitments will
Currency: VND be converted to capital contribution in Thang Long
Real Estate JSC, a company established to develop this real
31 December 2014
31 December 2013
estate project.
Due within
one year
1,213,400,118,896
1,694,194,857,642
Due in two to
five years
1,930,482,028,651
3,163,831,042,880
Due in more
than five
years
1,360,077,632,919
1,513,388,271,708
TOTAL
4,503,959,780,466
6,371,414,172,230
Commitments related to the real estate project at 69B Thuy
Khue, Tay Ho, Hanoi
In accordance with agreement on compensation signed between
the Company and corporate counterparties on 30 July 2010,
the Company agreed to compensate VND128 billion for site
clearance for the real estate project located at 69B Thuy Khue, Tay
Ho, Hanoi. As at 31 December 2014, the remaining committed
amount under this agreement is VND86.7 billion.
The Group, as lessor, have leased schools in accordance with the
co-operation agreement in exploiting school part of Vinhomes Commitment for transfer a certain parts of Vincom City
Towers
Riverside and Royal City project.
The Group, as lessor, have leased schools in accordance with the On 31 July 2006, the Company had transferred certain parts of
co-operation agreement in exploiting school part of Vinhomes the Vincom City Center to a corporate counterparty. According
162
Vingroup Joint Stock Company | Annual Report 2014
to the Transfer Agreement, the Group has committed to transfer capital of VND6 billion, in which the Group owns 100% equity
the ownership of the following investment properties to this interest. The principle activities of this subsidiary are real estate
corporate counterparty on 20 July 2052:
leasing & management. This subsidiary’s head office is registered
at No. 7, Bang Lang 1 street, Vinhomes Riverside Eco-urban Area,
(i) The ownership of half of the commercial center (from 1st Viet Hung ward, Long Bien district, Hanoi, Vietnam.
floor to 6th floor of Vincom City Center (the “Towers”), except
for the reception and elevator waiting area of 160m2 on the Vinhomes Real Estate Management Limited Liability Company,
1st floor); and
a subsidiary, was established on 5 January 2015 with a charter
capital of VND16 billion, in which the Group owns 100% equity
(ii) The ownership of 31.156% of the basement 1 and basement interest. The principle activities of this subsidiary are to supply
2 of the towers.
services of real estate management, consultancy, advertisement
and brokerage. This subsidiary’s head office is registered at No.
7, Bang Lang 1 street, Vinhomes Riverside Eco-urban Area, Viet
Commitment with Hanoi People’s Committee (“HPC”)
Hung ward, Long Bien district, Hanoi, Vietnam.
In accordance with Decision No.1853/QD-UBND dated 22
April 2011 issued by the HPC, Sai Dong JSC is obliged to
On 6 January 2015, Vincom Retail JSC, a subsidiary, signed
return land lot No. G4-HH16 (with an estimated area of
contracts to acquire 90% equity interest of Suoi Hoa Urban
43,542m2) and land lot No. G4-NT (with an estimated area of
Development and Investment Limited Liability Company (“Suoi
5,293m2) in the Vinhomes Riverside project to the HPC.
Hoa LLC”) from individual counterparties. Suoi Hoa LLC was
established on 22 January 2014 with a charter capital of VND6
Commitment under contracts for interest expenses
billion. The principle activities of Suoi Hoa LLC are real estate
support to buyers of apartments at Royal City and Times
trading, brokerage, consultancy and auction.
City projects
VinPro Trading & Services Limited Liability Company, a subsidiary,
was established on 9 January 2015 with a charter capital of
VND50 billion, in which the Company and Hanoi Southern JSC,
an existing subsidiary are founding shareholders with 94% and
6% equity interest, respectively. The principle activities of this
subsidiary are to retail computers, software, telecommunication
devices and audio-visual devices. This subsidiary’s head office
• The banks will provide loans to the customers to finance for is registered at No. 72, Le Thanh Ton street and No. 45A, Ly Tu
the purchase of the apartments at Royal City and Times City; Trong street, Ben Nghe ward, district 1, Hochiminh city, Vietnam.
