Scientist-entrepreneur collaborates with foreign giants, grows Phu Thai Holdings

Phu Thai Holdings, founded by scientist turned businessman Pham Dinh Doan, has become a large multi-sector corporation with effective implementation of a strategy to cooperate with foreign giants.

Established in 1993, it has grown to become a large-scale private corporation in the country operating in several areas including trade, fashion, luxury car distribution and veterinary medicine.

As of December 2021, Phu Thai Holdings had a charted capital of VND1.1 trillion ($45.13 million), with subsidiary Unity Vietnam Company Limited contributing nearly VND1.06 trillion ($43.3 million), equivalent to 95.97%. The remaining shares were held by Pham Thi Lien (1.39%) and Doan (2.64%).

Doan owned a 91.92% stake in Unity Vietnam as of July 2015.

A key to the major strides that the company has taken since its establishment three decades ago is the expansion of its ecosystem through cooperation deals struck with foreign giants by Doan.

Today, with abundant capital, experience and capacity, Phu Thai Holdings has become a corporation with great potential, operating in five main areas, namely trade-distribution, manufacturing of construction and mining machinery, fashion, luxury car distribution and agriculture.

Its first nucleus is the Phu Thai Group Joint Stock Company, which specializes in trading and distributing consumer products of major global corporations like P&G, Friesland Campina, Cuckoo, Kewpie and Paloma.

At present, it has more than 20 member companies as well as distribution and logistics centers nationwide.

At the end of 2012, Phu Thai Holdings and its founding shareholders transferred 65% of Phu Thai Group shares to Thai retailer Berli Jucker (BJC). Thai businessman Pattaphong Iamsuro was elected chairman of the Phu Thai Group.

As of October 2019, the remaining shares, equivalent to 35% of Phu Thai Group's charter capital, were still held by Pham Dinh Doan through Thai An Vietnam Joint Stock Company.

The corporation’s second important link is Phu Thai Industry Company Limited, which is the exclusive Vietnam dealer for Caterpillar – the world's leading maker of construction and mining equipment, diesel and natural gas engines, industrial turbines and diesel-electric locomotives.

Phu Thai Industry was established in 2010 with a charter capital of VND100 billion ($4.1 million) and two founding shareholders - Phu Thai Holdings (49%) and Pham Dinh Doan (51%). This is also the only legal entity in the Phu Thai ecosystem without the presence of foreign investors.

Phu Thai Holdings’ fashion segment, managed by the KOWIL Vietnam Fashion Joint Stock Company, boasts the famous OWEN brand. Having established a firm presence in the hearts of consumers in the country, it has the capacity to compete fairly with giants such as Uniqlo of Japan and H&M of Sweden.

In addition to OWEN, KOWIL Vietnam runs several other fashion brands including Winny, Dunlop and Beverly Hills Polo Club.

The corporation also imports and exclusively distributes luxury car brands like Jaguar and Land Rover in Vietnam, including genuine spare parts, through the Phu Thai Mobility Import Company Limited.

This business was established in January 2019 with parent company PON Phu Thai Mobility Group Company Limited holding a 100% stake.

The final part of the Phu Thai Holdings ecosystem is Vietnam Green Vet Joint Stock Company (Greenvet Jsc), which specializes in livestock and poultry farming as well as aquatic veterinary medicine. Greenvet is a 55:45 joint venture between Phu Thai Holdings and Artha Vena International, a maker of veterinary products headquartered in Singapore. Phu Thai Holdings is also involved in some real estate projects.

In 2021, it proposed to the People's Committee of Lang Son province in northern Vietnam that it surveys and makes a detailed plan for the 10.98-hectare Tan My Residential Area in Van Lang district and a 22-hectare shophouse and villa complex in Thuy Hung commune, Cao Loc district.

In April 2021, it submitted a similar proposal to the People's Committee of Thanh Hoa province for the Quang Tam and Dong Cuong new urban area projects in Thanh Hoa town. However, this proposal was not approved by local authorities.

Pham Dinh Doan is considered a pioneer in laying a foundation for the modern retail model in Vietnam. Born 1964 in Ha Tay province (now Hanoi), he began working for the Institute of Food Technology in 1987, after graduating from the Hanoi University of Science and Technology. Then, after studying abroad and learning the working methods of foreign private enterprises, he decided to leave his stable job and start a business in distribution with Phu Thai Company Limited. Scientist and entrepreneur Doan has also served as a deputy with the Hanoi People's Council for two consecutive terms, 2016-2021 and 2021-2026.