“Billionaire Pham Nhat Vuong Proposes Government Support for Small Businesses in the Auxiliary Industry, VinFast Commits to Partial Component Offtake”

At the Conference of the Government’s Standing Committee working with enterprises on solutions to contribute to the country’s socio-economic development on September 21, Mr. Pham Nhat Vuong, Chairman of Vingroup’s Board of Directors, expressed his appreciation for the opportunity to not only provide feedback but also felt encouraged by the Government’s interest and support. He believed that this would motivate conglomerates and enterprises to strive for the betterment of the community and society.

Regarding the supporting industry, Mr. Vuong suggested that the Government implement mechanisms to assist small and medium-sized enterprises (SMEs) in meeting the initial requirements to join the supporting industry chain.

Vietnam’s richest billionaire emphasized that by promoting this field, Vietnam would possess a robust auxiliary industry, similar to Thailand, especially considering that Vietnam already has industrial manufacturing enterprises such as Truong Hai and VinFast.

Speaking of VinFast, Mr. Vuong shared that the electrification technology enterprise has achieved over 50% localization, aiming for a minimum of 80% by the end of 2026. This presents a significant opportunity for SMEs to engage in manufacturing components and providing auxiliary services.

In terms of production volume, VinFast currently produces 80,000 vehicles per year and targets 200,000 vehicles next year, surpassing the threshold for supporting enterprises to operate profitably.

“Moreover, we are willing to guarantee a portion of these components. I believe this is an opportunity to boost the development of the auxiliary industry,” affirmed the Chairman of Vingroup.

On the topic of welfare, with a focus on social housing, Vingroup proposed three recommendations.

Firstly, they suggested that the Government implement a mechanism for investor designation to expedite the completion of procedures, as the most significant constraint regarding social housing pertains to the 10% profit margin.

Mr. Vuong explained that if real estate enterprises were to operate with a 10% profit margin, it would be challenging due to inventory levels ranging from 5% to 7%, coupled with slow sales over 1-2 years, resulting in potential losses. He emphasized that social housing is about contribution rather than profit-oriented business.

Secondly, they proposed that the Government allow simultaneous preparation of various planning aspects, including general planning, subdivision planning, and detailed planning, along with simultaneous approval of the project proposal, which could reduce the time required by 6-9 months.

Currently, Vingroup is striving to register 500,000 social housing units, but the slow procedures have hindered significant progress.

Thirdly, they suggested raising the standards of social housing to cater not only to the poor but also to those who are not yet wealthy and ordinary citizens.

Considering that individuals may initially be poor but later acquire the means to purchase vehicles, their housing should also include parking spaces, playgrounds for children, and other amenities for the elderly.

“Let’s elevate the standards of social housing to that of regular housing. If possible, let’s change the name; let’s not call it ‘Social Housing’ but rather ‘Government Housing,’ indicating that it is supported by the Government. By doing so, we can eliminate the stigma associated with a different social class, and everyone will feel happy and comfortable. Moreover, within the category of Government or Social Housing, let’s allocate a specific group for housing our officials, military personnel, and public security forces. This will naturally improve welfare,” suggested Mr. Vuong.

In terms of education, the leader of Vingroup proposed that the Government intensify English language training, not only in public schools but also for the entire population, with the vision of fostering a society of global citizens.

Mr. Vuong offered Vingroup’s commitment to sponsoring additional teachers to remote and mountainous areas. By strengthening English language education from these regions to urban areas, we would be providing a better “means of livelihood” for children in disadvantaged areas, thereby contributing to the development of these regions in the future.

Additionally, Mr. Pham Nhat Vuong suggested that the Government intensify or expand quotas for investment in training students in the fields of technology, computer science, AI, and big data. Over time, this would create a large workforce in these sectors, which Mr. Vuong believed hold far more potential than other industries.