Vingroup announces the transformation of Vinmec and Vinschool into social enterprises

(Posted Date: 09/28/2016)

Vingroup announces the transformation of Vinmec and Vinschool into social enterprises that make social impacts central to their corporate mission, by committing one hundred percent of profit for social causes. By contributing profits from two growing and sustainable brands, Vingroup reaffirms the social responsibility and leadership of a premier private business corporation in Vietnam, emulating examples from leading international corporations.

The transformation of Vinmec and Vinschool into social enterprises underlines Vingroup’s desire to contribute to the advancement of healthcare and education in Vietnam, by improving patient care, and quality of training in both sectors.

Specially, Vingroup commits to reinvest one hundred percent of profit generated by Vinmec and Vinschool in the improvement and development of these respective corporates, enhancing human resources, upgrading facilities and equipment and awarding scholarships and funding for R&D, technology transfer and international co-operation.

Not only reinvesting all profits for social causes, Vingroup also commits not to withdraw over VND4,000 billion of capital invested to date to develop its healthcare and education networks across Vietnam, which has been completely spent for infrastructure, human resources, intellectual property and technology.

Speaking at the announcement of the transformation, Vingroup Vice Chairman – Mr. Le Khac Hiep – shared: “We want our healthcare and education businesses to continue to achieve outstanding developments. Having benefited from well-executed investments, efficient operation, being transparent and quality social enterprises further allows Vinmec and Vinschool to attract support from leading experts both domestically and internationally, so that our community can quickly access global-standard healthcare and education services.”

Healthcare and education are amongst Vingroup’s six core businesses. From their foundation, Vingroup has prioritized the social mission, and a focus on scale and quality, over financial profits.

As a result, after four years of operation, Vinmec has become the model for private healthcare businesses with distinguished, dedicated doctors and nurses, international standard of care, applying the latest healthcare technologies in Vietnam. To date, Vinmec operates 5 hospitals in Hanoi, Ho Chi Minh City, Nha Trang, Phu Quoc and Ha Long and one hospital under construction in Da Nang, on track to operating a portfolio of 10 hospitals and a Medical University across the nation in 2020.

In education, within three years, Vinschool became the largest private education provider with 13,000 students. Vinschool offers the best facilities with modern and embraces a comprehensive education philosophy.

With solid growth and operational quality, Vinmec and Vinschool are outstanding brands in healthcare and education, which have drawn interest from international institutional investors due to their attractive and sustainable long-term potential returns. Both businesses have entered stable operations, with facilities that have been in operation for over three years making operational profit. Management expects demands for quality healthcare and education will allow future facilities to break-even after around three years as well.

Therefore, a transformation into social enterprises is a defining corporate milestone, affirming Vingroup’s commitment to make significant contribution to society and advance our mission of “to create a better life for the Vietnamese people”, particularly in the healthcare and education services for our communities.

In the future, Vingroup plans to reserve another VND 5 trillion to establish two universities Vinmec Medical University and International VinUniversity, also under the social enterprise model.

Mr. Marc Villiers Townsend – a Vingroup Independent Board Member – says: “Many international renowned medical and education institutions, such as the Mayo Clinic, Cleveland Clinic, John Hopkins Hospital in the US and Samsung Medical Center in Korea, Harvard, Yale and Stanford universities in the US, Keio University in Japan and Yonsei University in South Korea are social enterprises. Vinmec and Vinschool joining this elite group of institutions reflects the social awareness and maturity of the Group, and reaffirms Vietnam’s readiness for international integration. It is our wish that this contribution also demonstrates the positive impact private enterprises are making in Vietnam.”

Social enterprises are nonprofit companies operating in the areas of scientific research, healthcare, education, charity or other social businesses.

In Vietnam, social enterprises are established under the Enterprise Law and operate as commercial corporates, but must commit to invest at least 51% of annual profit in registered social or environmental goals. Vingroup commits to reinvest the entire profit generated to enhance the quality of healthcare and education at Vinmec and Vinschool.