VinFast and the legacy of Vietnam’s richest man

In 2019, Quan Anh sat beside his father for his first-ever press interview. Vuong emphasised that the intention was to “incubate” and allow his son to learn. Since late 2023, however, Quan Anh has taken on a more visible and defined role at VinFast, overseeing the company’s production division. His responsibilities extend beyond Vietnam, as he engages with international partners and oversees operations at VinFast’s global production facilities.

Earlier this year, father and son were seen together in an official capacity for the first time, welcoming Indonesian President Joko Widodo to VinFast’s automobile factory in Hai Phong. During the visit, Quan Anh personally introduced the features of the VF9 model to President Widodo, shortly after the head of state test-drove the vehicle—an experience facilitated by none other than billionaire Pham Nhat Vuong himself.

“I can see Mr Vuong grooming his eldest son for higher-level roles at VinFast—possibly as a successor. He may already be consulting him on certain decisions as part of this process. There’s also a positive dynamic at play: as Deputy CEO in charge of Manufacturing, Quan Anh provides his father with the data and insights needed to make evidence-based decisions. In that sense, both father and son are involved in VinFast’s strategic direction, albeit in different capacities,” Dr Gavin Nicholson, Lecturer in Human Resource Management at RMIT University Vietnam, tells Tatler.

Meanwhile, the businessman’s second son, Pham Nhat Minh Hoang, is still completing his studies but is already involved in VinFast’s global marketing division. However, he has yet to gain the time and opportunity to make his mark in the family business, and his role remains largely unpublicised.

Pham Nhat Vuong has previously shared internally that he intends to involve his children in the company’s operations—familiarising them with management, processes, personnel, and the inner workings of the enterprise—so they can gain hands-on experience. However, his youngest daughter, Pham Nhat Minh Anh, and daughter-in-law, Bui Lan Anh, have yet to make any public appearances.

As of 1 May 2024, VinFast Auto Ltd.’s Board of Directors comprises six members, including two independent directors, according to Dr Nguyen Quynh Phuong, Lecturer in Management at RMIT University Vietnam. The company’s founder, Pham Nhat Vuong, currently serves as CEO and a board member, while former CEO Le Thi Thu Thuy has taken on the role of Chairwoman. Although Nasdaq regulations require the board to consist of a majority of independent directors, VinFast, as a foreign private issuer (FPI), is currently exempt from this requirement.

Pham Nhat Vuong remains the controlling shareholder, holding 99.46% of VinFast’s shares. Meanwhile, Chairwoman Le Thi Thu Thuy also serves as CEO of Vingroup. “With only two directors on a six-member board, it is unlikely that there will be strong opposition to Vuong’s decisions. It is highly probable that he will retain the final say in VinFast’s strategy and direction,” Dr Phuong observes.

In mid-July 2024, VinFast released its second-quarter business update, acknowledging several factors that could impact its operations. Among these were the considerable influence wielded by its controlling shareholder—Vuong himself—and the company’s continued dependence on financial and strategic support from Vingroup and its affiliates.

Examining two of the industry’s biggest players, Dr Phuong notes that, as of 2024, Tesla’s founder held a 13% stake, while BYD’s stood at 38.5%. Over the years, both founders have gradually reduced their holdings. For a young company such as VinFast, it is understandable that the founder maintains strong control in its formative years, allowing for swift decision-making in a highly competitive and volatile market. However, should VinFast attract further external investment—particularly from US investors or if more than 50% of its assets are located in the US—the company will no longer qualify as an FPI and will need to comply with majority-independent board regulations. Additionally, institutional investors with significant ownership stakes would gain a stronger voice, inevitably influencing the company’s governance and operational approach.

Beyond Vuong’s influence, Vingroup and its subsidiaries rely on a formidable leadership team, comprising long-standing executives with substantial experience, seniority, and internal clout. Whether they are seasoned professionals or members of the next generation, navigating the pressures of leadership within the group remains an immense challenge.

At VinFast, the transition of leadership is shaped not only by internal succession plans but also by the broader business landscape and the company’s future prospects. Pham Nhat Vuong has described VinFast as a “devotion project,” driven by his ambition to establish a Vietnamese electric vehicle brand of global significance. However, with the company ranked among the 750 largest family businesses in the world, its aggressive expansion has led to concerns over financial sustainability. The automotive industry, and the EV sector in particular, continues to face formidable challenges, intensifying the pressure on Vietnam’s richest family.

According to Dr Greeni Maheshwari, Senior Lecturer in Management at RMIT University Vietnam, Vuong, now 56, has the opportunity to initiate a structured succession plan, positioning his sons for leadership roles well before he reaches 65. “By starting succession planning now, Mr Vuong can provide his sons with crucial hands-on experience, strengthen their reputations, deepen their understanding of the business, and offer close mentorship and guidance,” she explains.

“A five-to-ten-year transition timeline would allow Mr Vuong to gradually involve his sons in key decision-making, expand their authority in a controlled manner, and maintain oversight of major strategic moves. This structured and incremental transfer of responsibility will help ensure a smooth generational transition, ultimately securing the company’s long-term success and stability,” Dr Maheshwari adds.

She also emphasises that entrusting the next generation with greater responsibility can foster innovation and drive growth at VinFast. However, a generational transition inevitably presents challenges, including potential resistance from senior executives and existing staff. Earning the trust and respect of the organisation is therefore critical for the successors.

Yet, as Dr Peter Bartels, Global Leader of Private and Family Business Services at PwC Germany, observes, succession planning is not just about preparing the second generation to take over—it is also about ensuring the first generation is ready for retirement. He highlights an often-overlooked challenge: founders who lack outside interests may struggle to step back, leading them to remain overly involved in their children’s management of the business.

For now, however, Pham Nhat Vuong appears to have struck a balance. He has said that he gets eight hours of sleep each night and begins his day by playing with his grandchildren—perhaps the first steps towards a life beyond the boardroom.

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