Leadership Transition at VinFast and GSM

Key pointsOn September 11, 2023, in Paris, Vietnam's Minister of Finance, Ho Van Tuan, met with leaders from Rothschild & Co., who proposed support for improving Vietnam's national credit rating and funding for infrastructure projects. They expressed interest in participating in the ¥67 trillion North-South high-speed rail project and power plans. Vietnam aims to allocate over 40% of its GDP to investments in its socio-economic development plan for 2026-2031, increasing the need for funding.
Business impactRothschild's proposal could expand investment opportunities for Japanese companies in Vietnam. Specifically, funding in the infrastructure sector may encourage the entry of Japanese firms. The finance department will need to reassess its funding strategies.

Key pointsPhạm Nhật Quân Anh and Phạm Nhật Minh Hoàng have been appointed as the global CEOs of VinFast and GSM, respectively, marking a shift towards young leadership within these companies. This transition highlights the importance of leadership change in an era that demands corporate growth and the development of the next generation of leaders, particularly in response to advancements in AI and technology, which require swift decision-making from young leaders.
Business impactFor Japanese companies, nurturing the next generation of leaders is a crucial strategy. As technological innovation accelerates, it is essential to establish a framework that enables young leaders to respond quickly to market changes, thereby maintaining competitiveness and building a foundation for sustainable growth.

Key pointsPham Nhat Quang Anh has been appointed CEO of VinFast, also taking on the role of CEO of VinFast Vietnam. He aims to focus on product development and improving service quality as the company seeks to expand into international markets. VinFast currently operates in 16 countries and produces electric vehicles. At GSM, Pham Nhat Minh Hoang has been appointed CEO to support the company's international growth.
Business impactThis personnel change is a significant move for Japanese companies to enhance their competitiveness in the Vietnamese market. Particularly, with VinFast's international expansion, there may be a need to reassess related supply chains and sales strategies.

Key pointsDuring the official visit of Vietnam's President Vo Lam to France, Vietjet and CFM International signed a Letter of Intent (LOI) to develop maintenance capabilities for the CFM LEAP engine. CFM plans to support Vietjet in assessing its engine maintenance needs and technical capabilities. This initiative is a significant step in enhancing the status of Vietnam's aviation industry as Vietjet expands its fleet of next-generation aircraft. The president of CFM stated that Vietnam is one of the most active aviation markets in the world and expressed a desire to strengthen cooperation with Vietjet.
Business impactThis collaboration will not only enhance Vietjet's aircraft maintenance capabilities but will also contribute to the training of engineers in compliance with international standards in the future. Japanese companies should focus on aircraft-related technologies and human resource development to seize business opportunities in the Vietnamese market.

Key pointsNguyen Thi Nga of BRG Group has been awarded the title of Labor Hero for her contributions to Vietnam's economic development. She founded an export company in 1993 and now leads a diverse corporate group. BRG has created over 22,000 jobs and is actively involved in social contribution activities. She has expressed her intention to continue contributing to local communities alongside the company's growth.
Business impactThis award serves as a reminder for Japanese companies of the importance of business development and CSR activities in the Vietnamese market. There is a particular emphasis on building relationships with local communities and establishing sustainable business models.

Key pointsThere are calls to improve the mechanisms for selecting and managing general contractors in large-scale infrastructure projects. Companies are proposing reforms to the general contractor system and a review of risk allocation, aiming to enhance the capabilities of domestic firms. This is expected to enable Vietnamese companies to take on large-scale projects.
Business impactJapanese companies should closely monitor changes in Vietnam's general contractor system and strengthen partnerships, which could contribute to project success. Leveraging expertise in risk management and cost management will be particularly important.

Key pointsHanwha Life Vietnam achieved an after-tax profit of 442 billion VND in the first half of 2026, marking a 68% increase compared to the same period last year. Operating revenue was 15.2 trillion VND, a 7% decrease year-on-year, but the profit margin improved from 9% to 9.5%.
Business impactThis growth is a positive sign for the insurance industry as a whole, providing Japanese companies with an opportunity to enhance competitiveness by reviewing their insurance products and services.

Key pointsA Vietnamese investment fund has adopted a strategy to increase its cash holdings due to concerns over global stock market volatility. This reflects the uncertainty surrounding the Vietnamese economy, particularly as headwinds against risk assets intensify. The level of cash ratio will be an important indicator of future market trends.
Business impactFor Japanese companies, the defensive stance of local investment funds may impact funding costs and investment appetite. This is particularly critical in a phase where resilience to short-term market fluctuations is required, necessitating caution in investment decisions.