Vingroup announced recently the cancellation of the launch of a new airline, VinPearl Air. The resorts-to-tech conglomerate argued that the market was too crowded, and the entrance of a new operator could cause oversupply in the air transportation market. This announcement occurred immediately after the company said the retail and agriculture units were being spun off, with the subsequent merger of those units with Masan Consumer Corporation, which will be in charge of operating the resulting company. Considering the short period of time separating both events, this marks a shift in strategy for a conglomerate that was undergoing a massive wide-range expansion.
This strategy shift consists mainly of streamlining the conglomerate, concentrating efforts on developing the industrial divisions. With the government supporting the private sector to develop the national economy, Vingroup has become a national industrial champion. Therefore, the company is concentrating on making the most of the changes in policy that benefits the conglomerate, helping Vingroup to dominate industrial sectors. The Vietnamese conglomerate has already launched the first national car to the market.
Additionally, the Vietnamese conglomerate is also developing an in-house tech division. The company plans to manufacture tech and develop services for its own products as well as for established tech companies. Vingroup has already launched a series of smartphones that have gained a significant portion of domestic market share. The devices have reached Europe through the Spanish market due to the acquisition of Spanish manufacturer BQ. Ultimately, the Vietnamese conglomerate intends to invest in the creation of a tech hub, Silicon-valley style, to bring Vietnam up to speed in technology. Vingroup has already started to recruit national and international talent to promote its R&D, so it can compete in the global market with other Asian key players.