Royal City JSC and Hanoi South JSC have entered into certain
three party agreements with the buyers of the apartments at
Royal City, Times City project and certain banks who provide
loans to these customers to finance for their apartment
purchase. The key terms and conditions of these agreements
are as follows:
• Hanoi South JSC will support the customers by paying on Vincom Thu Duc Limited Liability Company, a subsidiary, was
behalf of the customers the interest payable to the bank,
at the rate ranging from 0.5% to 4% per annum during a
period not exceeding 12 to 24 months from the signing
date of loan agreement; and
established on 9 January 2015 with a charter capital of VND6
billion, in which Vincom Retail, a subsidiary is the founding
member with 100% equity interest. The principle activities of this
subsidiary are real estate trading. This subsidiary’s head office
is registered at No. 72, Le Thanh Ton, Ben Nghe ward, district 1,
• In case the customers breach the terms and conditions Hochiminh city, Vietnam.
of the loan agreement signed with the banks, Royal City
JSC might be required by the banks to buy back the VinDS Trading and Service Limited Liability Company, a
apartments at a price of at least 80% of the amount of subsidiary, was established on 30 January 2015 with a charter
down payments received by Royal City JSC under the capital of VND6 billion, in which the Group owns 70% equity
apartment sale agreement.
interest. The principle activities of this subsidiary are retailing in
shopping malls/convenient stores. This subsidiary’s head office is
registered at No. 7, Bang Lang 1 street, Vinhomes Riverside EcoCommitment under Share transfer Contract with a
cooperate counterparty
urban Area, Viet Hung ward, Long Bien district, Hanoi, Vietnam.
On 31 December 2014, in accordance with Share transfer Contract
with a cooperate counterparty, the Company committed to
purchase 15,000,000 irrevocable shares which equivalents to 5%
charter capital of a company which is the owner of a potential real
estate project in Hanoi with total consideration of VND180 billion.
44. Events after the balance sheet date
VME Marketing Limited Liability Company, a subsidiary, was
established on 2 February 2015 with a charter capital of VND6
billion, in which the Company and Hanoi Southern JSC, a
subsidiary are founding shareholders with 94% and 6% equity
interest, respectively. The principle activities of this subsidiary
are rendering marketing service. This subsidiary’s head office is
registered at No. 7, Bang Lang 1 street, Vinhomes Riverside Ecourban Area, Viet Hung ward, Long Bien district, Hanoi, Vietnam.
Vinhomes Real Estate Leasing Limited Liability Company, a
subsidiary, was established on 5 January 2015 with a charter Vinpearl Hotel Management Limited Liability Company, a
Vingroup Joint Stock Company | Annual Report 2014
163
VAS consolidated financial statements
subsidiary, was established on 5 February 2015 with a charter
capital of VND50 billion, in which Vinpearl JSC, an existing
subsidiary are founding shareholders with 100% equity interest.
The principle activities of this subsidiary are management
consultancy, real estate brokage, auction, tourism support
and promotion, short-stay services. This subsidiary’s head office
is registered at No. 72, Le Thanh Ton, Ben Nghe ward, district 1,
Hochiminh city, Vietnam.
Notes to the consolidated financial statements
Contract dated 22 January 2014 with the aim of purchasing
94% equity interest (equal to 19,932,933 shares) in a company
which is the owner of a potential real estate project in Nha Be
district, Hochiminh city, Vietnam.
There are no other events occurring after the balance sheet
date that have significant impact or can impact materially to
the Group’s operation and consolidated income of the Group
after the balance sheet date.
On 6 February 2015, the Company has deposited VND1,000
billion to two individual counterparties pursuant to Deposit
Ngo Nguyet Hang
Preparer
Nguyen Thi Thu Hien
Chief Accountant
Duong Thi Mai Hoa
General Director
Appendix 1 – The group structure as of 31 december 2014
No.
Full name
Short name
1
Hai Phong Land Development and
Investment One Member Limited
Liability Company
2
Royal City Real Estate Development
Royal City JSC
& Investment JSC
3
Sai Dong Urban Development &
Investment JSC
Hai Phong Land LLC
Sai Dong JSC
Voting
right
(%)
Equity
interest
(%)
98.09
No. 5 Le Thanh Tong
street, May To ward,
Ngo Quyen district,
Hai Phong
Investing, developing
and trading real
estate properties
98.36
98.36
No. 72A Nguyen Trai
street, Thuong Dinh
ward, Thanh Xuan
district, Hanoi
Investing, developing
and trading real
estate properties
94.00
94.00
Vinhomes Riverside1
Investing, developing
and trading real
estate properties
Investing, developing
and trading real
estate properties
Providing hospital
services
