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Vingroup: The Rising Dragon That Put Vietnam on the Global Map
Giap Vu Nam Duong,Hoang Khanh Linh,정경화,Nguyen Khanh Linh,Nguyen Phuong Hoa,Phan Hai Dang,Thai Thi Phuong Nga Academy of Asian Business (AAB) 2022 Academy of Asian Business Review Vol.8 No.1
Vingroup JSC (formerly Technocom) was founded in Ukraine in 1993 as an instant noodle factory. Since then, the Group has expanded into many other industries, placing tourism and hospitality as their first stepping-stone, then venturing into retail, real estate, education, and recently shifting towards a promising industrial and technology industry. Vingroup has now become the largest conglomerate in Vietnam in terms of market capitalization (VnExpress International, 2019). Having established a solid foundation in the Vietnamese market, Vingroup is eyeing the new promising yet challenging international market, with its competitive advantage in industrials and technology. Standing at a crucial juncture in its ascent, the conglomerate must implement a comprehensive and long-term strategy to reach its next milestone. In 2016, Vingroup primarily focused on four main business segments, encompassing property, hospitality - entertainment, consumer retail, and social infrastructure services. Over the course of two decades, Vinpearl and Vincom have grown into the market-leading hospitality and shopping malls brand in Vietnam. The brands’ establishment coincided with the flourishing economy of the country in the early 2000s, therefore, quickly achieved market dominance. Having such favorable conditions, the Group continued its expansion and investment in other backboned industries, which has reaped correspondingly fruitful results. The key success factors of Vingroup lies in an entrepreneurial mindset, speed, perfectionism and discipline, and last but not least, the national spirit. These traits have allowed the Group to unleash its potential capabilities and go beyond all boundaries. Both small-and-medium-sized companies and big firms can take Vingroup as a lesson for their strategy and corporate culture so that they can lead successful and sustainable growth in today’s competitive market.
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