This is a model that many large private groups in Vietnam have adopted over the past decade.

Trinh Van Quyet, the founding chairman of FLC Group, is exerting his power within the conglomerate through his planned participation in the FLC Holdings ecosystem. This is a model that many large private groups in Vietnam have adopted over the past decade.

On May 27, at an extraordinary general meeting of shareholders held in Hanoi, FLC Group approved several critical resolutions, including electing personnel for the new term and setting development orientations for the next phase. 

Quyet was absent from the newly formed Board of Directors.

According to the group’s leadership, FLC will transition to a holding model to enhance capital management capabilities and boost connectivity among its real estate, hospitality, aviation, and service arms within the ecosystem.

Quyet will feature in the projected holding model, owning the entirety of FLC along with its subsidiary units.

A holding company is a parent firm that mainly holds shares and control rights in other companies instead of directly producing or doing business. The model allows the parent to manage strategy, allocate capital, and control the ecosystem through subsidiaries that operate relatively independently.

After Quyet’s return, restructuring under a holding model is seen as a step to rebuild the FLC ecosystem. The model can help the group restructure debt more easily, classify assets, separate risks, and attract new partners. If one business segment struggles, other companies in the ecosystem are less affected by chain reactions.

FLC is not the first company to go this way. Over the past decade, many large groups in Vietnam have developed under a holding model or operated practically as multi-industry holdings.

Many major private groups in Vietnam such as Vingroup, Masan, Sovico, T&T, and BRG have developed under a holding model or similar structure.

Vingroup, alongside billionaire Pham Nhat Vuong, has built an ecosystem with core pillars such as VinFast, Vinhomes, Vinpearl, Vinmec, Vinschool, and more recently, VinEnergo, VinMetal, VinSpace, and VinSpeed.

Masan, tied to billionaire Nguyen Dang Quang, has also grown robustly under a holding model spanning consumer goods, retail, food, and finance. Sovico Group, linked to billionaire Nguyen Thi Phuong Thao, has formed an ecosystem revolving around HDBank and Vietjet Air. T&T Group connects multiple enterprises like SHB and SHB Finance alongside a string of energy and infrastructure projects.

BRG Group, Geleximco, Sun Group, and Thaiholdings also follow similar structures.

Pros and cons 

The most attractive feature of the holding model lies in capital management and risk separation. The parent company can hold shares, appoint leaders, and control strategy without directly running every business activity. Separating segments into separate firms also makes investment transfers, IPOs, or fundraising easier.

With Vingroup, the holding model helps the group expand quickly into electric vehicles, technology, healthcare, education, energy, and infrastructure. Masan uses this model to connect production with retail and build a consumer ecosystem. Sovico Group uses a holding structure to link finance, aviation, real estate, and energy, creating synergy across the ecosystem.

For FLC, the holding model could open opportunities to restructure after crisis. Splitting real estate, hospitality, or aviation into independent legal entities will help control finances better and reduce pressure on the whole system. At the same time, Trinh Van Quyet’s role is expected to focus on strategic planning, rather than direct operations as before.

Globally, the holding model has grown strongly for decades in the US, Japan, South Korea, and Europe. Berkshire Hathaway of Warren Buffett, Samsung of South Korea, SoftBank of Japan, and Tata Group of India are all famous holdings. During industrialization, this structure helps firms raise large capital, expand across industries, and create closed business ecosystems.

However, holdings also have downsides. In South Korea, chaebols were once criticized for complex cross-ownership and excessive family power. After the 1997 Asian financial crisis, many countries had to tighten corporate governance and raise financial transparency requirements.

The emerging trend focuses on core competencies rather than spreading across too many industries. Major conglomerates increasingly prioritize technology, AI, data, green energy, and digital finance. Many holding setups currently function more like strategic investment funds than direct operational machineries.

In Vietnam, the shift to the holding model is expected to continue as firms need to scale up, raise international capital, and professionalize governance. However, the big lesson from the world shows success doesn’t just come from setting up a parent company. It also depends on financial transparency, modern governance, and the ability to control risks across the whole ecosystem.

Manh Ha