Investing, developing
and trading real
estate properties
100.00
4
Hanoi Southern City Development
JSC
Hanoi Southern JSC
97.90
95.21
No. 458, Minh Khai
street, Vinh Tuy ward,
Hai Ba Trung district,
Hanoi
5
Ho Tay Real Estate Development
and Investment Joint Stock
Company
Ho Tay Real Estate JSC
70.00
70.00
No. 69B Thuy Khue
street, Tay Ho district,
Hanoi
6
Vinpearl Joint Stock Company
92.86
Hon Tre Island, Vinh
Investing, developing
Nguyen ward, Nha
and trading
Trang City, Khanh Hoa
hospitality services
province
7
Tay Tang Long Real Estate Limited
Liability Company
55.50
No. 72, Le Thanh
Ton, Ben Nghe ward,
district 1, Hochiminh
City
77.66
Hon Tre Island, Vinh
Investing, developing
Nguyen ward, Nha
and trading
Trang City, Khanh Hoa
hospitality services
province
Investing, developing
and trading
hospitality services
2
Vinpearl JSC
100.00
16 March 2015
164
Vingroup Joint Stock Company | Annual Report 2014
Registered office’s Principal activities
address
Tay Tang Long LLC
Hon Mot JSC
59.00
Investing, developing
and trading real
estate properties
8
Hon Mot Tourism JSC
9
Vinpearl Da Nang One Member
Limited Liability Company
Vinpearl Da Nang LLC
100.00
92.86
Hoang Sa road, Hoa
Hai ward, Ngu Hanh
Son district, Da Nang
city
10
Vinpearl Hoi An One Member
Limited Liability Company
Vinpearl Hoi An LLC
100.00
92.86
Phuoc Hai Block, Cua
Dai ward, Hoi An city,
Quang Nam province
Investing, developing
and trading
hospitality services
11
VinGS General Services Trading One
VinGS LLC
Member Limited Liability Company
100.00
100.00
Vinhomes Riverside1
Providing beauty care,
food and beverage
services
12
Tay Ho View Hotel and Tourism
Limited Liabilities Company
70.00
65.00
No. 58 Tay Ho Street,
Quang An ward, Tay
Ho district, Hanoi
Investing, developing
and trading
hospitality services
13
Future Property Invest Limited
Company
100.00
92.86
Truong Sa Road, Hoa
Hai ward, Ngu Hanh
Son district, Da Nang
city
Investing, developing
and trading
hospitality services
14
Vincom Retail Joint Stock Company Vincom Retail JSC
99.99
98.09
Vinhomes Riverside1
Investing, developing
and trading real
estate properties
15
Vinpearl Bai Dai Limited Liability
Company
83.57
No. 17A Bach Dang
Street, Phuoc Tien
ward, Nha Trang city,
Khanh Hoa province
Providing hospitality
services
Ho Tay View LLC
FPI LLC
Vinpearl Bai Dai LLC
83.63
90.00
Vingroup Joint Stock Company | Annual Report 2014
165
VAS consolidated financial statements
No.
Full name
16
Cam Ranh Investment Limited
Liability Company
17
Hon Tre Investment and
Development Limited Liability
Company
18
Times Trading Investment and
Development One Member Limited Times Trading LLC
Liability Company
19
Vinmec International General
Hospital Joint Stock Company
20
21
22
23
24
25
Cam Ranh LLC
Hon Tre LLC
Vinmec JSC
Vincom Center B
HCMC LLC
90.00
90.00
100.00
100.00
100.00
Equity
interest
(%)
Registered office’s Principal activities
address
83.57
No. 16, Mac Dinh Chi,
Phuoc Tien ward, Nha Providing hospitality
Trang city, Khanh Hoa services
province
83.57
No. 42/2 Dong
Nai,Phuoc Hai ward,
Providing hospitality
Nha Trang city, Khanh services
Hoa province
100.00
No. 72, Le Thanh
Ton, Ben Nghe ward,
district 1, Hochiminh
City
Investing, developing
and trading real
estate properties
95.25
No. 458, Minh Khai
street, Vinh Tuy ward,
Hai Ba Trung district,
Hanoi
Health care, medical
and related services
98.09
No. 72, Le Thanh Ton
and 45A Ly Tu Trong,
Ben Nghe ward,
district 1, Hochiminh
City
Investing, developing
and trading real
estate properties
Investing, developing
and trading real
estate properties
Investing, developing
and trading real
estate properties
100.00
98.09
Vincom Center Long Bien One
Vincom Center Long
Member Limited Liability Company Bien LLC
100.00
98.09
Vinhomes Riverside1
Vinschool One Member Limited
Liability Company
100.00
100.00
Vinhomes Riverside1
Xavinco Land JSC
Vinhomes 1 Real Estate Trading
Limited Liability Company
Vincom Center Ba
Trieu LLC
Vinschool LLC
Xavinco JSC
Vinhomes 1 LLC
26
27
Vincom Mega Mall Royal City One
VMM Royal City LLC
Member Limited Liability Company
ISADO Business Cooperation and
Development Limited Liability
Company
Vinhomes 2 LLC
ISADO LLC
29
Vinpearl Quy Nhon Joint Stock
Company
30
BFF Commercial trading investment
BFF LLC
LLC3
31
Voting
right
(%)
No. 191 Ba Trieu
street, Le Dai Hanh
ward, Hai Ba Trung
district, Hanoi
Vincom Center Ba Trieu Limited
Liability Company
Vinhomes 2 Real Estate Trading
Limited Liability Company
28
166
Vincom Center B Ho Chi Minh City
One Member Limited Liability
Company
Short name
Notes to the consolidated financial statements
Vincom Security Services Limited
Liability Company
Vinpearl Quy Nhon
JSC
Vincom Security LLC
Vingroup Joint Stock Company | Annual Report 2014
96.44
100.00
94.00
100.00
70.00
98.00
86.96
100.00
96.42
100.00
Education services,
kindergarten service
at the early stage.
