The confirmation in July that Vinfast is to invest around US $2 billion to manufacture electric vehicles for North America at a new facility in North Carolina was proof positive that it is deadly serious about its plan to expand dramatically across the world, having already made a major impression in its native Vietnam.
The company’s intentions are abundantly clear, as CEO Le Thi Thu Thuy explained in an interview with Autocar. “In the next 10 years or so, Vinfast aims to become one of the largest EV brands globally,” she said.
It’s an ambitious timeline, but everything we have seen so far from Vinfast suggests that this is a brand in a hurry to make an impact.
The back story
Vinfast was founded in 2017 in Hanoi and is part of the vast Vingroup conglomerate, which is a dominating presence in many different areas in Vietnam, including retail, real estate and healthcare. The group was formed in 1993 by Pham Nhat Vuong, a businessman who started off selling noodles and is now the country’s richest man and a billionaire.
Despite its relative youth, Vinfast enjoyed a hugely successful 2021 in Vietnam, with its Fadil – a city car derived from the Vauxhall Viva – ending the year as the top-selling model and the brand the fourth best-selling manufacturer. Although the sales figures were not massive (24,128 for the Fadil, and 35,723 for Vinfast itself), this rise to prominence locally appears to be merely the launch pad for its global ambitions.
The US is the first target, and in May this year, Vinfast announced it was relocating its legal and financial HQ prior to an IPO in America, which may happen later this year or, more likely, in early 2023. Thuy said at the time: “We feel that Singapore is a jurisdiction that will give investors more confidence. We put ourselves in the shoes of the investors.”
The cars
The models that have established Vinfast in Vietnam will not play a part in the brand’s global plan. Instead, an EV-only line-up, created with input from Pininfarina, will be offered. Thuy told Autocar: “The VF5, VF6, VF7, VF8, and VF9 will respectively enter segments A, B, C, D and E. We are now receiving reservations [in the US] for the two electric SUV models, the VF8 and VF9.”
The mid-sized five-seat VF8 delivers a choice of 348bhp or 402bhp, with a likely range of up to 292 miles (WLTP) and 0-60mph possible in 5.3sec. The larger VF9 is a seven-seater, also with 402bhp, and Vinfast is targeting 369 miles on the WLTP scale, with 0-60mph dispatched in 6.3sec.
Both come with 10-year warranties in the US.
The pricing strategy
This is one area where Vinfast really believes it can capitalise, particularly in the current climate where the cost of living is an issue for many. As Thuy told Autocar: “Vinfast aims to universalise EVs for the mass market by providing quality products at reasonable prices.” Accordingly, in the US, the EV8 will start at $40,700 (£34,665) and the VF9 will cost from $55,500 (£47,275).
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