VinFast, the prominent Vietnamese electric vehicle manufacturer, etched its name in history on August 15, 2023, when it debuted on the New York Stock Exchange (NYSE) with a market capitalization of over $50 billion.
The IPO is a remarkable milestone for the Vietnamese economy and a testament to the triumph of Vietnamese businesses on the global stage.
The IPO attracted the attention of the media and businesses around the world. Many people wonder about the secret to VinFast’s success, especially its founder, Pham Nhat Vuong.
In this article, we uncover four leadership secrets from VinFast’s founder Pham Nhat Vuong:
For each, we’ll look at the lesson, the context, and what you can implement as early as tomorrow.
Pham Nhat Vuong’s business focus extends beyond building wealth; it encompasses contributing to the Vietnamese community and elevating the country’s standing on the world stage.
In a candid interview, Vuong expressed that he “lived and worked abroad for over 22 years, and despite my considerable success and recognition, I’ve always keenly sensed that the world does not yet hold Vietnam in high esteem… We’re dedicated to raising this ‘flag’ ever higher and further. Simply put, we aspire to leave a lasting legacy for the world.”
This is a reminder that, no matter what we do, we should always consider the “why” behind our actions and how they contribute to our larger goals.
When VinFast decided to go public in the United States, it aimed to raise $1 billion in investments. But Vuong made it clear that the IPO wasn’t just about piling up cash; it was about taking VinFast worldwide. This underscores Vuong’s focus on making his dream of “hoisting Vietnam’s flag on the world technology map” a reality.
Clarify your “why” by asking yourself what motivates you, what impact you want to have, and what legacy you want to leave. Once you understand your “why,” develop a strategy to achieve it by aligning your goals, objectives, and KPIs.
Pham Nhat Vuong’s entrepreneurial journey has another crucial lesson: recognizing when things aren’t working so that you can pivot promptly, without attachment, and avoiding hope that things will miraculously succeed eventually.
Mr. Vuong champions the value of adaptability, emphasizing, “If a project no longer aligns with our objectives, we must be willing to release it.“
You can see this in action when Vuong decided to sell off the VinMart and VinMart+ supermarket chain to Masan Group in January 2023.
It must have been a tough call, but it showed that Mr. Vuong was ready to pivot and admit when something wasn’t working. He knew that pouring more money into supermarkets wasn’t smart and would drain the group’s resources. Importantly, impacting other priorities’ ability to succeed.
In this situation, Mr. Vuong, showed visionary insight and practical acumen, placing a premium on aligning endeavors with the larger plan, and ensuring Vingroup’s efficient allocation of resources to what truly matters – in this case, the car business.
Review statistical reports and analytics dashboards objectively to identify opportunities and threats. Pivot early and reallocate resources to the most important projects. Avoid sunk-cost bias.
Vingroup’s slogan, “Forever a startup spirit,” is a determined declaration by Pham Nhat Vuong about the group’s aspiration to rise.
Vingroup is never satisfied with its past successes but always seeks new opportunities and challenges for development, much like a startup. In the chairman’s words: “Always keep the startup spirit; do not let the thought of enjoying appear.”
He added: “I hope that in the future, people will think of Vingroup as a company that always has a strong entrepreneurial spirit, dares to think and dare to do things, is inspirational, and always good for the community. And one day it will be possible to serve all customer groups.”
Vingroup’s success shows the benefits of strategy, propelling the company to rapid growth and leadership across multiple sectors.
Instead of relying on long-standing ways of working, honestly identify strengths and weaknesses in the current market context, optimize, and improve constantly like a startup. What can you innovate on today?
The most successful companies focus heavily on building strong middle managers. Gallup research shows that managers create 70% of the variance in employee engagement.
Vinfast is no exception. Mr Vuong emphasizes creating an organization’s “leadership nucleus” to drive growth and prosperity.
In an interview with VNExpress, Mr. Vuong shared: “I insisted that every leader should be a core, a leader who leads by example, guiding their department.” Specifically, he advocates an extensive training policy where middle managers are required to undergo at least 52 hours of training per year, while each employee should receive 100 hours of training annually, with the ultimate goal of fostering a learning culture that becomes an integral part of Vingroup’s DNA.
Deliver training programs to your middle managers. Give middle managers the support they need to navigate their department efficiently and become your core team members.
In conclusion, Pham Nhat Vuong’s leadership lessons are valuable for leaders at all levels and industries.
By focusing on the ‘why,’ being flexible and making smart decisions, cultivating a startup spirit, and building strong middle managers, leaders can propel their teams and organizations to new heights of success.
We hope you enjoyed this deep dive into how top leaders excel. Who should Dreamplex feature next? Contact us and let us know!
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