No. 191, Ba Trieu
street, Le Dai Hanh
ward, Hai Ba Trung
district, Hanoi
Investing, developing
and trading real
estate properties
Vinhomes Riverside1
Trading real estate
properties and
rendering general
supporting services
94.00
Vinhomes Riverside
1
Trading real estate
properties
98.09
No. 72A, Nguyen Trai
street, Thuong Dinh
ward, Thanh Xuan
district, Hanoi
Trading real estate
properties
65.80
Vinhomes Riverside1
Trading real estate
properties
91.00
Hai Giang Village,
Nhon Hai Commune,
Quy Nhon city, Binh
Dinh province
Ecotourism and other
services
86.96
No. 72, Le Thanh Ton
Street, Ben Nghe
ward, District 1, HCM
city
Sale of goods in retail
outlets
Vinhomes Riverside1
Security services
100.00
No.
Full name
Short name
Voting
right
(%)
Equity
interest
(%)
32
Ha Thanh Real Estate Investment
And Urban Infrastructure
Development Limited Liability
Company
Ha Thanh LLC
100.00
100.00
33
Viettronics Land Joint Stock
Company
Viettronics Land JSC
34
Vinpearl Phu Quoc One Member
Limited Liability Company
Vinpearl Phu Quoc
LLC
35
Vincom Office Limited Liability
Company
Vincom Office LLC
36
Vincom Center Ha Long Limited
Liability Company
Vincom Center Ha
Long LLC
37
Vincom Mega Mall Times City
Limited Liability Company
VMM Times City LLC
38
Vinlandscape Design Construction
And Landscape Management
Limited Liability Company
Vinlandscape LLC
39
Vinpearlland Limited Liability
Company
40
Vinpearl Nha Trang Limited Liability Vinpearl Nha Trang
Company
LLC
100.00
92.86
Hon Tre Island, Vinh
Nguyen ward, Nha
Providing short – stay
Trang City, Khanh Hoa services
province
41
Vinpearl Ha Long Limited Liability
Company
100.00
92.86
Reu Island, Bai Chay
ward, Ha Long City,
Quang Ninh province
Providing short – stay
services
74.38
No. 72, Le Thanh Ton
Street, Ben Nghe
ward, District 1, HCM
city
Trading real estate
properties and
freehold and
leasehold right for
land
100.00
Vinhomes Riverside1
Residential and civil
constructions
Architecture activities
and technical
consultancy
Trading real estate
properties
70.00
Tower 2, Times City
urban area, No. 458
Minh Khai, Hai Ba
Trung ward, Hanoi
Retail sale via phone
and internet
IT activities and
related services
Vinhomes Riverside1
Residential and civil
constructions
Architecture activities
and technical
consultancy
Trading real estate
properties
42
43
44
45
Tan Lien Phat Construction
Investment Joint stock Company
Vincom Construction Limited
Liability Company
Vipearlland LLC
Vinpearl Ha Long LLC
Tan Lien Phat JSC
Vincom Construction
LLC
Vinecom Limited Liability Company Vinecom LLC
Vincom 2 Construction Limited
Liability Company
Vincom 2
Construction LLC
Registered office’s Principal activities
address
Vinhomes Riverside1
Transportation
roads and railway
constructions
98.08
No. 191, Ba Trieu
street, Le Dai Hanh
ward, Hai Ba Trung
district, Hanoi
Trading real estate
properties
100.00
51.07
Bai Dai Area, Ganh
Dau Commune, Phu
Quoc District, Kien
Giang province
Short – stay services
100.00
100.00
Vinhomes Riverside1
Trading real estate
properties
98.09
Cot Dong Ho Area,
Bach Dang ward, Ha
Long City, Quang
Ninh
Trading real estate
properties
100.00
98.09
No 458, Minh Khai
street, Vinh Tuy
ward,Hai Ba Trung
district, Hanoi
Trading real estate
properties
100.00
100.00
Vinhomes Riverside1
Landscape
maintenance services
100.00
Hon Tre Island, Vinh
Nguyen ward, Nha
Trang City, Khanh Hoa
province
Amusement park
and theme park
entertainment
services
99.97
100.00
100.00
75.00
100.00
70.00
100.00
99.71
Vingroup Joint Stock Company | Annual Report 2014
167
VAS consolidated financial statements
No.
