Topic 3:

Strategy for corporate transformation: the change of Vingroup

that result in a great success today we have seen today.
VINGROUP’S GREAT SUCCESSFUL
CORPORATE TRANSFORMATION

Class: Advanced Human Resource Management

Lecturer: Nguyen Ngoc Qui
 GROUP ● Nguyễn Nhâ ̣t Linh Vy - 2140655

MEMBERS ● Dương Thi ̣ Trọng Hiế u - 2162138

 1. Introduction of Vingroup

2. Literature Themes about Corporate Transformation

CONTENTS
3. Vingroup’s Corporate Transformation

4. Vingroup’s Human Resource Strategy

Vingroup’s Introduction
 General Information
Type Public
Industry Conglomerate
Founded 1993 (25 years ago)
Founder Pham Nhat Vuong
Headquarters Vinhomes Riverside, Viet Hung Ward, Long
Bien District, Hanoi.
Key People - Pham Nhat Vuong (Chairman)
- Duong Thi Mai Hoa (CEO)
Revenue 89.392 trillion VND ~ 3.8 billion USD (2017)
Employees 42,878 (2017)
Website Vingroup.net
 Pham Nhat Vuong
● 1968: born in Hai Phong (50 years old)
● 1987: entered Hanoi University of Mining &
Geology then studied in Moscow Geological
Prospecting Institute, Russia
● 1992: graduated from this university
● 1993: founded Technocom in Ukraine,
known as former Vingroup.
● 2009: sold Technocom for 150 million USD.
● 2012: founded Vingroup.
Founder and Chairman of Vingroup
● 2018: hold 27,45% VIC (Vingroup’s shares),
Vietnam’s first USD Billionaire
worth 89,352.3 billion VND.
The richest man in Vietnam
Net Revenue & Total Assets
 founded Technocom
in Ukraine

1993
1st factory
sucess with Mivina

1995
dominated the market

1996
2nd factory, x5

1999
Vinpearl
2001

Vincom

2002
3rd factory
2003

2 more factories in Ukraine,

1 facotory in Poland
5 shopping mals
2003+

● Barabasova, Mivina: 97% market share

● Nôvưi Vek,
2004

● Aver City,
● Sun City Plaza 1,
● Sun City Plaza 2

Listed on HOSE
2007

moved headquarter to VN
Vinpearl Land
2009

sold Technocom
VinCommerce
2010

formed Vingroup
Vinmec
2012

Vinhomes
Vincom Retail
2013

VincomOffice
Vinschool

VinEco
2015

VinCity
2016

Vinfast
2017
Company History
 Vingroup’s Business
Vinhomes

VinCity
Property
Vincom Retail

Vincom Office

Vinpearl
Hospitality & Entertainment
Vingroup Vinpearl Land

VinCommerce Consumer Retail

VinMec
VinSchool Social Infrastructure Services
VinEco

Vinfast Industrials
Corporate Structure

P.19
Vingroup’s
Vingroup’s
Vingroup’
s Core
Values
 Literature Themes
about Corporate Transformation
 What is Corporate Transformation?

Carnal & ByBy (1990),

(1990), corporate
corporate transformation
transformationisisaaradical
radical and
andoften
oftendrastic
drastic change
change which
stems from external
externalpressures
pressuresandandrequires
requires aashift
shift
in behavior.
in behavior.WithWith
a strategic
a strategic
vision,
vision,
this
change
this change
transforms
transforms
organizations
organizations
fromfrom
thethecurrent
currentstate
stateinto
intodesired
desired future
future state
state by
organization transformation
organization transformationandand
individual
individual
transformation.
transformation.

