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Vietnam's real estate developer Vingroup ventures into aviation, space

According to a document filed in the business register, Pham Nhat Vuong has established a new company to manufacture planes and satellites.

Vingroup is a real estate company that has many subsidiaries. These include the Nasdaq listed electric car maker VinFast, and newly established units for building a high-speed rail system worth $70 billion and producing steel required for civil works.

According to the registration document, VinSpace Joint Stock Company was founded on Monday with an initial capital of 300 billion Dong ($11.4 millions).

VinSpace will "complement and help Vingroup's current business sectors, while laying the groundwork for future development initiatives", Vingroup stated in an email response to questions.

According to the document, Vuong owns 71% of Vinspace, Vingroup holds 19%, and Vuong’s two sons hold the remaining 10%.

According to the document, Vinspace's scope of business also includes air cargo transportation, telecommunication satellite operation and scientific research.

Vuong is the richest person in Vietnam, according to the value of the publicly listed companies he owns. He made his fortune selling instant noodles in Ukraine during the 1990s.

He has successfully launched many successful businesses under the Vingroup umbrella, including tourism, healthcare, and education. However, he has also pulled out of others, like smartphone production, and plans to start an airline.

Vietnam, a country that relies heavily on trade for its economic growth, is encouraging its domestic conglomerates expand. However it is facing uncertainty due to tariffs on exports to its biggest foreign market - the United States. Reporting by Phuong Vu, Francesco Guarascio, and Khanh Vu. Editing by Kate Mayberry.

(source: Reuters)