Full name
46
Vinfashion Joint Stock Company
47
Golf resort and entertainment
construction Limited Liability
Company
Short name
Vinfashion JSC
Golf resort LLC
48
Vinmart Construction Limited
Liability Company
Vinmart Construction
LLC
49
VinMart Supermarket Joint Stock
Company
VinMart Supermarket
JSC
50
Metropolis Limited Liability
Company
Metropolis LLC
51
Riverview Complex DaNang
Limited Liability Company
Reverview Da Nang
LLC
52
Phu Quoc tourism Development
and Investment Joint Stock
Company
Phu Quoc Tourism
JSC
53
Hong Ngan Real Estate Joint Stock
Company
54
Khanh Gia Investment Trading
Services Joint Stock Company
Khanh Gia JSC
55
Ocean Mart Express Joint Stock
Company
Ocean Mart Express
JSC
Hong Ngan JSC
(1) Full registered office address: No. 7, Bang Lang 1 street, Vinhomes
Reverside Eco-urban Area, Viet Hung ward, Long Bien district, Hanoi.
(2) Previously known as Vinpearl One Member Limited
Liability Company
(3) Previously known as VinGT Global Investment Trading and
Services Limited Liability Company
168
Vingroup Joint Stock Company | Annual Report 2014
So sánh Kết quả hoạt động kinh doanh giữa VAS và IFRS
Voting
right
(%)
Equity
interest
(%)
Registered office’s Principal activities
address
Vinhomes Riverside1
Manufacturing
clothes
Fabrics wholesaler,
readymade garment
and shoes
Vinhomes Riverside1
Residential and civil
constructions
Architecture activities
and technical
consultancy
99.71
Vinhomes Riverside1
Residential and civil
constructions
Architecture activities
and technical
consultancy
70.00
No. 72, Le Thanh Ton
Street, Ben Nghe
ward, District 1, HCM
city
Sale of goods in retail
outlets
100.00
98.09
No. 72, Le Thanh Ton
Street, Ben Nghe
ward, District 1, HCM
city
Investing, developing
and trading real
estate properties
97.11
95.26
Ngo Quyen street, An
Bac Hai ward, Son Tra
district, Da nang city
Investing, developing
and trading real
estate properties
51.07
Bai Dai Area, Ganh
Dau Commune, Phu
Quoc District, Kien
Giang province
Providing short – stay
services
93.06
No. 31, Ngo Gieng,
Dong Cac street, O
Cho Dua, Dong Da,
Hanoi
Investing, developing
and trading real
estate properties
94.00
No. 216, Vo Van Ngan
Developing and
Street, Binh Tho ward,
leasing space in
Thu Duc district,
commercial centers
Hochiminh City
56.00
No. 19, Nguyen Trai
Road, Khuong Trung
ward, Thanh Xuan
district, Hanoi
70.00
100.00
100.00
70.00
55.00
99.00
94.00
80.00
70.00
99.71
We believe that through our carefully chosen
strategies, Vingroup will achieve our goals in 2015
and the years to come, maintaining our marketleading position as one of the premier companies
in the region, while protecting and enhancing the
long-term interests of shareholders and making
even greater contributions to society.
Sale of goods in retail
outlets
In 2014, the Group has completed the dissolution of the following
subsidiaries in accordance with the Board’s decisions issued on 25
April 2013:
•
•
•
Bai Dai Tourism and Investment Company Joint Stock Company;
Cam Ranh Tourism and Trading Joint Stock Company; and
Hon Tre Tourism and Service Joint Stock Company.
