Interview with Dr. Pham Ha, Chairman and CEO of LuxGroup, on Sustainable Investment
LuxGroup and its Sustainable Investment Strategy
- Many restaurants are closing down recently. What is your view on this trend?
I believe this wave of closures is an inevitable outcome of a lack of long-term business strategies and an inability to adapt to market fluctuations. Challenges such as high operating costs, a lack of customer loyalty, and increasing rental pressures have made it difficult for many businesses to survive. However, this also presents opportunities for companies with sustainable mindsets to focus on quality service and products, solidifying their market position.
- Rising rental costs are a significant challenge. How has LuxGroup addressed this issue?
Efficiency is always our top priority. Choosing a location goes beyond just cost—it must meet strategic criteria such as accessibility, proximity to target customers, and alignment with the cultural narrative we aim to convey through our cuisine. We negotiate long-term leases with landlords and optimize our operations. Additionally, streamlining supply chains and effective management help reduce costs while maintaining high service quality.
- Can you share the current performance of the two restaurants, Vị Hà Nội and Vị Sài Gòn?
Both Vị Hà Nội and Vị Sài Gòn are performing well, with stable monthly revenues averaging 2 billion VND each and profit margins exceeding 30%. This success stems from our unwavering focus on core values: exceptional food quality, culturally rich spaces, and dedicated service.
- The new restaurant in Hue is set to open soon. What is the scale and vision for this project?
Vị Huế is a project close to our hearts, aiming to honor the rich culinary heritage of Central Vietnam. We’ve invested around 10 billion VND in refurbishing the venue, designing the space, and training staff. Built with sustainability in mind, Vị Huế aspires to achieve the prestigious Michelin Green Star certification. The restaurant also integrates local art, especially works by the renowned artist Pham Luc, a native of Hue, creating an emotional and cultural connection for diners beyond the culinary experience.
- While many businesses are downsizing to conserve capital, LuxGroup is expanding. What drives this decision?
Our expansion is based on three key factors:
- Domestic market potential: Post-pandemic, Vietnamese customers increasingly value unique and high-quality dining experiences.
- A solid foundation: The proven success of Vị Hà Nội and Vị Sài Gòn provides us with confidence.
- Commitment to sustainability: The trend of “green dining” is gaining strong traction, and we are ready to lead the way.
We are committed to creating green restaurants that bring happiness not just to customers but also to employees and the community.
- What are LuxGroup’s upcoming plans?
We plan to expand the Vị brand to major cities like Da Nang and Phu Quoc, as well as develop riverfront dining experiences such as Vị Sông Sài Gòn and Vị Sông Hương. In addition, we are introducing fine dining menus and hosting cultural events that blend gastronomy with art. Our long-term goal is to build a sustainable ecosystem connecting cuisine with tourism, elevating Vietnamese culinary culture on the global stage.
- What message do you want to convey through the Vị brand?
“Each dish at Vị is not just about taste; it tells a cultural story.”
Through Vị, we aim to share Vietnam’s rich history, heritage, and love for culinary arts, creating meaningful connections with diners worldwide.
Conclusion
LuxGroup continues to innovate and grow sustainably with a clear vision and solid strategies. Projects like Vị Huế not only create economic value but also contribute to preserving and promoting cultural heritage. Discover more about LuxGroup’s inspiring journey at www.luxgroup.vn.
