VinSpeed, owned by Vietnam’s richest man Pham Nhat Vuong, has hiked its charter capital by 150% to VND15 trillion (US$573 million).
It happened this month as Vuong contributed more than 135 million shares of Vingroup, Vietnam’s biggest private conglomerate, to the railroad developer.
The country’s laws allow the use of shares as capital for a new company besides other assets such as cash and gold, and the value of the shares needs to be agreed upon by both parties at the outset.
The shares, transferred in two tranches last month and this month, were valued at around VND12.75 trillion.
Vingroup share prices have jumped by 180% this year to around VND113,600.
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A high-speed train in Berlin, Germany. Photo by Unsplash/Daniel Abadia |
VinSpeed is recruiting personnel for its upcoming rail projects, including finance director, senior Building Information modeling engineer, building information modeling department head, and senior technology transfer specialist.
It plans to build two high-speed rail routes, one between downtown HCMC and the outlying area of Can Gio and the other between Hanoi and the border province of Quang Ninh.
The company is also bidding for the North-South high-speed rail, set to cost over $61.35 billion, or 13% of Vietnam’s GDP.
The company has offered to bring in 20% of the cost and borrow the remaining 80% interest-free from the government for 35 years. It plans to complete the project in five years.
VinSpeed, established by Vuong in May, focuses on rail construction and manufacture of rolling stock. The Vingroup chairman personally holds a 51% stake in the company.
Vietnam Investments Group, a company related to him, owns a 35% stake, while Vingroup holds 10%. His two sons, Pham Nhat Quan Anh and Pham Nhat Minh Hoang, each own 0.5%.