Vingroup Joint Stock Company | Annual Report 2014
169
Summary IFRS consolidated financial statements
Consolidated income statement/ Consolidated statement of other comprehensive income
Consolidated income statement
Currency: VND
for the year ended 31 December 2014
Current year
Previous year
Continuing operations
2,081,148,806,516
1,797,773,534,810
21,737,531,428,617
14,657,846,833,066
Rendering of hospitality and related
services
2,113,985,422,722
1,598,573,038,093
Rendering of health care and related
services
656,565,516,769
286,917,398,734
Rendering of education and related
services
229,548,890,247
3,837,671,011
Rendering of retail services
421,051,494,099
1,639,469,513
Other revenue
Sale of inventory properties
401,168,164,320
30,113,372,615
27,640,999,723,290
18,376,701,317,842
Cost of sales
(16,814,230,632,632)
(11,116,976,385,050)
Gross profit
10,826,769,090,658
7,259,724,932,792
Valuation gain/(loss) from completed
investment property
16
259,311,520,016
2,037,512,148,200
Valuation gain on investment property
under construction
17
1,174,571,478,490
405,215,622,825
11.1
385,932,246,890
385,371,606,413
(953,173,773,051)
(266,576,899,386)
(1,622,752,319,824)
(877,338,303,488)
Selling and distribution costs
Administrative expenses
11.2
Operating profit
(46,622,671,289)
(91,150,123,812)
10,024,035,571,890
8,852,758,983,544
Finance income
11.3
1,170,043,347,806
806,935,622,676
Finance costs
11.4
(4,156,307,002,024)
(2,021,038,822,912)
Net gain/(loss) on financial liability at fair
value through profit or loss
35.2
102,776,671,940
(280,287,425,521)
8
(12,723,839,340)
53,304,805,480
7,127,824,750,272
7,411,673,163,267
(1,740,891,441,047)
(1,299,223,897,379)
5,386,933,309,225
6,112,449,265,888
-
-
5,386,933,309,225
6,112,449,265,888
4,759,962,662,932
5,697,867,501,585
626,970,646,293
414,581,764,303
Profit before tax from continuing
operations
Income tax expense
Current year
Previous year
Basic, profit for the year attributable to
equity holders of the parent
3,688
4,463
Diluted, profit for the year attributable
to equity holders of the parent
3,688
4,463
Basic, profit from continuing operations
attributable to equity holders of the
parent
3,688
4,463
Diluted, profit from continuing
operations attributable to equity
holders of the parent
3,688
4,463
5,386,933,309,225
6,112,449,265,888
-
-
5,386,933,309,225
6,112,449,265,888
4,759,962,662,932
5,697,867,501,585
626,970,646,293
414,581,764,303
5,386,933,309,225
6,112,449,265,888
Earnings per share for continuing operations:
Revenue
Share of (loss)/profit of associates
Notes
Earnings per share:
Rental income
Other operating expenses
Currency: VND
for the year ended 31 December 2014
Notes
Other operating income
Consolidated income statement (continued)
12
Profit for the year from continuing
operations
13
13
Consolidated statement of other comprehensive income
Profit for the year
Other comprehensive income/ (loss) for the year, net
of tax
Total comprehensive income for the year, net of tax
Attributable to:
Equity holders of the parent
Non-controlling interests
Discontinued operation
Profit after tax for the year from
discontinued operation
29
Profit for the year
Attributable to:
Equity holders of the parent
Non-controlling interests
170
Vingroup Joint Stock Company | Annual Report 2014
Vingroup Joint Stock Company | Annual Report 2014
171
Summary IFRS consolidated financial statements
Consolidated statement of financial position
Consolidated statement of financial position
Currency: VND
as at 31 December 2014
Consolidated statement of financial position (continued)
Currency: VND
as at 31 December 2014
Notes
Ending balance
Begining balance
ASSETS
Notes
Ending balance
Begining balance
NON-CURRENT LIABILITIES
NON-CURRENT ASSETS
Interest-bearing loans and borrowings
36
31,179,434,165,219
22,371,382,981,205
Property and equipment
14
Long-term customers’ deposits
32
216,875,262,722
260,414,760,285
Intangible assets
15
1,651,620,986,606
737,699,004,761
Completed investment property
16
24,304,938,854,727
22,537,114,631,445
Long-term deferred revenue and
advance from customers
34
6,162,446,924,111
5,762,805,429,665
Investment property under
construction
17
5,171,274,324,760
1,429,622,554,779
12.2
3,048,012,813,066
2,644,690,782,102
37,924,129,355
976,054,354
Construction in progress
19
7,469,813,212,015
4,737,377,119,889
Investment in associates
8
927,622,881,676
1,826,147,782,589
40,644,693,294,473
31,040,270,007,611
12.2
322,441,863,345
83,961,738,754
Long-term prepayments
22
910,685,302,139
361,689,518,290
Other non-current assets
21
8,713,603,748,186
2,871,561,785,694
Deferred tax assets
Total non-current assets
11,548,606,990,518
61,020,608,163,972
