Flying happy

Within three years, at the age of 21, she had made her first million and moved on to trading in bigger things such as steel, machinery, fertiliser and other commodities.

Back in Vietnam Thao used her money to invest in Techcombank, also known as Vietnam Technological and Commercial Joint-Stock Bank, and a second lender, Vietnam International Commercial Joint Stock Bank. In a Vietnam still communist-ruled but rapidly adopting a market economy and capitalist ways, her timing was Perfect.

In 2017 Thao became Vietnam’s first female billionaire and VietJet, the airline she founded in 2011, has fast become a major player in regional Markets.

With a publicly-avowed aim of making it “the Emirates of Asia”, her record suggests that is a real possibility. Just a week after listing on the Ho Chi Minh City stock exchange in March 2017, VietJet’s market capitalisation overtook that of national flag carrier Vietnam Airlines (VNA). On its first trading day, VietJet was valued at US$1.4 billion and its rival, which listed in January, at US$2.1 billion. A week later, VietJet was valued at US$1.8 billion, ahead of VNA’s US$1.7 billion. Controlling 40 per cent of Vietnam’s domestic traffic at the time, it is now understood to have taken the lead, pushing past VNA.

Along the way, Thao’s tactics, aimed at attracting increasing numbers of young Vietnamese and those in a fast-emerging middle class, have been unorthodox and sometimes controversial. VietJet made headlines and sparked a furore when it launched flights with young female cabin crew dressed only in bikinis. It was an extremely un-communist approach but it worked, with passenger numbers quickly soaring.

Now known as “The Bikini Airline” in Vietnam, Thao is unrepentant. She says they – the bikini-clad flight attendants – are empowering images in Vietnam’s conservative culture.

“You (the cabin crew) have the right to wear anything you like, either the bikini or the traditional ao dai,” she said, referring to the traditional long tunic worn over loose pants.

“We don’t mind people associating the airline with the bikini image. If that makes people happy, then we are Happy.”

Her ambitions aren’t limited to Asia. In October, she disclosed VietJet plans to expand its fleet, now 45-strong with Airbus A320s and A321s, with 31 A321neos, 19 A321s and 100 Boeing 737 MAXs still to be delivered, to include widebody jets that will enable it to fly to the US West Coast by late 2019 or early 2020. Thao says the first flights could link the South-east Asian nation with San Jose, located near a large Vietnamese community, and would also be close enough to serve San Francisco.

‘We don’t mind people associating the airline with the bikini image.’ NGUYEN THI PHOUNG THAO

“We aim to expand international flights in the next few years. We want to make international flights 60 per cent of our total flights. We are studying the possibility of using widebody planes for long-haul flights when market conditions are favorable.”

Australia is also on her radar. In all the VietJet fleet is expected to reach 100 aircraft in 2021.

Making money doesn’t appear to have been a problem for VietJet. It was into profit in its second year of operations and the black ink keeps flowing. In the first half of 2017 it generated US$84.7 million in profits before tax, 44.7 per cent up on the same period a year earlier. Overall revenue for the six months was US$730.7 million, an increase of around 31 per cent compared to the previous period. Passenger numbers on international routes increased by 130 per cent and it operates to 73 domestic and international routes, an increase of 13 routes compared to the end of December 2016, a 37.7 per cent increase year on year. VietJet is now carrying around 17 million passengers Annually.

In 2017 the airline also broke ground on the construction of Vietjet Aviation Academy in the Saigon Hi- Tech Park in Ho Chi Minh City. The first element of the academy, a full flight simulator, is expected to be in operation during 2018.

As well as this, a subsidiary in Thailand, Thai VietJet, has been flying since March 2015.

‘I’ve never sat down and calculated my assets.’ NGUYEN THI PHOUNG THAO

The billionaire Thao has widespread holdings in Vietnam. She owns a 90 per cent stake in Sovico Holdings, which focuses its investments in three key sectors: banking and finance, real estate and the energy industry. The majority of her wealth is said to be derived from her stake in VietJet and her holdings in Dragon City, a 65-hectare real estate development in Ho Chi Minh City. Thao also has majority stakes in three resorts in Vietnam – the Furama Resort Danang, the Evason Ana Mandara Nha Trang and the An Lam Ninh Van Bay Villas. Thao and her holding company also own about a 20 per cent stake in Ho Chi Minh City Development JS Commercial Bank, or HDBank. She is vice-chairman of the privately-held commercial bank, which has total assets of about US$4.6 billion last year, with 225 branches and 10,000 employees.

However, she isn’t one to flout her Wealth.

“I’ve never sat down and calculated my assets,” Thao said. “I just focused on how to boost the company’s (VietJet’s) growth, how to increase the average salary for my employees, how to lead the airline to gain more market share and make it No 1.”

She is not averse to being innovative and taking risks.

“You have to take the lead and take calculated risks. As a businesswoman, I have a responsibility to contribute to the economy and to push for positive changes of the country and in the society, in light of the international integration that’s happening.”

In the midst of this, despite being a relative newcomer to the airline game, Thao has quickly forged a culture at VietJet that underscores the really important elements of running an airline. In a letter to shareholders and staff published on the airline’s website, she declared: “Our commitment is to run a safe, reliable airline, to keep up our on-time performance target while maintaining our performance with high safety goals. We shall continue to drive our costs down, allowing us to continue to offer lower and affordable air fares.”

And, she points out in a more traditional tone: “VietJet has been listed in Spring of the Chinese Lunar Year of Rooster. We hope that the Golden Rooster will lay its golden eggs and bring good luck, prosperity and success to the airline and its investors.”

So far, it appears her prayers are being answered.