Vietnamese Car Maker VinFast Accelerates Electric Vehicle Push

The Vingroup has a vice chair and a CEO.

There are courts of Vingroup.

The world's largest tech trade show, the International Consumer Electronics Show in Las Vegas, is where VinFast revealed three new electric vehicle models. Less than two months ago the company unveiled two electric SUVs at the Los Angeles Auto Show.

It's a bold move by VinFast, a unit of Vietnam's largest conglomerate Vingroup, that was established less than five years ago. People in Vietnam are not surprised. The founder and chairman of Vietnam's biggest conglomerate Vingroup has a good track record to show that he means business.

VinFast, the first domestic automaker in Vietnam, was started in the year of 2017: a 335-hectare manufacturing complex in the northern port city of Hai Phong. The VinFast LUX SA2.0 sedan was showcased at the Paris Motor Show in the year 2018). VinFast delivered its first vehicles to customers in Vietnam less than two years after the factories were built. In the first nine months of the year, VinFast sold 25,528 cars, second only to Toyota.

The billionaire will build cars in Vietnam.

Before starting VinFast, he said he was going to build the biggest car maker in Vietnam. The wealthiest person in Vietnam, with a net worth of $7.3 billion, wants to conquer the global automobile market by going all-in on EV.

Last year, he decided to switch to electric vehicles. The analysts that were skeptical of Vingroup's venture into the automobile business welcomed the decision as the company could take advantage of the disruption in the auto industry caused by the shift to electric and self-driving vehicles. Vingroup has invested over $5 billion in VinFast.

The advanced manufacturing factory was built based on a flexible concept and was intended to become a global EV brand. The main difference between an internal combustion engine and an electric car is the engine. The motor shop has been innovated for EV production. VinFast will stop making internal combustion engine cars by the end of 2022, according to Le.

The VinFast VF e35 and VF e36 electric vehicles will be on display at the Los Angeles Auto Show.

Patrick T. Fallon is a photographer.

VinFast started constructing the VinES battery manufacturing factory in the Vung Ang Economic Zone of Ha Tinh province in Vietnam last month, affirming its plan to turn VinFast into a global smart EV brand.

The future of the automotive market is moving toward zero-emissions vehicles, and as such for a new automaker like VinFast, it makes sense to focus all future development on electric powertrains instead of competing with legacy automakers in combustion engine technology which they have been developing for decades.

The number of competitors is rapidly expanding at a time when VinFast is entering the market. Ford just announced it would increase production capacity for its F-150 Lightning, which is an electric vehicle, in order to meet increased demand.

Vietnam's first billionaire, Michael Noer, wrote about the Triumph of Capitalism.

The company is working with a number of companies in the automobile industry, including Pininfarina, Continental, battery makers, and the likes of Google.

One of the largest markets in Southeast Asia is Vietnam, and VinFast is targeting customers in North America and Europe. The company already has offices in the US, Canada, France, Germany, and the Netherlands, and they are ready to launch in those markets.

VinFast would consider organizing production in other countries in the future, depending on market needs, as the company is exploring the development of a production plant in the U.S. VinFast's products must meet the highest quality and safety standards and maintain reasonable pricing for customers regardless of where they are manufactured.

Many U.S. companies are building domestic supply chains in the U.S., investing in cell production and even upstream raw materials to ensure supply for their products. Vinfast will struggle to compete in the U.S.

The road map of phasing out internal combustion engine cars in North America is an excellent opportunity for VinFast to launch its brands in international markets. She says that these are large markets with open-minded consumers, strong development potential, and favorable economic conditions and policies. VinFast has a solid foothold in those markets.