Vietnamese Car Maker VinFast Accelerates Electric Vehicle Push

VinFast, a relatively unknown car manufacturer from Vietnam, has unveiled three new electric vehicle models at this year’s CES, the world’s largest technology trade show, in Las Vegas. The move comes less than two months after the company unveiled two electric SUVs at the Los Angeles Auto Show.

What is VinFast?

This is really a bold move by VinFast, a unit of Vingroup – the largest corporation in Vietnam, established less than 5 years ago. However, in the Vietnamese market, people are not surprised by this. Mr. Pham Nhat Vuong, founder and chairman of Vingroup, has many achievements that show that he is very interested in business.

VinFast is Vietnam’s first domestic automobile manufacturer, established in 2017 with an area of ​​up to 33 hectares in the port city of Hai Phong, northern Vietnam. About a year later, VinFast launched its first car – the modern VinFast LUX SA2.0 sedan, at the 2018 Paris Motor Show. Less than 2 years after starting the factory, VinFast delivered the first cars. for customers in Vietnam. Currently, VinFast is the second best-selling car manufacturer in Vietnam, after Toyota, with 25,527 cars sold in the first nine months of 2021.

Before founding VinFast, Pham said that he planned to build the largest car manufacturer in Vietnam. Currently, he is the richest person in Vietnam with a net worth of $7.3 billion (according to Forbes’ list of World Billionaires last year), he has even bigger ambitions: conquering the global auto market by using an all-electric vehicle.

Future development

Last year, Mr. Pham decided to completely switch to EVs. Analysts, including some skeptics about Vingroup’s auto business, welcomed the decision, as the company was able to capitalize on disruptions in the auto industry caused by the transformation to electric and self-driving cars. The company said that so far Vingroup has invested a total of $5.4 billion in VinFast.

Vingroup vice chair and VinFast CEO Le Thi Thu Thuy (COURTESY OF VINGROUP)

Vingroup Vice President, Ms. Le Thi Thu Thuy, who was appointed as the General Director of VinFast globally, said: “Formed to become a global electric vehicle brand right from the time of its establishment, the factory produces advances built on the concept of flexibility. “In fact, the main difference between an internal combustion engine and an electric car is the engine. As a result, we renewed our engine shop to produce electric vehicles, including high voltage systems.” – Ms. Le added that VinFast will stop producing internal combustion engine cars by the end of 2022.

Last month, VinFast started construction of VinES battery factory in Vung Ang economic zone, Ha Tinh province, Vietnam, confirming its plan to turn VinFast into a global smart electric vehicle brand. “The future of the automotive market is clearly moving towards zero-emission vehicles, and for a new carmaker like VinFast, it is imperative to focus all future development on electric powertrains. rather than competing with older automakers on combustion engine technology makes sense.” – Christopher Robinson, senior analyst at Lux Research said. Robinson added: “However, VinFast is entering the market at a time when the number of competitors is expanding rapidly. Incumbent automakers such as Ford and GM are aggressively expanding their electric vehicle portfolio, with Ford announcing it will once again increase production capacity of the F-150 Lighting.”

To build the VinFast brand, the company is working with big names in the auto industry such as: famous Italian car designer Pininfarina, German auto-parts maker Continental, battery makers CATL and Samsung SDI, German steel giant Thyssenkrupp in industrial technology, and the likes of Google, Nvidia and Qualcomm for smart technology.

The VinFast VF e35 and VF e36 electric vehicles at AutoMobility LA ahead of the Los Angeles Auto Show on November 17, 2021 in Los Angeles, California.

Outside of Vietnam, VinFast is targeting customers in North America and Europe. The company already has offices in the United States, Canada, France, Germany, and the Netherlands in preparation for its launch in that market. “Currently, production is concentrated in Vietnam, but VinFast will consider organizing production in other countries in the future, depending on market demand.” – Ms. Le said and added: the company is exploring the development of a manufacturing plant in the US, which is expected to start in the second half of 2024. “Of course, no matter where it is manufactured, the products will VinFast products must meet the highest quality and safety standards and maintain reasonable prices for customers.”

Many US companies are also building domestic supply chains in the US, investing in cell manufacturing and even upstream raw materials to ensure the supply of their products, Lux’s Robinson emphasizes. this. “Vinfast will struggle to compete with these important difficulties in the US,” he added.

Besides, Ms. Le said that the roadmap to gradually phase out electric cars in North America is a great opportunity for VinFast to introduce its brand to the international market. “These are large markets with open consumers, strong growth potential, favorable economic and policy conditions,” she said. This helps VinFast have a strong foothold in those markets.

In conclusion

VinFast has brought Vietnamese products closer to foreign markets. With the orientation and efforts for the future of VinFast, which promises to reap many successes, it is worth looking forward to and proud of as Vietnamese people.

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