“With our reputation, any product that Vingroup launches into the market is selling very well,” Le Thi Thu Thuy, Vingroup’s Vice President told the Financial Times in a meeting at the new office of VinFast.
A few weeks ago, I (a reporter of the Financial Times) had a visit to Vietnam. From Hanoi to the East, I was present in the port city of Hai Phong. The driver took me through a small road to Cat Hai Island, home to the factory of Vietnam’s first automobile brand, VinFast.
It is a $ 3.5 billion project of Vingroup, Vietnam’s largest private conglomerate, run by billionaire Pham Nhat Vuong. The factory was built in about 21 months – a feat so fast that, when I opened Google Maps to check our location, the navigation app that I was standing in the middle of the sea.
In Vietnam, Vingroup is increasingly similar to the model of a Korean chaebol, an industrial group, like Hyundai or Samsung, which not only dominates the domestic market but also exports products to the world.
Vingroup, which started out as a noodle business in Ukraine, has successfully turned in real estate, resorts and expanded to supermarkets, schools, health care and recently telephones. Smart and car.
Vingroup has also built a five-star hotel and Landmark 81 – the tallest building in Indochina at the present time – a prime location for panoramic views of Ho Chi Minh City.
When F1 organizes its first race in Hanoi next year, Vingroup will be the exclusive sponsor. Today, Vietnamese people can live in Vinhomes, send their children to Vinschool (and, from 2020 there will be VinUni), take a vacation at a Vinpearl resort and charge their VinFast electric scooter at VinMart. Ms. Le Thi Thu Thuy, Vice President of Vingroup, said the company would be an almost complete supplier of goods and services from basic to key for a rapidly growing country.
“With our reputation, any product that Vingroup launches into the market is selling very well,” Thuy told the Financial Times in a meeting at the new office of VinFast.
Vingroup’s development reflects that Vietnam is one of the fastest growing economies in Asia. Vingroup founder Pham Nhat Vuong is also the richest of Vietnam’s five billionaires, according to Forbes magazine.
According to market research group Nielsen, average Vietnamese wages increased by 17% and personal disposable income increased by 29% between 2014-2018. Wages will increase by 30% and income will increase by 26% by 2022. Nielsen noted that the wealthy class in Vietnam is growing rapidly, the number of millionaires in Vietnam will increase by 170% to 38,600. 2025.
According to Nielsen, the average salary of Vietnamese people increased by 17% and personal disposable income increased by 29% between 2014-2018. Wages will increase by 30% and income will increase by 26% by 2022.
It is not difficult to see that many people are devoted to Vingroup. The Group has been successful in recruiting both Vietnamese and foreign professionals with experience in working for themselves, including Jim DeLuca, a former member of General Motors, currently the CEO of VinFast.
However, the strong growth of the corporation also raises many questions. Some analysts expressed concern that the company might be at risk when investing in a competitive industry such as automobile manufacturing.
Professor Vu Ha Van said that studying big data applications will allow Vingroup to provide more services as their operations expand to smart phones and TVs, homes and cars. For example, VinMart stores can use technology to collect information about the time customers stay in a certain area of the store, thereby understanding their shopping needs.
The AI Center is also conducting research to help the general scientific community, including a plan to build a Vietnamese genome map. Through a program that benefits the development of the country, with the newly established high-tech sector, Vingroup is supporting scholarships for talented students without requiring them to work for the group later. “We believe the growing workforce will also benefit us,” Van said.
Hoang An / Financial Times
* Source: Young intellectuals