The 12,873,000 SVC stocks of the Saigon General Service Corporation (Savico) was officially listed on Hanoi Securities Trading Centre (HSTC) on December 21, 2006. The listing of Savico raised the listing value of HASTC to over VND9,600 billion (US$600 million).
Set up in 1982 as the first service provider in Ho Chi Minh City, Savico has made very quick progress. With four subsidiaries, seven joint ventures, 12 Savico-invested companies and 35 units and branches nationwide, Savico is holding high competitive advantage. The business philosophy of Savico is to take service activities as its groundwork for the expansion to other fields of investment, import, export, trading, motorbike and automobile assembly, taxi service and passenger transportation.
In the years 1992-1998, the company expanded its business to major cities in the country like Hanoi, Da Nang and Can Tho. Savico was also named the distributor and partner for various world-leading firms like Toyota, Suzuki, Ford, GM Daewoo, Sumitomo and Sojitz. From 1998 to 2004, Savico was admitted to Ben Thanh Corp.
Apart from its investment in real estate, service and trading, the company also turns its investment direction to financial fields by pouring money into the banking sector (Orient Commercial Joint Stock Bank – OCB), Viet A Commercial Joint Stock Bank – VAB), and the post and telecom sector (Saigon Postel). In addition, the firm also expands its sales networks for automobiles, motorbikes and fashion products. Since 2004 to date, Savico was renamed Saigon General Service Corporation.
According to Mr Nguyen Vinh Tho, General Director of Savico, the strategy of the company is to become a leading financial investment company with its priorities paid to finance, property and service-retail system. The chartered capital of Savico was VND128 billion when it listed its shares on the HASTC. Savico is now managing and using favourable positions in the downtowns of various cities, which attract many domestic and foreign investors. Savico has now developed 16 projects in high-rise office buildings, commercial centres, accommodations and resorts.
In the retail and service field, Savico is a leading automobile and motorbike supplier, which is distributing products for various world-leading automakers. According to statistics, Savico automobile sales account for 30 per cent and 27 per cent of market shares of Toyota and Ford in Vietnam respectively.
Tho said Savico aims to keep its annual revenues growth of 15 per cent from now until 2010, raising its assets value to over VND1,000 billion (US$62.5 million). In 2005, the revenues of Savico were VND1,670 billion (US$100 million) and expected to reach VND1,904 billion in 2006. The return on equity (ROE) was 23.28 per cent in 2006.
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