Vietnam’s top billionaire pledges $185mn in Vingroup shares to newly-founded railway business

Vingroup confirmed the internal transaction on Friday afternoon, saying that the transferred shares represent approximately 1.24 percent of its charter capital.

The transaction will be processed through the Vietnam Securities Depository and Clearing Corporation from June 5 to July 4.

Vuong, who serves as board chairman and general director of VinSpeed High-Speed Rail Investment and Development JSC, currently holds over 656 million VIC shares, equivalent to a 16.92-percent stake in the conglomerate.

In the local stock market, VIC shares have recently surged by 140 percent over the past quarter, closing at a record VND98,400 ($4) on May 30.

On May 14, VinSpeed announced its registration to develop the $61.35-billion high-speed rail line connecting northern and southern Vietnam.

The project’s proposed capital excludes costs related to land clearance and resettlement.

VinSpeed has committed to raising 20 percent of the total investment—around VND312.3 trillion ($12 billion)—while proposing to borrow the remaining 80 percent from the Vietnamese government as a no-interest loan with a 35-year term starting from disbursement.

According to the National Business Registration Portal, VinSpeed is headquartered in the Vinhomes Riverside urban area in Hanoi’s Long Bien District and focuses on railway construction.

Vinspeed has a charter capital of VND6 trillion ($231 million), with investments from Vuong, his family, and affiliated entities.

Among them, Vingroup holds a 10-percent stake, and the Vietnam Investment Group JSC owns a 35-percent stake.

Pham Thuy Hang, younger sister of Vuong’s wife Pham Thu Huong, contributed a three-percent stake.