When you think of Vietnam, bustling markets, fragrant pho, and the serene beauty of Ha Long Bay might come to mind. But beyond these cultural touchstones, Vietnam is also home to a rising star in the global electric vehicle (EV) industry: VinFast. This innovative company has rapidly ascended from a newcomer to an industry player that captures attention with its stylish and modern electric cars and SUVs.
Launched locally in the country in late May, the company promises to redefine transportation in the archipelago. With its cutting-edge EVs and innovative solutions, VinFast aims to replicate its success in Vietnam, sparking a tipping point for electric mobility in the Philippines.
A rising star
The story of VinFast is inseparable from the vision of its founder, Pham Nhat Vuong. Vuong’s journey from humble beginnings to becoming Vietnam’s first billionaire is a testament to his entrepreneurial spirit and determination. After honing his business acumen in post-Soviet Ukraine, he returned to his homeland in the early 2000s and established Vingroup, a diversified conglomerate with interests spanning real estate, retail, healthcare, and education.
Building on Vingroup’s success, Vuong embarked on a bold new venture in 2017: the creation of Vietnam’s first domestic car manufacturer, VinFast. This audacious move into the highly competitive automotive industry raised eyebrows, but Vuong’s motivations were clear. “A large, successful enterprise with a certain level of capabilities must make a contribution to the homeland,” he shared. “And in this case, the mission is to build a quality technology brand with international appeal.”
Vuong envisioned the VinFast as a pioneer of Vietnam’s technological progress and a source of national pride. Leveraging Vingroup’s extensive experience and comprehensive ecosystem, Vuong guided VinFast to achieve a remarkable feat: inaugurating a state-of-the-art factory and developing its first three car models in just 21 months, a record-breaking pace in the global automotive industry.
VinFast’s state-of-the-art factory in Hai Phong, equipped with over 1,400 robots and boasting up to 90% automation level, is a testament to the company’s dedication to cutting-edge technology and manufacturing excellence. With a production capacity of 250,000 vehicles annually, this facility not only serves the growing domestic demand in Vietnam but also fuels VinFast’s ambitious global expansion in key markets like the United States, Canada and Southeast Asia.
A landmark decision
Recognizing the growing global shift towards electric mobility and the increasing importance of sustainability, Vuong made another bold decision in 2021: transitioning VinFast into a fully electric vehicle (EV) manufacturer. This move not only aligned the company with global trends but also positioned it at the forefront of Vietnam’s burgeoning EV market.
Crucially, VinFast’s ability to swiftly and seamlessly make this transition was rooted in its forward-thinking approach to manufacturing. From the factory’s inception, flexibility was a key design principle. VinFast’s Deputy CEO of Electric and Electronic, Stuart Taylor, explains, “When our factory was built, we designed it to incorporate a high degree of operational flexibility to accommodate parallel production of our full range of vehicle models. This foresight allows us to smoothly transition from ICE production to electric vehicle (EV) production and will be critical to the operational flexibility expected to produce multiple SUV models on the same assembly line simultaneously.”
VinFast’s decision to go all-electric was not only a strategic move but also a reflection of its commitment to a more sustainable future. With growing concerns about air pollution and climate change, the company recognized the importance of developing vehicles that minimize environmental impact. VinFast’s EV models, such as the VF e34, VF 8, and VF 9, exemplify this commitment, offering consumers a greener alternative without compromising on performance or style.
Moreover, VinFast’s dedication to EVs extends beyond vehicle production. The company is investing heavily in building a comprehensive charging infrastructure network across Vietnam, addressing a key concern for potential EV buyers. Additionally, ongoing research and development in battery technology aim to enhance the performance and affordability of VinFast’s EVs.
A global journey
VinFast’s journey is far from over. The company’s rapid ascent in its home market, the U.S and Canada has laid the groundwork for a more ambitious global expansion as it turns its attention to Southeast Asia, a region ripe with potential for EV adoption. The company recognizes the unique needs and preferences of this diverse market and has tailored its approach accordingly. The Philippines, in particular, has been identified as a key market for VinFast’s expansion.
VinFast’s entry into the Philippine market could be a game-changer, offering consumers a compelling alternative to traditional gasoline-powered vehicles. The company’s commitment to providing affordable and accessible EVs addresses many of the barriers that have hindered EV adoption in the past.
With its proven track record in Vietnam and its growing global footprint, VinFast is well-positioned to make an impact on the Philippine automotive landscape, accelerating the transition towards a cleaner and more sustainable future of mobility.