5,965,140,394,995
40,550,314,531,196
Deferred tax liabilities
Other long-term liabilities
CURRENT LIABILITIES
Short-term loans and borrowings
35.1
1,258,304,056,555
2,977,135,851,043
Financial liability at fair value through
profit or loss
35.2
683,358,563,520
1,460,790,946,925
1,628,746,222,883
1,158,828,828,875
CURRENT ASSETS
Trade payables
Inventories
24
19,130,609,723,994
24,146,597,202,075
33
14,714,504,156,437
16,288,155,299,073
Trade receivables
25
615,510,006,047
857,717,852,346
Deposits and down payment from
customers
1,459,215,551,022
1,067,203,605,764
Borrowing from and payables to related
parties
41
17,228,800,466
43,826,637,724
74,444,996,900
25,009,776,000
Short-term deferred revenue
34
550,965,893,268
339,435,312,812
Accruals
30
3,995,743,374,512
6,222,740,600,068
Advances to suppliers
Financial assets at fair value through
profit or loss
23
Loans to and receivables from related
parties
41
180,050,829,064
424,511,439,552
Short-term prepayment and other
receivables
26
2,235,390,885,310
5,615,222,407,651
Short-term investments
27
6,077,802,744,475
5,495,405,882,770
Cash and cash equivalents
28
7,607,402,590,552
7,534,048,703,295
37,380,427,327,364
45,165,716,869,453
173,475,990,356
-
98,574,511,481,692
85,716,031,400,649
14,545,550,980,000
9,296,036,790,000
Total current assets
Assets classified as held for sale
10
TOTAL ASSETS
Corporate income tax payable
Other current liabilities
12.1
503,949,795,404
896,557,840,180
31
2,064,176,770,898
1,974,485,101,648
25,416,977,633,943
31,361,956,418,348
66,061,670,928,416
62,402,226,425,959
9,309,670
-
98,574,511,481,692
85,716,031,400,649
Total liabilities
Liabilities directly associated with assets
classified as held for sale
TOTAL EQUITY AND LIABILITIES
10
EQUITY AND LIABILITIES
EQUITY
Issued capital
37.1
Share premium
Treasury shares
37.2
Other reserves
Retained earnings
Equity attributable to equity holders
of the parent
Non-controlling interests
Total equity
172
Vingroup Joint Stock Company | Annual Report 2014
6,184,733,954,154
2,991,318,776,167
(3,707,383,275,263)
(4,985,884,215,349)
22,845,114,930
17,845,114,930
9,180,738,208,390
12,021,869,785,338
26,226,484,982,211
19,341,186,251,086
6,286,346,261,395
3,972,618,723,604
32,512,831,243,606
23,313,804,974,690
Vingroup Joint Stock Company | Annual Report 2014
173
Summary IFRS consolidated financial statements
Consolidated statement of cash flows
Consolidated statements of cash flows
Currency: VND
for the year ended 31 December 2014
Current year
Previous year
OPERATING ACTIVITIES
Profit before tax from continuing
operations
29
Profit before tax
7,127,824,750,272
7,411,673,163,267
-
-
7,127,824,750,272
7,411,673,163,267
Adjustments to reconcile profit before tax
to net cash flows
Depreciation and amortisation
14,15
Provision
Foreign exchange loss/(gain)
(Gain)/loss on disposal of property and
equipment
Profit from disposal of investments in
subsidiaries and other entities
Decrease/(increase) in fair value of
financial assets at fair value through
profit or loss
(Gain)/loss on financial liabilities at fair
value through profit or loss
(1,900,000,000,000)
Redemption of deposit for potential real
estate projects
800,000,000,000
-
Acquisition of new subsidiaries, net of cash
balance at subsidiaries at acquisition date
(2,359,415,821,372)
(2,866,077,367,641)
Short-term deposits for interest gain
(3,509,011,030,716)
(4,541,578,166,950)
Redemption of short-term deposit for
interest gain
2,232,617,805,005
4,049,451,412,100
(885,106,000,000)
(3,528,200,635,090)
178,192,392,574
77,182,459,436
Collection of loans
(3,104,218,385)
3,013,515,056
(137,667,866,676)
(211,585,440,869)
(3,589,920,000)
(106,064,104)
Changes in amortized cost of payables
other than nominal interest
1,013,418,866,496
69,232,228,159
(1,142,105,330,177)
(756,474,309,084)
2,771,297,326,323
1,459,922,785,661
8
12,723,839,340
(53,304,805,480)
17,18
(1,433,882,998,506)
(2,442,727,771,025)
1,711,688,675,151
730,888,896,482
Proceeds from disposals of equity
investments in subsidiaries, net of cash
disposed
167,000,000,000
9,697,723,681,183
Proceeds from disposals of equity
investments in other entities
465,000,000,000
760,299,910,908
Proceeds from deposit of counterparties for
acquiring investments
199,312,091,675
-
Redemption of deposit to counterparties
for acquiring investments
232,200,000,000
-
1,017,729,795,067
539,692,018,943
(18,740,792,790,825)
(5,772,764,388,856)
-
(2,953,978,284,083)
Proceeds from sale of treasury shares
1,411,009,772,856
-
Capital contribution from non-controlling
interest
2,948,518,325,757
3,256,960,309,647
(3,025,235,910,441)
(251,000,000,000)
187,099,660,000
-
Proceeds from borrowings
17,264,986,730,202
