Billionaire Pham Nhat Vuong: VinFast and VinSmart will only focus on exporting to the most demanding market, the US!

Tram Ho

On the morning of May 28, Vingroup organized the Annual General Meeting of Shareholders in 2020.

At the meeting, Mr. Pham Nhat Vuong, Chairman of Vingroup said that VinFast is currently researching markets for export, while Vinsmart has exported to a number of countries. However, at the present time, the group’s strategy is that both VinFast and VinSmart outside Vietnam only focus on one market, that is the US market.

Vingroup considers the US a key market and a very difficult market, because if it can be done in the most difficult market, the story of entering other markets will be simpler and easier. After doing successfully, reaching a certain output in the US market, then deploy to other markets.

 Tỷ phú Phạm Nhật Vượng: VinFast và VinSmart sẽ chỉ tập trung xuất khẩu vào thị trường khó tính nhất, là Mỹ! - Ảnh 1.

Mr. Vuong said, this is a test for the entire system because if the product is not good, the price is not competitive, then of course there will be no logic to exist.

“For new, startup-oriented companies like VinFast and VinSmart, we set very high and very strict goals,” Vuong said.

Mr. Vuong added that Vingroup will accept to cover losses for the industrial segment in 3-5 years. After that, the new industrial sector could draw up the EBITDA, but at that time, it had a very good market share in Vietnam and also a certain foothold in the US market. Vingroup’s goal is market share, not profit, and the market pie is still very large. Vingroup tested the first electric car, while smartphones sold 1.2 million units.

 Tỷ phú Phạm Nhật Vượng: VinFast và VinSmart sẽ chỉ tập trung xuất khẩu vào thị trường khó tính nhất, là Mỹ! - Ảnh 2.

In 2020, Vingroup targets revenue of VND 145,000 billion and profit after tax of VND 5,000 billion. Compared to the results achieved in 2019, Vingroup’s revenue increased by 11% but profit decreased by 35%.

Vingroup assessed that, in the context of the world epidemic has not been strictly controlled and many industries such as tourism and manufacturing rely heavily on international markets, 2020 will continue to be a challenging year. before bringing the growth back to its orbit.

In order to proactively resources to cope with the instabilities caused by Covid-19, Vingroup will implement austerity policy, strictly manage the expansion of spending and investment, and optimize the operation efficiency of the field available.

In the field of real estate, Vinhomes will continue to sell new subdivisions of the three Great Projects of Vinhomes Ocean Park, Vinhomes Smart City and Vinhomes Grand Park and open sale of low-rise subdivisions at Vinhomes Wonder Park project in Dan Phuong, Hanoi. Vinhomes will also begin to realize the strategy of developing business segments to create a steady cash flow for the company, including developing office systems for lease and industrial real estate.

In the field of leasing commercial centers (“Shopping Mall”), Vincom Retail will promote digitization and realization of shopping – entertainment model with new forms, in order to bring the best experience to customers. line.

In the tourism segment, Vinpearl will focus on promoting business with the number of facilities that have been put into operation and prioritizing projects that optimize operating costs.

In industry, VinFast and Vinsmart will focus on doing well in the domestic market through unique sales strategies, as well as programs that make the most of the Vingroup ecosystem to create a special attraction for the products, and at the same time continue to promote exports.

In terms of capital and investment, Vingroup will deploy various forms of domestic and foreign capital mobilization, effectively control new open investments and optimize the efficiency of using capital to serve short-term business strategies, Medium and long term of the Group.

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Source : Genk