Driven by the UAE’s dynamic and diversified economy
Abu Dhabi, UAE, 12 September, 2024: Vietnam’s leading private multi-industry conglomerate, Vingroup, has officially expanded into the UAE market, driven by the nation’s strong commitment to sustainability and green mobility. Vingroup’s automotive arm, VinFast, is spearheading this expansion. The Group aims to solidify its presence in the MENA region by forging strategic partnerships with key UAE players across sectors like mobility, real estate, and more, all while upholding its unwavering commitment to sustainability.
With operations spanning diverse sectors from mobility to real estate – residential, commercial and industrial park, from healthcare to education, Vingroup has developed Vietnam’s largest consumer-centric ecosystem that captures over 90% of the Vietnamese consumers’ wallet share. Last year, the Group’s consolidated revenue accounted for 1.6% of the country’s GDP.
Renowned for its superior execution and market leadership, Vingroup ranks among Asia’s top 300 fastest-growing businesses by the Nikkei Asia. Staying true to its mission “To create a better life for all people,” Vingroup continues to pioneer and lead consumer trends in each of its businesses introducing Vietnamese consumers to a brand new, modern life-style with international-standard products and services, especially with the vision to build a sustainable future for everyone through smart, safe, and environmentally friendly EVs.
The strategic exploration of Vingroup in Abu Dhabi is being facilitated by the ongoing negotiations between Vietnam and the UAE to forge a Comprehensive Economic Partnership Agreement (CEPA) which is expected to be signed and implemented soon, thereby enabling further trade and investment exchanges between the two countries.
Speaking on the announcement, Vingroup Chairman, Pham Nhat Vuong, said: “The UAE’s investment-friendly environment and strategic market provide a unique and ideal platform for Vingroup to expand its footprint across the MENA region. We are excited to bring our diverse range of products and services to this vibrant market and look forward to exploring new opportunities for growth and collaboration. Our interest in the UAE’s market is not just a business decision but a commitment to creating sustainable value for communities across the region.”
According to recent figures, in 2023, the UAE was the largest export market and the second largest trading partner of Vietnam in West Asia and in the first half of 2024, the Vietnam-UAE total trade exchange reached over $3.3 billion, marking a 43% increase compared to the same period in 2023. Of this, Vietnam’s exports accounted for more than $2.8 billion, up 46%, and imports reached over $391 million, up 12%.
Pham Nhat Vuong added: “Our mission is to create a better life for people through better business practices, implementing our stated values of credibility, integrity, creativity, speed, quality and compassion. We treasure human capital as our most valuable asset and our vision is to harmonise all stakeholder benefits on the basis of fairness, integrity and solidarity. The CEPA trade agreement, once signed and implemented, will open up significant opportunities for Vingroup’s key products to access many other markets through the established transshipment market of the UAE.”
In May 2024, Vingroup’s mobility business, VinFast, signed an exclusive dealership agreement with one of the UAE’s premier automotive dealerships, Al Tayer Motors, for the distribution of VinFast electric vehicles (EV) in the country. The inaugural facility is planned to open in 2024 and will initially retail four VinFast e-SUV models, VF 6, VF 7, VF 8, and VF 9, at launch. Via the partnership, both VinFast and AI Tayer believed that they will offer the ultimate EV experience to UAE customers while contributing to the country’s sustainable development goals. The partnership aligns with the UAE government’s focus on eMobility, a key part of its ongoing plan to decarbonize infrastructure and energy production.
The UAE remains a top destination for foreign direct investment, driven by its growth-oriented policies, world-class infrastructure, and strategic geographic position bridging the East and West. This robust investment climate, combined with the UAE’s dedication to innovation, sustainability, and economic diversification, establishes it as an ideal hub for global conglomerates and underscores its role as a premier global center for business expansion.
Vingroup’s potential in the UAE goes beyond electric vehicles, as its diverse portfolio spans real estate, healthcare, retail, and education. The entry of Vietnam’s largest conglomerate could pave the way for future partnerships across various industries in the UAE, creating opportunities for collaboration in smart urban development, premium healthcare, and innovative education solutions. This expansion aligns with both nations’ goals of fostering sustainable growth and technological advancement in key sectors.