Blumenthal
Blumenthal & & Haspeslagh
Haspeslagh (1994)
(1994) the
the great
great number of individuals in an organization must
alter
alter their behavior such
their behavior such as
as thinking
thinking globally,
globally, sensitively
sensitively caring about customer needs,
cooperating
cooperating with
with others
others and
and even challenging managers. Morover, corporate transformation
differentiates withother
differentiates with otherchanges
changessuchsuchas as restructuring
restructuring by mergers
by mergers and acquisitions,
and acquisitions, rising
rising its level
its level of debt
of debt or changing
or changing organizational
organizational structure
structure but but
notnot influencethe
influence thenature
nature of
manager’s
manager’s and and employee’s
employee’s work.
work.
Corporate Transformation Process
 Corporate Transformation Types
Corporate
self-renewal
03
Improving Requires both managers and employees
types of
some specific types of behavior
behavior such as
operations facing reality, establishing high
performance standards and taking full
The
The improving
improving operations
operations was
responsibility for results, could mitigate
often
often implemented
implemented by by reducing
operational and strategic gaps by
costs,
costs, reducing
reducing development
development
forecasting and confronting with change.
time
time and
and improving
improving quality
quality and
and
service,
service, in
in which
which an organization 02 01
recontrives
recontrives business
business processes,
reconstructs
reconstructs roles
roles and
Strategic transformation
responsibilities,
responsibilities, and
and reformulates Aims at at reattaining
reattaining aa sustainable
sustainable
performance
performance standards
standards and competitive advantage by
competitive advantage by redesigning
measurements.
measurements. business objectives, generating new
KSAOs, and taking advantages of these
strengths to gain market opportunities.
Features of a Successful Corporate Transformation

Carnal && By By(1990),

(1990),successful
successfulorganizational
organizational transformation
transformation and
and individual
individual
transformation will
transformation willlead
leadtotosuccess
successcorporate
corporatetransformation.
transformation.

Coulson-Thomas (1992) also cited that, to achieve a successful corporate

lots of
transformation, organizations requires lots of criteria
criteria such
such as
as aa clear
clear vision
vision and
and
mission, thorough
mission, thorough quality
qualitymanagement,
management,complete
complete toptop
management
management commitment
commitmentand
effective
and corporate
effective leadership.
corporate leadership.

Blumenthal & Haspeslagh (1994), a effective and efficient transformation is one that
Blumenthal & Haspeslagh (1994), a effective and efficient transformation is one that
successfully regulating the behavioral change required for long-term financial
successfully regulating the behavioral change required for long-term financial success.
success.
 Vingroup’s
Corporate Transformation
 founded Technocom
in Ukraine

1993
1st factory
sucess with Mivina

1995
dominated the market

1996
2nd factory, x5

1999
Vinperal
2001

Vincom

2002
3rd factory
2003

2 more factories in Ukraine,

1 facotory in Poland
5 shopping mals

Triggers to Corporate Transformation

2003+

● Barabasova, Mivina: 97% market share

● Nôvưi Vek,
2004

● Aver City,
● Sun City Plaza 1,
● Sun City Plaza 2

Listed on HOSE
2007

moved headquarter to VN
Vinpearl Land
2009

sold Technocom
VinCommerce
2010

Corporate
Transformation

formed Vingroup
Vinmec
2012

Vinhomes
Vincom Retail
2013

VincomOffice
Vinschool

VinEco
2015

VinCity
2016

Vinfast
2017
Company History
 Change context (1993-2008)
External Analysis Ukraine Vietnam

Political 1996: ● 2005: participated in ASEAN Summit. → business opportunities

● established a stable political system. ● 2006: participated in WTO → business opportunities
● the hryvnia currency was published.

Economic 1999: GDP went up high after the recession in 1991. ● 1994: USA removed the embargo against Vietnam.
→ more business opportunities.
● 1996-2000: Average GDP increased 7,6% per year.
→ entertainment demands raised.
● 2000-2010: Tourists visited Vietnam that increased continuously.
→ develop tourism.

Social 1993: many people who lived on fixed income had ● 1992-2013: Poverty rate decreased (from 58% to 7.6%).
difficulties. ● 1995-2008: The population was growing up every year.

Technology

Legal 1996: established legal framework for privatization. 1993: Land Law was issued on July 14, 1993.
→ Private corporations are protected by Law. → create good conditions for the real estate market to develop.