16,614,545,541,480
Repayment of borrowings
(8,682,400,989,547)
(11,103,071,677,430)
Interest paid
(3,191,276,794,957)
(2,550,652,028,899)
Interest and dividend received
Net cash flows used in
investing activities
FINANCING ACTIVITIES
Payment for acquisition of treasury shares
Working capital adjustments:
(Increase)/decrease in trade and other
receivables
(215,818,430,208)
1,506,465,991,329
Decrease/(increase) in inventories
8,717,442,970,739
(972,723,339,123)
(Decrease)/increase in trade and other
payables
(324,285,341,587)
3,811,823,118,488
(Increase)/decrease in prepayments
(848,564,488,639)
184,758,895,784
Other cash (outflows)/inflows from
operating activities
(19,749,436,780)
6,453,281,065
(1,910,568,513,664)
(1,803,518,979,544)
Dividend paid to non-controlling interests
(521,509,281,485)
-
8,965,998,946,615
Dividends paid to equity holders of the
parent
(1,844,966,743,620)
(288,850,999,997)
Net cash flows from financing activities
4,546,224,768,765
2,723,952,860,718
72,970,266,553
5,917,187,418,477
7,534,048,703,295
1,616,855,174,935
383,620,704
6,109,883
7,607,402,590,552
7,534,048,703,295
Income tax paid
12.1
Net cash flows from operating activities
14,267,538,288,613
INVESTING ACTIVITIES
Proceeds from sale of property and
equipment
23,987,643,862
39,220,197,524
(11,348,610,949,497)
(5,721,094,644,976)
Payment for equity investment in other
entities
(1,254,685,000,000)
(2,766,589,691,339)
Advance for business co-operation
contracts
(5,800,000,000,000)
(266,500,000,000)
Purchase of property and equipment
Redemption of advance for business
co-operation contracts
174
(700,000,000,000)
Disbursement of loans
(19,812,218,325)
Valuation gains on investment property
and investment property under
construction
Deposits for investment in potential real
estate projects
56,933,739,373
Changes in amortized cost of loans and
receivables other than nominal interest
Interest expense
Previous year
71,609,018,302
280,287,425,521
Interest and dividend income
Current year
342,282,972,705
23,977,080,600
35.2
Note
509,387,558,854
(102,776,671,940)
Share of profit/(loss) of associates
Currency: VND
for the year ended 31 December 2014
Note
Profit before tax from discontinued
operations
Consolidated statements of cash flows (continued)
Vingroup Joint Stock Company | Annual Report 2014
266,500,000,000
-
Payment for acquisition of additional
interest in existing subsidiaries
Proceeds from partial disposals of equity
investments
Net increase in cash and cash
equivalents
Cash and cash equivalents at 1 January
Impact of exchange rate fluctuation
Cash and cash equivalents at 31
December
28
Vingroup Joint Stock Company | Annual Report 2014
175
Reconciliation between VAS and IFRS consolidated income statements
Báo cáo lưu chuyển tiền tệ hợp nhất
Currency: VND
No
Items
I
Profit after tax of VAS
II
Adjustment for IFRS
1
Valuation gain on investment properties, investment properties under construction at fair
value
2
Net loss on financial liability at fair value through profit or loss
3
Finance income/expenses arising from measurement of loans/customers' deposits/AR at
amortised cost
4
Adjustment for gain/loss from investment activities
5
Finance expenses arising from measurement of convertible bond at amortised cost
6
Adjustment for profit shared from associates
7
Deferred tax expenses
7.1
Deferred tax expenses/income incurred from measurement of investment properties,
investment properties under constructionat fair value and adjustment for tax rate
7.2
Other deferred tax income incurred this year
8
3,776,045,741,483
1,433,882,998,504
102,776,671,940
(3,409,185,808)
215,647,731,524
(830,841,799,057)
(3,953,180,089)
(371,961,073,384)
264,704,529,351
Other adjustments
8.1
Adjustments for prepayments which should be expenses under IFRS
8.2
Revert depreciation of investment properties and amortisation of prepaid land rental fees as
being measured at fair value
403,574,610,174
8.3
Reversal of goodwill amotisaton expenses
649,042,000,804
8.4
III
176
Amount
Other expenses adjustment
Profit after tax of IFRS
Vingroup Joint Stock Company | Annual Report 2014
(175,175,659,746)
(73,400,076,470)
5,386,933,309,225
The consolidated financial statements give a
true and fair view, in all material respects, of the
consolidated financial position of the Group as at
31 December 2014, and of the consolidated results of
its operations and its consolidated cash flows for
the year then ended in accordance with Vietnamese
Accounting Standards, Vietnamese Enterprise
Accounting System and the statutory requirements
relevant to preparation and presentation of
consolidated financial statements.
Vingroup Joint Stock Company | Annual Report 2014
177
