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Vinmec and Vinschool to become not-for-profits

Released at: 10:44, 30/09/2016

Vinmec and Vinschool to become not-for-profits

Photo: Vinschool

All profits of two Vingroup subsidiaries to be put back into the community.

by Hai Van

Vingroup has announced that Vinmec and Vinschool will change to a not-for-profit model, with all profits going back into the community.

“We are undertaking the legal procedures and hope they will be completed next month,” Mr. Le Khac Hiep, Deputy Chairman of Vingroup, told VET.

The aim of the decision is for Vingroup to reaffirm its determination to contribute to the development of healthcare and education in Vietnam.

It commits to reinvesting 100 per cent of Vinmec and Vinschool’s profits in upgrading and developing healthcare and education, training human resources, improving facilities and equipment, offering scholarships, funding scientific research, transferring technology, and promoting cooperation and international links.

Vingroup will also not recover the more than VND4 trillion ($179.36 million) invested in building Vinmec and Vinschool in Vietnam, including infrastructure, machinery, personnel, copyright, and technology transfer costs.

“We want to improve Vingroup’s health and education systems,” said Mr. Hiep. “With a not-for-profit and efficient operating model the two sectors will receive attention and assistance from leading experts domestically and internationally. Communities can therefore quickly access high standard healthcare services and education.”

Vinmec and Vinschool are two of six sectors bringing major profits to the group. Despite becoming not-for-profit endeavors they will still receive investment. 

After four years of operations Vinmec has become a development model in the private healthcare sector, with professional doctors and staff, international standard services, and modern treatment technology. It has five establishments, in Hanoi, Ho Chi Minh City, Nha Trang, Phu Quoc Island and Ha Long. It aims to build ten hospitals and a medical university by 2020.

Vinschool is the biggest education concern in Vietnam, educating 13,000 students in a modern educational environment.

The decision to change their operating model and put all profits back into the community is a breakthrough step by Vingroup.

“Mayo Clinic, Cleveland Clinic, John Hopkins Medicine, Samsung, Harvard University, Yale, Stanford, Keio and Yonsei operate as non-profit organizations,” said Mr. Marc Townsend, an independence member of Vingroup’s board. “Vingroup has proved that Vietnamese enterprises are as big as international enterprises. In the future it will continue to invest over VND5 trillion ($224.2 million) in building the Vinmec Medical University and Vinmec University, both of which will operate under the not-for-profit model.”

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