Eco-environmental

Competitors 1996: Mivina (Technocom) led the Ukrainian market. 2002-2009: Vinpearl, Vinpearl Land monopolized entertainment industry in a
→ no competitor. large scale at that time.
2007: Novaland was founded.
 Change context (1993-2008)
Internal Analysis Ukraine Vietnam
● 6 factories (5 in Ukraine, 1 in Poland) 2000: invested in tourism, real estate, securities and financial
Physical ● 5 shopping malls in big cities services with 48 subsidiaries.
Resources 2001: Vinpearl JSC; 2002: Vincom JSC

● 3000-4000 headcounts
Human ● Abt 100 foremen and top managers are
Resources Vietnamese.
● Engineers, specialists and workers were Ukrainian

● 2005: legal capital: $25 million, total assets: $200 ● 2007: VIC was listed on HOSE
million
● 2008: VPL became ‘king’ stock in tourism.
Financial ● Monthly average revenue of 6 factories was abt
Resources $10 million
● Monthly purchase for Kharkov City was nearly $1
million

● 2003: Mivina continuously named at numerous 2006: Thien Tam Fund, a non-profit charitable organization
prestigious awards (European Quality, Gold Brand, was established. The Fund has implemented many charity
Product of the Year) and sold in more than 20 programs
Intangibles European countries.
● 2005: the leading brand in fast food industry
● 2006: 1-billion-USD brand equity (according to
Gvardia Magazine, Ukraine)
 Change Program(2009-1012)

VISION
True to its pioneering passion, Vingroup aims to
become one of the leading private multi-sector
business groups in Vietnam and the region, and
establish itself as an international brand
through its investment strategies and goals for
sustainable development.
Vingroup also aspires to create a Vietnamese
brand that represents the country’s national pride
in the international arena.
 Change Program(2009-1012)
● 2009: moved the headquarter from Ukraine to Vietnam.
● 08/2009: put Tower C in operation, with Towers A & B, making the Vincom Center Ba Trieu one of the most luxurious
and highly trafficked spots in Hanoi.
● 11/2009: became the 1st Vietnamese Company to successfully issue US$100 mil in convertible bonds listed on the
Singapore Exchange (SGX).
● 2010: sold Technocom LLC for US$150 mil.
● 04/2010: opened the luxurious, contemporary Vincom Center B HCMC, Vietnam’s biggest economic centre.
● 10/2010: completed the Vincom Financial Tower in D1, HCMC; and successfully hosted the Miss Vietnam World and
Miss Earth Pageants in Vinpearl Nha Trang.
● 03/2011: introduced the Vincom Center and Vincom Mega Mall chains of large and high-class shopping malls in Vietnam.
● 05/2011: opened the five-star plus Vinpearl Luxury Nha Trang and the Vinpearl Golf Club, the first coastal island golf
course.
● 06/2011: converted most of the US$100 million international convertible bonds issued in 2009 into shares and redeemed a
small amount of the shares.
● 07/2011: opened five-star-plus Vinpearl Luxury Da Nang, the country’s third largest city.
● 11/ 2011: approved the plan for merging Vinpearl JSC into Vincom JSC in The Extraordinary General Shareholders’
Meeting.
● 12/2011: celebrated the inauguration of the Vincom Center Long Bien shopping mall at Vincom Village township; also
relocated its Head Office to this large ecological urban complex.
● 2012: merged Vinpearl JSC and Vincom JSC to form Vingroup.
Change Results
 Strategy for Corporate Transformation (2009-2012)

Finance
11/2009: successfully issue US$100
mil in convertible bonds listed on the
Singapore Exchange (SGX).
Human Resources
● Recruitment and training policy
2011: converted most of the US$100 ● Salary policy
million international convertible bonds ● Corporate culture
issued in 2009 into shares and
redeemed a small amount of the
shares.
Strategy
Marketing/ PR
2010: hosted successfully Miss
World contest, Miss Earth contest at
Internal Process
Vinpearl Nha Trang. 01/2012: Vinpearl Joint Stock Company
2011: Vinpearl Luxury Resort was merged into Vincom JSC to become
opened in Da Nang. Vingroup.
 Vingroup’s
Human Resource Strategy
 ● Working conditions

Slogan ● Employee allowances

“Preserving the startup ● Wages, insurance and welfare
mindset.”
● Incentive scheme

Proactive Attitudes Motivation

Behavior Model Established Training and Education

● professional
Implement extensive
● dynamic
training programs
● creative
● effective
Thank
You!